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Accel Ltd.

BSE: 517494 Sector: IT
NSE: N.A. ISIN Code: INE258C01038
BSE 12:49 | 17 May 22.50 0.80
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NSE 05:30 | 01 Jan Accel Ltd
OPEN 21.90
PREVIOUS CLOSE 21.70
VOLUME 8467
52-Week high 39.80
52-Week low 9.95
P/E 19.07
Mkt Cap.(Rs cr) 129
Buy Price 22.40
Buy Qty 1069.00
Sell Price 22.50
Sell Qty 188.00
OPEN 21.90
CLOSE 21.70
VOLUME 8467
52-Week high 39.80
52-Week low 9.95
P/E 19.07
Mkt Cap.(Rs cr) 129
Buy Price 22.40
Buy Qty 1069.00
Sell Price 22.50
Sell Qty 188.00

Accel Ltd. (ACCEL) - Auditors Report

Company auditors report

TO THE MEMBERS

To

The Members of

Accel Limited

3rd Floor SFI Complex

178 Valluvar Kottam High Road Nungambakkam Chennai – 600 034

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying Standalone Financial statements of Accel Limited("the Company") which comprise the Balance Sheet as at 31st March 2021 theStatements of Profit and Loss (including Other Comprehensive Income) the Statement ofchanges in Equity and the Statement of Cash Flows for the year then ended notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to usthe aforesaid Financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under Section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at31st March 2021 and its profit other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis of Opinion

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibility for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (ICAI) together with the ethical requirements that arerelevant to our audit of the Financial statements under the provisions of the Act and theRules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide abasisfor ouraudit opinion on the financial statements.

Emphasis of Matter

1. We draw attention to Note no. 46 (a) to the Standalone Financial Statements thecompany has to receive Inter Corporate Deposits (ICDs) of Rs.375 Lakhs. Having regards tothe factors considered by the Management discussed in the aforesaid note the Managementis of the view that there is no permanent diminution to the carrying value of these ICDsand hence no adjustment has been made in this regard in the accompanying financialstatements.

2. We draw attention to Note no. 46 (b) to the Standalone Financial Statements inrespect of investments of Rs. 98 Lakhs and loans of Rs. 355.70 totaling to Rs. 453.70 inACCEL OEM Appliances Limited (AOAL)a subsidiary company. Having regards to the factorsconsidered by the Management discussed in the aforesaid note the Management is of theview that there is no permanent diminution to the carrying value of these investments andhence no adjustment has been made in this regard in the accompanying financial statements.

3. We draw attention to note no. 47 to the Standalone Financial statements for theyear the balance at the end of the financial year for sundry debtors sundry creditorsloans & advances and advances received from the customers are subject to confirmation.The Management is of the view that there is no permanent diminution to the carrying valueof these sundry debtors loans & advances and sundry creditors and hence no adjustmenthas been made in this regard in the accompanying financial statements.

4 We draw attention to Note no. 51 to the Standalone Financial Statements relating toexceptional items of Rs. 490.73 lakhs identified by the Management for the previous years'expenses/provisions no longer required has been shown an exceptional revenue item in theProfit and Loss Account in the accompanying financial statements.

5 We draw attention to note no 52 to the Standalone Financial statements which explainthe Management's Assessment of financial impact due to SARS COVID 19 and hence noadjustments have been made in the accompanying financial statements.

Our opinion is not modified in respect of these matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matter described below to be the key audit matter to be communicatedin our report.

