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AMD Industries Ltd.

BSE: 532828 Sector: Industrials
NSE: AMDIND ISIN Code: INE005I01014
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VOLUME 900
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OPEN 16.25
CLOSE 16.20
VOLUME 900
52-Week high 21.95
52-Week low 8.40
P/E
Mkt Cap.(Rs cr) 31
Buy Price 15.85
Buy Qty 125.00
Sell Price 16.50
Sell Qty 100.00

AMD Industries Ltd. (AMDIND) - Auditors Report

Company auditors report

To the Members of AMD Industries Limited

Report on the Standalone Ind AS financial Statements Opinion

We have audited the accompanying standalone Ind AS financial statements of AMDIndustries Limited ("the Company") which comprises the Balance Sheet as at March31 2019 the Statement of Profit and Loss (including Other Comprehensive Income)Statement of Changes in Equity and statement of cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the Ind AS and accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2019 and profit total comprehensive income thechanges in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial 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 Ind AS financial statements under the provisions of the Companies Act 2013 andthe Rules there under and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Key Audit Matters

Key Audit Matters are those matters that in our professional judgment were of mostsignificance in our statements of the current period. These matters were addressed in thecontext of our audit of the Standalone Ind AS financial statements as a whole andinforming our opinion thereon and we do not provide a separate opinion on these matters.We have determined the matters described below to be the key audit matters to becommunicated in our report

(i) Revenue Recognition
(As described in note 2.16 of the standalone Ind AS financial statements)
For the year ended March 31 2019 the Company has recognized revenue from contracts with customers amounting to Rs.15572.06 lakhs. Our audit procedures included the following: Assessed the Company's revenue recognition policy prepared as per Ind AS 115 'Revenue from contracts with customers'.
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company has generally concluded that as principal it typically controls the goods or services before transferring them to the customer. Assessed the design and tested the operating effectiveness of internal controls related to revenue recognition discounts and rebates.
The variety of terms that define when control are transferred to the customer as well as the high value of the transactions give rise to the risk that revenue is not recognized in the correct period. Performed sample tests of individual sales transaction and traced to sales invoices and other related documents. Further in respect of the samples checked that the revenue has been recognized as per the agreed terms.
Revenue is measured net of net of returns and allowances and trade discounts.
Revenue is also an important element of how the Company measures its performance. The Company focuses on revenue as a key performance measure which could create an incentive for revenue to be recognized before the risk and rewards have been transferred. To test cut off selected sample of sales transactions made pre- and post-year end agreeing the period of revenue recognition to third party support such as transporter invoice and customer confirmation of receipt of goods.
Accordingly due to the significant risk associated with revenue recognition in accordance with terms of Ind AS 115 ‘Revenue from contracts with customers' it was determined to be a key audit matter in our audit of the standalone Ind AS financial statements. Tested the calculations related to discounts by agreeing a sample of amounts recognized to underlying arrangements with customers and other supporting documents.
Performed monthly analytical procedures of revenue by streams to identify any unusual trends.
Obtained confirmations from customers on sample basis to support existence of trade receivables and assessed the relevant disclosures made in the financial statements; to ensure revenue from contracts with customers are in accordance with the requirements of relevant accounting standards.

(ii) Contingent Liability under Indirect Tax Laws

(As described in note 41 of the standalone Ind AS financial statements)

