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Alfred Herbert (India) Ltd.

BSE: 505216 Sector: Financials
NSE: ALFREDHERB ISIN Code: INE782D01027
BSE 00:00 | 07 Feb 740.00 34.40
(4.88%)
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735.30

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740.00

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NSE 05:30 | 01 Jan Alfred Herbert (India) Ltd
OPEN 735.30
PREVIOUS CLOSE 705.60
VOLUME 26
52-Week high 792.00
52-Week low 566.35
P/E 38.30
Mkt Cap.(Rs cr) 57
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 735.30
CLOSE 705.60
VOLUME 26
52-Week high 792.00
52-Week low 566.35
P/E 38.30
Mkt Cap.(Rs cr) 57
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Alfred Herbert (India) Ltd. (ALFREDHERB) - Auditors Report

Company auditors report

To

The Members of

Alfred Herbert (India) Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of ALFRED HERBERT(INDIA) LIMITED ("the Company") which comprise the Balance Sheet as at March312022the Statement of Profit and Loss(including Other Comprehensive Income) theStatement of Changes in Equity and the Cash Flow Statement for the year then ended andnotes to the standalone financial statements including a summary of significantaccounting policies and other explanatory notes for the year ended on that date(hereinafter referred to as "the standalone financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (" the Act") in the manner so required and give atrue and fair view in conformity with the Indian Accounting Standards prescribed undersection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended ("Ind AS") and other accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2022 and its profit(including other comprehensive income) changes in equity and its cash lows for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the "Auditors' 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 (ICAI) together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on thestandalone 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 for the financial yearended March 31 2022. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. We have considered the matters describedbelow to be the key audit matters for incorporation in our report.

We have fulfilled the responsibilities described in the Auditors' responsibilities forthe audit of the standalone financial statements section of our report including inrelation to these matters. Accordingly our audit included the performance of proceduresdesigned to respond to our assessment of the risks of material misstatement of thestandalone financial statements. The result of our audit procedures including theprocedures performed to address the matters below provide the basis for our opinion onthe accompanying standalone f nancial statements.

Key Audit Matters Addressing the Key Audit Matters
Assessment of impairment of investments and loans/ advances given to subsidiaries (Refer note no. 45 and 45A to the accompanying note forming integral part of the Standalone Financial Statements) Our audit procedures based on which we arrived at the conclusion regarding reasonableness of the inventory include the following:
The outbreak of pandemic COVID 19 has made substantial impact on working of a wholly owned subsidiary company and its viability of operation independently. The Company has provided for impairment loss equivalent to the entire investment amount of Rs. 90.00 Lakhs in that subsidiary. We understood and tested the design and operating effectiveness of controls as established by management indetermination of appropriateness of the carrying value of investment and loans and advances.
The Company had given loans and advances which aggregates to Rs. 521.89 Lakhs as at March 31 2022 to the said subsidiary. The net worth of the subsidiary as at the year-end has been fully eroded. The Company has recognized impairment amounting to Rs. 521.89 Lakhs as at March 31 2022 against the above loans and advances. We evaluated the Company's process regarding determination of amount of impairment under the prevailing and expected circumstances and the appropriateness and adequacy of amount recognized in this respect.
We consider this a key audit matter given the relative significance of value of investment and loans and advances to the financial statements and extent of management judgements and estimates involving recoverability of the amount there against. We evaluated the cash low forecasts (with underlying economic growth rate) by comparing them to the budgets provided by the management.
We assessed the Company's sensitivity analysis and evaluated whether any reasonably foreseeable change in assumptions could affect the recoverability in future especially considering the fact that manufacturing operations of the said subsidiary has currently been discontinued and operations are being carried out to execute some spare parts order through third party sources.
We reviewed the investments loans and advances including with respect to the prudential norms guidelines for making provision thereagainst as issued by Reserve Bank of India in this respect.
Based on the above procedures performed we observed the management's impairment assessment to be reasonable.