Key Audit Matter Auditor's Response
1 Revenue Recognition Our audit procedures included but were not limited to the following:
The Company enters into revenue contracts and management uses its judgement in respect of matters such as identification of performance obligations; allocation of consideration to identified performance obligations and recognition of revenue basis assessment of whether performance obligation is fulfilled over time or at a point in time as per the requirement of the Ind AS 115 . Obtaining an understanding of and testing the design and operating effectiveness of key controls around the revenue recognition;
This has been determined as a KAM in view of the complexity in application of requirements of Ind AS 115 and significant management judgements and estimates involved in such application. Further there is an inherent and presumed risk of fraud involved in the revenue recognition. Testing of revenue transactions during the year on sample basis to gain an understanding of the terms of the contracts including pattern of transfer of rights and obligations under the contract;
In respect of the contracts tested evaluating the management's assessment of revenue recognition ensuring the compliance with the requirement of Ind AS 115 and reafirming the judgements applied by the management based on the actual outcome of delivery of contract
Verifying the underlying evidences to ensure that revenue is recognized appropriately.
Evaluating the adequacy of disclosures in the accompanying Standalone Financial Statements.
2 Slump Sale [Refer Note 50 financial statements] Our audit procedures included but were not limited to the following:
The Members of the company on 9th December 2020 has approved a proposal for merger of M/S. Ensure Support Services (India) Limited and M/S. Computer Factory(India) Private Limited with its holding company M/S. Accel Limited w.e.f 01.08.2020 and 01.04.2020 respectively subject to necessary statutory and other approvals. Accordingly a scheme of amalgamation has been drawn up and submitted to Regional directors and ROC - Chennai. However for the reasons not known the merger scheme is still pending for approval. The management is hopeful of obtaining the approval for merger. We obtained an understanding of the transaction and the statutory documents Board /AGM/EGM Resolutions Merger Application filed with ROC and Business Transfer Agreements (BTA) for business consideration values of assets/ liabilities on date of transfer and deferent payment terms of the business considerations from the Management.
As per the approval of members in an Extra Ordinary General meeting held on 2nd March 2021 the subsidiary companies namely ESSIL and CFIPL has transferred its entire business along with all its assets and liabilities to its holding company (except Land and Buildings of CEIPL) as a going concern on a slump sale basis vide Business Transfer Agreement(BTA) entered with its holding company on 2nd of March 2021 with effect from 01.08.2020 and 01.04.2020 respectively (‘transfer date') at a lump sum consideration determined on the basis of carrying value of assets and liabilities as per the last drawn Balance sheet of companies drawn up as on transfer date. We evaluated the design and tested the operating effectiveness of key controls around above process and over the determination of appropriate accounting treatment of this transaction.
During the financial year the Company acquired business operations of its wholly owned subsidiary viz. Ensure Support Services (India) Limited from 01.08.2020 and Computer Factory India Private Limited from 01.04.2020 on slump sale basis. We obtained an understanding of the nature of Slump sale and discussed the key developments during the year with the Management by obtaining an update on the merger matter during the current financial year.
Considering the materiality of amounts and significant judgements involved in determining the appropriate accounting treatment this matter has been considered as a key audit matter for the current year audit. We also evaluated whether the accounting principles applied by the management fairly present the effects of the slump sale in the financial statements in accordance with the principles of IND AS.
We have also verified the executed Business Transfer Agreements (BTA) for business consideration values of assets/ liabilities on date of transfer and deferent payment terms of the business considerations.
We have examined the accounting entries for effecting the BTAs and also the interest payments for the quarter ended 31.03.2021 for the value of the business considerations and payment of TDS on interest payments.
We have adopted the Financial Statements and Audit report of M/S Ensure Support Services(India) Limited as on 31st July2020 and M/S Computer Factory(India) Private Limited as on 31st March 2020 for giving effect to the slump sale consideration.
We evaluated the adequacy of disclosures made by the Company in the financial statements in view of the requirements as specified in the Indian Accounting Standards.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sAnnual Report but does not include the Financial statements and our auditor's reportthereon.

Our Opinion on the Financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the Financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the Financial statements or our knowledge obtained during thecourse of our auditor otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Management and Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of Standalone financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income changes in equity and Cash flows of the Company inaccordance with the IND AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the Financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility for the Audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatements whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Financial statements.

As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional skepticism through out the audit we also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the over ride of internal control.

Obtain an understanding of internal financial control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate 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 in the financial statements made by themanagement and Board of Directors.

