You are here » Home » Companies » Company Overview » Agro Tech Foods Ltd

Agro Tech Foods Ltd.

BSE: 500215 Sector: Industrials
NSE: ATFL ISIN Code: INE209A01019
BSE 00:00 | 20 Apr 842.25 9.60
(1.15%)
OPEN

845.10

HIGH

868.25

LOW

817.95

NSE 00:00 | 20 Apr 843.00 12.25
(1.47%)
OPEN

832.00

HIGH

853.30

LOW

832.00

OPEN 845.10
PREVIOUS CLOSE 832.65
VOLUME 2377
52-Week high 945.00
52-Week low 440.05
P/E 61.57
Mkt Cap.(Rs cr) 2,053
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 845.10
CLOSE 832.65
VOLUME 2377
52-Week high 945.00
52-Week low 440.05
P/E 61.57
Mkt Cap.(Rs cr) 2,053
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Agro Tech Foods Ltd. (ATFL) - Auditors Report

Company auditors report

TO THE MEMBERS OF

AGRO TECH FOODS LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Agro Tech FoodsLimited ("the Company") which comprise the Balance Sheet as at March 312020 and the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone 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 2020 and its profit totalcomprehensive income its cash flows and the changes in equity 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'sResponsibility for the Audit of the Standalone Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis for our audit opinion on the standalone financial statements.

Key Audit Matters

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 standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Srl. No. Key Audit Matter Auditor's Response
1 Revenue recognition – Sale of goods We have performed the following principal audit procedures in relation to revenue recognised which include a combination of testing internal controls and substantive testing as under:
Refer Note 3 (h) "Revenue Recognition" of the Standalone Financial Statements under Significant Accounting Policies.
Revenue from sale of goods is recognised when control of the products being sold is transferred to the customer which is mainly upon delivery and when there are no longer any unfulfilled obligations. • Assessing the appropriateness of the Company's revenue recognition accounting policies in line with Ind AS 115 ("Revenue from Contracts with Customers") and testing thereof.
The timing of revenue recognition is relevant to the reported performance of the Company. The Management considers revenue as a key measure for evaluation of performance. • Evaluating the integrity of the general information and technology ("IT") control environment and testing the operating effectiveness of key IT application controls.
There is a risk of revenue being recorded before control is transferred. • Understanding the revenue recognition process evaluating the design and implementation of Company's controls in respect of revenue recognition.
• Testing the effectiveness of such controls over revenue cut-off at year end.
• Testing the supporting documentation for sales transactions recorded during the period closer to the year end and subsequent to the year end including examination of credit notes issued subsequent to the year end to determine whether revenue was recognised in correct period.
• Performing analytical procedures on current year revenue based on monthly trends and where appropriate conducting further enquiries and testing.
2 Assessment of impairment in the investment in a subsidiary We have performed the following principal audit procedures including involving our valuation specialists in relation to assessment of impairment of investment in Agro Tech Foods (Bangladesh) Pvt. Ltd. :
The Company has investments in subsidiaries and the Management assessed that there are impairment indicators in respect of its investment in Agro Tech Foods (Bangladesh) Pvt. Ltd. • Assessed whether the methodology established by Management to identify indications of impairment and the quantification thereof was appropriate.
Accordingly the Management estimated the recoverable value of investment in Agro Tech Foods (Bangladesh) Pvt. Ltd. the carrying value of which as at March 31 2020 is Rs.141.27 million. • Evaluated the design and implementation of control relating to Management's estimation of recoverable amount of investment.
The evaluation of the recoverable amount involves determination of the most appropriate valuation method and the inputs used in the valuation model. • Evaluated the Management's valuation method used and the accuracy of the inputs used in the model to determine the recoverable value.
• Evaluated the inputs used to assess their reasonableness tested the sensitivity of the recoverable value to the change in the inputs used and tested the arithmetical accuracy of the model.
3 Existence of Inventories We have performed the following principal audit procedures in relation to validating the existence and condition of inventories which include a combination of testing internal controls and substantive testing as under:
As at March 31 2020 the Company carried inventories aggregating ` 774.69 million comprising 15% of the total assets of the Company as on that date which inventories are geographically spread across multiple locations such as factories/ depots. • Understood Management's control over physical inventory counts.
These inventories are physically verified by the Management in accordance with a physical verification plan. • Evaluation of the design and testing the operating effectiveness of the internal controls relating to physical inventory counts.
Owing to the COVID-19 related lock-down we were unable to participate in the year-end physical verification of inventories carried out by the Management at the year-end. • Evaluation of the design and testing the operating effectiveness of the internal controls relating to purchases sales and inventories including automated controls.
For the aforementioned reason and also since the inventory balance is material the existence and condition thereof has been considered as a key audit matter. • Performed alternate procedures including inspection of documentation of the subsequent sale of inventories to audit the existence and condition of inventory as per guidance provided in SA 501 "Audit Evidence – Specific Considerations for Selected Items" and have obtained sufficient appropriate audit evidence.
• We have also performed roll-forward procedures for establishing the existence of inventory as at year-end by validating purchases sales stock movement of inventory during the intervening period i.e. from the date physical verification was done till the year end date.
• Verification of documentary evidences of damaged and expired stock and the adequacy of recorded allowance in respect of these.