Information Other Than The Standalone Financial Statements and Auditors' Report Thereon

The Company's Board of Directors is responsible for the preparation of otherinformation. The other information comprises the information included in the Annual Reportbut does not include the standalone financial statements consolidated financialstatements and our auditors' report thereon. Our opinion on the standalone financialstatements does not cover the other information and we do not express any form ofassurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated. If based on the work we have performed we concludethat there is a material misstatement of this other information we are required to reportthat fact. We have nothing to report with respect to the above.

Responsibilities of Management and Those Charged With Governance For The StandaloneFinancial 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 changes in equity and cash lows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards specified under section 133 of the Act read with relevant rules asamended. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies;

making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements the Board of Directors is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless the Board of Directors either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.

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

Auditors' Responsibilities For The Audit of The Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditors' 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 in accordance with SAs we exercise professional judgment andmaintain professional scepticism 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 misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrols;

• 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 system in place and the operating effectiveness ofsuch 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 auditors' 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 ourauditors' 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 also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements

regarding independence and to communicate with them all relationships and othermatters that may reasonably be thought to bear on our independence and where applicablerelated 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 auditors' 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.

Report On Other Legal And Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. Further to our comments in the annexure referred to in the paragraph above asrequired by Section 143(3) of the Act we report that:

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

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

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

d) In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Indian Accounting Standards) Rules 2015 as amended from time to time;

e) On the basis of the written representations received from the Directors as on March31 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 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 with reference tothe standalone financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the internal controlwith reference to the standalone financial statements of the Company.

3. With respect to the other matters to be included in the Auditors' 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 does not have any pending litigations which would have impact on itsfinancial position;.

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.;

iv. (a) The Management has represented that to the best of it's knowledge and beliefas stated in Note No. 47 of the standalone financial statements no funds (which arematerial either individually or in aggregate) have been advanced or loaned or invested(either from borrowed funds or share premium or any other sources or kind of funds) by thecompany to or in any other person or entity including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

(b) The Management has represented that to the best of it's knowledge and belief asstated in Note No. 47

of the standalone financial statements no funds (which are material eitherindividually or in aggregate) have been received by the Company from any person or entityincluding foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the company shall whether directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Party ("Ultimate Beneficiaries") or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries;

(c) Based on such audit procedures that the auditor has considered reasonable andappropriate in the circumstances nothing has come to their notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material mis-statement.

v. The dividend paid by the Company during the year in respect of the same declared forthe previous year as stated in Note No. 41(b) of the standalone financial statements isin accordance with Section 123 of the Companies Act 2013 to the extent it applies forpayment of dividend.

As stated in Note No. 48 of the Standalone Ind AS Financial Statements the Board ofDirectors of the Company have proposed dividend for the year which is subject to theapproval of the members at the ensuing Annual General Meeting. The dividend declared is inaccordance with Section 123 of the Act to the extent it applies to declaration ofdividend.

4. With respect to the reporting under section 197(16) of the Act to be included in theAuditors' Report in our opinion and according to the information and explanations givento us the remuneration (including sitting fees) paid by the Company to its Directorsduring the current financial year is in accordance with the provisions of section 197 ofthe Act and is not in excess of the limit laid down therein.

For A L P S & CO.
Chartered Accountants
Firm's Regn. No. 313132E
(R.S.Tulsyan)
Partner
Place : Kolkata M. No. 051793
Dated: May 30 2022 UDIN NO. 22051793AJWCWJ2516

Annexure "A" to the Independent Auditors' Report

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

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

(B) The Company does not have any intangible assets and accordingly reporting underparagraph 3(i)(a)(B) of the Order is not applicable to the Company.

