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Alexander Stamps & Coin Ltd.

BSE: 511463 Sector: Others
NSE: N.A. ISIN Code: INE191N01012
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NSE 05:30 | 01 Jan Alexander Stamps & Coin Ltd
OPEN 17.60
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VOLUME 37438
52-Week high 35.45
52-Week low 14.55
P/E
Mkt Cap.(Rs cr) 16
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 17.60
CLOSE 17.25
VOLUME 37438
52-Week high 35.45
52-Week low 14.55
P/E
Mkt Cap.(Rs cr) 16
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Alexander Stamps & Coin Ltd. (ALEXANDERSTAMPS) - Auditors Report

Company auditors report

To the Members of Alexander Stamps and Coin Limited Report on the Auditof the Financial Statements

OPINION

We have audited the Standalone financial Statement of Alexander Stampsand Coin Limited (‘the company?) (Formerly known as Rudraksh Cap-Tech Ltd.)which comprises the Balance Sheet as at 31st March 2022 and the statement of Profit &Loss the statement of changes in equity and the statement of cash flows for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March 2022profit and other comprehensive income changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor?s Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules there underand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence obtained byus issufficient and appropriate to provide a basis for our opinion on the standalone financialstatements.

• Key Audit Matters

Description of Key Audit Matter

Sr. No. The Key Audit Matter How the matter was addressed in our audit
1. Purchase of stock in trade & sale of stock in trade. In view of the significance of the matter we applied the following audit procedures in this
The company?s operation is in the area of purchase and sale of artistic aesthetic things products drawing literatures journals newspapers rare gold & silver coins and other items of specialized nature. Management use to purchase & sale stock in trade from retail customers and sometimes from Individuals and corporate having huge stocks. It was very difficult for audit team to identify and analyzed authenticity of the product purchase by the company. These involve significant judgments and experience to determine authenticity of the product and it?s price. The company makes all the purchase and sale transaction on approval of Managing director of the company as he is having wide experience in the same field. area among others to obtain sufficient appropriate audit evidence: We have verified the stock held for trade. We have verified sales and purchase Invoices. Audit team has verified GST returns with sale made. We have taken confirmations from some of the parties as a part of external confirmation. Audit team has discussed the matter with Managing director of the company to get reasonable level of confidence. Audit team has verified internal auditor?s report also. Our audit team has obtained understanding w.r.t ground level operation reality also. Assessed and tested the adequacy and accuracy ofthe operating system in place and strongly advise management to strengthen the process furthermore. We evaluated the design implementation and operating effectiveness to safe guard the process and found lack of control in the same.
2. Inventories In view of the significance of the matter we applied the following audit procedures in this area among others to obtain sufficient appropriate audit evidence:
The company's inventories primarily comprise high value items like artistic aesthetic things products drawing literatures journals newspapers and watches. The company holds inventory with Managing director at very safe custody. We evaluated the design implementation and tested it?s effectiveness. We have asked for the stock register maintain by the company and also performed physical verification stock on a sample basis. Our audit team recommended company to have upto date record of each inward and outward stock.
1. There is a significant risk of loss of inventory given the high value and nature of the inventory involved. We evaluate company passes entry in the books of accounts with it?s purchase cost and to cross verify asked for the valuation report of registered valuer and taken management representation for the same.
2. There is a significant risk of loss of inventory valuation

Emphasis of Matter

1. Revenue from operation and purchase of traded goods:

The Company is in trading business of buying and selling of artisticaesthetic things products drawing literatures journals newspapers and so on but themajority of the transaction is routed through cash purchase (Purchase of stock in trade)and cash sales (Revenue from operation). We repetitively inform management to keep recordof identity of all transactions made through cash. We are unable to cross verify saidtransactions because of lack of availability of records. Below is the statistics of past 5years revenue form operation (Sales)and holding of stock in trade (Closing Stock) whichalso shows tremendous decrease in sales and huge building up of a stock in trade.

Sr. No. Years Sales in Rs. Closing Stock in Rs.
1. 2016-17 84059150 23907576
2. 2017-18 50638090 143719179
3. 2018-19 10320851 149281826
4. 2019-20 4363167 149281826
5. 2020-21 7599204 153846806
6. 2021-22 13107211 164341806

Company is keeping huge amount of stock and of a special nature westrongly believe that management should keep perfect record of stock and made appropriatesystem to keep at safe custody with custodian. Physical stock verification time to time isalso desirable. Furthermore company has not taken insurance of the stock in trade whichalso creates huge risk on company?s financial position.

