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Amines & Plasticizers Ltd.

BSE: 506248 Sector: Industrials
NSE: N.A. ISIN Code: INE275D01022
BSE 00:00 | 27 Jan 87.20 -1.50
(-1.69%)
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NSE 05:30 | 01 Jan Amines & Plasticizers Ltd
OPEN 90.00
PREVIOUS CLOSE 88.70
VOLUME 6519
52-Week high 125.00
52-Week low 77.00
P/E 25.95
Mkt Cap.(Rs cr) 480
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 90.00
CLOSE 88.70
VOLUME 6519
52-Week high 125.00
52-Week low 77.00
P/E 25.95
Mkt Cap.(Rs cr) 480
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Amines & Plasticizers Ltd. (AMINESPLAST) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

AMINES &PLASTICIZERS LIMITED

Report ontheAuditof Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements of Amines& Plasticizers Limited ("the Company")which comprise the StandaloneBalance Sheet as at March 312022the Standalone Statement of Profit and Loss (includingother comprehensive income) Standalone Statement of Changes in Equity and StandaloneStatement of Cash Flows for the year then ended and notes to the standalone financialsstatements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as 'Standalone Financial Statements').

2. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act2013 (the'Act') in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India including Indian Accounting Standards ('Ind AS') specified under Section 133 ofthe Act of the state of affairs (financial position) of the Company as at 31 March 2022and its profit (financial performance including other comprehensiveincome)changes inequity and its cash flows for the year ended on that date.

BasisforOpinion

3. We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143 (10) of the CompaniesAct2013.Our responsibilities underthose SAsarefurther described in the Auditor's Responsibilities for the Audit of theStandalone Financial Statements section of our report. We are independent of the Companyin accordance 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 ofthe standalone financial statements under the provisions of the Actand the Rulesthereunderand wehave fulfilled our other ethical responsibilities in accordancewiththeserequirementsandtheCodeofEthics.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalonefinancialstatements.

KeyAuditMatters

4. Key audit matters are those matters thatin our professionaljudgmentwere of most significance in our audit of the standalone financial statements ofthe current period.These matters were addressed in the context of our audit of thefinancial statements as a wholeand in forming our opinion thereonand we do not provide aseparate opinion onthese matters.

5. We have determined the matter described below to be the key auditmatters determined to be communicated in ourreportonstandalonefinancial statements.

Key Audit Matters How our audit addressed the key audit matter
a. Capitalization of property plant and equipment
During the year ended March 312022 the Company has incurred significant capital expenditure. Furtherout of the total additions to Property Plant & Equipment of Rs. 1091 Lakhs in the current year significant part of the capital expenditure pertains tothe NMMO Plant. Our audit procedures included and were not limited to the following:
The NMMO Plant is capitalized during theyear. • Performed walk-through of the capitalization process and tested the design and operating effectiveness of the controls in the process.
Significant level of judgement is involved to ensure thatthe aforesaid capital expenditure / additions meet the recognition criteria of Ind AS 16 - Property Plant and Equipment. • Assessed the nature of the additions made to property plant and equipment and capital work-in-progress on a test check basis to test that they meet the recognition criteria as set out in para 16to22 of Ind AS 16including anysuch costs incurred specifically fortrial run.
As a resultthe aforesaid matter was determined to be a key auditmatter • Assessed that the borrowing cost capitalized is in accordancewiththeaccounting policy oftheCompany.

Information Otherthan the Standalone Financial Statements and Auditor'sReportThereon

6. The Company's Board of Directors is responsible for the preparationof other information.The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexures to the BoardReport Business Responsibility Report Corporate Governance report and Shareholder'sinformationbut does not includethestandalonefinancial statementsand ourauditor'sreportthereon.

7. Our opinion on the standalone financial statements does not coverthe other information and we do not express anyform ofassurance conclusion thereon.

8. In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whethersuch other information is materially inconsistent with the standalone financial statementsor our knowledge obtained in the audit or otherwise appears to be materially misstated.Ifbased on the work we have performedwe conclude that there is a material misstatementof this other information;weare required to reportthatfact.We have nothing to report inthis regard.