Conclude on the appropriateness of

Management and Board of Directors use of the going concern basis of accounting andbased on the audit evidence obtained whether a material uncertainty exists related toevents or conditions that may cast significant doubt on the Company's ability to continueas a going concern. If we conclude that a material uncertainty exists we are required todraw attention in our auditor's report to the related disclosures in the financialstatements or if such disclosures are inadequate to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditor's report. Howeverfuture events or conditions may cause the company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the financial statementsWe 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 the financial statements of thecurrent period and are therefore the key audit matters. We described these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter ofwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Other Matters

The Standalone Financial results for the year ended March 31 2020 included in thesefinancial results are based on the previously issued results of the Company prepared inaccordance with the Accounting Standards prescribed under Section 133 of Companies Act2013. Those Standalone Audited Financial results were audited by the predecessor Auditor'saudit report dated 29 July 2020 expressed an unmodified opinion on those financialresults.

Our opinion is not modified in respect of the above matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable

2. 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 a sit appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with Indian AccountingStandards (Ind AS) prescribed under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31stMarch 2021 from being appointed as a director in terms of Section164(2) of the 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 B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditors report inaccordance with the requirements of section 197(16) of the Act as amended in our opinionand to the best our information and according to the explanations given to us theremuneration paid/ provided by the Company to its directors during the year is inaccordance with the provisions of section 197of 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) Rule 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

1) The Company has disclosed the impact of pending litigation as at 31 March 2021 onits financial position in its Financial Statements-Refer Note 41 to the Standalonefinancial statements;

2) The Company does not have any long-term contracts requiring a provision for materialforeseeable losses.

3) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company

Annexure A to the Independent Auditors' Report

[Referred to in paragraph 1under ‘Report on other Legal and RegulatoryRequirements' section of our report of even date] (i) (a) The Company has maintainedproper records showing full particulars including quantitative details and situation offixed assets i.e Property Plant and Equipment (PPE).

(b) Some of the fixed assets (PPE) were physically verified during the year by theManagement in accordance with a program me of verification which in our opinion providesfor physical verification of all the fixed assets (PPE) at reasonable intervals. Accordingto the information and explanations given to us no material discrepancies were noticed onsuch verification.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deed/transfer deed/conveyancedeed provided to us were port that the title deeds comprising all the immovableproperties of land and buildings which are freehold are held in the name of the Companyas at the balance sheet date.

(ii) As explained to us the inventories were physically verified during the year bythe Management at reasonable intervals and no material discrepancies were noticedonphysical verification. (iii) The Company has granted unsecured loans to parties coveredin the register maintained under Section 189 of the Act. The Outstanding balance of loanas on 31st March 2021 is

Party Loan Amount Outstanding (INRs)
1. Accel OEM Appliances ltd 35588721
2. Accel Media Ventures Ltd 23212364
The investment in the Preference shares in Accel Media Ventures Ltd is measured at Fair Market Value and the Fair Market Value is treated as unsecured loans and the amount also includes applicable interest thereon.
3.Cetronics Technologies Private Limited 22454

a) In our opinion and according to the information and explanations given to us theterms and conditions on which the loans granted are not prejudicial to the interest of thecompany.

b) The terms of arrangements do not stipulate any repayment schedule and the loans arerepayable on demand.

c) Since the terms and conditions do not stipulate the repayment schedule we areunable to comment whether there are any overdue amounts in respect of the loans granted tothe bodies corporate listed in the register maintained under section 189 of the Act.

(iv) According to the information and explanations given to us the company hascomplied with the provision of Section 185 and 186 of the Companies Act 2013 withrespect to the loan and investment made as applicable.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public during the year. Therefore the question of complyingwith directives issued by the Reserve Bank of India and the provisions of sections 73 to76 or any other relevant provisions of the Companies Act 2013 and the rules framedthereunder does not arise.

(vi) According to the information and explanation given to us the Central Governmenthas not prescribed maintenance of cost records under section 148(1) of the Companies Act2013 for the company.