Looking at the working pattern margins earned and assets held by thecompany we strongly recommended management to give more focus on health of thecompany?s performance and internal control of the company. It shows inefficiency insales of the company. Also it increases operational and financial risk of the company.The company should made efforts to sale off all the stock items appearing in closing stockand make some publicity of their operations in the country. The same is due to lowerdemand in Market in this pandemic situation. We advise to frame proper mechanism tosale/liquidate long standing stock in trade. Furthermore company should take valuationreport from registered valuer to cross check the value of stock shown in balance sheet asthe items in which company is dealing is highly technical and unique. Consider the saidfact we as audit process taken management representation w.r.t closing valuation ofinventory held by the company. As per the personal conversation of the management andmanaging director of the company they have more than confident about the valuation partof the company?s closing inventory.

2. Loans & Advances:- During the year by passing board resolutioncompany has written off Rs.1980106.23 because of which profit of the company lowered bythe same amount.

3. Borrowings - Company was carrying very old balance of unsecuredloan. Company has not provided balance confirmation of loan received from Main Dhal MillsPvt ltd amounting to Rs . 468889.00 Linkwise Exports Pvt Ltd amounting to Rs.1875543.00 and for Loan from retired director amounting to Rs.1192769. During the yearunder audit by passing board resolution company has written off Rs.3619750.00 andcredited to profit & loss account resulting into increase in Profit by this amount.

4. Related party Transactions discloser -

During our audit we have observed below mentioned related partiesTransactions.

Sr. No Name of Related Parties Nature of Transaction Amount in Rs. Relationship of the party to the company
1. Anirudh Sethi Purchase of Stock# 4000000.00 Director of the company
2. Anirudh Sethi Advance to Purchase Stock in trade# 1000000.00 Director of the company

# Company has purchased goods (Stock in trade) worth Rs.4000000.00from director of the company but we have not been provided with any of the confirmationw.r.t independent valuation of the transaction to determine aram?s length price.Furthermore Rs.1000000.00 given to Mr. Anirudh Sethi as advance for purchase of stock.

5. Substantial reduction in shareholding by Promoter director andsubstantial share holder. During the year there is a massive reduction in shareholding ofthe Promoter director Mr. Anirudh Sethi. Below is statistic which shows movement inshareholding pattern of Promoter director which in our opinion is major point to beconsidered by stake holders.

Shareholders As At 31 March 2022 As At 31 March 2021
No. of shares Percentage No. of shares Percentage
Anirudh Praduman Sethi(Promoters) 241727 2.59 969147 10.41
Alka Sawhney (Substantial share holder) 14 0.02 980014 10.52

Other Information

The Company?s management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theCompany?s annual report but does not include the financial statements and ourauditors? report thereon. The annual report is expected to be made available to usafter the date of this auditors? report.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon. Inconnection with our audit of the standalone financial statements our responsibility is toread the other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated. When we read the annual report if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance and take necessary actions as applicable under the relevant laws andregulations.

Responsibilities of the Management and Those Charged with Governancefor the Standalone Financial Statement

The Company?s Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation and presentation of these financial statements that give a true and fairview of the financial position financial performance changes in equity and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act. 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In Preparing the financial statements management is responsible forassessing the Company?s ability to continue as a going concern disclosing asapplicable mattes 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.

Auditor?s Responsibilities for the Audit of the StandaloneFinancial Statement.

Our Objective are to obtain reasonable assurance about whether thefinancial 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 financial statements.

As a part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control;

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the Company has adequate internal financial controls system in placeand the operating effectiveness of such controls;

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

• Conclude on the appropriateness of management?s use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company?s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor?sreport to the related disclosures in the Standalone Financial Statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor?s report. However future events orconditions may cause the Company to cease to continue as a going concern;

• Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation;

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit;

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards;

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the StandaloneFinancial Statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor?s report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on other legal and Regulatory Requirement:

1. As required by the Companies (Auditor?s Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Companies Act2013 we give in the "Annexure I" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

2. As required by section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion proper books of account as required by law have notbeen kept by the Company so far as appears from our examination of those books;

c) The Balance Sheet and Statement of Profit and Loss and the CashFlow Statement dealt with by this Report are in agreement with the books of account;

d) In our opinion the aforesaid financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of thecompanies (Accounts) 2014.

