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Aaron Industries Ltd.

BSE: 535103 Sector: Engineering
NSE: AARON ISIN Code: INE721Z01010
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Aaron Industries Ltd. (AARON) - Auditors Report

Company auditors report

To the Members of Aaron Industries Limited Report on the audit of Standalone Ind ASfinancial statements Opinion

We have audited the accompanying standalone Ind AS financial statements of AaronIndustries Limited (“the Company”) which comprise the Balance sheet as at March31 2022 the Statement of Profit and Loss including the statement of Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and notes to standalone Ind AS financial statements including a summary ofsignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 as amended (“the Act”) in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended (“Ind AS”) and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022its profit including other comprehensive income its cash flows and the changes in equityfor the year ended on that date.

Basis for opinion

We conducted our audit of standalone Ind AS financial statements in accordance with theStandards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those standards are further described in the ‘Auditor’sResponsibilities for the Audit of Standalone Ind AS Financial Statements’ section ofour report. We are independent of the Company in accordance with the ‘Code ofEthics’ issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI’s Code of Ethics.We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on standalone Ind AS financial statements.

Key Audit Matters

Key audit matters (‘KAM’) are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statements ofthe current period. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. We have determined the matters describedbelow to be the key audit matters to be communicated in our report.

Description of Key Audit Matters

The key audit matters How the matter was addressed in our audit
As at March 31 2022 the trade receivables constitute approximately 8% of the total assets of the Company. The Company is required to regularly assess the recoverability of its trade receivables. Evaluated the Company’s accounting policies pertaining to trade receivable and impairment of financial assets and assessed compliance with those policies in terms of Ind AS 109 - Financial Instruments.
The Company applies the Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on trade receivables. The Company uses a provision matrix to determine impairment loss allowance. The provision matrix is based on its historically observed default rates over the expected life of trade receivables. Assessed and tested the design and operating effectiveness of the Company’s internal financial controls over Trade receivables including provision for impairment.
This is a key audit matter as significant judgement and assumption are involved to establish the provision matrix. Evaluated management’s assumption and judgment relating to various parameters which included the historical default rates and business environment in which the entity operates for estimating the amount of such provision.
The trade receivables balance credit terms and aging as well as the Company’s policy on impairment of receivables have been disclosed in note 7 to the standalone financial statements. Evaluated management’s assessment of the recoverability of the outstanding receivables and recoverability of the overdue/aged receivables through inquiry with management
Assessed and reviewed the disclosures made by the Company in the standalone financial statements.

Other Information

The Company’s Board of Directors are responsible for the other information. Theother information comprises the financial highlights management discussion and analysisreport Company information Notice of AGM and Directors’ Report including corporategovernance report but does not include standalone Ind AS financial statements and ourauditor’s report thereon. The financial highlights management discussion andanalysis report Company information Notice of AGM and Directors’ Report includingcorporate governance report is expected to be made available to us after that date of thisauditor’s report.

Our opinion on standalone Ind AS financial statements does not cover the otherinformation and we will not express any form of assurance conclusion thereon.

In connection with our audit of standalone Ind AS financial statements ourresponsibility is to read the other information identified above when it becomes availableand in doing so consider whether such other information is materially inconsistent withthe financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

Responsibilities of Management for Standalone Ind AS Financial Statements

The Company’s Board of Directors are responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone Ind AS financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended by the Companies (IndianAccounting Standards) Second Amendment Rules 2019. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of standalone Ind AS financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.

In preparing standalone Ind AS financial statements management is responsible forassessing the Company’s ability to continue as a going concern disclosing asapplicable matters related to going concerned and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company’sfinancial reporting process.

Auditor’s Responsibilities for the Audit of Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether standalone Ind ASfinancial statements as a whole is free from material misstatement whether due to fraudor error and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone Ind AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also

Identify and assess the risks of material misstatement of standalone Ind AS financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company has anadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However future events or conditions may cause theCompany to cease to continue as a going concern.