(vii) According to the information and explanations given to us and the records of thecompany examined by us in respect of statutory dues:

a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employee State Insurance Income-tax Goods and Service TaxCustoms Duty Cess and other material statutory dues applicable to it to the appropriateauthorities during the year.

b) According to the information and explanations given to us and the records of theCompany examined by us there are no undisputed amount payable in respect of ProvidentFund Income-tax Goods and Service Tax Customs Duty Cess and other material statutorydues in arrears as at March 31 2021 for a period of more than six months from the datethey became payable.

c) According to the information and explanations given to us there are no dues ofIncome-tax or Sales tax or Service tax or Goods and Services tax or duty of Customs orduty of Excise or Value added tax which have not been deposited by the Company on accountof disputes except for the following

Name of the Statute Nature of Dues Amount (in lakhs) Period to which the amount relates Forum where the dispute is pending
1.18 A Y 2004-05 Commissioner of Income Tax
8.42 A Y 2005-06 Assessing Officer *
6.37 A Y 2006-07 Assessing Officer *
2.23 A Y 2007-08 Assessing Officer *
65.06 A Y 2008-09 Assessing Officer *
The Income Tax 1961 Income Tax# 36.06 A Y 2009-10 Assessing Officer *
9.52 A Y 2011-12 Assessing Officer *
100.53 A Y 2012-13 Assessing Officer *
21.31 A Y 2013-14 Assessing Officer *
0.51 A Y 2014-15 Assessing Officer *
Employees Provident Fund Act1952 206.70 A Y 2018-19 Commissioner of Income Tax (Appeals)
Provident Fund Act 2.38 FY 2011-12 EPFAT - Delhi
3.04 FY 2009-10 EPFAT - Delhi
11.70 FY 2015-16 EPFAT - Delhi
4.41 FY 2019-20 EPFAT - Delhi
16.51 FY 2005-06
Finance Act 1994 Service Tax - FY 2006 -07 CESTAT Bangalore
Customs Act 1962 Customs Duty 33.88 FY 2008-09 CESTAT Bangalore

*The above amount is subject to revision based on the order of the Commissioner ofIncome Tax (Appeals)/ ITAT/High Court wherein certain grounds relating to the appealwere partly allowed. The effect of the same has yet to be made by the JurisdictionalAssessing Officer.

# The above disputed amounts also include the liability of merged company "Accellimited".

(viii) According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans fromfinancial institution or bank or Government

(ix) In our opinion and according to the information and explanations given to us theCompany has not raised money by way of initial public offer or further public offer(including debt instruments) or term loans and hence reporting under clause (ix) of theorder is not applicable

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

(xi) In our opinion and according to the information and explanations given to us theCompany has paid/ provided for managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V totheAct.

(xii) As the Company is not a Nidhi Company and hence reporting under Clause (xii)ofthe Order is not applicable to the Company

(xiii) In our opinion and according to the information and explanations given to us theCompany is in compliance with the provisions of Sections 177 and 188 of the Act whereapplicable for all the transactions with related parties and the details of relatedparties transactions have been disclosed in the financial statements as required by theapplicable Accounting Standard.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year under audit.Accordingly the provisions of Clause (xiv) of the Order are not applicable to the Company

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non cash transactions with itsdirectors or persons connected with him and hence section 192 of the Act are notapplicable.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

Annexure B to Independent Auditors' Report

(Referred to in paragraph 2 (f) under ‘Report on other Legal and RegulatoryRequirements' section of our report of even date) Report on the Internal FinancialControls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act2013 ("the Act") We have audited the internal financial controlsover financial reporting of Accel Limited ("the Company") as of March 31 2021in conjunction with our audit of the IndAS Financial statements of the Company for theyear ended on that date.

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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under section 143(10) of theAct to the extent applicable to an audit offnternal financial controls. Those Standardsand the Guidance Note require that we complywith ethical requirements and plan and performthe audit to obtain reasonable assuranceabout whether adequate internal financial controlsover financial reporting 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 system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal controlbased on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial 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 controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting A Company's internalfinancial control over financial reporting is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company's internal financial control over financial reporting includes thosepolicies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 312021based on the criteria forinternal control over financial reporting established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For K.S.Aiyar & Co.
Chartered Accountants
Firm Registration No . 100186W
(S. KALYANARAMAN)
Partner
Place: Chennai Membership No. 200565
Date : 30.06.2021 UDIN: 21200565AAAAES4189

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