(b) During the year property plant and equipment have been physically verified by themanagement according to a regular program of verification which in our opinion isreasonable having regard to the size of the Company and the nature of its assets.According to the information and explanations given to us no material discrepancies werenoticed on such verification;

(c) According to the information and explanations given to us and based on ourexamination of the relevant records of the Company the title deeds of all immovableproperties (other than properties where the Company is lessee and lease agreements areduly executed in favour of the lessee) as disclosed in note no. 12 on property plant andequipment to the standalone financial statements are held in the name of the Company ason the balance sheet date;

(d) The Company has not revalued any of its property plant and equipment (includingright- of-use assets) during the year. The Company does not have any intangible assets.Accordingly reporting under paragraph 3(i)(d) of the Order is not applicable to theCompany;

(e) According to the information and explanations given to us and as represented by themanagement no proceedings have been initiated during the year or are pending against theCompany as at the 31st March 2022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (45 of 1988) and rules made thereunder as amendedfrom time to time. Accordingly reporting under paragraph 3(i)(e) of the order is notapplicable to the Company.

2) a) The Company being a non-banking financial company primarily engaged ininvestment in securities and granting of loans does not hold any inventories andaccordingly reporting under paragraph 3(ii)(a) of the Order is not applicable;

b) The Company has not been sanctioned working capital limits in excess of Rs. 5 crorein aggregate at any point of time during the year from banks or financial institutionson the basis of security of current assets and accordingly reporting underparagraph3(ii)(b) of the Order is not applicable to the Company.

3) The Company has made investments during the year. The Company has not provided anyguarantee or security or granted any loans or advances in the nature of loans secured orunsecured to companies firms Limited Liability Partnerships or any other parties duringthe year.

3) (a) The Company is a non-banking financial companyand its principal business is togive loans accordingly reporting under paragraph 3(iii)(a) of the Order is notapplicable;

(b) In our opinion and according to the information and explanations given to us theinvestments made during the year and loans provided are prima facie not prejudicial tothe interest of the Company;.

(c) In respect of loans given to wholly owned subsidiary in earlier years andoutstanding as on March 31 2022 schedule of repayment of principal and payment ofinterest has been stipulated. Howeveramount of principal or interest has not beenreceived regularly as stipulated. Accordingly as a matter of financial support to thesaid subsidiary amount of interest recoverable against the said loan has been waived offby the Board of Directors of the Company in earlier years and provision for impairmentloss as stated in note no. 7.3has been recognized in the standalone financial statementsof the Company against Rs. 521.89 Lakhs outstanding as on March 31 2022.

(d) In our opinion and according to the information and explanations given to us loansamounting to Rs. 521.89 Lakhs given to wholly owned subsidiary in earlier years has becomeoverdue for more than ninety days. However the said amountdespite the support providedto the said subsidiary and steps taken towards its revival etc and recovering the saidamount considering the financial position of the subsidiary has been fully impaired inthe standalone financial statements of the Company;

(e) The Company is a non-banking financial company and its principal business is togive loans accordingly reporting under paragraph 3(iii)(e) of the Order is notapplicable;

(f) According to information and explanations given to us and based on our examinationof the books of account the Company has not granted any loans or advances in the natureof loan either repayable on demand or without specifying any terms or period of repaymentduring the year.

4) In our opinion and according to the information and explanations given to us theCompany has not granted any loans in contravention of provisions of section 185 of theAct. The Company has complied with the provisions of section 186(1) of the Act; otherprovisions of section 186 are not applicable to the Company;

5) In our opinion and according to the information and explanations given to us theCompany being a nonbanking financial company the provisions of sections 73 to 76 or anyother relevant provisions of the Act and rules framed thereunder with regards to thedeposits accepted are not applicable to the Company. Accordingly reporting underparagraph 3(v) of the order is not applicable.

6) The Central Government has not prescribed the maintenance of cost records undersub-section (1) of section 148 of the Act for the business activities carried out by theCompany. Accordingly reporting under paragraph 3(vi) of the Order is not applicable.