e) On the basis of written representations received from the directorsfor March 31 2022 and on record by the Board of Directors none of the directors isdisqualified as on March 31 2022 from being appointed as a director in terms of section164 (2) of the Act;

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in "Annexure II" to this report; and

g) With respect to the matters to be included in the Auditor?sReport in accordance with Rule 11 of the companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanation given tous:

i. The Company has not disclosed the impact of pending litigation andtaxation dues on its financial position in its financial Statements ;

ii. The Company did not have any long term contract includingderivative contract for which there are any material foreseeable losses.

iii. There has been no delay for amounts if any which are required tobe transferred to the Investor Education and protection Fund by the Company.

h) The Management has represented that to the best of its knowledgeand belief other than as disclosed in note 38b if any to the accounts no funds have beenadvanced or loaned or invested (either from borrowed funds or share premium or any othersources or kind of funds) by the Company to or in any other persons or entities includingforeign entities ("Intermediaries") with the understanding whether recorded inwriting or otherwise that the Intermediary shall directly or indirectly lend or investin other persons or entities identified in any mannerwhatsoever ("UltimateBeneficiaries") by or on behalf of the Company or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries.

i) The Management has represented that to the best of its knowledgeand belief as disclosed

in note 38b to the accounts no funds have been received by the Companyfrom any persons or entities including foreign entities if any ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever ("Ultimate Beneficiaries")by or on behalf ofthe Funding Parties or provide any guarantee security or the like on behalf of theUltimate Beneficiaries.

j) Based on the audit procedures performed that have been consideredreasonable and appropriate in the circumstances nothing has come to our notice that hascaused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e)if any contain any material misstatement.

k) With respect to the matter to be included in the Auditors?Report under section 197(16) of the Act:

In our opinion and according to the information and explanations givento us the remuneration if any paid by the Company to its directors during the currentyear is in accordance with the provisions of section 197 of the Act. The remuneration paidto any director is not in excess of the limits laid down under section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under section 197(16) ofthe Act which are required to be commented upon by us

Annexure I to the Independent Auditor?s Report

Referred to in Paragraph 1 under the heading "Report on otherregulatory requirements" of our report of even date

(i) FIXED ASSETS:-

(a) As informed to us the Company has prepared Fixed Assets registeredshowing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us fixed assets according to the practice of theCompany Fixed Assets are physically verified by the management at reasonable intervals andno material discrepancy has been noticed.

(c) According to the information and explanations given to us therecords examined by us and based on the examination of the invoice provided to us wereport that the title are held in the name of the Company as at the balance sheet date.

(ii) INVENTORY:-

(a) As informed to us the Inventory was physical verified by themanagement at reasonable intervals during the year. In our opinion having regard tonature and size of the business there is lack of internal control regards to possessionof stock.

(b) In our opinion and according to the information and explanationsgiven to us the procedures of physical verification of inventories followed by themanagement were not reasonable and not adequate in relation to the size of the company andnature of its business.

(c) In our opinion and according to the information and explanationsgiven to us the Company has not maintained proper records of inventory. Further companyhas not maintained proper record w.r.t. Movement of stock and its valuation.

(iii) LOANS GIVEN BY THE COMPANY:-

According to the information and explanations given to us the Companyhas granted unsecured loans to companies firms Limited Liability Partnerships or otherparties but company not maintained register under section 189 of the Companies Act.

Company has not provided complete list and balance confirmation. Loansand advances given by the company are prejudicial to the interest of the company as givenwithout the repayment schedule and without proper security.

We are unable to comment on overdue amount above 90 days in absence ofrepayment schedule and company has not taken any steps to recover the same.

According to the information and explanations given to us the Companyhas taken unsecured loan but company has not maintained proper records.

(iv) Loan to Directors and Investment by the Company:-

In our opinion and according to the information and explanations givento us Provision of section 185 of the Act in respect of loans investment guarantee andsecurity made have not been complied with by the company. Loan given to director MrAnirudh Sethi amounting to Rs.1000000.00 which fall under contravention of section 185of companies Act.

(v) Deposits:

According to the Information and Explanation given to us the Companyhas accepted deposit in form of unsecured loan Rs.468889 from Main Dhal Mills Pvt LtdRs.1875543 from Linkwise Exports Pvt Ltd and Rs.1192769 from director. During the yearunder audit by passing board resolution company has written off Rs.3619750.00 andcredited to profit & loss account.

