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Ador Welding Ltd.

BSE: 517041 Sector: Engineering
NSE: ADORWELD ISIN Code: INE045A01017
BSE 00:00 | 27 May 659.25 -3.60
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NSE 00:00 | 27 May 659.70 -7.70
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OPEN 657.05
PREVIOUS CLOSE 662.85
VOLUME 1611
52-Week high 852.10
52-Week low 401.30
P/E 23.30
Mkt Cap.(Rs cr) 897
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 657.05
CLOSE 662.85
VOLUME 1611
52-Week high 852.10
52-Week low 401.30
P/E 23.30
Mkt Cap.(Rs cr) 897
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ador Welding Ltd. (ADORWELD) - Auditors Report

Company auditors report

To the Members of Ador Welding Limited

Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements of Ador WeldingLimited ('the Company') which comprise the Balance Sheet as at 31 March 2021 theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information.

2. 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 ('Act') in the manner so required and give a true and fair viewin conformity with the accounting principles generally accepted in India including IndianAccounting Standards ('Ind AS') specified under section 133 of the Act of the state ofaffairs of the Company as at 31 March 2021 and its loss (including other comprehensiveincome) its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India ('ICAI') together withthe ethical requirements that are relevant to our audit of the financial statements underthe provisions of the Act and the rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

Emphasis of Matters

4. We draw attention to

i. Note 47 of the accompanying standalone financial statements which describes theuncertainties relating to COVID-19 pandemic outbreak and management's evaluation of itsimpact on the operations and standalone financial statements of the Company as at thebalance sheet date. The impact of these uncertainties on the Company's operations issignificantly dependent on future developments.

ii. Note 60 to the accompanying standalone financial statements regarding therestatement carried out by the management of the Company in September quarter inaccordance with the principles of Ind AS 8 - "Accounting Policies Changes inAccounting Estimates and Errors" on account of adjustments pertaining to revenuerecognition under Ind AS 115 - "Revenue from Contracts with Customers" which isfurther described in the aforesaid note.

Our opinion is not modified in respect of these matters

Key Audit Matters

5. Key audit matters are those matters that in our professional judgment 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 financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

