Introduction: The Ministry of Commerce & Industry has unveiled noteworthy changes to the Production Linked Incentive (PLI) Scheme for White Goods, covering air conditioners (ACs) and LED lights. These modifications are driven by inputs from PLI Scheme beneficiaries and industry associations, with the aim of simplifying the scheme’s operation and improving the business environment.
Shift to Cost-Plus Method: One significant alteration is the adoption of the “Cost-Plus” method instead of the “Comparable Uncontrolled Price” (CUP) method for calculating sales prices in cases of captive consumption or supplies to group companies. This shift also necessitates changes to the definition of “Arm’s length.”
Eligible Investments Expanded: The revised guidelines now consider investments in Tool rooms for manufacturing Moulds and Dies as eligible under Capital Investment. This expansion broadens the scope of investment avenues for beneficiaries.
Extension for Reporting New Facilities: Beneficiaries are now granted an additional year over and above the initial two years for reporting the establishment of an additional manufacturing facility.
Revised Claim Submission Date: The last date for submission of claims and refunds of excess incentives due to discrepancies between statutory compliance and records provided at the time of claim filing has been updated.
Administrative Ministry Site Visits: The amendment allows for site visits by the Administrative Ministry to ensure compliance with the scheme.
Roll Over of Bank Guarantee: Bank guarantees can now be rolled over, providing flexibility to beneficiaries.
Updated Scheme Guidelines: The changes encompass appropriate updates to the annexures of the Scheme Guidelines, ensuring clarity and accuracy in scheme execution.
The PLI Scheme for White Goods was initiated as part of the “Atmanirbhar Bharat” initiative to bolster manufacturing, emphasize its role in India’s growth, and generate employment opportunities. The scheme specifically targets components and sub-assemblies of ACs and LED Lights, with a seven-year implementation period from FY 2021-22 to FY 2028-29 and a total outlay of ₹6,238 crore.
Since its approval in April 2021, the scheme has undergone adjustments through stakeholder consultations to ensure a smooth and effective implementation process. A total of 64 selected beneficiaries are involved in the scheme, with 15 having initiated commercial production during the gestation period up to March 31, 2022. The remaining beneficiaries with a gestation period up to March 31, 2023 are progressing at various stages of implementation.
The PLI Scheme for White Goods aims to create a comprehensive component ecosystem for the ACs and LED Lights industry in India, positioning the country as an integral player in global supply chains. The scheme anticipates a significant boost in domestic value addition from the current 15-20% to an impressive 75-80%.
Conclusion: The changes introduced in the Production Linked Incentive Scheme for White Goods signify the government’s commitment to promoting manufacturing and bolstering India’s presence in global supply chains. These modifications seek to streamline the scheme’s operation, attract investment, and enhance the ease of doing business, thereby contributing to the “Atmanirbhar Bharat” vision of self-reliance. The expanded scope and value addition expectations highlight the strategic significance of the scheme in promoting the domestic manufacturing ecosystem.
Corrigendum to the Scheme Guidelines is reproduced below:
***
File No. P-29014/101/2020-LEI
Government of India
Ministry of Commerce & Industry
Department for Promotion of Industry and Internal Trade
Dated: the 9th October, 2023
Subject: Corrigendum to the Guidelines dated June 4, 2021, for the Production Linked Incentive (PLI) Scheme for promoting domestic manufacturing of White Goods (Air conditioners and LED Lights)
The “Production Linked Incentive Scheme (PLI) for White Goods (Air Conditioners and LED Lights) manufacturers in India”, hereinafter referred to as PLIWG Scheme, was notified vide notification No. CG-DL-E-16042021-226671 dated 16.04.2021. For effective operation and smooth implementation of the PLIWG Scheme, guidelines were issued by DPIIT on June 4, 2021 and the Scheme has been made open to applications for three months w.e.f. June 15, 2021. Based on stakeholder consultations, two corrigenda to the Scheme Guidelines were issued on August 16, 2021 and February 24, 2022 while selection of beneficiaries was announced on November 3, 2021 and June 28, 2022.
2. Subsequently, based on the requests and suggestions received from various applicants and industry associations and with a view to simplifying the operation of the Scheme as well as to improve the ease of doing business, following revisions to the PLIWG Scheme Guidelines issued by DPIIT on June 4, 2021 are being made: –
3. In view of the proposed amendments to the Scheme Guidelines, appropriate modifications are also being incorporated in various annexures as well as undertakings to be submitted by the beneficiaries. These are placed as APPENDIX. These may be refined further based on the industry best practices and prevailing statutory norms.