(vi) Cost Record:-

As per the information and explanation provided by us to the managementand to the best of our

knowledge and as explained the Central Government has not specifiedthe maintenance of cost

records under clause 148 (1) of the Act for the services of theCompany.

(vii) Statutory Dues:-

There is undisputed amounts payable in respect of Income Tax SalesTax Wealth Tax Service Tax Excise Duty Custom Duty Cess and other material statutorydues in arrears as at 31st March2022 for a period of more than six months forthe date they become payable.

According to the information explanation and records verified by usthe Company has generally been regular in depositing goods and services Tax but companyhas not paid Income Tax Service Tax Cess local authority Taxes and other materialstatutory dues applicable to it with the appropriate authorities.

(viii) Repayment of Loans:-

The Company has neither issued debentures nor availed any loan fromBanks financial institutions or government. Therefore the provision of clause 3(viii) ofthe order are not applicable the company.

(ix) The utilization of funds:- Based on our audit procedures performedfor the purpose of reporting the true and fair view of the financial statements andaccording to the information and explanation given by the management the company has notraised any fund by way of initial public offer or further public offer including debtinstrument.

(x) Reporting of Fraud:-

Based on our audit procedures performed for the purpose of reportingthe true and fair view of

The financial statements and according to the information andexplanation given by the management We report that no fraud on or by the management hasbeen noticed or reported during the year.

(xi) Approval of Managerial Remuneration:-

Based on our audit procedures performed for the purpose of reportingthe true and fair view of the financial statements and according to the information andexplanation given by the management We report that the managerial remuneration has beenpaid if any or provided in accordance with the requisite approvals mandated by theprovision of section 197 read with schedule V to the Act.

(xii) Nidhi Company:-

In our opinion the Company is not a Nidhi company. Therefore theprovision of clause 3

 

(xiii) of the order are not applicable to the company and hencenot commented upon.

(xiii) Related Party Transactions:-

Based upon the audit procedures performed for the purpose of reportingthe ture and Fair view of the financial statements and according to the information andexplanations given by the management transaction with the related parties except beloware in compliance with section 177 and 188 of the companies Act 2013 where applicable andthe details have been disclosed in the notes to the financial statements are required bythe applicable accounting standards.

Sr. No Name of Related Parties Nature of Transaction Amount in Rs. Relationship of the party to the company
1. Anirudh Sethi Purchase of Stock in trade 4000000.00 Director/Share holder+ of the company
2. Anirudh Sethi Advance to Purchase Stock in trade# 1000000.00 Director of the company

Company has purchased goods (Stock in trade) worth Rs.4000000.00 fromdirector of the company but we have not been provided with any of the confirmation w.r.tindependent valuation of the transaction to determine arm?s length price.Furthermore Rs.1000000.00 given to Mr. Anirudh Sethi as advance for purchase of stock.

(xiv) Private placement of Preferential Issues:-

According to the information and explanations given to us and onoverall examination of the balance sheet the company has made preferential allotment ofequity shares amounting to Rs.16800000 by way of shares issued for consideration.

(xv) Non-Cash Transactions:-

Based on our audit procedures performed for the purpose of reportingthe true and fair view of the financial statements and according to the information andexplanation given by the management the Company has not entered into any non-cashtransaction with directors or persons connected with him.

(xvi) Registration under RBI Act:-

According to information and explanation given us the provision ofsection of section 45- IA of the Reserve Bank of India Act 1934 are not applicable to thecompany.

Annexure II to the Independent Auditor?s Report

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Alexander Stamps and Coin Limited(‘the company?) (Formerly known asRudraksh Cap-Tech Ltd.) as of 31st March 2022 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.

Management?s Responsibility for Internal Financial Controls

The Company?s management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI?).

These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany?s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors? Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India.

Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness.

Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk.

The procedures selected depend on the auditor?s judgmentincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company?s internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting 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 control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Adverse Opinion

In our opinion the Company has an inadequate internal financialcontrols system over financial reporting and internal financial controls over financialreporting were operating less than effectively as at 31 March 2022 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in

the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. We stronglysuggest company?s management to have independent internal inspection department alongwith internal audit system from independent agency to improve transparency.

For Sheetal Samriya & Associates
Chartered Accountants Firm Registration No.: 011478C
Sd/-
CA Uchit Shukla (Partner)
Membership No.: 148049
UDIN: 22148049AIRMGL6939
Place: Vadodara
Date: 07.05.2022

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