6. We have determined the matters described below to be the key audit matters to becommunicated in our report.

Key Audit matter How our audit addressed the key audit matter
Revenue Recognition Our response:
Refer Notes 1(II)(n) 33 and 59 to the standalone financial statements
Revenue recognition
Revenue from sale of goods (hereinafter referred to as "Revenue") is recognized when control of the products being sold is transferred to the customer and when there are no longer any unfulfilled obligations. The timing of revenue recognition is relevant to the reported performance of the Company. Our audit procedures related to revenue recognition included but were not limited to the following:
The management considers revenue as a key measure for evaluation of performance. There is a risk of revenue being recorded before control is transferred. The Company has three reportable business segments: • Assessed the appropriateness of the Company's revenue recognition accounting policies in line with Ind AS 115 ('Revenue from contracts with customers") and testing thereof.
i) Consumables ii) Equipment; and iii) Project Engineering Business (PEB). The timing of recognition of revenue in case of sale of consumables is when control over the same is transferred to the customer which is mainly upon delivery. The performance obligations are fulfilled at the time of dispatch delivery or upon formal customer acceptance depending on customer terms i.e. performance obligations are satisfied at a point in time. The performance obligations in case of PEB are satisfied over the time whereas in case of equipment performance obligations are satisfied at a point in time. • Evaluated the design and operating effectiveness of Company's controls (including the automated controls) around revenue recognition (including rebates/discounts).
• Tested the effectiveness of such controls over revenue cut off at year-end by selecting samples and verified the same with underlying documents which included shipping documents loading receipt gate register. We carried out a combination of procedures involving inquiry and observation reperformance and inspection of evidence in respect of operation of these controls.
• Inspected the samples of sales return and checked the appropriateness of sales return accounted in the books by verifying its approval from authorized person and goods inward note.
• Selected a sample of continuing and new contracts and performed the following procedures;
- Read analysed and identified the performance obligations in these contracts;
- Compared these performance obligations with that identified and recorded by the Company;
- Considered the terms of the 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; and
- Determined the allocation of transaction price to identified performance obligations in the contract.
• scrutinized sales ledgers to verify completeness of sales transactions.
• We performed substantive testing by selecting samples of revenue transactions recorded during the year by verifying the underlying documents which included shipping documents lorry receipt sales order approved price list proper recording in ledger of receivables etc.
• Performed analytical procedures on current year revenue based on overall revenue recognized customer wise analysis product wise analysis and where appropriate conducting further enquiries and testing.
• Obtained balance confirmations for samples of customers selected and reviewed the reconciling items if any;
Tested the related disclosures made in standalone financial statements in accordance with Ind AS 115.
Indirect tax balances and litiaations Our response:
Refer Notes 1(II)(t) 12 and 43 to the standalone finanicial statements
Indirect tax balances and litigations Our audit procedures included but were not limited to the following -
As at 31 March 2021 the Company has balances with indirect tax authorities aggregating to Rs. 2770 lakhs (PY Rs. 1990 lakhs) net of provision Rs 1939 lakhs (PY 1990) and has contingent liabilities amounting Rs. 2167 lakhs (PY Rs. 4032 lakhs) pertaining to various indirect tax matters pending before appropriate authorities. • Obtained an understanding of the management process for:
Based on a detailed assessment done by the management of recoverability of aforesaid balances the Company has provided for Rs 831 lacs during the year against such balances. o identification of indirect tax matters that are under litigations or involve balances with the authorities that are doubtful of recovery
The amounts involved are material and the application of accounting principles as given under Ind AS 37 Provisions Contingent Liabilities and Contingent Assets in order to determine the amount to be recognised as a liability or to be disclosed as a contingent liability in each case is inherently subjective and needs careful evaluation and judgement to be applied by the management. o assessment of accounting treatment for each such litigation identified in accordance with the principles under Ind AS 37 and
The eventual outcome of the said legal proceedings is dependent on the outcome of future events and unexpected adverse outcomes could significantly impact the Company's reported profits and balance sheet position. o measurement of amounts involved in such litigations and assessments.
We considered this as Key audit matter due to the materiality of the amounts involved inherent high estimation uncertainty and significant judgements as stated above. • Evaluated the design and tested the operating effectiveness of key controls around above process.
• Obtained and read the Company's accounting policies in respect of balances provisions and contingent liabilities to assess compliance with accounting standards.
• Obtained list of indirect tax balances litigations and claims as at 31 March 2021 from management and reviewed their assessment of the likelihood of outflow of economic resources being probable possible or remote in respect of the litigations and recoverability of balances with government authorities.
This involved assessing the probability of an unfavorable outcome of a given proceeding and testing the computation of amounts involved through inspection of underlying documents and communications with the tax authorities.
• Evaluated assessment of the management with respect to long standing balances with authorities which have been considered good and recoverable as at 31 March 2021.
• Engaged auditor's experts who obtained an understanding of the management's assessment of the recoverability conducted discussions with the management and considered relevant tax laws and available precedents to validate the conclusions made by the management.
• Assessed and evaluated the adequacy and appropriateness of the disclosures made by the management in the accompanying standalone financial statements.

Information other than the Financial Statements and Auditor's Report thereon

7. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe standalone financial statements and our auditor's 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 in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements

8. The accompanying standalone financial statements have been approved by the Company'sBoard of Directors. The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these 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 accounting principles generally accepted in India including the IndAS specified under section 133 of the Act. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding of 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 design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

9. In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

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

Auditor's Responsibilities for the Audit of the Financial Statements

11. Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement 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 withStandards on Auditing 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 financial statements.

12. As part of an audit in accordance with Standards on Auditing we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the 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 todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls;

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management;

• Conclude on the appropriateness of 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 the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern;

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation;

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

14. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

15. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when 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.