4. The Guidelines issued on June 04. 2021 and corrigendum issued on 16th August, 2021 and 24th February. 2022 shall be read incorporating the above revisions and additions where ever applicable.
(Sanjiv)
Joint Secretary to the Government of India
Tel No. 011-23098743
Email: [email protected]
New Delhi, Dated 09th October, 2023
APPENDIX
Modified Annexures as well as undertakings to be submitted by the beneficiaries.
(These may be refined further based on the industry best practices and prevailing statutory norms.)
Annexure-II-A
Bank Guarantee for availing incentive against Investment (From any scheduled commercial bank)
This Deed of Guarantee executed on this_____________________________ day of___________________ , 202_at___________ by (from any scheduled commercial bank), having its Head Office/Registered Office at __________________________________ and inter-alia a Branch Office at__________________________________________ (hereinafter referred to as the Bank or ‘the Guarantor’, which expression shall unless it be repugnant to the subject or context hereof be deemed to include its successors and assigns).
In favour of The Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India, Vanijya Bhawan, New Delhi 110011 (hereinafter referred as “DPIIT”) represented by <PMA Name>, having its registered office at, acting as the Project Management Agency (PMA) for Production Linked Incentive (PLI) Scheme for White Goods.
WHEREAS
A. [………………………….. ], a company incorporated in India under the provisions of the Companies Act, 2013 and having its Registered Office at [——————- ] (herein after referred to us ‘the Applicant” which expression unless repugnant to the subject or context includes its successors. Legal representatives and permitted assigns) and has been awarded approval under the above scheme vide Letter Reference ————————————————————— dated———-
B. In terms of the undertaking dated ——————————— and Clause —————- of the Guidelines Reference No. dated the Applicant has to provide a Bank Guarantee for an amount equivalent to INR————————– which is calculated in line with the undertaking.
C. At the request of the Applicant, the Guarantor has agreed to provide this guarantee, being these presents, guaranteeing the due and punctual performance/discharge by the Applicant of its obligations.
NOW THEREFORE THIS DEED WITNESSETH AS FOLLOWS
A. The Guarantor hereby irrevocably guarantees the due and compliance of terms by the Applicant of all its obligation under the said undertaking and approval letter, as amended from time to time.
B. The Guarantor shall, without demur, pay to DPIIT sums not exceedingin aggregate —————————- (INR —- ————————————– ) within five (5) bank working days (as per the Reserve Bank of India) of receipt of a written demand thereof from DPIIT / <PMA Name> stating that the Applicant has failed to meet its obligations under the said undertaking. The Guarantor shall have not to go into the veracity of any breach or failure on the part of the Applicant or validity of the demand so made by DPIIT/ <PMA Name> and shall pay the amount specified in the demand notwithstanding any direction to the contrary given or any dispute whatsoever raised by the Applicant or any other person. The Guarantor’s obligations hereunder shall subsist until all such demands are duly met and discharged in accordance with the provisions hereof:
C. The Guarantor agrees that its liability under this guarantee shall in no manner be affectedby any such variation, alteration, modification, waiver dispensation and that no further consent of the Guarantor is required for giving effect to any such variation, altercation, modification, waiver dispensation with or release of security;
D. This Guarantee shall be irrevocable and shall remain in full force and effective till 31st December’2028 –.(
E. Until and unless discharged / released earlier by DPIIT / <PMA Name> in accordance withthe provisions of the said undertaking, the Guarantor’s liability in aggregate shall be limited to a sum of INR ———————– (INR——————————————————————————–)
F. This Guarantee shall not be affected by any change in the constitution or winding up of the Applicant / Guarantor or and absorption, merger or amalgamation of the Applicant / Guarantor with any other person;
G. The Guarantor has power to issue this Guarantee and discharge the obligations contemplated herein, and
the undersigned is duly authorized to execute this Guarantee pursuant to the power granted under.
All future correspondence with reference to this Guarantee shall be made to. ……………………………. (Bank Name and Address).
The jurisdiction in relation to this Guarantee shall be the Courts at New Delhi and Indian Lawshall be applicable.