Evaluate the overall presentation structure and content of standalone Ind ASfinancial statements including the disclosures and whether standalone Ind AS financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate make it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and evaluating the results of our work; and (ii) evaluating the effect of anyidentified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of standalone Ind AS financialstatements for the financial year ended March 31 2022 and are therefore the key auditmatters. We describe these matters in our auditor’s report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss including the Statement ofOther Comprehensive Income the Cash Flow Statement and Statement of Changes in Equitydealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended by the Companies (Indian AccountingStandards) Second Amendment Rules 2019;

(e) On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 from being appointed as a director in terms of Section 164 (2) ofthe Act;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in “Annexure A”. Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlsover financial reporting.

(g) With respect to the other matters to be included in the Auditor’s Report inaccordance with the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.

(h) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i) The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements Refer Note No 43 to standalone IndAS financial statements;

ii) The Company did not have any material foreseeable losses in long-term contractsincluding derivative contracts during the year ended March 31 2022;

iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv) a. The Management has represented that to the best of its knowledge and belief asdisclosed in the notes to the accounts no funds (which are material either individually orin the aggregate) have been advanced or loaned or invested (either from borrowed funds orshare premium or any other sources or kind of funds) by the Company to or in any otherperson(s) or entity(ies) including foreign entities (“Intermediaries”) withthe understanding whether recorded in writing or otherwise that the Intermediary shalldirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries.

b. The Management has represented that to the best of its knowledge and belief asdisclosed in the notes to accounts no funds (which are material either individually or inthe aggregate) have been received by the Company from any person(s) or entity(ies)including foreign entities (“Funding Parties”) with the understanding whetherrecorded in writing or otherwise that the Company shall directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Party (“Ultimate Beneficiaries”) or provide any guarantee securityor the like on behalf of the Ultimate Beneficiaries.

c. Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a)& (b) above contain any material misstatement.

v) No dividend was proposed by the company for the previous year.

As stated in Note 17.4 to the financial statements the Board of Directors of theCompany has proposed a final dividend of Rs 0.80 per equity share for the year which issubject to the approval of the members at the ensuing Annual General Meeting. The amountof dividend proposed is in accordance with Section 123 of the Act as applicable.

2. As required by the Companies (Auditor’s Report) Order 2020 (“theOrder”) issued by the Central Government in terms of Section 143(11) of the Act wegive in “Annexure B” a statement on the matters specified in paragraphs 3 and 4of the Order.

For P. J. Desai & Co.
Chartered Accountants
(Firm’s Registration No.- 102330W)
Sd/-
Pallav J Desai
Partner
Date : May 12 2022 (Membership No.-039868)
Place: Surat UDIN: 22039868AIVIFV4235

ANNEXURE - A TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements’ section of our report to the Members of Aaron Industries Limited ofeven date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of AaronIndustries Limited (“the Company”) as of March 31 2022 in conjunction with ouraudit of standalone Ind AS financial statements of the Company for the year ended on thatdate.

Management’s Responsibility for Internal Financial Controls

The Company’s Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (“ICAI”). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting with reference to these standalone Ind AS financialstatements based on our audit. We conducted our audit in accordance with the Guidance Noteon Audit of Internal Financial Controls Over Financial Reporting (the “GuidanceNote”) and the Standards on Auditing as specified under section 143(10) of the Actto the extent applicable to an audit of internal financial controls both issued by ICAI.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting with reference to these standalone Ind ASfinancial statements was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls over financial reporting with reference to thesestandalone Ind AS financial statements and their operating effectiveness. Our audit ofinternal financial controls over financial reporting included obtaining an understandingof internal financial controls over financial reporting with reference to these standaloneInd AS financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor’s judgementincluding the assessment of the risks of material misstatement of standalone Ind ASfinancial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlsover financial reporting with reference to these standalone Ind AS financial statements.

Meaning of Internal Financial Controls Over Financial Reporting with Reference to theseStandalone Ind AS Financial Statements

A company’s internal financial control over financial reporting with reference tothese standalone Ind AS financial statements is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company’s internal financial control over financialreporting with reference to these standalone Ind AS financial statements includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company’s assets that could have a materialeffect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting withReference to Standalone Ind AS Financial Statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to these standalone Ind AS financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto standalone Ind AS financial statements to future periods are subject to the risk thatthe internal financial control over financial reporting with reference to these standaloneInd AS financial statements may become inadequate because of changes in conditions orthat the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these standalone Ind AS financialstatements and such internal financial controls over financial reporting with reference tothese standalone Ind AS financial statements were operating effectively as at March 312022 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote issued by the ICAI.

