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Anjani Finance Ltd.

BSE: 531878 Sector: Financials
NSE: N.A. ISIN Code: INE283D01018
BSE 00:00 | 20 May 6.00 -0.14
(-2.28%)
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NSE 05:30 | 01 Jan Anjani Finance Ltd
OPEN 5.61
PREVIOUS CLOSE 6.14
VOLUME 5262
52-Week high 10.52
52-Week low 4.13
P/E 10.34
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.61
CLOSE 6.14
VOLUME 5262
52-Week high 10.52
52-Week low 4.13
P/E 10.34
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Anjani Finance Ltd. (ANJANIFINANCE) - Auditors Report

Company auditors report

TO THE MEMBERS OF ANJANI FINANCE LIMITED

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS OPINION

We have audited the accompanying Standalone Financial Statements of ANJANI FINANCELIMITED ("the Company") which comprise the Balance Sheet as at March 31 2021the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes to theStandalone Financial Statements including a summary of significant accounting policies andother explanatory information (hereinafter referred to as "Standalone FinancialStatements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards ("Ind AS") of the state of affairs ofthe Company as at March 31 2021 its total comprehensive income changes in equity andits cash flows for the year ended on that date.

BASIS FOR OPINION

We conducted our audit in accordance with Standards on Auditing (SAs) specified undersection 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India("ICAI") together with the ethical requirements that are relevant to our auditof the Standalone Financial Statements under the provisions of the Act and Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.

EMPHASIS OF MATTERS

The Operations of the Company during the year ended 31st March 2021 were marginallyaffected due to Lockdown announced by the Central / State Governments during the year inphased manner due to the outbreak of Novel Coronavirus COVID19.

Considering the restrictions in physical movement and visits to the company officesthe Company has given us access to their computer/ ERP System. We were able to access therelevant data & records for our Audit purpose. Further the company has provided allother data / information / records as required by us using e-data/ e-mail sharing modes.We also had continuous communication with the Audit Team & Management of the Companyusing various modes such as Audio/ Video Conferencing etc.

Due to the phase wise Lockdown imposed by Central / State Governments and the resultingtravel restrictions it was not possible for us to physically visit the Company on aregular basis and carry out the audit function. We have carried out the Audit Processusing various techniques of Online Auditing. We have verified the records / documents /statements received by us through electronic media. We have also received ManagementRepresentation Letters wherever necessary. Using such techniques and relying on the inputsprovided by the management we have ensured reasonable assurance that thg

information / record / statements provided to us are free from material misstatementand adhere to the relevant standards.

We have carried out the Audit Process subject to our disclosures as mentioned above.The audit evidence obtained by us is adequate to express our audit opinion. Whileexpressing our audit opinion we have also relied upon certifications by the management orcertifications by other independent auditors wherever required.

KEY AUDIT MATTERS

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined no key audit matters to be reported.

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 Board's Reportincluding Annexure to Board's Report and management compliance certificate but does notinclude the Financial Statements and our auditor's report thereon.

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 and in doing so consider whether the other information ismaterially inconsistent with the Financial Statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

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.

RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE STANDALONEFINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including Ind AS specifiedunder section 133 of the Act read with relevant rules issued there under. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

management either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an 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 Financial Statements.

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

• Identify and assess the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)

(i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the StandaloneFinancial Statements including the disclosures and whether the Standalone FinancialStatements represent the underlying transactions and events in a manner that achieves fairpresentation.

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.

them all 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 year and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

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

2. As required by Section 143 (3) of the Act based on our audit we report that;

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

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

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

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

e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in termsof Section 164 (2) of the Act;

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

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

i. The Company has disclosed the impact of pending litigations as at 31stMarch 2021 on its financial position in its Standalone financial statements - Refer Note19 (2) to the Standalone financial Statements.

ii. We draw attention to the Note 19 (21) to the Standalone financial statements asregards to the management evaluation of COVID-19 impact on the future performance of theCompany.

iii. The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

iv. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended 31st March2021.

v. (i) The management has represented that to the best of it's knowledge and beliefother than as disclosed in the notes to the accounts no funds have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the company to or in any other person(s) or entity(ies) includingforeign entities ("Intermediaries") with the understanding whether recorded inwriting or otherwise that the Intermediary shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe company ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries (if any);

(ii) The management has represented that to the best of it's knowledge and beliefother than as disclosed in the notes to the accounts no funds have been received by thecompany from any person(s) or entity(ies) including foreign entities ("FundingParties") with the understanding whether recorded in writing or otherwise that thecompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries (if any); and

(iii) Based on such audit procedures that we (the auditor's of the company) haveconsidered reasonable and appropriate in the circumstances nothing has come to our noticethat has caused us to believe that the representations under sub-clause (i) and (ii)contain any material misstatements.

vi. The Company has not declared or paid any dividend during the year in accordancewith section 123 of the Companies Act 2013.

same has been operated throughout the year for all transactions recorded in thesoftware and the audit trail feature has not been tampered with and the audit trail hasbeen preserved by the company as per the statutory requirements for record retention hasbeen deferred till 01/04/2022 vide notification dated 01/04/2021.