Report on Other Legal and Regulatory Requirements

16. As required by section 197(16) of the Act based on our audit we report that theCompany has paid remuneration to its directors during the year in accordance with theprovisions of and limits laid down under section 197 read with Schedule V to the Act.

17. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in terms of section 143(11) of the Act we give in theAnnexure A a statement on the matters specified in paragraphs 3 and 4 of the Order.

18. Further to our comments in Annexure A as required by section 143(3) of the Actbased on our audit we report to the extent applicable that:

a) we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit of theaccompanying standalone financial statements;

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 standalone financial statements dealt with by this report are in agreement withthe books of account;

d) in our opinion the aforesaid standalone financial statements comply with Ind ASspecified under section 133 of the Act;

e) on the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on 31 March2021 from being appointed as a director in terms of section 164(2) of the Act;

f) we have also audited the internal financial controls with reference to financialstatements of the Company as on 31 March 2021 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date and ourreport dated 28 May 2021 as per Annexure B expressed unmodified opinion; and

g) 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 as detailed in note 43 to the standalone financial statements hasdisclosed the impact of pending litigations on its financial position as at 31 March2021.;

ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as at 31 March 2021;

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the Year ended 31 March2021; and

iv. the disclosure requirements relating to holdings as well as dealings in specifiedbank notes were applicable for the period from 8 November 2016 to 30 December 2016 whichare not relevant to these standalone financial statements. Hence reporting under thisclause is not applicable.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm Registration No. 001076N/N500013

Khushroo B. Panthaky

Partner

Membership No.: 042423

UDIN : 21042423AAAAEI5961

Place: Mumbai

Date: 28 May 2021

Annexure A to the Independent Auditor's Report of even date to the members of AdorWelding Limited on the standalone financial statements for the Year ended 31 March 2021

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) The Company has a regular program of physical verification of its property plantand equipment under which property plant and equipment are verified in a phased mannerover a period of three years which in our opinion is reasonable having regard to thesize of the Company and the nature of its assets. In accordance with this program certainfixed assets were verified during the year and no material discrepancies were noticed onsuch verification.

(c) The title deeds of all the immovable properties (which are included under the head'Property plant and equipment') are held in the name of the Company. Immovable propertiesin the nature of land whose title deeds have been pledged as security for loans are heldin the name of the Company which is verified from confirmations directly received by usfrom lenders.

(ii) In our opinion the management has conducted physical verification of inventory atreasonable intervals during the year except for stocks lying with third parties and nomaterial discrepancies between physical inventory and book records were noticed onphysical verification/material discrepancies noticed on physical verification have beenproperly dealt with in the books of account.

(iii) The Company has not granted any loan secured or unsecured to companies firmsLimited Liability Partnerships (LLPs) or other parties covered in the register maintainedunder Section 189 of the Act. Accordingly the provisions of clauses 3(iii)(a) 3(iii)(b)and 3(iii)(c) of the Order are not applicable.

(iv) In our opinion the Company has complied with the provisions of Sections 185 and186 of the Act in respect of investments. There are no loan guarantee and security givenby the Company.

(v) In our opinion the Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersub-section (1) of Section 148 of the Act in respect of Company's products/services andare of the opinion that prima facie the prescribed accounts and records have been madeand maintained. However we have not made a detailed examination of the cost records witha view to determine whether they are accurate or complete.

(vii)(a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and other material statutory dues asapplicable to the appropriate authorities. Further no undisputed amounts payable inrespect thereof were outstanding at the year-end for a period of more than six months fromthe date they become payable.