Responsibilityof Management forthe Standalone Financial Statements

Rs 9. The Company's Board of Directors is responsible for the mattersstated in Section 134 (5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive incomechanges in equity and cash flows oftheCompany in accordance with the accounting principles generally accepted in Indiaincluding the Ind AS specified under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rule 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 accounting policies;makingjudgments and estimates that are reasonable and prudent;and the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatementwhetherduetofraudorerror.

10. In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company orto ceaseoperationsor hasnorealisticalternativebuttodoso.

11. The Board ofDirectorsarealsoresponsible for overseeing theCompany'sfinancial reporting process.

Auditor's Responsibilities forthe Audit ofthe Standalone FinancialStatements

12. Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatementwhether dueto fraud or errorand 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 itexists.Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected toinfluencetheeconomic decisions ofusers taken on thebasisofthesestandalonefinancialstatements.

13. As part of an audit in accordance with SAs we have exercisedprofessional judgment and maintain professional skepticismthroughouttheaudit.Wealso:

- Identify and assess the risks of material misstatement ofthestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and have obtained audit evidence that is sufficientand appropriate 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 collusionforgeryintentionalomissionsmisrepresentationsorthe overrideofinternalcontrol.

- Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances.Under section143(3)(i) of the Companies Act2013we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness ofsuch 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 the goingconcern basis of accounting and based on the audit evidence obtainedwhether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern.Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. Howeverfuture events orconditions may causethe Company toceasetocontinue as agoingconcern.

- Evaluate the overall presentationstructureand content of thestandalone financial statementsincluding the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a mannerthatachieves fair presentation.

14. 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 identifyduringouraudit.

15. We also provide those charged with governance with a statement thatwe have complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably bethought tobear on ouri ndependenceand where applicablerelated safeguards.

16. From the matters communicated with those charged with governancewe determine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits ofsuchcommunication.

Report on Other Legal and Regulatory Requirements

17. 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 of the Actwe give in the "Annexure A'" astatement on the matters specified in paragraphs3and4oftheOrdertotheextentapplicable.

18. As required by Section 143(3) of the Actwe report that:

i. We have sought and obtained all the information and explanationswhich to the best of our knowledge and beliefwerenecessaryforthe purposes ofouraudit;

ii. In our opinionproper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books and records;

iii. The Balance Sheet the Statement of Profit and Loss (includingOther Comprehensive Income) Statement of Changes in Equity and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

iv. In our opinionthe aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 oftheActread withRule7oftheCompanies(Accounts) Rules 2014;

v. On the basis of the written representations received from thedirectors as on 31st March2022 taken on record by the Board of Directorsnone of thedirectors are disqualified as on 31st March2022 from being appointed as a Director interms ofSection 164(2) ofthe Act;

vi. With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness ofsuchcontrolsrefer to our separate Report in "Annexure B"to this report;

vii. With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements ofSection 197(16) of the Actas amendedIn ouropinionand to the best of our information and according to the explanations given to usremuneration paid by the Company to its Directors during the year is in accordance withthe provisions of section 197 read with ScheduleVto the Act;

viii. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014asamended in our opinion and to the best of our information and according to theexplanations given to us:

a. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone FinancialStatements- [Refer Note 30 to the StandaloneFinancial Statements];

b. TheCompanydid not any long-term contracts includingderivativecontractsforwhich there wereanymaterial foreseeable losses;

c. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund bytheCompany.

d. i. The management has represented thatto the best of its knowledgeand beliefno funds have been advanced or loaned or invested (either from borrowed fundsor share premium or any other sources or kind of funds) by the company to or in any otherperson(s) or entity(ies) including foreign entities ("Intermediaries") withthe understanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries")or provide any guarantee security or the like on behalf of the Ultimate Beneficiaries;

ii. The management has represented thatto the best of its knowledgeand beliefno funds have been received by the company from any person(s) or entity(ies)including 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 anyguaranteesecurity or the like on behalf of the Ultimate Beneficiaries;and

iii. Based on such audit procedures that the auditor has consideredreasonable and appropriate in the circumstances nothing has come to our notice that hascauses us to believe that the representations under sub-clause (a) and (b)abovecontainany material misstatement.

