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Ador Fontech Ltd.

BSE: 530431 Sector: Engineering
NSE: N.A. ISIN Code: INE853A01022
BSE 00:00 | 20 May 73.85 0.30
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NSE 05:30 | 01 Jan Ador Fontech Ltd
OPEN 76.00
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VOLUME 175349
52-Week high 87.00
52-Week low 40.50
P/E 10.16
Mkt Cap.(Rs cr) 258
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 76.00
CLOSE 73.55
VOLUME 175349
52-Week high 87.00
52-Week low 40.50
P/E 10.16
Mkt Cap.(Rs cr) 258
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ador Fontech Ltd. (ADORFONTECH) - Auditors Report

Company auditors report

To

The Members

Ador Fontech Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of Ador FontechLimited (‘the Company’) which comprise the Balance Sheet as at March 31 2021the Statement of Pro t and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date and asummary of significant accounting policies and other explanatory information (hereinafterreferred to as ‘the Standalone Financial Statements’).

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 (‘the Act’) in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under Section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended (‘Ind AS’) and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2021 the profit totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for opinion

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor’sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the Standalone Financial Statements underthe provisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI’s Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Standalone Financial Statements.

Key audit matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the Standalone Financial Statements of the current period.These matters were addressed in the context of our audit of the Standalone FinancialStatements as a whole and in forming our opinion thereon and we do not provide a separateopinion on these matters. We have determined the matters described below to be the keyaudit matters to be communicated in our report.

Key Audit Matters Auditor’s Response
DISCLOSURE OF REVENUE PRINCIPAL AUDIT PROCEDURES
Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind-AS 115 ‘Revenue from Contracts with Customers’. We assessed the Company’s process to identify the impact of adoption of accounting standard pertaining to revenue.
Our audit approach consisted of substantive testing of the design and operating effectiveness of the internal controls as follows:
Evaluated the design of internal controls relating to implementation of the accounting standard.
Selected samples of continuing as also new contracts and tested the operating effectiveness of the internal control relating to identi cation of the distinct performance obligations and determination of transaction price. We carried out a combination of procedures involving enquiry observation reperformance and inspection of evidence in respect of operation of these controls.
Tested relevant information technology system’s access and change management controls relating to contracts and related information used in recording and disclosing revenue in accordance with the revenue accounting standard.
Selected samples of continuing as well as new contracts and performed the following procedures:
(i) Read analysed and identified the distinct performance obligations in these contracts.
(ii) Compared these performance obligations with those identified and recorded by the Company.
(iii) Considered the terms of contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration.
(iv) Samples in respect of revenue recorded for time and material contracts were tested using a combination of approved time sheets including customer acceptances subsequent invoicing and historical trend of collections and disputes.
(v) In respect of samples relating to xed price contracts progress towards satisfaction of performance obligation used to compute recorded revenue was veri ed with actual and estimated efforts from the time of recording and budgeting systems. We also tested the access and change management controls relating to these systems.
(vi) Sample of revenues disaggregated by type and service offerings were tested with the performance obligations specified in the underlying contracts.
(vii) Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings.
(viii) We reviewed the collation of information and logic of report generated from the budgeting system used to prepare disclosure relating to periods over which the remaining performance obligations will be satisfied subsequent to the Balance Sheet date.
EVALUATION OF UNCERTAIN TAX POSITIONS PRINCIPAL AUDIT PROCEDURES
The Company has uncertain tax positions including matters under appeal and for reconsideration which involves significant judgement to determine the possible outcome of the decisions. Obtained details of completed tax assessments and demands for the year ended March 31 2021 from the Management. We involved our internal experts to challenge the Management’s underlying assumptions in estimating the tax provisions and the possible outcome of the disputes. Our internal experts also considered legal precedence and other rulings in evaluating the Management’s position on these uncertain tax positions. The same have also been reflected as part of contingent liabilities in the notes to the accounts.
LEASE ACCOUNTING PRINCIPAL AUDIT PROCEDURES
Accuracy of recognition measurement presentation and disclosures of lease transactions in compliance with Ind-AS 116 ‘Leases’ (New Revenue Accounting Standard). We observed that the Company has entered in to lease agreement with Karnataka Industrial Area Development Board (KIADB) for lease of 12465 Sq. mtr. for a period of 99 years. As the lease transaction is of a long term and the underlying asset is of significant value the same requires compliance with IND AS 116.
As per IND AS 116 the fair value of asset has to be booked at the present value of all lease related payments to be made. While the Company has considered one time lumpsum lease payment made to KIADB the present value of future annual maintenance fee which is insignificant has not been capitalised with decision to expend Rs. 18482/- (Rupees eighteen thousand four hundred and eighty two only) and any other applicable charges incidental thereto against yearly payments.
We observed that the impact of depreciation and related lease interest charges on the maintenance fee is not material. Therefore we have not modified our opinion.
ACCOUNTING FOR IMPAIRMENT LOSS OF THE WHOLLY OWNED SUBSIDIARY PRINCIPAL AUDIT PROCEDURES
The Company has investments in its wholly owned subsidiary (WOS) which is at the nascent stage and still carrying out significant product and developmental activities. Tested the design and operating effectiveness of relevant key controls around the Company’s assessment of impairment of investments in the WOS.
Currently the said WOS has minimal revenues and the Company in its consolidated financial statements continues to record losses incurred by the said WOS. Given the context the investment had to be tested for impairment. The same was determined using discounted free cash flow method requiring significant judgement and estimates including assessing the impact of COVID-19 on the projections and estimates. The related impairment testing was significant to our Audit. Tested reasonability of the projections used by the WOS related to its sales growth operating costs cash flow forecasts etc.
Involved an 'Independent Valuer' to aid in evaluating besides usage of possible valuation assumptions & estimates including discount and growth rates.
Tested whether the Management analysis about the sensitivity of the outcome w.r.t. impairment assessment with possible changes in the key assumptions reflect the risks inherent in the valuation including the possible impact of COVID-19 pandemic.
Based on the aforesaid testing evaluation and explanations given by the Management we concluded that the investments in WOS have not been impaired as on March 31 2021.