Annexure - "A" to the Independent Auditor's Report

[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'in the Independent Auditor's Report of even date to the members of ANJANI FINANCE LIMITEDon the Standalone Financial Statements for the year ended 31st March 2021]

The Annexure required under CARO 2020 referred to in our Report to the members of theAnjani Finance Limited ("the Company") for the year ended 31st March2021 and according to information and explanations given to us we report as under:

i. a) (A) The company is maintaining proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment.

(B) The company does not have any intangible assets; Accordingly the provisions ofclause 3(i)(a)(B) of the Order is not applicable.

b) These Property Plant and Equipment have been physically verified by the managementat reasonable intervals and as informed no material discrepancies were noticed on suchverification. In our opinion the frequency of verification is reasonable having regard tothe size of the Company and the nature of its assets.

c) The company does not have any immovable property; Accordingly the provisions ofclause 3(i)(c) of the Order is not applicable.

d) The company has not revalued its Property Plant and Equipment (including Right ofUse assets) or intangible assets or both during the year; Accordingly the Provision ofClause 3(i)(d) of the order is not applicable to the company.

e) The company does not have any benami property under the Benami Transactions(Prohibition) Act 1988 (45 of 1988) and rules made thereunder Accordingly theprovisions of clause 3(i)(e) of the Order is not applicable.

ii. (a) The nature of the company's business is such that it is not required to holdany inventories. Accordingly the Provision of Clause 3(ii) of the order is not applicableto the company.

(b) During any point of time of the year the company has not been sanctioned anyworking capital limits from banks or financial institutions on the basis of security ofcurrent assets. Since the company has not been sanctioned any working capital limitstherefore there is no requirement to file the quarterly returns or statements with suchbanks or financial institutions. Accordingly the provisions of clause 3(ii)(b) of theOrder is not applicable.

iii. During the year the company has not made investments in provided any guarantee orsecurity but has granted loans or advances in the nature of loans secured or unsecuredto companies firms Limited Liability Partnerships or any other parties and

(a) During the year the company has provided loans or provided advances in the natureof loans or stood guarantee or provided security to any other entity but the principalbusiness of the company is to give loans Accordingly the provisions of clause 3(iii)(a)(A) and (B) of the Order is not applicable.

(b) The investments made guarantees provided security given and the terms andconditions of the grant of all loans and advances in the nature of loans and guaranteesprovided are not prejudicial to the company's interest;

(c) In respect of loans and advances in the nature of loans the schedule of repaymentof the principal has not been stipulated and payment of interest has been stipulatedhowever the repayment of such loans is received on the basis of mutual understanding.

the aggregate amount of such dues renewed or extended or settled by fresh loans and thepercentage of the aggregate to the total loans or advances in the nature of loans grantedduring the year but the principal business of the company is to give loans Accordinglythe provisions of clause 3(iii)(e) of the Order is not applicable.

(f) That the company has granted loans or advances in the nature of loans eitherrepayable on demand or without specifying any terms or period of repayment if so specifythe aggregate amount percentage thereof to the total loans granted aggregate amount ofloans granted to Promoters related parties as defined in clause (76) of section 2 of theCompanies Act 2013 detailed as under:-

Party name Chamelidevi Flour Mills Pvt. Ltd. Commander Industries Pvt. Ltd. Ninki Business Combines Pvt Ltd Meena Devi Agarwal
Relationship with the party Associate Company Holding Company Related party Related party
Aggregate amount 57950 56850 122 25150
Balance outstanding 553 1272 14500 42
Is there any written agreement Yes Yes Yes Yes
Interest rate 9% 9% 9% 9%
Total amount overdue for more than 90 days 13385
Amount of fresh loans extended during year to settle old loans 57950 56850 122 25150
Amount of loan renewed during the year 0 0 0 0
% share of loan/ advances in total loan/advances granted 1.19% 2.74% 31.27% 0.09%

iv. The company is a registered Non-Banking Financial company (NBFC) and has providedloans in its ordinary course of business and in respect of such loans the interest ischarged over and above the bank rate declared by Reserve Bank of India (RBI). Accordinglythe provisions of section 185 of the Companies act 2013 are complied with. The provisionsof the section 186 of the Companies act 2013 are not applicable to the company.

