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Apar Industries Ltd.

BSE: 532259 Sector: Engineering
NSE: APARINDS ISIN Code: INE372A01015
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NSE 00:00 | 22 Jan 359.35 -18.25
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OPEN 376.00
PREVIOUS CLOSE 378.00
VOLUME 6620
52-Week high 456.00
52-Week low 235.10
P/E 16.17
Mkt Cap.(Rs cr) 1,376
Buy Price 359.55
Buy Qty 46.00
Sell Price 359.55
Sell Qty 54.00
OPEN 376.00
CLOSE 378.00
VOLUME 6620
52-Week high 456.00
52-Week low 235.10
P/E 16.17
Mkt Cap.(Rs cr) 1,376
Buy Price 359.55
Buy Qty 46.00
Sell Price 359.55
Sell Qty 54.00

Apar Industries Ltd. (APARINDS) - Auditors Report

Company auditors report

To the Members of APAR Industries Limited

Report on the audit of the standalone financial statements

Opinion

We have audited the standalone financial statements of Apar Industries Limited("the Company") which comprise the balance sheet as at 31 March 2020 thestatement of profit and loss (including other comprehensive income) statement of changesin equity and statement of cash flows for the year ended on that date and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information ("the standalone financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31 March 2020 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the standalone 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 ('the ICAI') together with theindependence requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.

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 standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report:

Key audit matters How the matter was addressed in our audit
Revenue recognition
We have identified the following key areas for consideration of revenue recognition as key audit matters: To address this key audit matter our procedure included:
• We obtained an understanding of the accounting processes and relevant controls relating to the accounting of revenue;
• Cut-off: This establishes when title risk and rewards are transferred to the customer and gives rise to the risk that revenue is not recognised in the correct period; and • Performed walkthroughs of the revenue recognition processes and assessed the design effectiveness of key controls.
• Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in conformity with Ind AS 115 'Revenue from Contracts with Customers'. • Tested the controls over the revenue recognition process to confirm operating effectiveness of such controls.
The application of the accounting standard involves certain key judgements relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognised over a period. Additionally accounting standard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date. • We read significant new contracts/ orders to understand the terms and conditions and their impact on recognition of revenue.
• We performed cut off tests for all manufacturing locations for material movement (mapping of gate register/ manual register to the goods receipt note/ goods entry accounted for by the stores);
• Examined invoice with shipping documents to ensure that revenue has been recognised in the correct period; and
• We assessed the adequacy of the Company's disclosures on revenue recognition as given in notes 24 and 46 to the standalone financial statements.
Revenue from operations for the year ended 31 March 2020 the Company is Rs. 7060.09 crores (refer note 24 to the standalone financial statements). We also selected a sample of continuing and new contracts and performed the following procedures:
• Read analysed and identified the distinct performance obligations in such contracts;
• Compared such performance obligations with that identified and recorded by the Company;
• Considered the terms of the contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration; and
• Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings.
Based on the procedures performed we consider revenue are fairly stated in the standalone financial statements.
Derivative financial instruments and hedge accounting
Derivative financial instruments are used to manage and hedge foreign currency exchange risks and commodity risk. Derivatives are initially measured at fair value. Subsequent to initial recognition derivatives are measured at fair value and changes therein are generally recognised in the statement of profit and loss. The Company designates certain derivatives as hedging instruments to hedge the variability in cash flows associated with highly probable forecast transactions arising from changes in foreign exchange rates. Our procedures included:
At inception of designated hedging relationships the Company documents the risk management objective and strategy for undertaking the hedge. The Company also documents the economic relationship between the hedged item and the hedging instrument including whether the changes in cash flows of the hedged item and hedging instrument are expected to offset each other. • We obtained an understanding of the risk management policies and testing key controls for the use recognition and measurement of derivative financial instruments;
• We reconciled derivative financial instruments data with third party confirmations;
• We compared valuation of derivative financial instruments with market data;
• We tested on a sample basis the applicability and accuracy of hedge accounting; and
• We considered the appropriateness of disclosures in relation to financial risk management derivative financial instruments and hedge accounting in notes 12A 21A 35 37 to 40 and 48 to the standalone financial statements.
We focused on this area on account of the number of contracts their measurement the complexity related to hedge accounting and the potential impact on the statement of profit and loss. Based on the procedures performed the derivative financial instruments and hedge accounting are fairly stated in the standalone financial statements.
As at 31 March 2020 the Company has derivative financial assets at fair value of Rs. 24.80 crores and derivative financial liabilities at fair value of Rs. 130.37 crores (refer notes 12A and 21A to the standalone financial statements)
Inventories
Inventory comprises of raw material including packing material work in progress finished goods and stores and spares. Our procedures included:
We have identified the inventories as key audit matter because it is material to the standalone financial statements. Inventories aggregate to Rs. 1268.00 crores as of 31 March 2020 (refer note 7 to the standalone financial statements). • Obtaining an understanding of the supply chain and testing selected key controls over recognition and measurement of inventory;
• Testing on a sample basis the accuracy of cost for inventory by verifying supporting documents and testing the net realizable value by comparing actual cost with relevant market data;
• Ensuring proper cut-off;
• Enquiring with management regarding non-moving and slow- moving inventories; and
• by attending the physical stock-taking exercise conducted by management; further we physically verified items on test check basis.
Based on the procedures performed inventories are fairly stated in the standalone financial statements.