7) (a) According to the information and explanations given to us and based on ourexamination of books of account during the year the Company has generally been regularin depositing with appropriate authorities undisputed statutory dues including goods andservices tax provident fund employees' state insurance income tax sales tax servicetax duty of customs duty of excise value added tax cess and any other statutory duesas applicable to it. There are no undisputed amounts in respect of goods and services taxprovident fund employees' state insurance income tax sales tax service tax duty ofcustoms duty of excise value added tax cess and any other material statutory dues inarrears as at 31st March 2022 for a period of more than six months from the date theybecame payable;

(b) According to the information and explanations

given to us and based on our examination of the records of the Company there are nostatutory dues referred to in sub clause (vii)(a) above which have not been deposited onaccount of any dispute.

8) In our opinion and on the basis of information and explanations given to us and asrepresented by the management we have neither come across nor have been informed oftransactions which were previously not recorded in books of account and that have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 and accordingly reporting under paragraph 3 (viii) of the Order is notapplicable.

9) In our opinion and on the basis of information and explanations given to us andbased on our examination of the books of account of the Company

A) The Company has not taken any loans or other borrowings from any lender.Accordingly reporting under paragraph 3(ix)(a) of the Order is not applicable;

B) The Company has not been declared wilful defaulter by any bank or financialinstitution or any other lenders;

C) The Company has not taken any term loan during the year and there are no outstandingterm loans at the beginning of the year and accordingly reporting under paragraph3(ix)(c) of the Order is not applicable;

D) The Company has not raised any loans on short term basis and accordingly reportingunder paragraph 3(ix)(d) of the Order is not applicable;

E) The Company has not taken any funds from any entity or person on account of or tomeet obligation of its subsidiaries. The Company does not have any associates or jointventures;

F) The Company has not raised loans during the year on the pledge of securities held inits subsidiaries. The Company does not have any associates or joint ventures.

10) According to the information and explanations given to us and based on ourexamination of the books of account of the Company:

(a) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year and hence reporting underparagraph 3(x)(a) of the Order is not applicable;

(b) The Company has not made any preferential allotment or private placement of sharesor convertible debentures (fully partially or optionally) during the year andaccordingly reporting under paragraph 3(x)(b) of the Order is not applicable.

11) (a) During the course of our examination of books and records of the Companycarried out in accordance with generally accepted auditing practices in India andaccording to the information and explanation given to us we have neither come across anyinstance of fraud by the Company or on the Company noticed or reported during the yearnor have been informed of any such cases by the management;

(b) No report under sub-section (12) of section 143 of the Act has been filed in FormADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 (asamended from time to time) with the Central Government during the year and up to the dateof this report;

(c) According to the information and explanation given to us and based on ourexamination of the books of account of the company no whistle blower complaints have beenreceived during the year by the company. Accordingly reporting under paragraph 3(xi) (c)of the Order is not applicable.

12) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company and accordingly the Nidhi Rules 2014 is not applicable toit hence the reporting under paragraph 3(xii) (a b & c) of the Order is notapplicable.

13) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with provisions of sections 177 and 188 of the Act where applicable and detailsof such transactions have been disclosed in the standalone financial statements asrequired by the applicable accounting standards.

14) The Company has appointed a firm of Chartered Accountants to carry out the internalaudit of the Company. In our opinion and according to the information and explanationsgiven to us the internal audit system is commensurate with the size and nature of itsbusiness. We have considered during the course of our audit the reports of the internalauditor for the period under audit issued to the Company during the year and till datein determining the nature timing and extent of our audit procedures in accordance withthe guidance provided in SA 610 "Using the work of Internal Auditors".

15) According to the information and explanations given to us and as represented to usby the management and based on our examination of the records of the Company the Companyhas not entered into noncash transactions with directors or persons connected with themand hence reporting under paragraph 3(xv) of the Order is not applicable.

16) (a) The Company is required to be registered under section 45-IA of the ReserveBank of India Act 1934 and has obtained the requisite registration vide Registration No.05.04665 dated 29th November2001.

(b) The Company has not conducted any Non - Banking Financial activities without avalid Certificate of registration from Reserve Bank of India as per the Reserve Bank ofIndia Act 1934

(c) According to information and explanation given

to us by the management the Company is not a Core Investment Company (CIC) as definedin the regulations made by the Reserve Bank of India.

