Waaree Renewable Technologies Ltd · NSE:WAAREERTL
Waaree Renewable Technologies — Investor Presentation (2021)
40 slides from Waaree Renewable Technologies's investor presentation, 2021
Slide 1: Recent Amendments in Companies Act, 2013: Disclosures and CARO 2020
Recent Amendments in Companies Act, 2013 : Disclosures in the Financial Statements and key provisions of (Companies Auditor’s Report Order), 2020 Prepared by Finance and Accounts Department 1
Slide 2: Key Objectives
Key Objectives Improve transparency Extensive Focus on disclosures by Objectives reporting of the Company loans Enhanced auditors reporting responsibility 2
Slide 3: Financial Analysis
Financial Analysis 3
Slide 4: Disclosure of following Ratios in the notes to the financial statements
Disclosure of following Ratios in the notes to the financial statements : Explanation is to be given for the items Profitability Liqudity Solvency Turnover included in the numerator and denominator for Net Profit Current Debt Inventory computing the said Ratio Equity ratios. Return on Debt Trade C
Slide 5: Trade Receivables: Disclosure of Ageing Schedule
Trade Receivables : Disclosure of Ageing Schedule Not Less 6 1–2 2-3 More Total due than 6 months years years than 3 months - 1 year years Undisputed – Considered good Undisputed -Considered doubtful Disputed- Considered good Disputed- Considered doubtful Note : Ageing has to be from due date of pay
Slide 6: Trade Payables: Disclosure of Ageing Schedule
Trade Payables : Disclosure of Ageing Schedule Less than 1–2 2-3 More Total 1 year years years than 3 years MSME Others Disputed Dues – MSME Disputed dues- others Note : Ageing has to be from due date of payment and not from bill date. 6
Slide 7: Capital Work In Progress
Capital Work In Progress Ageing Schedule of CWIP is to be given : Capital Work In Progress Less than 1 year (Classification) 1 year to 2 years 2 years to 3 years More than 3 years Completion Schedule shall Projects be given for overdue /cost Projects over run projects Temporarily In suspended Pr
Slide 8: Close Group Transactions
Close Group Transactions 8
Slide 9: Promoters shareholding
Promoters shareholding Currently only promoters shareholding of more than 5% needs to be disclosed : New requirement is for disclosure of entire promoters group holding Promoters Group Shareholding (New Norms) Percentage Name of the Number of Percentage change of total promoter shares held during th
Slide 10: Loans or advances granted to Promoters, Directors, KMPs and related parties
Loans or advances granted to Promoters, Directors, KMPS and related parties : Loans or advances repayable on demand; or without specifying any terms or period of repayment. Category Outstanding Percentage to the amount of total Loans and Loans or advances advance in the in the nature of nature of lo
Slide 11: Additional Disclosures
Additional Disclosures 11
Slide 12: Relationship with struck off companies
Relationship with struck off companies : If a company has any transactions with other companies whose names are struck off from MCA website, then the following details are to be furnished :- Name of struck Nature of transactions Balance Relationship with off company with struck-off outstanding the s
Slide 13: Registration or satisfaction of charges with Registrar of Companies
Registration or satisfaction of charges with Registrar of Companies (ROC) : This is a new requirement to ensure timely compliance with ROC If any registration Details and of Charges or reasons satisfaction are pending with ROC thereof to be beyond the disclosed in the statutory period notes 13
Slide 14: Disclosure of Corporate Social Responsibility (CSR)
Disclosure of Corporate Social Responsibility (CSR) Amount required to be spent by the company during the year; Amount of expenditure incurred; Shortfall at the end of the year; Total of previous years shortfall; Reason for shortfall; Nature of CSR activities; Details of related party
Slide 15: Presentation in financial statements
Presentation in financial statements Heads Existing presentation Revised presentation Current maturities Under Other Financial Under Short term of long term liabilities borrowings Borrowings 15
Slide 16: Rounding off of figures in Financial Statements
Rounding off of figures in Financial Statements Total income Rounding off If total income is less than one To the nearest hundreds, hundred crore rupees thousands, lakhs or millions, or decimals thereof If total income is one hundred To the nearest lakhs, millions or crore rupees or more crores, or
Slide 17: Key changes in Auditor's Report (CARO 2020)
Key changes in Auditor’s Report (CARO 2020) 17
Slide 18: Physical verification of inventory
Physical verification of inventory Existing Regulation : Amended Regulation : Only material discrepancies were Under CARO 2020, whether any required to be reported under discrepancies of 10 per cent or CARO 2016 more in the aggregate for each class of inventory have been noticed and if so, whether
Slide 19: Acceptance of Deposits: Auditors Reporting
Acceptance of Deposits : Auditors Reporting Existing CARO report mentions only about deposits accepted by the Company. New CARO report mentions deposits accepted by the Company or amounts which are deemed to be deposits. Examples of deemed deposits : a) Advance from customers which are outstanding f
Slide 20: Statutory Dues
Statutory Dues Auditor to report on timely payment of GST dues. All unpaid statutory dues which are disputed are to be reported. Earlier, in CARO 2016, reporting was restricted to specified dues (i.e. income tax, sales tax, service tax, custom duty, excise, VAT) 20
Slide 21: Borrowings from Banks and Financial Institutions in excess of Rs 5 crores
Borrowings from Banks and Financial Institutions in excess of Rs 5 crores Borrowings from banks and Financial Institutions in excess of Rs 5 crores Where borrowings are secured by current assets Auditor has to check whether the quarterly statements submitted to banks reconcile with the books of acco