Information other than the standalone 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 board'sreport including annexures thereto and management discussion and analysis but does notinclude the standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information identified above and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed on the other information obtained prior to thedate of this auditor's report we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

Management's responsibility for the standalone 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 standalone financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India. 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 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 statement that give a true andfair view and 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.

The board of directors are responsible for overseeing the Company's financial reportingprocess.

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 financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act 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 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.

• Obtain sufficient appropriate audit evidence regarding the standalone financialstatements of the Company to express an opinion on the standalone financial statements.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate make it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with 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 standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor'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.

Other matters

On account of the COVID-19 related lock-down restrictions management was able toperform year end physical verification of inventories only at certain locationssubsequent to the year end. Also we were not able to physically observe the verificationof inventory that was carried out by management. Consequently we have performed alternateprocedures to audit the existence of Inventory as per the guidance provided by in SA 501Audit Evidence - Specific Considerations for Selected Items Rs.and have obtainedsufficient audit evidence to issue our unmodified opinion on the standalone financialstatement. Our report on the standalone financial statements is not modified in respect ofthis matter.

Report on other legal and regulatory requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the central government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure A the statement on the matters specifiedin paragraphs 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;

(cl The balance sheet the statement of profit and loss (including other comprehensiveincome) the statement of changes in equity and the statement of cash flows dealt with bythis report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statements comply with the IndAS specified under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended;

(e) On the basis of the written representations received from the directors as on 31March 2020 taken on record by the board of directors none of the directors isdisqualified as on 31 March 2020 from being appointed as a director in terms of section164 (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 on the adequacyand operating effectiveness of the Company's internal financial controls over financialreporting;

(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 we report thatin our opinion and to the best of our information and according to the explanations givento us remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act; and

(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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i) The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements - refer note 44 to the standalonefinancial statements;

ii) The Company has long-term contracts including derivative contracts for which thereare no material foreseeable losses-refer notes 12A 21A 35 37 to 40 and 48 to thestandalone financial statements; and

iii) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company-refer note 11 to the standalonefinancial statements.

For Sharp & Tannan LLP

Chartered Accountants

Firm's registration No. 127145W/W100218

Firdosh D. Buchia

Partner

Membership no. 038332

Mumbai 25 June 2020

UDIN: 20038332AAAAPA3500

Annexure 'A' to the Independent Auditor's Report

(Referred to in paragraph 1 under Report on other legal and regulatory requirementsRs.section of our report of even date)

(i)(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) According to the information and explanations given to us and records of theCompany examined by us fixed assets have been physically verified by management which inour opinion is reasonable having regard to the size of the Company and the nature of itsassets. The frequency of physical verification is reasonable and no material discrepancieswere noticed on such verification.

(c) According to information and explanations given to us and the records of theCompany examined by us and based on the examination of the registered sales deed/ transferdeed/ conveyance deed provided to us we report that the title deeds of immovableproperties are held in the name of the Company.

(ii) As explained to us the inventories have been physically verified by themanagement during the year. In our opinion the frequency of such verification isreasonable. The discrepancies noticed on such verification between the physical stock andthe books of accounts which were not material have been properly dealt with in the booksof account.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theAct. Accordingly paragraphs 3(iii) (a) (b) and (c) of the Order are not applicable tothe Company.