IN WITNESS WHEREOF THE GUARANTOR HAS SET ITS HANDS HEREUNTO ONTHE: DAY, MONTH AND YEAR FIRST HEREINABOVE WRITTEN
SIGNED AND DELIVERED by________________ Bank by the hand of_____________ its___________ and authorized official.
Annexure-II-B
UNDERTAKING FOR BANK GUARANTEE AGAINST PROPOSED INVESTMENT
(Undertaking from the Applicant on the letterhead)
1. We, ………………………………………………………………………………. , hereby, acknowledge that the incentive that would / may be provided to us under the Production Linked Incentive (PLI) Scheme for White Goods, notified by Department for Promotion of Industry and Internal Trade(DPIIT) vide Gazette Notification no. dated__________________________ in ____________________________________ of the Gazette of India (Extraordinary) and other relevant guidelines, communications, will be provided to us based on, and after relying upon, the information provided by us to avail the said incentive.
2. We hereby confirm that the information provided by us for availing the said incentive is true, correct and complete in all respects and that no material fact / information that may have an adverse impact on the information provided by us for availing the said incentive has been concealed.
3. In case of the Investment in the project, as per the approval letter, is to be made by us within a specified period from the date of approval letter.
4. With regard to the aforesaid transactions, we hereby undertake the following:
A. We undertake to provide Bank Guarantee from a schedule commercial Bank for the amount which is mentioned below:
| S. No | Particulars | Details |
| 1. | Date of issuance of Approval Letter | |
| 2. | Validity period of BG * | 31st December’2028 |
| 3. | Amount of BG | (0.5% of the Committed Cumulative Investment) |
* valid for remaining tenure of the scheme from the proposed date of commercial production as per clause 10.11
Valid for remaining tenure of scheme from the date of issuance of Approval letter by the PMA and further roll over as per Clause 10.6 read with Clause 10.7, 10.8,10.9 and 10.11
B. We understand and agree that, we are legally bound to renew the BG / issue fresh BG, failing which DPIIT may invoke the BG.
C. In case of loss, mutilation, force majeure or any other eventualities, with respect to Original BG (favouring DPIIT, held at PMA), DPIIT / PMA will not be liable for the same and the onus would be with us to arrange for alternate / duplicate BG in place of the original BG.
D. We also understand that the BG will be released to us in line with the new clause
Date
Signature
(Name & designation with address) Director / CEO / MD
Appendix-V
Quarterly Review Report
An applicant shall be required to provide the following information (self-certified) for quarterly review within 30 days from the end of each quarter:
1. Name of Applicant
2. Target Segment
3. Eligible Product(s)
4. Application Acknowledgement Date
5. Application Approval Date
6. Manufacturing Location(s)
7. Customer List — (details to be sought along with claim)
8. Investment Actualized for Manufacturing of Eligible Product(s) (amount in INR)
Source of Funding (Equity, Debt, Internal Accrual etc.)
9. Employment as on date (in numbers)
On-roll labor / employees
Contractual
Apprentice
10. Installed Production Capacity for Eligible Product(s) under respective Target Segment
11. Net Sales turnover- Domestic
[net of credit notes, discounts and taxes applicable]
12. Net Sales turnover — Exports
[net of credit notes, discounts and taxes applicable]
a) Manufacturing Activity
i. Eligible Product
ii. Other Goods in Target Segment
iii. Other Goods
b) Trading Goods
Target Segment
i. Other Goods
ii. captive consumption
c) Services Activity
13. Total Revenue from Operations
14. Details of Import— CIF value of Imported Goods at the Importation
a) Raw Material / Parts / Components
i. Eligible Product
ii. Other Goods in Target Segment
iii. Other Goods
b) Spare Parts
i. Eligible Product
ii. Other Goods in Target Segment
iii. Other Goods
c) Finished Goods
i. Eligible Product
ii. Other Goods in Target Segment
iii. Other Goods
d) Capital Goods
i. Target Segment
iii. Other Goods
e) Import of Services pertaining to Target Segment
f) Expenses for Advertisement and Sales
g) Brand Royality of Products
h) Goods Returned
New Annexure I
Integrity Compliance in Production Linked Incentive Scheme
1. Whereas, the applicant namely____________________ (company name) has submitted an application under Production Linked Incentive Scheme (PLI) for White Goods to Department for Promotion of Industry and Internal Trade (DPIIT), Government of India seeking incentive for the applications pertaining to manufacturing of __________________ (Eligible Products) till dd/mm/yyyy at the following locations:
a) ………………
b) ………………
c) ………………
2. Now, therefore, the applicant including its officers /representatives commits and undertake that he will take all measures necessary to prevent corruption. He commits to observe the following principles during his association/engagement with DPIIT or its Agencies or its consultants engaged with the process of appraisal and verification of application for the approval of application and disbursement of incentives under PLI.