As at March 31 2019 there is a contingent liability of Rs.950962/- in respect of Local Sales Tax raised for F.Y. 1999-2000 to 2006-07 under section 4A of the Act.The department levied tax on Goods under modernization certificate on base production.The case is pending with Supreme Court of India. Our audit procedures includes review of opinion received from expert and the nature of amounts involved the sustainability and the likelihood of contingent liability upon final resolution.
As at March 31 2019 there is a contingent liability of Rs.3118745/- in respect of Central Sales Tax raised for F.Y. 1999-2000 to 2006- 07 under section 4A of the Act. The department levied tax on Goods under modernization certificate on base production. The case is pending with Supreme Court of India. Our audit procedures includes review of opinion received from expert and the nature of amounts involved the sustainability and the likelihood of contingent liability upon final resolution.
As at March 31 2019 there is a contingent liability of Rs.358400/- in respect of demand raised for the F.Y. 2003-04 by Sales Tax Authority on account of non-submission of Concessional Forms. The case is pending with Tribunal Court Gahziabad. Our audit procedures includes review of opinion received from expert and the nature of amounts involved the sustainability and the likelihood of contingent liability upon final resolution.
As at March 31 2019 there is a contingent liability of Rs.1145102/- in respect of entry tax raised for the F.Y. 2001-02 by Sales Tax Authority. The case is pending with Tribunal Court Gahziabad. As at March 31 2019 there is a contingent liability of Rs.1140307/- in respect of entry tax raised for the F.Y. 2002-03 by Sales Tax Authority. The case is pending with Supreme Court of India. Our audit procedures includes review of opinion received from expert and the nature of amounts involved the sustainability and the likelihood of contingent liability upon final resolution. Our audit procedures includes review of opinion received from expert and the nature of amounts involved the sustainability and the likelihood of contingent liability upon final resolution.
As at March 31 2019 there is a contingent liability of Rs.1637643/- in respect of entry tax raised for the F.Y. 2004-05 by Sales Tax Authority. The case is pending with Allahabad High Court. Our audit procedures includes review of opinion received from expert and the nature of amounts involved the sustainability and the likelihood of contingent liability upon final resolution. Our audit procedures includes review of opinion received from expert and the nature of amounts involved the sustainability and the likelihood of contingent liability upon final resolution.
As at March 31 2019 there is a contingent liability of Rs.447623/- in respect of Sales Tax Demand raised for F.Y. 2005-06 for non-filing of export certificates at the time of assessment.The case is pending with Addl. Commissioner Appeal (Trade Tax) – I Ghaziabad As at March 31 2019 there is a contingent liability of Rs.220397/- in respect of Entry tax raised for the F.Y. 2005-06 by UP trade tax Authorities.The case is pending before the Supreme Court of India As at March 31 2019 there is a contingent liability of Rs.3809702/- for the F.Y. 2007-08 in respect of UP Vat charged on Preform @ 5% as classified item under the Act by the company but department denied and raised the demand @ 13.50%.The case is pending before the Allahabad High Court. Our audit procedures includes review of opinion received from expert and the nature of amounts involved the sustainability and the likelihood of contingent liability upon final resolution.
Our audit procedures includes review of opinion received from expert and the nature of amounts involved the sustainability and the likelihood of contingent liability upon final resolution
As at March 31 2019 there is a contingent liability of Rs.29718848/- for the F.Y. 2008-09 and F.Y.2009-10 in respect of UP Vat charged on Preform @ 5% as classified item under the Act by the company but department denied and raised the demand @ 13.50%.The case is pending before the Tribunal Court Ghaziabad. As at March 31 2019 there is a contingent liability of Rs.200000/- on Accident Claim made by Worker under Industrial Dispute Act1947. Our audit procedures includes review of opinion received from expert and the nature of amounts involved the sustainability and the likelihood of contingent liability upon final resolution
The case is pending before the Labour Court-I Ghaziabad. Our audit procedures includes review of opinion received from expert and the nature of amounts involved the sustainability and the likelihood of contingent liability upon final resolution

We have determined that there are no other key audit matters to communicate in ourreport.

Information Other than the Standalone Ind AS financial Statements and Auditor's ReportThereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and AnalysisBoard's Report including Annexures to Board's Report Business Responsibility ReportCorporate

Governance and Shareholder's Information but does not include the standalone Ind ASfinancial statements and our auditor's report thereon.

Our opinion on the standalone Ind AS 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 Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone Ind AS financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. 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 Responsibility for the Standalone Ind AS financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income changesin equity and cash flows of the Company in accordance with accounting principles generallyaccepted in India including Indian Accounting Standards (Ind AS) prescribed under section133 of the Act read with the Companies (Indian

Accounting Standards) Rules 2015 as amended. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate implementation andmaintenance of accounting policies; making judgements and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalone Ind ASfinancial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error. In preparing the standalone Ind AS financialstatements management is responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so. The Board ofDirectors are also responsible for overseeing the company's financial reporting process.