(iv) According to the information and explanations given to us the Company hascomplied with the provisions of sections 185 and 186 of the Act in respect of grant ofloans making investments and providing guarantees and securities as applicable.

(v) In our opinion and according to information and explanation given to us theCompany has not accepted deposits as per the directives issued by the Reserve Bank ofIndia under the provisions of sections 73 to 76 or any other relevant provisions of theAct and the rules framed there under. Accordingly paragraph 3(v) of the Order is notapplicable to the Company.

(vi) The maintenance of cost records under section 148(1) has been specified by theCentral Government under section 148(1) of the Act. We have broadly reviewed the costrecords maintained by the Company pursuant to the Companies (Cost Records and Audit)Rules 2014 as amended and prescribed by the Central Government under sub-section (1) ofSection 148 of the Act and are of the opinion that prima facie the prescribed costrecords have been made and maintained by the company. We have however not made adetailed examination of the contents of these accounts and records with a view todetermine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income tax duty of customs goods and service tax cess and other materialstatutory dues have been generally regularly deposited during the year by the Company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of duty of excise.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees Rs.state insurance income tax duty ofcustoms goods and service tax cess and other material statutory dues were in arrears asat 31 March 2020 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and on the basis of ourexamination of records of the Company the particulars of income tax value added taxsales tax service tax goods and service tax duty of excise and duty of custom whichhave not been deposited with the appropriate authorities on account of any dispute as at31 March 2020 are as under:

Name of the Statute Nature of the disputed dues Amount ( Rs.in crore) Period to which the amount relates Forum where disputes are pending
The Central Sales Tax Act 1956 Tax interest and penalty 0.13 1998-99 Assistant Commercial Tax
Local Sales Tax Acts and Works 2001-02 Officer/Commercial Tax Officer
Contract Tax Act 2003- 04 and 2004- 05 2010-11
0.06 2011-12 to 2012-13 Deputy Commissioner
6.96 2002-03 to 2004-05 2006-07 2011-12 to 2013-14 Commissioner VAT
5.34 1998-99 Tribunal
2006-07
2008-09
0.13 2013-14 Additional Commissioner
1.11 2015-16 to 2017-18 Joint Commissioner
0.15 2009-10 High Court
The Central Excise Act 1944 Duty service tax interest and penalty 2.17 2004-05 to 2007-08 Commissioner (Appeal)
The Customs Act 1962 Service Tax under the Finance Act 1994. 2.17 2017-18 1998-99 2012-13 to 2017-18 CESTAT/Tribunal
1.05 1998-99 to 2006-07 High Court

* Net of pre-deposit paid in getting the stay/ appeal admitted.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to financialinstitutions and banks. The Company has not borrowed any funds from the government anddebenture holders.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the Order is not applicable to the Company.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year.

(xi) According to the information and explanation given to us the

Company has paid/provided for managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V of the Act.

(xii) In our opinion and according to the information and explanation given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.

(xiii) According to the information and explanation given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and the details of suchrelated party transactions have been disclosed in the financial statements as required bythe applicable accounting standards.

(xiv) According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or partly convertible debentures during the year.Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has not entered into non- cashtransactions with directors or persons connected with him and hence provisions of section192 of the Act are not applicable to the Company.

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

For Sharp & Tannan LLP
Chartered Accountants
Firm's registration no.127145W/W100218
Firdosh D. Buchia
Partner
Mumbai 25 June 2020 Membership no. 038332

Annexure 'B' to the Independent Auditor's Report

(Referred to in paragraph 2(f) of our report of even date)

Report on the internal financial controls under clause (i) of subsection 3 of section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AparIndustries Limited ("the Company") as of 31 March 2020 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's responsibility for internal financial controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the guidance note on audit of internal financial controls over financial reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors Rs.responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the guidance note on audit of internal financial controls over financial reportingand the standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth applicable to an audit of internal financial controls and both issued by the ICAI.Those standards and the guidance note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover 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 standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the standalonefinancial 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.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2020 based on theinternal control over financial reporting criteria 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.

For Sharp & Tannan LLP

Chartered Accountants

Firm's registration No. 127145W/W100218

Firdosh D. Buchia

Partner

Membership no. 038332

Mumbai 25 June 2020

UDIN: 20038332AAAAPA3500.

.