Information other than the Standalone Financial Statements and Auditor’s Reportthereon

The Company’s Board of Directors is responsible for the preparation of the otherinformation. The other information consists of details included in the Board's Reportincluding annexures to the Board's report comprising Management Discussion and AnalysisReport Corporate Governance Shareholders' information etc. but does not include theStandalone Financial Statements and our Auditors' report thereon.

Our opinion on the Standalone Financial Statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone Financial Statements or our knowledgeobtained during the course of our audit or 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 Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind-AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgements and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the Standalone Financial Statements the Management is responsible forassessing the Company’s ability to continue as a going concern disclosing asapplicable matters related to going concern 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.

The Board of Directors are responsible for overseeing the Company’s financialreporting process.

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

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are 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 Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Standalone 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 controls.

Obtain an understanding of internal financial controls relevant to the audit in orderto design 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 theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

Conclude on the appropriateness of the Management’s use of the going concern basisof accounting 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 Standalone Financial Statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidence obtainedup to the date of our Auditors’ Report. However future events or conditions maycause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent 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 makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be in uenced. 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 financialstatements. We communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit ndings includingany significant deficiencies in internal control that we identify during our audit. Wealso provide those charged with governance with a statement that we have complied withrelevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on our independenceand 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 Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our Auditor’s Report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by Section 143(3) of the Act based on our audit we report that:

(i) 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.

(ii) 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.

(iii) The Balance Sheet the Statement of Pro t and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

(iv) In our opinion the aforesaid Standalone Financial Statements comply with theInd-AS specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(v) On the basis of written representations received from the Directors as on March 312021 and taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2021 from being appointed as a Director in terms of Section 164(2) of theAct.

(vi) 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 unmodi ed opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlsover nancials.

(vii) 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.

(viii) 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: The Company has disclosed the impact of pending litigations on its financial positionin its Standalone Financial Statements.

The Company has made provisions as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

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

As required by the Companies (Auditor’s Report) Order 2016 (‘theOrder’) issued by the Central Government in terms of Section 143(11) of the Act wegive in the Annexure B’ a statement on the matters specified in paragraphs 3 and 4 ofthe order.

PRAVEEN KUMAR N For PRAVEEN & MADAN
Partner (Membership No: 225884) Chartered Accountants
UDIN: 21225884AAAADM8063 Firm Registration no.:011350S

Bengaluru

May 27 2021

ANNEXURE ‘A’ TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in the 'Report on Other Legal and Regulatory Requirements' of our reportto the Members of Ador Fontech Limited of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (I) ofSub-section 3 of Section 143 of the Companies Act 2013 (‘the Act’)

We have audited the internal financial controls over financial reporting of AdorFontech Limited (‘the Company’) as of March 31 2021 in conjunction with ouraudit of the Standalone Financial Statements of the Company for the year ended on thatdate.

Key Audit Matters (KAM)

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the Internal Control Systems of the current period. Thesematters were addressed in the context of our audit of the Standalone Financial Statementsas a whole and in forming our opinion thereon.

Key Audit Matters Auditor's Response
Implementation of Enterprise Resource Planning (ERP) which is in progress We reviewed the books both in the legacy as also the new ERP System which is in progress and found that there are no material variances. We have done sufficient substantive checks to verify whether there were any unauthorised modi cations to the data and accounts and found that there were none.
The Company’s detective and corrective control systems We tested the design and operating effectiveness of detective and corrective controls and found that they are effective enough to detect as also correct errors and are fairly sufficient and appropriate for the nature and complexities of the business of the Company.