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

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Report of the Directors andManagement Discussion & Analysis but does not include the consolidated financialstatements standalone financial statements and our auditor's report thereon.

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

• In connection with our audit of the standalone financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially 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 includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the 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 judgments 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 financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic 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 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. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements. As part of an audit inaccordance with SAs we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion.

The risk of not detecting a material misstatement resulting from fraud is higher thanfor one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial control relevant to the audit inorder to 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 reasonablenessof accounting estimates and related disclosures made by the 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

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

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

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships 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 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 about thematter or 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.

Other Matters

The comparative financial information for the year ended March 31 2019 included inthese standalone financial statements have been audited by the predecessor auditor. Thereport of the predecessor auditor on the comparative financial information expressed anunmodified opinion.

Our opinion on the standalone financial statements is not modified in respect of theabove matter.

Report on Other Legal and Regulatory Requirements

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

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

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

c) The Balance Sheet the Statement of Profit and Loss including 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 standalone financial statements comply with the Ind ASspecified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure A".

Our report expresses an unmodified opinion on the adequacy and operating effectivenessof the Company's internal financial controls over financial reporting.

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

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

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

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

2. 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 B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For Deloitte Haskins & Sells LLP

Chartered Accountants

(Firm's Registration No. 117366W/W-100018)

Sumit Trivedi

Partner

Membership No. 209354

UDIN: 20209354AAAAFQ8272

Place: Secunderabad

Date: May 28 2020

ANNEXURE -A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 (f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report 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 AgroTech Foods Limited ("the Company") as of March 31 2020 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditor's 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 theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively 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 control based 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 internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material 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 31 2020 based on the criteria forinternal financial control over financial reporting established by the Company consideringthe essential components of internal control stated in the Guidance

Note on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For Deloitte Haskins & Sells LLP

Chartered Accountants

(Firm's Registration No. 117366W/W-100018)

Sumit Trivedi

Partner

Membership No. 209354

UDIN: 20209354AAAAFQ8272

Place : Secunderabad

Date : May 28 2020

ANNEXURE-B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

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

(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.

(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 provided to us we reportthat the title deeds comprising all the immovable properties of land and buildings whichare freehold are held in the name of the Company as at the balance sheet date.

In respect of immovable properties of land and buildings that have been taken on leaseand disclosed as right of use assets in the financial statements the lease agreements arein the name of the Company where the Company is the lessee in the agreement except forimmovable property of land at Jhagadia admeasuring 100000 sq. mtrs. having a carryingvalue of Rs.59.54 million as at March 31 2020 in respect of which the lease deed ispending execution.

(ii) As explained to us the inventories were physically verified during the year bythe Management at reasonable intervals and no material discrepancies were noticed onphysical verification.

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013.

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

(v) According to the information and explanations given to us the Company has notaccepted any deposit falling within the purview of the provisions of Section 73 to 76 ofthe Companies Act 2013.

There are no unclaimed deposits.