2014 (as amended). Accordingly the provisions of clause 3(v) of the Order are notapplicable.

vi. Since the company is a registered NBFC company and is carrying on the business offinancial services therefore the requirement of maintenance of cost records under subsection (1) of section 148 of the Companies Act 2013. Accordingly the provisions ofclause 3(vi) of the Order is not applicable.

vii. a. The company is regular in depositing undisputed statutory dues including Goodsand Services Tax provident fund employees' state insurance income-tax sales-taxservice tax duty of customs duty of excise value added tax cess and any otherstatutory dues to the appropriate authorities. Further no undisputed amounts payable inrespect thereof were outstanding at the year-end for a period of more than six months fromthe date they become payable.

b. The following dues of Income Tax have not been deposited by the company on accountof disputes: -

Name of statute .. . Nature of Dues Demand (In rooo) Depos it (In '000) Balance Outstand ing (In ?'000) Period to which Amount Relates (A.Y.) Forum where dispute is pending
Income Tax Act 1961 Income Tax 212 0 212 2017-18 CPC
Income Tax Act 1961 TD5 0.13 0 0.13 Various years CPC
Total 212.13 0 212.13

viii. There were no transactions not recorded in the books of account which have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (43 of 1961) Accordingly the provisions of clause 3(viii) of the Order isnot applicable.

ix. a) The Company has not defaulted in repayment of loans or other borrowings or inthe payment of interest thereon to any lender Accordingly the provisions of clause3(ix)(a) of the Order is not applicable.

b) The company is not declared wilful defaulter by any bank or financial institution orother lender Accordingly the provisions of clause 3(ix)(b) of the Order is notapplicable.

c) The company has not taken any term loans Accordingly the provisions of clause3(ix)(c) of the Order is not applicable.

d) The company has not raised any funds on short term basis which have been utilizedfor long term purposes Accordingly the provisions of clause 3(ix)(d) of the Order is notapplicable.

e) The company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries associates or joint ventures Accordingly theprovisions of clause 3(ix)(e) of the Order is not applicable.

f) The company has not raised loans during the year on the pledge of securities held inits subsidiaries joint ventures or associate companies Accordingly the provisions ofclause 3{ix)(f) of the Order is not applicable.

x. a) The Company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments) during the year. Accordingly the provisions of clause3(x)(a) of the Order is not applicable.

xi. a) No fraud by the company or any fraud on the company has been noticed or reportedduring the year covered by our audit. Accordingly the provisions of clause 3(xi)(a) ofthe Order is not applicable.

b) No report under sub-section (12) of section 143 of the Companies Act has been filedby the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government. Accordingly the provisions of clause3(xi)(b) of the Order is not applicable.

c) There were no whistle-blower complaints received during the year by the company.Accordingly the provisions of clause 3(xi)(c) of the Order is not applicable.

xii. In our opinion the Company is not a Nidhi Company; accordingly the provision ofclause 3(xii) of the Order is not applicable.

xiii. In our opinion all transactions with the related parties are in compliance withSections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable Indianaccounting standard.

xiv. a) The company has an internal audit system commensurate with the size and natureof its business.

b) The reports of the Internal Auditors for the period under audit were considered bythe statutory auditor.

xv. In our opinion the company has not entered into any non-cash transactions with thedirectors or persons connected with them covered under Section 192 of the Act.Accordingly the provision of clause 3(xv) of the Order is not applicable.

xvi. a) The company is a registered NBFC company U/s 45IA of the Reserve Bank of IndiaAct 1934 vide registration no B-03.00173 dated 24/11/14 in category Non- BankingFinancial Institution without accepting public deposit and accordingly the company iscarrying on financial Services business.

b) The company has conducted Non-Banking Financial activities with a valid Certificateof Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act1934.

c) The company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India Accordingly the provisions of clause 3(c)(xvi) of theOrder is not applicable.

d) The Group does not have any CIC as part of the Group; Accordingly the provisions ofclause 3(xvi)(d) of the Order is not applicable.

xvii. The company has not incurred cash losses in the financial year and in theimmediately preceding financial year. Accordingly the provision of clause 3(xvii) of theOrder is not applicable.

xviii. There has been no resignation of the statutory auditors during the year.Accordingly the provision of clause 3(xviii) of the Order is not applicable.

xix. On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements the auditor's knowledge of the Board of Directors and managementplans we (the auditor) are of the opinion that no material uncertainty exists as on thedate of the audit report and that the company is 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.

xxi. There have been no qualifications or adverse remarks by the respective auditors inthe Companies (Auditor's Report) Order (CARO) reports of the companies included in theconsolidated financial statements of the company.

Annexure - "B" to the Independent Auditor's Report

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'in the Independent Auditor's Report of even date to the members of ANJANI FINANCE LIMITEDon the Standalone Financial Statements for the year ended 31st March 2021).

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 AnjaniFinance Limited ("the Company") as of 31st March 2021 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

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 (the "Guidance Note").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 Act.

AUDITOR'S 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 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. 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 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 systemover financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS

1. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the 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 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 WITH REFERENCE TO FINANCIALSTATEMENTS

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.

OPINION

In our opinion and to the best of our information and according to the explanationgiven to us the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2021 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note issued by ICAI.

STATUTORY AUDITORS
FOR MAHENDRA BADJATYA & CO
CHARTERED ACCOUNTANTS
- ICAI FRN 001457C
PARTNER
ICAI MNO 420388
ICAI UDIN 21420388AAAAID8157
PLACE: INDORE
DATE: 10/06/2021

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