Slide 22: Wilful defaulter
Wilful defaulter : The auditor has to report whether the company has been declared as a wilful defaulter by any bank or financial institution or other lender. 22
Slide 23: Defaults in Repayment of Loans
Defaults in Repayment of Loans The current requirement for auditors is to report defaults of repayment only in case of financial institutions and banks whereas in the amended regulations reporting defaults are extended to include any lender. 23
Slide 24: Application of Term Loans
Application of Term Loans The auditors have to report whether term loans were applied for the purpose for which these loans were obtained. If not, then the auditors are also required to report the amount of loan so diverted and the purpose for which it is used. 24
Slide 25: Application of short-term funds for long-term purposes
Application of short-term funds for long-term purposes The auditors have to report whether funds raised on short-term basis have been utilised for long- term purposes. If the answer is yes, then the auditors would be required to report the nature and amount so utilised. 25
Slide 26: Funds raised to meet obligations of subsidiaries, associates or joint ventures
Funds raised to meet obligations of subsidiaries, associates or joint ventures Another new reporting requirement relates to whether the company has taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures. If yes, then t
Slide 27: Utilisation of money raised through an IPO and private placement
Utilisation of money raised through an IPO and private placement of shares and debentures The auditors have to report whether money raised by way of an IPO or FPO (including debt instruments) or preferential allotment / private placements of shares / debentures during the year were applied for the
Slide 28: Loans or advances in the nature of loans: Evergreening
Loans or advances in the nature of loans : Evergreening CARO 2020 introduces a new reporting requirement in respect of a loan or an advance in the nature of loan granted which has fallen due during the year and has been renewed or extended or fresh loans granted to settle the overdues of existing lo
Slide 29: Company has advanced or loaned or invested funds – Disclosure
Company has advanced or loaned or invested funds – Disclosure: Date and amount of fund advanced/ loaned/invested – In an intermediary/(ies) Date and amount of fund further advanced or loaned or invested by such Intermediaries to other intermediaries or Ultimate Beneficiaries along with complete deta
Slide 30: Reporting of Cash Losses
Reporting of Cash Losses • CARO 2003 contained reporting for the amount of cash losses incurred by the Company in CARO • a) the current year and 2003 • b) the immediately preceding year. CARO • No such provision for reporting cash losses 2016 • CARO 2020 reintroduced reporting of cash losses as ment
Slide 31: Fraud Reporting
Fraud Reporting All types of frauds Filing of form for Whistle Blower are to be reported reporting of fraud Frauds by the Company or on Whether the auditor the Company by any person are to be has considered Prescribed form is reported whistle blower to be filed by the Statutory auditor, complaints,
Slide 32: Reporting on Internal Audit System
Reporting on Internal Audit System Auditors Report whether the company whether the reports of has an internal audit the Internal Auditors system commensurate for the period under with the size and audit were considered nature of its business by the statutory auditor 32
Slide 33: CSR: Auditors now have to report on unspent CSR
CSR : Auditors now have to report on unspent CSR Unspent CSR Amounts Other than Ongoing Ongoing project project Transfer to "Unspent CSR A/c“ in Scheduled Transfer to Specified Fund within 6 months of Bank within 30 days of end of Financial Year end of Financial Year If not Utilized within 3 Financi
Slide 34: Resignation of Statutory Auditors
Resignation of Statutory Auditors Whether any resignation of statutory auditors during the year No Yes whether the new statutory auditor has taken into No further reporting consideration the issues, objections or concerns raised by the outgoing auditors 34
Slide 35: Resignation of Statutory Auditors (Additional Requirement for Listed Companies)
Resignation of Statutory Auditors ( Additional Requirement for Listed Companies ) Disclosures to Stock Exchanges whether the lack of information was whether the inability detailed to obtain sufficient prevalent in the reasons for appropriate audit previous reported resignation evidence was due to a
Slide 36: Material Uncertainty
Material Uncertainty Another newly introduced reporting requirement under CARO 2020 requires an auditor to comment whether there is any material uncertainty as to the repayment of its current liabilities on the balance sheet date. 36
Slide 37: CARO Report for Consolidated Financial Statements (CFS)
CARO Report for Consolidated Financial Statements (CFS) Existing Regulation Amended Regulation CARO report is at present An auditor is now not required to be given required to state in its for consolidated financial CARO report details of statements. It is required qualifications or adverse only for
Slide 38: Unrecorded income disclosed in tax assessments
Unrecorded income disclosed in tax assessments CARO 2020 has introduced a new reporting requirement wherein an auditor should report on whether there are any transactions which have not been recorded in the books of account of a company but have been surrendered or disclosed as income during the yea
Slide 39: Property, Plant and Equipment and Intangible Assets
Property, Plant and Equipment and Intangible Assets Companies now have to maintain records of intangible assets. Additional auditor’s reporting on disclosure of new/pending proceedings against the Company in respect of benami properties held by the Company in the financial statements. An auditor is
Slide 40: Thank you
Thank you 40
Waaree Renewable Technologies — Investor Presentation (2021) on 6ix