(b) There are no dues in respect of goods and service tax and duty of customs that havenot been deposited with appropriate authorities on account of any dispute. The duesoutstanding in respect of income-tax sales-tax service-tax duty of excise and valueadded tax on account of any dispute are as follows :

Statement of Disputed Dues

(Rs. in lakhs)
Name of the statute Nature of dues Amount (Rs.) Amount paid under Protest (Rs.) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Disallowance of scientific research expenses 62.63 12.55 Financial year 2013-14 CIT (Appeals)
The Central Excise Act 1944. Additional Liability arising due to difference in assessable value disallowance of CENVAT credit (including penalty/interest if any) 7.72 1.00 1998-99 Custom Excise and Service Tax Appellate Tribunal
2.18 0.96 2006-07 Assistant Commissioner
13.42 - 2008-09 Commissioner-Appeal
899 898.16 2012-2017
Central Sales tax Act and Local Sales Tax Acts of various statues Additional Liability arising due to difference in assessable value disallowance of Input tax credit (including penalty/interest if any) 18.07 9.21 1987-1988 1992-1993 High court
45.19 35.87 2005-2006 Deputy Commissioner
152.23 5.50 2005-2006 Deputy Commissioner
20.09 - 2004-2005 Joint Commissioner
6.88 - 2004-2005 Joint Commissioner
7.98 - 2003-2004 Joint Commissioner
0.21 - 2003-2004 Joint Commissioner
341.45 341.45 2005-2006 Additional session court
484.86 - 2005-2006 DC - Appeals
121.87 - 2016-2017 Deputy Commissioner of Sales Tax/Joint Commissioner
Customs Act 1962 Refund of custom duty on account of valuation 45.53 45.53 2016-2017 The Assistant Commissioner of Customs

(viii) The Company has not defaulted in repayment of loans or borrowings to any bankduring the year. The Company has no loans or borrowings payable to financial institutionor government and no dues to debenture-holders.

(ix) The Company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments) and did not have any term loans outstanding during theyear. Accordingly the provisions of clause 3(ix) of the Order are not applicable.

(x) No fraud by the Company or on the company by its officers or employees has beennoticed or reported during the period covered by our audit.

(xi) Managerial remuneration has been paid and provided by the Company in accordancewith the requisite approvals mandated by the provisions of Section 197 of the Act readwith Schedule V to the Act.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly provisions ofclause 3(xii) of the Order are not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance withSections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable Ind AS.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

(xv) In our opinion the Company has not entered into any non-cash transactions withthe directors or persons connected with them covered under Section 192 of the Act.

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

For Walker Chandiok & Co LLP

Chartered Accountants

Firm Registration No. 001076N/N500013

Khushroo B. Panthaky

Partner

Membership No.: 042423

UDIN : 21042423AAAAEI5961

Place: Mumbai

Date: 28 May 2021

Annexure B to the Independent Auditor's Report of even date to the members of AdorWelding Limited on the standalone financial statements for the Year ended 31 March 2021

Independent Auditor's Report on the internal financial controls with reference to thestandalone financial statements under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act 2013 (‘the Act')

1. In conjunction with our audit of the standalone financial statements of Ador WeldingLimited ('the Company') as at and for the Year ended 31 March 2021 we have audited theinternal financial controls with reference to financial statements of the Company as atthat date.

Responsibilities of Management and Those Charged with Governance for Internal FinancialControls

2. The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on internal financial controls with reference tofinancial statements 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. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of the Company's business including adherence to theCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's Responsibility for the Audit of the Internal Financial Controls withReference to Financial Statements

3. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India ('ICAI') prescribed under Section 143(10) of the Act to the extentapplicable to an audit of internal financial controls with reference to financialstatements and the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting ('the Guidance Note') issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements were established and maintained and if such controls operatedeffectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements includes obtaining an understanding of such internal financialcontrols assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

5. 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 withreference to financial statements.

Meaning of Internal Financial Controls with Reference to Financial Statements

6. A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles.

A company's internal financial controls with reference to financial statements includethose 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 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 with Reference to FinancialStatements

7. Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls with reference to standalone financial statements and such controlswere operating effectively as at 31 March 2021 based on the internal financial controlswith reference to standalone financial statements criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Noteissued by the ICAI.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm Registration No. 001076N/N500013

Khushroo B. Panthaky

Partner

Membership No.: 042423

UDIN : 21042423AAAAEI5961

Place: Mumbai

Date: 28 May 2021.

.