Auditor's Responsibilities for the Audit of Standalone Ind AS financial Statement

Our objectives are to obtain reasonable assurance about whether the Standalone Ind ASfinancial 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 IndAS financial statements.

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

Identify and assess the risks of material misstatement of the standalone Ind ASfinancial 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 internalcontrol.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances.

Under section 143(3)(i) of the Companies Act 2013 we are also responsible forexpressing our opinion on whether the company has internal financial controls withreference to Financial Statements in place and the operating effectiveness of suchcontrols.

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

Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 Ind AS financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

Evaluate the overall presentation structure and content of the standalone Ind ASfinancial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

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 Ind AS financialstatements for the financial year ended March 31 2019 and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c) The Balance Sheet the Statement of Profit and Lossincluding the Statement of Other Comprehensive Income the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account. d) In our opinion the aforesaid standalone Ind AS financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended. e) On the basis of the writtenrepresentations received from the directors as on March 31 2019 taken on record by theBoard of Directors none of the directors is disqualified as on March 31 2019 from beingappointed as a director in terms of Section 164 (2) of the Act. f) With respect to theadequacy of the Internal Financial Control with reference to Financial Statements of theCompany and the operating effectiveness of such controls refer to our separate Report in"Annexure B". Our report expresses an unmodifiedopinion on the adequacy andoperating effectiveness of the Company's Internal financial controls over financialreporting. g) In our opinion the managerial remuneration for the year ended March 31 2019has been paid/provided by the Company to its directors in accordance with the provisionsof section 197 read with Schedule V to the Act. h) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements Refer Note 41 to the Standalone IndAS financial statements;

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Goyal Nagpal & Co.
Chartered Accountants
FRN: 018289C
Sd/-
(CA Virender Nagpal)
Date : May 29 2019 Partner
Place : New Delhi M. No. 416004

Annexure A to the Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone Ind AS financial statements for the year ended March 31 2019we report that: i. a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of property plant and equipment. b) TheCompany has a regular program of physical verification of its fixed assets by whichproperty plant and equipments are verified in a phased manner. In accordance with thisprogram certain property plant and equipments were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets. c) According to the information and explanation given to us and onthe basis of our examination of the records of the company the title deeds of theimmovable properties included in property plant and equipment are held in the name of thecompany. ii. a) The management of the Company has conducted the physical verification ofinventory at reasonable intervals during the year. b) The procedure of physicalverification of inventory followed by the management is reasonable and adequate inrelation to the size of the Company and nature of its business. c) The Company hasmaintained the proper records of inventory and no material discrepancies were noticed onphysical verification.

iii. The Company has not granted any loans to companies firms or other parties coveredin the register maintained under section 189 of the

Companies Act 2013 (‘the Act'). iv. The company has not granted any loans underprovisions of section 185 and has complied with provisions of section 186 of the CompaniesAct 2013in respect of loans investments guarantees and security. v. The Company hasnot accepted any deposits within the meaning of sections 73 to 76 of the act and theCompanies (Acceptance of Deposits) Rules 2014 (as amended). Accordingly the provisionsof clause 3(v) of the order are not applicable. vi. The Central Government has notprescribed the maintenance of cost records under section 148(1) of the Act. vii. a) Thecompany is generally with appropriate authorities regular in depositing undisputedstatutory dues including provident fund employees' state insurance income-taxsales-tax service tax duty of customs duty of excise goods and services tax valueadded tax cess and any other statutory dues applicable to it. b) According to theinformation and explanations given to us no undisputed amounts payable in respect ofprovident fund employees' state insurance income-tax service tax sales-tax duty ofcustom duty of excise value added tax goods and service tax cess and other materialstatutory dues were outstanding at the year end for a period of more than six monthsfrom the date they became payable c) According to the records of the company the duesoutstanding of employees' state insurance income-tax sales-tax duty of custom duty ofexcise goods and service tax cess and other statutory dues on account of any disputeare as follows:

Name of Statute Nature of Dues Amount (in Rs.) Period to which the amount Relate Forum where dispute is pending
The U.P.Trade Tax Act1948 Local Sales Tax raised under section 4A of the Act. The department levied tax on Goods under modernization certificate on base production Rs.950962/- F.Y. 1999-2000 to 2006-07 Supreme Court
The Central Sales Tax Act 1956 Central Sales Tax raised under section 4A of the Act. The department levied tax on Goods under modernization certificate on base production Rs.3118745/- F.Y. 1999-2000 to 2006-07 Supreme Court
The Central Sales Tax Act 1956 Demand raised by Sales Tax Authority on account of non-submission of Concessional Forms Rs.358400/- F.Y. 2003-04 Tribunal Court Ghaziabad
The U.P. Tax on entry of Goods into Local Area Act2007 Entry tax raised by UP Trade Tax Authorities Rs.1145102/- F.Y. 2001-02 Tribunal Court Ghaziabad
The U.P. Tax on entry of Goods into Local Area Act2007 Entry tax raised by UP trade tax Authorities. Rs.1140307/- F.Y. 2002-03 Supreme Court
The U.P. Tax on entry of Goods into Local Area Act2007 Entry tax raised by UP trade tax Authorities. Rs.1637643/- FY 2004-05 Allahabad High Court
Industrial Dispute Act1947 Accident Claim made by Worker Rs.200000/- F Y 2001-02 Labour Court-I Ghaziabad
The U.P. Tax on entry of Goods into Local Area Act2007 Sales Tax Demand raised for non- filing of export certificates at the time of assessment Rs.447623/- F.Y. 2005-06 Addl. Commissioner Appeal (Trade Tax)-I Ghaziabad
The U.P. Tax on entry of Goods into Local Area Act2007 Entry tax raised by UP trade tax Authorities. Rs.220397/- F. Y 2005-2006 Supreme Court
The U.P. Value Added Tax Act2008 The company charged UP Vat on Preform @ 5% as classified item under the Act but department denied and raised the demand @ 13.50% Rs.3809702/- F.Y 2007-2008 Hon'ble High Court Allahabad
The U.P. Value Added Tax Act2008 The company charged UP Vat on Preform @ 5% as classified item under the Act but department denied and raised the demand @ 13.50% Rs. 29718848/- 2008-09 & 2009-10 Tribunal court Ghaziabad

viii. In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowing to afinancial institution bank or Government.

ix. In our opinion and according to the information and explanations given by themanagement the Company has utilized the monies raised by way of term loans for thepurposes for which they were obtained. The Company has not raised any money by way ofinitial public offer / further public offer / debt instruments during the year.

x. In our opinion no material fraud by the company or on the Company by its officers oremployees has been noticed or reported during the course of our audit.

xi. In our opinion and according to the information and the explanations given to usand based on examination of records of the company the company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act.

xii. In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.

xiii. In our opinion and according to the information and the explanations given to usand based on our examination of the records of the company all transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013 whereever applicable and the details of such transactions have been disclosed in the FinancialStatements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us and based on ourexamination of the records of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

xv. According to the information and the explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with him underthe provisions of section 192 of Companies Act 2013

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

For Goyal Nagpal & Co.
Chartered Accountants
FRN: 018289C
Sd/-
(CA Virender Nagpal)
Date : May 29 2019 Partner
Place : New Delhi M. No. 416004

Annexure - B to the Independent Auditor's Report of even date on the Standalone Ind ASfinancial statements of AMD Industries Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of AMDIndustries Limited (‘the company') as of March 31 2019 in conjunction with our auditof the standalone Ind AS 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(‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 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 financialcontrols over financialreportingassessing 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 of the company.

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 of records that in reasonable detail accurately andfairly reflectthe transactions and dispositions of the assets of the company;

2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls 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 financial control overoftheinternal financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion the company has in all material respects an adequate internalfinancial financialreporting and such internal controlssystemover effectively as financialat March 31 2019 based on the internal control over financial reportingcontrolsoverfinancial criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Goyal Nagpal & Co.
Chartered Accountants
FRN: 018289C
Sd/-
(CA Virender Nagpal)
Date : May 29 2019 Partner
Place : New Delhi M. No. 416004

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