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Amrapali Industries Ltd.

BSE: 526241 Sector: Others
NSE: N.A. ISIN Code: INE762C01021
BSE 12:20 | 02 Feb 13.89 0.26
(1.91%)
OPEN

13.90

HIGH

13.90

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13.05

NSE 05:30 | 01 Jan Amrapali Industries Ltd
OPEN 13.90
PREVIOUS CLOSE 13.63
VOLUME 358
52-Week high 24.75
52-Week low 10.58
P/E
Mkt Cap.(Rs cr) 71
Buy Price 13.16
Buy Qty 10.00
Sell Price 13.89
Sell Qty 35.00
OPEN 13.90
CLOSE 13.63
VOLUME 358
52-Week high 24.75
52-Week low 10.58
P/E
Mkt Cap.(Rs cr) 71
Buy Price 13.16
Buy Qty 10.00
Sell Price 13.89
Sell Qty 35.00

Amrapali Industries Ltd. (AMRAPALIINDS) - Auditors Report

Company auditors report

TO MEMBERS OF

AMRAPALI INDUSTRIES LIMITED

Report on the Indian Accounting Standards (Ind AS) Financial Statements

Opinion

We have audited the accompanying financial statements of Amrapali Industries Limitedwhich comprise the Balance Sheet as at 31stMarch 2022 and theStatement of Profit and Loss (Including Other Comprehensive Income) and Cash FlowStatement and the statement of Changes in Equity for the period ended and a summary ofsignificant accounting policies and other explanatory information.(Hereinafter referred toas the "financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards)

Rules 2015 as amended ("Ind AS") and other accounting principles generallyaccepted in India of the state of affairs of the Company as at March 31 2022 the profitand total comprehensive income changes in equity and its cash flows for the year ended onthat 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 those Standards are further described in theAuditor’s Responsibilities for the Audit of the Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of theCompanies Act 2013 and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

There are no Key Audit Matters Reportable as per SA 701 issued by ICAI.

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

The Company’s Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board’s Report including Annexures to Board’s Reportbut does not include the financial statements and our auditor’s report thereon. Thesereports are expected to be made available to us after the date of our auditor’sreport.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

When we read the other information included in the above reports if we conclude thatthere is material misstatement therein we are required to communicate the matter to thosecharged with governance and determine the actions under the applicable laws andregulations.

Management's Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind AS andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding 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 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 financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany’s ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing theCompany’s financial reporting process.

Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements. As part of an audit in accordance with SAs weexercise professional judgment and maintain professional skepticism throughout the audit.We also: Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

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 theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the 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 theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the financial statements or if such disclosures are inadequateto modify 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 theCompany to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements. We communicate with those chargedwith governance regarding among other matters the planned scope and timing of the auditand significant audit findings including any significant deficiencies in internal controlthat 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 themall relationships 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor’s report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("theOrder") issued by the Central Government of India in terms of section 143(11) of theAct we give in "Annexure A" a statement on the matter specified in theparagraph 3 and 4 of the Order.

2. As required under provisions of section 143(3) of the Companies Act 2013 wereport that:

a. We have obtained all the information and explanations which to the best of ourknowledge and belief where necessary for the purposes of our audit; b. In our opinionproper books of account as required by law have been kept by the Company so far as appearsfrom our examination of those books; c. The Balance Sheet and Statement of Profit and Lossincluding Other Comprehensive Income Statement of Cash

Flow and Statement of Changes of Equity dealt with this report are in agreement withthe books of account; d. In our opinion the aforesaid Financial Statement comply with theAccounting Standards specified under Section

133 of Act read with relevant rule issued thereunder. e. On the basis of writtenrepresentations received from the directors as on March 31 2022 taken on record by the

Board of Directors none of the directors is disqualified as on March 31 2022 frombeing appointed as a director in terms of section 164(2) of the Act. f. With respect tothe adequacy of the internal financial controls over financial reporting of the companyand operating effectiveness of such controls referred to our separate report in "AnnexureB". g. With respect to the other matters to be included in the Auditor’sReport in accordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

h. With respect to other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditor) Rules 2014 in our opinionand to the best of our knowledge and belief and according to the information andexplanations given to us:

(a) The Company has disclosed the impact of pending litigations as at 31 March 2022 onits financial position in its financial statements - Refer Note (vii) of Annexure A to thefinancial statements (b) The Company did not have any long-term and derivative contractsas at March 31 2022.