e. Asstated inNote43tothestandalonefinancialstatements

i. The final dividend proposed in the previous year declared and paidby the Company during the year is in accordance with Section 123 oftheActas applicable.

ii. The Board of Directors of the Company have proposed final dividendfor the year which is subject to the approval of the members at the ensuing Annual GeneralMeeting. The amount of dividend declared is in accordance with section 123 ofthe Act totheextent it applies todeclaration of dividend.

INDEPENDENT AUDITORS' REPORT

Annexure 'A' referred to in Report on Other Legal and RegulatoryRequirements section of our Report to the members of Amines & Plasticizers Limited fortheyearended March 312022

1. In respect oftheCompany'sPropertyPlantand Equipment (PPE)andIntangibleAssets:

(a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situationof PropertyPlantand Equipmentandright ofuseassets.

(B) TheCompanyhas maintainedproperrecordsshowingfullparticularsofintangibleassets.

(b) According to the information and explanationsgiven to us and on thebasis of our examination of the records of the Companythe Company has a phased program ofphysical verification of PropertyPlantand Equipment (PPE) so to cover all the assets inour opinion the frequency of verification is reasonable having regard to the size of theCompany and the nature of its PPE.Pursuantto the program of physical verification ofPPEphysical verification of the assets has been carried out no material discrepancieswere noticed on such verification.

(c) The title deeds of all the immovable properties (which are includedunder the Note 3 'Property plant and equipment') are held in the nameof the Company.

(d) The Company has not revalued its Property Plant and Equipment(including Right of-Use assets) or Intangible assets or both during the year and hencereporting under clause 3(i)(d) of the Order is not applicable to the Company.

(e) No proceedings have been initiated or are pending against theCompany as at March 312022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (45 of 1988) and rules made thereunder hence reporting underclause 3(i)(e) oftheOrder is notapplicable to the Company

2. (a) The management has conducted physical verification of inventoryat reasonable intervals during the year. In our opinion the coverage and the procedure ofsuch verification by the management is appropriate.No discrepancies of 10% or more inaggregate for each class of inventory were noticed on physical verification of inventoriesas compared to book records.

(b) As disclosed in Note 18.1 to the standalone financial statementsthe Company has been sanctioned working capital limits in excess of' five crores inaggregate from banks during the year on the basis of security of current assets.Thequarterly returns/statements filed by the Company with such banks are generally inagreement with the books ofaccounts oftheCompany.

3. (a) According to the information and explanationsgiven to us and onthe basis of our examination of the records of the Company during the year the Companyhas not made any investments or provided any security or granted any loans or advances inthe nature of loanssecured or unsecuredto companiesfirmsLimited Liability Partnershipsor anyother parties or to promoters or related partiesexcept as stated hereunder.

(b) The Company had in earlier year granted loans of Rs. 48.81 Lakhs toits wholly owned subsidiary. The Balance outstanding of the loan is same.

(c) In our opinionthe terms and conditions of the loans areprimafacienot prejudicialto the Company's interest.

(d) In respect of loans granted by the Company the schedule ofrepayment of principal and payment of interest has been stipulated and the repayments ofprincipal amounts and receipts of interest are generally been regular as per stipulation.

(e) In respect of loans granted by the Companythere is no overdueamount remaining outstanding as at the balance sheet date to other entities.

(f) No loan granted by theCompanywhich has fallen dueduring theyearhasbeen renewed or extended orfresh loans granted to settlethe overdues of existing loansgiven to the same parties

(g) Based on our verification of records of the Company and informationand explanations given to us the Company has not granted any loans or advances in thenature of loans either repayable on demand or without specifying any terms or period ofrepaymentto Promoters or related parties as defined in clause (76) of section 2 oftheCompanies Act2013.