Management’s Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on internal controls 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring orderly and eAcient conduct of its businessincluding adherence to the Company’s policies safeguarding of its assets preventionand detection of frauds errors accuracy and completeness of the accounting recordstimely preparation of reliable financial information as required under the Companies Act2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the ‘Guidance Note’) issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements; plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting were established maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofinternal financial control 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; testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the Auditor’s judgement including the assessment of 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 internal financial controls system overfinancial reporting of the Company.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies 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 authorisations of the 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 havea material effect on the financial statements.

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 risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with 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 controlsystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

PRAVEEN KUMAR N For PRAVEEN & MADAN
Partner (Membership No: 225884) Chartered Accountants
UDIN: 21225884AAAADM8063 Firm Registration no.:011350S

Bengaluru

May 27 2021

ANNEXURE ‘B’ TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in the 'Report on Other Legal and Regulatory Requirements' of our reportto the Members of Ador Fontech Limited of even date)

In respect of the Company’s xed assets:

(i) The Company has maintained proper records showing full particulars includingquantitative details and situation of xed assets.

(ii) The Company has a program of veri cation to cover all items of xed assets in aphased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the program certain xed assets werephysically veri ed by the Management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such veri cation.

(iii) According to the information and explanations given to us the records examinedby us and based on the examination of conveyance deeds/registered sale deeds provided tous we report that the title deeds comprising all immovable properties of land andbuildings which are freehold are held in the name of the Company as at the Balance Sheetdate. In respect of immovable properties of land and building that have been taken onlease and disclosed as xed assets in the Standalone Financial Statements the leaseagreements are in the name of the Company.

(i) We are informed that inventories have been physically veri ed by the Managementduring the year and also at the end of the year. In our opinion the frequency of verication is reasonable.

(ii) In our opinion and according to the explanations given to us the procedures ofphysical veri cation of inventories followed by the Management are reasonable and adequatein relation to the size of the Company and the nature of its business.

(iii) In our opinion and according to the information and explanations given to us theCompany is maintaining proper records of inventories. The discrepancies noticed on verication between physical stocks and book records were not material and have been properlydealt with in the books of accounts.

According the information and explanations given to us the Company has grantedunsecured loans to two bodies corporate covered in the register maintained under Section189 of the Companies Act 2013 in respect of which:

(i) The terms and conditions of the grant of such loans are in our opinion primafacie not prejudicial to the interest of the Company.

(ii) The schedule of repayment of principal and payment of interest have beenstipulated and repayments or receipts of principal amounts and interest have been regularas per stipulations.

(iii) There is no overdue amount remaining outstanding as at the year end.

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 Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

The Company has not accepted deposits during the year and does not have any unclaimeddeposits as at March 31 2021 and therefore provisions of clause 3 (v) of the Order arenot applicable to the Company.

The maintenance of cost records have not been specified by the Central Government underSection 148(1) of the Companies Act 2013 for the business activities carried out by theCompany. Thus reporting under clause 3(vi) of the order is not applicable.

According to the information and explanations given to us in respect of statutorydues:

(i) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees’ State Insurance Income Tax Goods and ServiceTax Customs Duty Cess and other material statutory dues applicable to it with theappropriate authorities.

(ii) There were no undisputed amounts payable in respect of Provident FundEmployees’ State Insurance Income Tax Goods and Service Tax Customs Duty Cess andother material statutory dues in arrears as at March 31 2021 for a period of more thansix months from the date they became payable.

(iii) Details of dues of Income Tax Sales Tax Service Tax Excise Duty and ValueAdded Tax which have not been deposited as at March 31 2021 on account of dispute aregiven below:

Rupees In Lakhs

Nature of the statute Nature of dues Forum where dispute is pending Period to which the amount relates Amount
Central Excise Act 1944 Excise duty Commissioner of Central Exercise Nagpur 2002-2006 71
Income Tax Act 1961 Income tax liability as per order passed U/s. 143(3) of the Income Tax Act 1961 Commissioner of Income Tax (Appeals-I) Bengaluru AY: 2013-14 283

The Company has not taken any loans or borrowings from financial institutions banksand government or has not issued any debentures. Hence reporting under clause 3 (viii) ofthe Order is not applicable to the Company.

The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under clause 3 (ix)of the Order is not applicable to the Company.

To the best of our knowledge and according to the information and explanations given tous no fraud by the Company or no material fraud on the Company by its o5cers or employeeshas been noticed or reported during the year.

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

The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theOrder is not applicable to the Company.

In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereverapplicable for all transactions with related parties and details of related partytransactions have been disclosed in the Standalone Financial Statements as required by theapplicable accounting standards.

During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures and hence reportingunder clause 3 (xiv) of the Order is not applicable to the Company.

In our opinion and according to the information and explanations given to us duringthe year the Company has not entered in to any non-cash transactions with its Directorsor persons connected with the Directors and hence provisions of Section 192 of theCompanies Act 2013 are not applicable to the Company.

The Company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.

PRAVEEN KUMAR N For PRAVEEN & MADAN
Partner (Membership No: 225884) Chartered Accountants
UDIN: 21225884AAAADM8063 Firm Registration no.:011350S

Bengaluru

May 27 2021

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