2.1. The PLI applicant will not directly or through any other person or firm, offer, promise or give to any DPIIT’s officer(s) or consultant or agency representative (appraisal/verification agency appointed by DPIIT to handle the application) involved in the process of dealing with application or to any third person any material or other benefit which he/she is not legally entitled to in order to obtain in exchange in any advantage or any kind whatsoever before or during or after the process of the application for grant of approval or disbursement of incentives under PLI.
2.2. The PLI applicant will not commit any offence under the relevant IPC/PC Act. Further, the applicant will not use improperly, for purposes of competition or personal gain, or pass on to others, any information or document provided by the DPIIT.
2.3. The PLI applicant shall disclose the name and address of the duly authorised agents and representatives who will be dealing with DPIIT or its Agencies and the remuneration of these agents or representatives shall not include any hidden amount or component to get the work done in undue manner or causing inducement of whatsoever nature whether in cash or kind to influence the normal process or practice of work.
2.4. The PLI applicant shall disclose any and all payments he has made, is committed to or intends to make to agents, brokers or any other intermediaries other than regular employees or officials of the applicant, in connection with the grant of approval or/and disbursement of incentives.
2.5. The applicant will not offer any illicit gratification to obtain unfair advantage.
2.6. The applicant will not collude with other parties to impair transparency and fairness.
2.7. The applicant will not give any advantage to anyone in exchange for unprofessional behaviour.
3. The applicant declares that no previous transgressions occurred in the last three years with any other company in any country conforming to the anti-corruption approach or with any other Public Sector Enterprises/Central or State government or its any instrumentality in India.
4. The applicant agrees that if it is found that the applicant has made any incorrect statement on this subject, the application will be closed or rejected and DPIIT reserve the right to initiate legal action of whatsoever nature. In case if DPIIT has disbursed the incentives under the PLI, the amount disbursed to applicant be recoverable along with interest calculated at three years SBI MCLR prevailing on the date of disbursement, compounded annually besides blacklisting of the applicant and initiation of legal action of whatsoever nature at the discretion of DPIIT.
5. In the event the selected applicant declines the offer of approval under the Scheme at any stage or exits the scheme without making full committed investment for reasons whatsoever, in such case the applicant shall have to refund the incentive availed by it under the scheme till such date along with interest calculated at the prevailing 3-year SBI MCLR compounded annually.
The contents of the above undertaking have been gone through and after understanding the same is being executed given on …………… day of Month, 20xx.
For Company Name
Name:
Designation: Director/CEO/MD
Place:
Date:
To,
Date: Month xx, 202x
IFCI Limited,
Project Management Agency for PLI Scheme for White Goods of DPIIT
IFCI Tower,
61 Nehru Place
New Delhi: 110019
Reference:
Approval letter issued by IFCI in favour of________________ (company name) under the Production Linked Incentive Scheme for White Goods vide letter no. ____________________________ dated for application no __________ dated _____ filed online via portal for Category _____________ ; Target Segment_______________ ;and Eligible Products__________________
Declaration
This is to declare that :
| 1. | Incremental Investment and Net Incremental Sales of White Goods applicable for determining eligibility | |
| 2. | Base year Sales of eligible products under Target Segment (Base Year) for which applicant was made. | |
| 3. | Period for which Incentives is being claimed |
This declaration has been issued in requirement under the Disbursement claim form under the Guidelines for operation of Production Linked Incentive Scheme (PLI) for White Goods as per File No. P-29014/101/2020-LEIPart (1)-DPIIT issued by Department for Promotion of Industry and Internal Trade dated 4th June, 2021.
For Company name
Authorized Signatory
Place:
Date:
To,
Date: Month xx, 202x
IFCI Limited,
Project Management Agency for PLI Scheme for White Goods of DPIIT
IFCI Tower,
61 Nehru Place
New Delhi: 110019
1. We do hereby confirm that we are Independent Auditors of M/s ___________________ Limited (hereinafter referred to as “the company”) for FY 2019-20 and F.Y 2020-21 Appointed under section 139 of the Companies Act, 2013.