4. The Company has not granted any loans or provide any guarantees orsecurities to parties covered under Section 185 of the Act. Further provisions ofsections 186 of the Companies Act 2013 in respect of loans investmentsguaranteesandsecurity havebeencompliedwith bytheCompany.

5. The Company has neither accepted any deposits from the public noraccepted any amounts which are deemed to be deposits within the meaning of sections 73 to76 of the Companies Act and the rules made thereunder to the extent applicable.Accordingly the requirement to report on clause 3(v) of the Order is not applicable tothe Company.

6. We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148(1) of the Companies Act 2013 in respect of its products andare of the opinion that prima faciethe specified accounts and records have been made andmaintained. However we have not made a detailed examination of the records with a view todetermine whethertheseareaccurateandcomplete.

7. In respect ofstatutorydues:

a) According to the information and explanations given to us and on thebasis of our examination of the recordsthe Company is generally regular in depositingundisputed statutory dues including Provident FundEmployees'State InsuranceIncome TaxSales TaxService Tax Custom Duty Excise DutyValue Added Tax CessGoods and ServicesTax and any other statutory dues to the appropriate authorities.No undisputed amountspayable in respect of the aforesaid statutory dues were outstanding as at the last day ofthe financial year for a year of more than six months from the date they became payable.

b) According to the information and explanations given to usthere areno dues as referred in clause 7(a) above which havenotbeendeposited onaccountofanydisputeexcept the following:

Name of the Statute Nature of Dues Period to which it relates Amount (Rs in Lacs) Amount Paid/ adjusted (Rs in Lacs) Forum where dispute is pending
Central Excise & Customs Cenvat Input Credit - Commission 2010 to 2015 385.60 28.92 CESTAT
The Central Sales Tax Act 1956 and Value Added Tax Sales Tax and VAT 2013-2014 9.86 1.24 Joint Commissioner (Appeals)

8. According to the information and explanationsgiven to us and on thebasis of our examination of the records of the Company there were no transaction relatingto previously unrecorded income that have been surrendered or disclosed as income duringthe year in the tax assessments under the IncomeTaxAct1961 (43 of 1961) and hencereporting under clause3(viii)oftheOrderisnotapplicabletotheCompany.

9. (a) The Company has not defaulted in repayment of loans or otherborrowings or in the payment of interest thereon to the lenders and hence reporting underclause 3(ix)(a) ofthe Order is not applicable tothe Company.

(b) The Company has notbeen declared wilful defaulter byanybank orfinancial institution or otherlender.

(c) Duringthe year theCompanyhas not availed oforhasbeen disbursedanyTerm loans.

(d) On an overall examination of the standalone financial statements ofthe Company no funds raised on short-term basis have been used for long-term purposesbytheCompany.

(e) On an overall examination of the standalone financial statements ofthe Companythe Company has not taken any funds from any entity or person on account of orto meet the obligations of its subsidiaries and hence reporting underclause3(ix)(e) of theOrder is not applicable tothe Company.

(f) During the year the Company has not raised any funds on the pledgeof securities held in its subsidiaries and hence reporting underclause3(ix)(f)oftheOrderisnotapplicabletotheCompany.

10. (a)The Company has not raised any moneys by way of initial publicoffer or further public offer (including debt instruments) during the year and hencereporting under clause 3(x)(a) of the Order is not applicable to the Company.

(b) During theyearthe Company has not madeany preferentialallotmentprivate placement of shares or fully or partly convertibledebenturesand hencereporting under clause3(x)(b) of the Order is not applicable tothe Company.

11. (a) During our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by or on theCompanynoticed or reported during theyearnor have we beeninformed ofsuch case bythemanagement.

(b) During theyearno report under sub-section (12) of section 143 ofthe Companies Act2013 has been filed in Form ADT -4asprescribedunderRule13ofCompanies(AuditandAuditors)Rules2014 with the CentralGovernment.

(c) Based on our audit procedures performed and according to theinformation and explanations given to us no whistle blower complaints have been receivedduring the year by the Company and hence reporting under clause 3(xi)(c) of the Order isnot applicable tothe Company.