(c) There has been no delay in transferring amounts required to be transferred theInvestor Education and Protection Fund by the Company during the year ended March 312022.

(d) The management has;

(i) represented that to the best of its knowledge and belief as disclosed in the NoteNo. 49 to the financial statements no funds 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 persons or entities including foreign entities("Intermediaries")with the understanding whether recorded in writing orotherwise that the Intermediary shall:

directly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company orProvide any guarantee security or the like to or on behalf of the Ultimate Beneficiaries.

(ii) represented that to the best of its knowledge and belief as disclosed in theNote No.50 to the financial statements no funds have been received by the Company fromany persons or entities including foreign entities ("Funding Parties") withthe understanding whether recorded in writing or otherwise that the Company shall:directly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever ("Ultimate Beneficiaries") by or on behalf of the FundingParty or provide any guarantee security or the like from or on behalf of the UltimateBeneficiaries; and

(iii) Based on such audit procedures as considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub clause (d) (i) and (d) (ii) contain any material mis-statement.

(e) The company has not neither declared nor paid any dividend during the year underSection 123 of the Act.

FOR D.G.M.S. & Co.
Chartered Accountants
Shashank P. Doshi
Partner
M. No. 108456
FRN: 0112187W
UDIN: 22108456ANEOFF5880
Date: 30th May 2022
Place: Jamnagar

ANNEXURE "A" TO THE INDEPENDENT AUDITOR’S REPORT ON THE FINANCIALSTATEMENT OF

AMRAPALI INDUSTRIES LIMITED FOR THE YEAR ENDED 31ST MARCH 2022

In terms of the information and explanations given to us and the books and recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe state as under:

(i) Property Plant & Equipment and Intangible Assets: a) The Companyhas maintained proper records showing full particulars including quantitative details andsituation of Property Plant and Equipment and relevant details of right-of-use assets.

b) The Company has maintained proper records showing full particulars of intangibleassets.

c) Property Plant and Equipment have been physically verified by the management atreasonable intervals; Any material discrepancies were noticed on such verification and ifso the same have been properly dealt with in the books of account.

d) According to the information and explanation given to us the title deeds of allthe immovable properties. (other than properties where the Company is the lessee and thelease agreements are duly executed in favour of the lessee) disclosed in the financialstatements are held in the name of the company.

e) The Company has not revalued any of its Property Plant and Equipment (includingright-of-use assets) and intangible assets during the year.

f) No proceedings have been initiated during the year or are pending against theCompany as at March 31 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

(ii) Inventory and working capital:

1. The stock of inventory has been physically verified during the year by theManagement at reasonable intervals except stock lying with third parties. Confirmationsof such stocks with third parties have been obtained by the Company in most of the cases.No discrepancies were noticed on verification between the physical stocks and the bookrecords that were 10% or more in the aggregate for each class of inventory.

2. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not been sanctioned workingcapital limits in excess of five crore rupees in aggregate from banks on the basis ofsecurity of current assets.

(iii) Investments any guarantee or security or advances or loans given: a)According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has made any investments providedguarantee or security or granted any advances in the nature of loans secured orunsecured to companies firms limited liability partnerships or any other parties duringthe year.

1. The Company has provided any loans or advances in the nature of loans or stoodguarantee or provided security to any other entity during the year.

a. Based on audit procedure carried on by us and as per the information and explanationgiven to us the company has not granted any loans to subsidiaries. b. Based on auditprocedure carried on by us and as per the information and explanation given to us thecompany has granted loans to a party other than subsidiaries:

Particulars Amount (Rs in lakhs)
Total Amount Outstanding as on 31th March 2022 234.32
Gross Amount given during the Year 10.05

2. In our opinion the investments made guarantees provided security given and theterms and conditions of the grant of all loans and advances in the nature of loans andguarantees provided are not prejudicial to the company’s interest except that we areunable to certify theamount which has been givenas loans and advances during the year asmentioned in clause 3(iii)(a)(1)(b) are granted without specifying the terms andconditions which may prejudice the company’s interest.