For P. J. Desai & Co.
Chartered Accountants
(Firm’s Registration No.- 102330W)
Sd/-
Pallav J Desai
Partner
Date : May 12 2022 (Membership No.-039868)
Place: Surat UDIN: 22039868AIVIFV4235

ANNEXURE-B TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements’ section of our report to the Members of Aaron Industries Limited ofeven date)

In terms of the information and explanations sought by us and given by the company andthe books of account and records examined by us in the normal course of the audit and tothe best of our knowledge and belief we report that:

(i) (a)

(A) The company has maintained proper records showing full particulars includingquantitative details and the situation of the property plant and equipment. (B) Thecompany has maintained proper records showing full particulars of intangible assets.

(b) As explained to us the company has verified its property plant and equipment inaccordance with a program of physical verification which in our opinion provides forphysical verification of its items of PPE Work in progress at reasonable intervalslooking to size of the company and its nature of assets and its activities. No materialdiscrepancies were notified on such physical verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company we report that title deeds of all the immovableproperties of land and buildings (other than the properties where the Company is thelessee and the lease agreements are duly executed in favour of the Company) disclosed inthe financial statements included in Property Plant and Equipment and capitalwork-in-progress are held in the name of the Company as at balance sheet date. Immovableproperties of land and buildings owned by the company whose title deeds have been pledgedas security for loans are held in the name of the Company based on the confirmationsprovided to us by the management.

(d) According to the information and explanations given to us the Company has notrevalued any of its Property Plant and Equipment (including Right of Use assets) andintangible assets during the year.

(e) To the best of our knowledge and according to the information and explanationsgiven to us no proceedings have been initiated during the year or are pending against theCompany as at March 31 2022 for holding any Benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

(ii)

(a) The company has conducted the physical verification of inventory at reasonableintervals during the year. In our opinion and based on the information and explanationgiven to us the coverage and procedure of such verification by Management is appropriatehaving regard to the size of the Company and nature of its operations. As per theinformation and explanations furnished to us the company’s inventory software isunder implementation and day-to-day stock records are not kept in sufficient detail hencewe are unable to comment whether material discrepancies if any were noticed on suchverification.

(b) According to the information and explanations given to us the Company has beensanctioned working capital limits in excess of 5 crores in aggregate at points of timeduring the year from the bank on the basis of security of current assets. In our opinionand according to the information and explanations given to us the quarterly returns orstatements comprising the value of the closing stock of inventory receivables andpayables filed by the Company with such bank are not in agreement with the audited booksof account of the Company of the respective quarters. The details of differences arestated as under.

Month Details Books Bank Difference
Stocks 667.87 671.15 -3.28
Jun-21 Debtors 229.77 153.51 76.26
Creditor 161.88 161.07 0.80
Stocks 785.74 785.57 0.17
Sep-21 Debtors 218.51 86.62 131.89
Creditor 172.83 52.69 120.14
Stocks 760.45 760.11 0.34
Dec-21 Debtors 203.63 203.82 -0.19
Creditor 137.82 146.04 -8.22
Stocks 710.97 695.96 15.01
Mar-22 Debtors 277.67 277.89 -0.22
Creditor 215.92 227.11 -11.19

(iii)

(a) The Company has provided loans during the year and the outstanding balance of loansas at March 31 2022 is given below:

Particulars Amount ( in Lakhs)
Loan given to Employees 4.98

(b) In our opinion the terms and conditions of the loans granted by the Company toemployees are not prejudicial to the Company’s interest.

(c) The Company has granted loans to employees. In our opinion the repayments ofprincipal amounts and receipts of interest are regular except in a few cases as under:

No. of cases Principal Amount Overdue Interest Overdue Total Overdue Remarks (if any)
5 0.21 0.02 0.22 Concerned Employees Left the Job

(d) In respect of loans granted the amounts overdue for more than 90 days as at thebalance sheet date are as under:

No. of cases Principal Amount Overdue Interest Overdue Total Overdue Remarks (if any)
5 0.21 0.02 0.22 Concerned Employees Left the Job

(e) As per information and explanations provided to us and as per our examination wereport that there are no loans which have fallen due during the year and have been renewedor extended or fresh loans are granted to settle the overdue of the existing loans givento the same parties.