12. In our opinion and according to the information and explanationsgiven to usthe Company is not a Nidhi Company and hence reporting underclause3(xii)oftheOrderisnotapplicabletotheCompany.

13. All the transactions with the related parties are in compliancewith sections 177 and 188 of Companies Act 2013 where applicable and the details havebeen disclosed in the standalone financial statements as required by theapplicableaccounting standards.

14. (a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of itsbusiness.

(b) We have considered the internal audit reports for the year underaudit issued to the Company during the year and till datein determining naturetiming andextent of our audit procedure.

15. The Company has not entered into any non-cash transactionsprescribed under Section 192 of the Act with its directors or persons connected with themduring theyear.

16. (a)The Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934 and reporting under clause3(xvi) (a)(b)and (c)oftheOrderisnotapplicabletotheCompany.

(b)In our opinionthere is no core investment company withinthe"Companies in theGroup"as defined in the Core Investment Companies (ReserveBank) Directions 2016 and hence reporting under clause 3(xvi)(d) of the Order isnotapplicabletotheCompany.

17. The Company has not incurred cash losses during the financial yearcovered by our audit and the immediately preceding financialyear.

18. There has been no resignation of the statutory auditors of theCompany during the year and hence reporting under Clause3(xviii)of the Orderis notapplicable tothe Company.

19. According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the financialstatements and our knowledge of the Board of Directors and Management plans and based onour examination of the evidence supporting theassumptionsnothing has cometoourattentionwhich causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date.We howeverstate that this is not an assurance as to thefuture viability of the Company.We further state that our reporting is based on the factsup to the date of the audit report and we neither give any guarantee nor any assurancethat all liabilities falling due within a period of one year from the balancesheetdatewillget discharged bythe Company as andwhentheyfalldue.

20. a) According to the information and explanations given to us theCompany does not have any unspent amount in respect of any ongoing or other than ongoingproject as at the expiry of the financial year and hence reporting underClause3(xx) of theOrderis not applicable tothe Company.

INDEPENDENT AUDITORS' REPORT

Annexure Bto IndependentAuditors'Report

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act2013("the Act")

1. Report on internal financial controls overfinancial reporting

We have audited the internal financial controls over financialreporting of Amines & Plasticizers Limited ("the Company") as ofMarch 31 2022 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on thatdate.

2. Management'sResponsibilityforlnternalFinancialControls

The Board of Directors of the Company is responsible for establishingand maintaining 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 and maintenance ofadequate internal financial controls that were operating effectivelyfor ensuring theorderly and efficient conduct of its businessincluding adherence to company'spoliciesthe safeguarding of its assetsthe prevention and detection of frauds and errorstheaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the CompaniesAct2013.

3. Auditors'Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit.We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the"Guidance Note") and the Standards on Auditingissued byICAI and deemed to be prescribed under section 143(10) of the Companies Act2013to 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 with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls overfinancial 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 overfinancial reportingincluded obtaining an understanding of internal financial controls overfinancialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgmentincluding the assessment of the risksof material misstatement of the standalone financial statements whetherdueto fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on theCompany's internal financialcontrols system overfinancial reporting.

4. Meaning oflnternal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting isa process 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 controlover financial reporting includes those policies and procedures that (i) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (ii)

provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principlesand that receipts and expenditures of the Company are beingmade only in accordance with authorisations of management and directors of the Company;and (iii) provide reasonableassurance regarding prevention ortimely detection ofunauthorised acquisitionuseor disposition of the Company's assets that could have amaterial effect on the financial statements and (iv) also provide us reasonable assuranceby the internal auditors through their internal audit reports given to the organizationfrom timetotime.

5. Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reportingincluding the possibility of collusion or improper management overrideof controls material misstatements due to error or fraud may occur and not bedetected.Alsoprojections 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 ofchanges in conditionsorthat thedegree ofcompliance with the policies or procedures may deteriorate.

6. Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2022 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the InstituteofChartered Accountants of India.

.