2. This certificate is being issued in connection with determination of baseline sales of manufactured goods covered under Target Segment and investments for the company, under Production Linked Incentive Scheme (PLI) for White Goods notified vide notification No. CG-DL-E-16042021-226671dated 4th June 2021 read with guidelines for the operation of PLI for White Goods dated 15th April 2021, as amended from time to time (hereinafter referred as ‘the PLI Scheme’).
3. It is confirmed that we have followed the relevant code of conduct issued by ICAI w.r.t. independence of Auditors and provisions of Companies Act, 2013. …………………………… (name of statutory auditor’s firm) or any of our associates or affiliate concerns/ entities are not engaged in providing any services to or business with, the applicant which may pose any potential ‘conflict of interest’ in submission of this certificate or non-compliance with the code of ethics issued by ICAI or provisions of Companies Act, 2013.
4. The accompanying Statement on appended at Annexure Ito VIII (collectively referred to as ‘the Statement’) has been prepared by the Company for eligible products covered under the target segment goods (please strike out whichever is not applicable)) as defined under the PLI Scheme.
Management’s Responsibility
5. The accompanying Statement, including the creation and maintenance of all accounting and other records supporting its contents, is solely the responsibility of the Company’s Management. The Company’s Management is responsible for designing, implementing and maintaining internal control relevant to the preparation and presentation of the Statement, applying an appropriate basis of preparation, and making estimates that are reasonable in the circumstances.
6. The Company’s Management is also responsible for ensuring that the Company complies with the requirements of the PLI Scheme and for providing all relevant information to the Project Management Agency established under the PLI Scheme.
Auditor’s Responsibility
7. Pursuant to the requirements of the PLI Scheme, it is our responsibility to provide a certificate based on our examination of the information contained in the Statement with reference to the books of accounts and other records of the Company, on the matters listed under the head “Independent Auditor’s Opinion”.
8. Revenue from eligible products under the target segment so far as it relates to _________________ (other group company name, if applicable), have been reported by us based on Independent Auditors certificate prepared by independent auditors of________________ (other group company name, if applicable) dated Month xx, 202x,/ Month xx, 202x & Month xx, 202x which have been furnished to us by the management and our opinion in respect of amount so far it relates to such revenue is based solely on the report of such other auditors and other procedures performed by us (strike out, if not applicable).
9. We have verified the fixed assets register, sales register, GST returns and all other relevant financial, secretarial, and statutory records of the company for the period from 1st April 2019 to 31st March 2020/ from 1st April 2019 to 31st March 2020 and 1st April 2020 to 31st March 2021 for the purpose of arriving at the baseline sales of Eligible Products manufactured by the company covered under target segment. and base line Investment respectively.
10. (a) The financial statements of the Company for the year ended 31 March 2020 /for the year ended 31 March 2020 & for the year ended 31 March 2021 were audited by us on which we had issued an unmodified audit opinion vide our report dated Month DD, 202x /our report dated Month DD, 202x & dated Month DD,202x. Our audit of these financial statements was conducted in accordance with the Standards on Auditing specified under section 143(10) of the Companies Act, 2013 and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
b) The audit of internal financial controls with reference to financial statements of the Company as of 31 March 2020 /as of 31 March 2020 & as of March 2021 in conjunction with our audit of the financial statements of the Company for the year ended on that date was performed by us in accordance with the criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India, on which we had issued an unmodified opinion vide our report dated MMMM DD, 20YY /our report dated MMMM DD, 20YY. & dated MMMM DD, 20YY.
c) The Company’s financial statements for the year ended 31st March 2020/ for the year ended 31st March 2020 & for the year ended 31st March 2021 was subject to audit as mentioned in para 10(a) above.
We conducted our examination of the Statement in accordance with the Guidance Note on Reports or Certificates for Special Purposes issued by the Institute of Chartered Accountants of India. The Guidance Note requires that we comply with the ethical requirements of the Code of Ethics issued by the Institute of Chartered Accountants of India.
11. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.
12. Our engagement for this certificate includes performing procedures to obtain sufficient appropriate audit evidence on the applicable criteria mentioned in paragraph 6 above. The procedures selected depend on the auditor’s judgement.