(f) As per information and explanations provided to us and as per our examination wereport that the company has not granted any loans or advances in the nature of loanseither repayable on demand or without specifying terms or period of repayment.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of loans granted investments made and guarantees and securitiesprovided as applicable.

(v) According to the information and explanations given to us the Company has notaccepted any deposit or amount which are deemed to be a deposit. Hence reporting underclause (v) of the order is not applicable.

(vi) According to the information and explanations given to us the company is notrequired to maintain the cost records specified by the Central Government under section148(1) of the Companies Act 2013. Hence reporting under clause (vi) of the order is notapplicable.

(vii) According to the information and explanations given to us in respect ofstatutory dues:

(a) The amounts deducted/ accrued in the books of account in respect of undisputedstatutory dues including provident fund income-tax duty of customs cess employeesstate insurance and GST have been generally regularly deposited during the year by theCompany with the appropriate authorities. According to the information and explanationsgiven to us no undisputed amounts payable in respect of applicable statutory dues were inarrears as at March 31 2022 for a period of more than six months from the date theybecame payable.

(b) There are no outstanding statutory dues in arrears for a period of more than sixmonths as at March 31 2022. Hence reporting under sub-clause (b) of clause (vii) of theorder is not applicable.

(viii) There were no transactions relating to previously unrecorded income that weresurrendered or disclosedas income in the tax assessments under the Income TaxAct 1961 (43of 1961) during the year.

(ix)

(a) In our opinion the Company has not defaulted in the repayment of loans or otherborrowings or in the payment of interest thereon to any lender during the year.

(b) The company has not been declared a wilful defaulterby any bank or financialinstitution or government or any government authority.

(c) In our opinion and according to the information and explanations given to us thecompany has utilized the money obtained by way of term loans during the year for thepurposes for which they were obtained.

(d) On an overall examination of the financial statements of the Company funds raisedon a short-term basis have prima facie not been used during the year for long-termpurposes by the Company.

(e) On an overall examination of the financial statements of the Company the Companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its subsidiary or joint venture.

(f) The Company has not raised loans during the year on the pledge of securities heldin its subsidiary or joint venture.

(x)

(a) The Company has not raised money by way of an initial public offer or furtherpublic offer (including debt instruments) during the year and hence reporting under clausex(a) of the Order is not applicable.

(b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause (x)(b) of the Order is not applicable to the Company.

(xi)

(a) To the best of our knowledge no fraud by the Company and no material fraud on theCompany has been noticed or reported during the year.

(b) To the best of our knowledge no report under sub-section (12) of section 143 ofthe Companies Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies(Audit and Auditors) Rules 2014 with the Central Government during the year and up tothe date of this report.

(c) As represented to us by the Management there were no whistle blower complaintsreceived by the Company during the year and up to the date of this report.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.

(xiii) In our opinion the Company is in compliance with Section 177 and 188 of theCompanies Act where applicable for all transactions with the related parties and thedetails of related party transactions have been disclosed in the financial statementsetc. as required by the applicable accounting standards.

(xiv)

(a) In our opinion the Company has an adequate internal audit system commensurate withthe size and nature of its business.

(b) We have considered the internal audit reports issued to the Company during theyear and covering the period up to March 31 2022.

(xv) In our opinion during the year the Company has not entered into any non-cashtransactions with any of its directors or directors of its holding company subsidiarycompany or persons connected with such directors and hence provisions of section 192 ofthe Companies Act 2013 are not applicable to the Company.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Hence reporting under clause (xvi)(a) (b) (c) & (d) of theOrder is not applicable.

(xvii) The Company has not incurred cash losses during the financial year covered byour audit and the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors of the Company duringthe year.

(xix) On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of the balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

(xx) Section 135 of the Companies Act 2013 is not applicable to the Company. Hencereporting under clause (xx) of the Order is not required.

This clause (xxi) of the order is not applicable.

For P. J. Desai & Co.
Chartered Accountants
(Firm’s Registration No.- 102330W)
Sd/-
Pallav J Desai
Partner
Date : May 12 2022 (Membership No.-039868)
Place: Surat UDIN: 22039868AIVIFV4235

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