(d) According to the information and explanations given to us and representationreceived from the management there is no core investment company within the group andaccordingly reporting under paragraph 3 (xvi)(d) of the Order is not applicable.

17) According to information and explanation given to us and based on our examinationthe Company has not incurred cash losses in the current financial year covered by ouraudit or in the immediately preceding financial tear.

18) There has been no resignation of statutory auditors during the year and hencereporting under paragraph 3(xviii) of the Order is not applicable.

19) According to the information and explanations given to us and based on thefinancial ratios (refer note no. 36(19B) to the standalone financial statements) ageingand expected dates of realization of financial assets and payment of financialliabilities other information accompanying standalone financial statements our knowledgeof the Board of Directors and management plans and based on our examination of theevidence supporting the assumptions nothing has come to our attention which causes us tobelieve that any material uncertainty exists as on the date of the audit report thatCompany is not capable of meeting its liabilities existing at the date of balance sheet asand when they fall due within a period of one year from the balance sheet date. Wehowever state that this is not an assurance as to the future viability of the Company. Wefurther state that our reporting is based on the facts up to the date of the audit reportand we neither given any guarantee nor any assurance that all liabilities falling duewithin a period of one year from the balance sheet date will get discharged by theCompany as and when they fall due.

20) According to the information and explanation given to us and based on ourexamination of the books of account the requirement for making expenditure towardscorporate social responsibility activities is not applicable as per the criteria specifiedunder section 135 of the act read with relevant rules issued thereunder from time to timeand accordingly reporting under paragraph 3(xx)(a &b) of the order is not applicable.

21) The reporting under paragraph 3 (xxi) of the Order is not applicable in respect ofAudit of Standalone financial statements of the Company.

Annexure "B" to the Independent Auditors' Report

(Referred to in paragraph (f) under 'Report on Other Legal and Regulatory Requirements'of our report of even date)

Report on the Internal Financial Controls with reference to standalone financialstatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls with reference to standalone financialstatements of ALFRED HERBERT (INDIA) LIMITED ("the Company") as at March 312022 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THESTANDALONE FINANCIAL STATEMENT

The Board of Directors of the company is responsible for establishing and maintaininginternal financial controls based on the internal control with reference to standalonefinancial 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 ("the Guidance Note") issued by the Instituteof Chartered Accountants of India (ICAI). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note issued by ICAI and the Standardson Auditing prescribed under Section 143(10) of the Act to the extent applicable to anaudit of internal financial controls. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to thestandalone financial statements was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to the standalone financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to the standalone financial statements included obtaining an understandingof internal financial controls with reference to standalone financial statementsassessing 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 standalone financial statements whether due to fraud orerror.

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 systemwith reference to standalone financial statements. MEANING OF INTERNAL FINANCIAL CONTROLSWITH REFERENCE TO STANDALONE FINANCIAL STATEMENTS A company's internal financial controlwith reference to the standalone financial statements is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof the standalone financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control with reference tothe standalone financial statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation ofthe standalone financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the company's assets that could have a material effect on thestandalone financial statements. INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS WITHREFERENCE TO STANDALONE FINANCIAL STATEMENTS

Because of the inherent limitations of internal financial controls with reference tothe standalone financial

statements 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 f nancial controls with reference tothe standalone financial statements to future periods are subject to the risk that theinternal financial control with reference to the standalone financial statements maybecome in adequate because of changes in conditions or that the degree of compliance withthe 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 controlswith reference to the standalone financial statements and such internal financial controlswith reference to the standalone financial statements were operating effectively as atMarch 31 2022 based on the internal control with reference to standalone financialstatements 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.

For A L P S & CO.
Chartered Accountants
Firm's Regn. No. 313132E
(R.S.Tulsyan)
Place : Kolkata Partner
Dated: 30th day of May 2022 M. No.051793
UDIN NO.22051793AJWCWJ2516

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