3. In respect of loans granted by the Company the schedule of repayment of principaland payment of interest has been stipulated and the repayments of principal amounts andreceipts of interest have generally been regular as per stipulation.

4. In respect of loans granted by the Company there is no overdue amount remainingoutstanding as at the balance sheet date.

5. No loan granted by the Company which has fallen due during the year has beenrenewed or extended or fresh loans granted to settle the over dues of existing loans givento the same parties.

6. According to the information and explanations given to us and on the basis of ourexamination of the records During the year The Company has granted loans or advances inthe nature of loans either repayable on demand or without specifying any terms or periodof repayment during the year as shown in Clause 3(iii)(a)(1)(b).

(iv) Loan to directors:

a) According to the information and explanations given to us and on the basis ofour examination of the records the Company has not given any loans or provided anyguarantee or security as specified under Section 185 of the Companies Act 2013 and theCompany has not provided any guarantee or security as specified under Section 186 of theCompanies Act 2013. Further the Company has complied with the provisions of Section 186of the Companies Act 2013 in relation to loans given and investments made.

(v) Deposits:

1. The company has not accepted any deposits from the public within the meaning ofsections 73 to 76 or any relevant provisions of the 2013 act and the rules framed thereunder to the extent notified.

(vi) Maintenance of Cost Records:

1. According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under Section 148(1) of the CompaniesAct 2013 for the products manufactured by it (and/ or services provided by it).Accordingly clause 3(vi) of the Order is not applicable.

(vii) Statutory Dues:

a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Employees’ State Insurance Income Tax Dutyof Customs GST Cess and any other statutory dues applicable to it. According to theinformation and explanations given to us no undisputed amounts payable in respect ofincome tax sales tax customs duty excise duty and cess were in arrears as at 31/03/22for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us there are no dues ofsales tax income tax custom duty wealth tax GST excise duty and cess which have notbeen deposited on account of any dispute. The proceedings before the Hon’blesettlement commission has got abated as per Section 245HA of the I.T Act 1961 inpursuance of settlement commission order u/s 245D (4) of the Act dated 31/05/2016 andpending search case assessment u/s 153A of the I.T Act 1961 for A.Y 2007-08 and 2012-13and regular assessment u/s 143(3) of the I.T Act 1961 for A.Y 2013-14; currently matterhave been pending in Supreme Court also stay order has been granted.

Further above disputed proceedings which cannot be measured quantifiably where as wealso couldn’t assess the impact of the same on financial statement

(viii) Disclosure of Undisclosed Transactions:

1. There According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has not surrendered ordisclosed any transactions previously unrecorded as income in the books of account inthe tax assessments under the Income-tax Act 1961 as income during the year.

(ix) Loans or Other Borrowings:

1. Based on our audit procedures and according to the information and explanationsgiven to us The Company has not defaulted in repayment of loans or other borrowings or inthe payment of interest thereon to any lender.

2. The Company has not been declared willful defaulter by any bank or financialinstitution or government or any government authority.

3. According to the information and explanations given to us term loans were appliedfor the purpose for which the loans were obtained.

4. On an overall examination of the financial statements of the Company funds raisedon short-term basis have prima facie not been used during the year for long-termpurposes by the Company.

5. On an overall examination of the financial statements of the Company the Companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its subsidiaries.

6. The Company has not raised any loans during the year on the pledge of securitiesheld in its subsidiaries joint ventures or associate companies.

(x) Money Raised by IPOs FPOs:

a) The Company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the year and hence reporting under clause3(x)(a) of the Order is not applicable.

b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause 3(x)(b) of the Order is not applicable.

(xi) Fraud:

a) During the course of 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 the company or no fraud by the Company and no material fraud on theCompany has been noticed or reported during the year.

b) No report under sub-section (12) of section 143 of the Companies Act has beenfiled in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules2014 with the Central Government during the year and upto the date of this report.

c) We have taken into consideration the whistle blower complaints received by theCompany during the year (and upto the date of this report) while determining the naturetiming and extent of our audit procedures.