Independent Auditor’s Opinion
Based on our examination as stated above and based on the information and explanations given to us by the Company’s management, we report that:
I. General
a) The Company has considered the audited financial statements for the year ended 31 March 2020/ for the year ended 31 March 2020 & for the year ended 31 March 2021 prepared under Companies Act, 2013 for arriving at the at the information given in the accompanying Statement.
b) The accounting policies, methods and assumptions of management’s estimates used by the Company in the preparation of the financial statements and there have been no change in the said accounting policies, methods and assumptions during the year ended 31 March 2020/ the year ended 31 March 2020 & the year ended 31 March 2021. Further, the accounting policies, methods and assumptions of management’s estimates used for preparation of financial statements have been applied for the preparation of information given in the Statement.
II. Sales Eligible Products covered under the target segments manufactured by __________ (company name).
c) the information relating to, (i) net sales of manufactured eligible products covered under the target Segments for the year ended 31st March 2020 /for the year ended 31st March 2020 & for the year ended 31st March 2021′ and Annexure I & VII are in agreement with the books of accounts of the Company and Scheme Guidelines
d) The baseline sales have been arrived after giving effect of sale returns, taxes, discounts, rebates, credit notes, claims if any. Further, there are no unsettled claims other than those which have already been provided for in the books of accounts and adjusted in the baseline sales and no disputed claims against the baseline sales of manufactured eligible products covered under target segment.
e) The baselines sales of eligible products covered under the target segments has not been adjusted by the amount of sales returns, taxes, discounts, rebates and credit notes and claims & cost escalation pertaining to earlier years i.e. prior to 1st April 2019 /1st April 2019 & 1st April 2020.
f) There are no expenses pertaining to Advertisement and Sales Promotion and Brand Royalty in FY 2019-20/ FY 2019-20 & FY 2020-21, therefore no deduction required from baselines sales on account of these items OR the expenses pertaining to Advertisement and Sales Promotion and Brand Royalty has been deducted from the net sales of manufactured Target Segment goods and manufactured Eligible Product.
g) The ageing of outstanding debtors as at 31 March 2020 / as at 31 March 2021 in connection with target segment Goods as provided in Annexure- IV to the Statement is in agreement with the books of accounts and appropriation policy followed by the Company on a regular basis.
h) The sales amount of manufactured goods containing captive consumption of eligible products and eligible product under the target segment as per GST returns reconciles with sales of manufactured goods containing captive consumption of eligible products and eligible products as per books of account, as provided in Annexure – III to the Statement.
i) The relevant compliances under Companies Act 2013, Indian Accounting Standard 24 and Income Tax Act 1961, have been made with respect to transaction with Related Parties.
j) The sales amount of eligible product contains only sales of eligible product manufactured by the company in the Brownfield Project approved and setup under the Scheme Guidelines.
k) For the purpose of Baseline. the Cost of Production in case of in-house consumption or sale to group company has been considered at invoice level. Accordingly, the sales of eligible product ………. Eligible for incentive is Rs……… for captive consumption and the sales of eligible product Eligible for incentive is Rs……………… for sale to group companies.
l) The project set up by the company is Brownfield project as per clause 2.21 of the scheme guidelines and date of commercial operation is …………………. As per clause 2.13 of the scheme guidelines.
m) The consolidated global manufacturing revenue from target segment furnished by the company is Rs. ________ Crores for qualification criteria in the application for PLI Scheme of manufactured goods in the target segment / category in India, in the base year.
*The manufacturing revenue of eligible goods covered under the target segments of the Company is INR or the FY 2019-20 /for FY20-21
III. Investment
n) The amounts relating to baseline for investment of Company as a whole as at 31 March 2020 as stated in Annexure V of the Statement are in agreement with books of accounts of the Company.
IV. Internal Controls
o) The Company has adequate internal controls with reference to financial statements and such internal financial controls were operating effectively as at 31 March 2020 based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
p) The internal control procedures on revenue recognition, allocation of sales consideration, pricing policy, settlement of discounts & rebates, capitalisation of fixed assets and other areas relevant to determination of baseline sales and investment of manufactured eligible products under target segment is operating effectively
Restriction on Use
15. The certificate is being submitted to IFCI Limited (Project Management Agency) and at the request of Board of Directors of the Company solely for the purpose of Production Linked Incentive Scheme and should not be used by any other person or for any other purpose. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this certificate is shown or into whose hands it may come without our prior consent in writing