(vi) The maintenance of cost records has been specified by the Central Government undersection 148(1) of the Companies Act 2013 for manufacture of edible oils. We have broadlyreviewed the cost records maintained by the Company pursuant to the Companies (CostRecords and Audit) Rules 2014 as amended prescribed by the Central Government undersubsection (1) of Section 148 of the Companies Act 2013 and are of the opinion that primafacie the prescribed cost records have been made and maintained. We have howevernot made a detailed examination of the cost records with a view to determine whether theyare accurate or complete.

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

(a) The Company has been regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income-tax Sales Tax Service Tax CustomsDuty Excise Duty Value Added Tax cess and other material statutory dues applicable toit with the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income-tax Sales Tax Service Tax Customs Duty Excise Duty ValueAdded Tax cess and other material statutory dues in arrears as at March 31 2020 for aperiod of more than six months from the date they became payable.

ANNEXURE-B TO THE INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTS (Continued)

(c) Details of dues of Income-tax Sales Tax Service Tax Customs Duty Excise Dutyand Value Added Tax which have not been deposited as on March 31 2020 on account ofdisputes are given below:

Name of Statute Nature of dues Forum where Dispute is Pending Period to which the Amount Relates Amount Involved (Rs. in Million) Amount Unpaid (Rs. in Million)
Income Tax Act 1961 Income-tax Income tax Appellate 2010-11 69.35 3.88
Tribunal Hyderabad 2011-12 33.31 28.31
2012-13 31.09 16.59
2013-14 10.96 10.96
Commissioner of Income-tax appeals 2017-18 12.90 2.98
Central Excise Act 1944 Excise duty Central Excise and Service Tax 2009-12 28.10 27.10
Appellate Tribunal 2015-16 2.22 2.00
Gujarat Sales Tax Act 1970 Sales tax Deputy commissioner of Sales Tax (Appeals) Ahmedabad 1998-99 0.22 0.12
Gujarat Sales Tax Act 1970 Sales tax Sales tax appellate Tribunal Ahmedabad 1999-2000 0.12 0.12
Bihar Sales Tax Act 1981 Sales tax Joint Commissioner of Commercial Taxes (Appeals) Patna 2001-02 0.82 0.62
Tamil Nadu Sales Tax Act 1959 Sales tax Assistant Commissioner (Appeals) Commercial Taxes Chennai 2002-03 0.26 0.26
Delhi Sales Tax Act 1975 Sales tax Additional commissioner Commercial Taxes Delhi 2003-04 0.95 0.95
Central Sales Tax Act 1956 Central sales tax Additional commissioner Commercial Taxes Delhi 2004-05 2.03 1.63
Central Sales Tax Act 1956 Central sales tax Superintendent of Taxes Guwahati 2009-10 0.36 0.36
Andhra Pradesh General Sales Tax Act 1956 Sales tax Sales tax appellate Tribunal Hyderabad 1997-98 2.16 0.10
West Bengal Sales Tax Act 1994 Sales tax Sales tax appellate Tribunal Kolkata 2001-02 0.72 0.72
West Bengal Value Added Tax Act 2003 Value added tax Appellate & Revisional Board West Bengal 2009-10 4.39 4.39
Uttar Pradesh Value Added Tax Act 2008 Value added tax Deputy Commissioner Appeals Ghaziabad 2014-15 0.12 0.10
Uttrakhand Value Added Tax 2005 Value added tax Joint Commissioner (Appeals) Dehradhun 2012-13 0.57 0.46

There are no dues of Service Tax as on March 31 2020 on account of disputes.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loan to bank.

The Company has not taken any loans or borrowings from financial institutions andGovernment and has not issued any debentures.

(ix) In our opinion and according to the information and explanations given to us theterm loan taken has been applied by the Company during the year for the purposes for whichit was taken. The Company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments).

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no fraud on the Company by its officers oremployees has been noticed or reported during the year.

(xi) 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 CompaniesAct 2013.

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

(xiii) In our opinion and according to the information and explanations given to usthe Company is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of the Order is 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 them and hence provisions of Section 192 of theCompanies Act 2013 are not applicable.

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

For Deloitte Haskins & Sells LLP

Chartered Accountants

(Firm's Registration Number: 17366W/W- 100018)

Sumit Trivedi

Partner

Membership No. 209354

UDIN: 20209354AAAAFQ8272

Place: Secunderabad

Date: May 28 2020.

.