(xii) Nidhi Company:

a) The Company is not a Nidhi Company and hence reporting under Para 3 of clause(xii) of the Order is not applicable.

(xiii) Related Party Transactions: a) In our opinion the Company is incompliance with Section 177 and 188 of the Companies Act 2013 with respect to applicabletransactions with the related parties and the details of related party transactions havebeen disclosed in the financial statements as required by the applicable Ind-AS.

(xiv) Internal Audit System:

a) In our opinion the Company has an adequate internal audit system commensuratewith the size and the nature of its business.

b) We have considered the internal audit reports for the year under audit issuedto the Company during the year and till date in determining the nature timing and extentof our audit procedures.

(xv) Non-cash Transactions:

a) According to the information and explanations given to us and based on ourexamination of the records of the company the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) Registration under section 45-IA of RBI Act 1934:

a) In our opinion the Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Hence reporting under clause 3(xvi)(a) (b) and(c) of the Order is not applicable.

b) In our opinion there is no core investment company within the Group (as definedin the Core Investment Companies (Reserve Bank) Directions 2016) and accordinglyreporting under clause 3(xvi)(d) of the Order is not applicable.

(xvii) Cash losses:

a) The Company has not incurred cash losses during the financial year covered byour audit and the immediately preceding financial year.

(xviii) Resignation of statutory auditors:

a) There has been no resignation of the statutory auditors of the Company duringthe year.

(xix) Material uncertainty on meeting liabilities:

a) On the basis of the financial ratios ageing and expected dates of realizationof financial assets and payment of financial liabilities other information accompanyingthe financial statements and our knowledge of the Board of Directors and Management plansand based on our examination of the evidence supporting the assumptions nothing has cometo our attention which causes us to believe that any material uncertainty exists as onthe date of the audit report indicating that Company is not capable of meeting itsliabilities existing at the date of balance sheet as and when they fall due within aperiod of one year from the balance sheet date. We however state that this is not anassurance as to the future viability of the Company. We further state that our reportingis based on the facts up to the date of the audit report and we neither give any guaranteenor any assurance that all liabilities falling due within a period of one year from thebalance sheet date will get discharged by the Company as and when they fall due.

(xx) Compliance of CSR:

a) In our opinion and according to the information and explanations given to usthere is no unspent amount under sub-section (5) of section 135 of the Act pursuant to anyproject. Accordingly clauses 3(xx)(a) and 3(xx)(b) of the Order are not applicable.

(xxi) Qualifications Reporting In Group Companies:

a) In our opinion and according to the information and explanations given to uscompany does not have any subsidiaries associates or joint ventures so reporting underclause 3(xxi) of the Order is not applicable for the year.

FOR D.G.M.S. & Co.
Chartered Accountants
Shashank P. Doshi
Partner
M. No. 108456
FRN: 0112187W
UDIN: 22108456ANEOFF5880
Date: 30th May 2022
Place: Jamnagar

ANNEXURE "B" TO THE INDEPENDENT AUDITOR’S REPORT ON THE FINANCIALSTATEMENT OF

AMRAPALI INDUSTRIESLIMTED FOR THE YEAR ENDED 31ST MARCH 2022

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

We have audited the internal financial controls over financial reporting of AmrapaliIndustries Limited.('the Company') as of 31st March 2022 in conjunction with ouraudit of the Ind AS financial statements of the Company for the year ended on that date.

Opinion

We have audited the internal financial control with reference to financial statement ofAmrapali Industries Limited.(‘The Company") as of 31st March 2022in conjunction with our audit of the financial statement of the company at and for theyear ended on that date.

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2022 based on the criteria forinternal financial control over financial reporting established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

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 Reporting (the'Guidance Note') issued by the Institute of Chartered Accountants of India (the 'ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information 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 and the Standards on Auditing issued by the ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the ICAI. 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 over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment 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 system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:

a. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

b. 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

c. Provide reasonable assurance regarding prevention or timely detection ofunauthorized 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 of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

FOR D.G.M.S. & Co.
Chartered Accountants
Shashank P. Doshi
Partner
M. No. 108456
FRN: 0112187W
UDIN: 22108456ANEOFF5880
Date: 30th May 2022
Place: Jamnagar

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