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Apcotex Industries Ltd.

BSE: 523694 Sector: Others
NSE: APCOTEXIND ISIN Code: INE116A01032
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OPEN 534.15
PREVIOUS CLOSE 531.00
VOLUME 6746
52-Week high 678.00
52-Week low 293.95
P/E 29.81
Mkt Cap.(Rs cr) 2,796
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 534.15
CLOSE 531.00
VOLUME 6746
52-Week high 678.00
52-Week low 293.95
P/E 29.81
Mkt Cap.(Rs cr) 2,796
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Apcotex Industries Ltd. (APCOTEXIND) - Auditors Report

Company auditors report

To

The Members of

Apcotex Industries Limited

Report on the Financial Statements

Opinion

We have audited the accompanying financial statements of Apcotex Industries Limited('the Company') which comprise the Balance Sheet as at 31st March 2022 theStatement 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 thefinancial statements including a summary of significant accounting policies and otherexplanatory information (herein after referred to as 'the financial statements').

In our opinion and to the best of our info rmation 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 generally accepted in India of thestate of affairs of the Company as at 31st March 2022 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 in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditors Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act 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 on the financial statements.

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. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Sr Key Audit Matter No. How our audit addressed the key audit matter
1. Capitalisation of Property Plant and Equipment (PPE): Our audit included assessing the nature of PPE capitalised by the Company to test the validity of the amounts capitalised with source documentation and evaluating whether assets capitalised meet the recognition criteria in Ind AS 16.
The Company has invested in PPE during the year ended 31st March 22. The significant level of capital expenditurerequires consideration to ensure that the capitalisation of PPE meets the specific recognition criteria in Indian Accounting Standard (Ind AS) 16 Property Plant and Equipment. We have tested the design implementation and operating effectiveness of controls in respect of capital work in progress and capitalisation of PPE.
We have physically verified the existence of PPE.

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 Report CorporateGovernance Business Responsibility report and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon. Our opinion on thefinancial statements does not cover the other information and we do not express any formof 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 duringthe course of our audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Management’s Responsibility for the Financial Statements The Company's Board ofDirectors is responsible for the matters stated in section 134(5) of the Act with respectto the preparation of these financial statements that give a true and fair view of thefinancial position financial performance changes in equity and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theIndian Accounting Standards specified under Section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities;

selection and application of appropriate implementation and maintenance of accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 Responsibility for the Audit of the Financials Statements

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 a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud 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 we exercise professional judgment andmaintain 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 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 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in the 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 them allrelationships and other matters that may reasonably be thought to bear on our independenceand 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 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 in terms of Section 143(11) of the Act we give in"Annexure A " a statement on matters specified in paragraphs 3 and 4 of theorder

2) As required by Section 143(3) of the Act 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 Statement of Cash Flow dealt with by thisReport are in agreement with the books of account;

(d) In our opinion the aforesaid financial statements comply with the IndianAccounting 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 2022 taken on record by the Board of Directors none of the director isdisqualified as on 31st March 2022 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 we report thatin our opinion and to the best of our information and according to the explanations givento 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 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 on its financialposition in its financial statements - Refer Note 38(a) to the financial statements;

(ii) The Company has made provision as required under the applicable law or Indianaccounting standard for material foreseeable losses if any on long-term contractsincluding derivative contracts - Refer Note 41 to the financial statements;

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

(iv) (a) The Management has represented that to the best of its knowledge and beliefno funds (which are material either individually or in the aggregate) have been advancedor loaned 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 or entity including foreignentity ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

(b) The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity ("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;

(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement.

(v) As stated in Note 16(b)_to the financial statements

(a) The final dividend for the year 2020-21 declared and paid by the Company duringthe year is in accordance with Section 123 of the Act as applicable.

(b) The interim dividend declared and paid by the Company during the year and until thedate of this report is in compliance with Section 123 of the Act.

(c) The Board of Directors of the Company have proposed final dividend for the yearwhich is subject to the approval of the members at the ensuing Annual General Meeting. Theamount of dividend proposed is in accordance with section 123 of the Act as applicable.

For SGDG & ASSOCIATES LLP

Chartered Accountants

Firm's Registration No: W100188

Sharad Gupta

Partner

Membership No: 116560

Place: Mumbai

Dated: 27th April 2022

UDIN: 22116560AHWUJX1072

ANNEXURE - A TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements’ section of our report of even date)

(i) (a) i. The Company has maintained proper records showing full particularsincluding quantitative details and situation of property plant and equipment and relevantdetails of right-of-use assets;

ii. The Company has maintained proper records showing full particulars of intangibleAsset

(b) The Company has a program of verification to cover all items of property plant andequipment in a phased manner which in our opinion is reasonable having regard to thesize of the Company and the nature of its property plant and equipment. Pursuant to theprogramme a portion of the property plant and equipment have been physically verified bythe management during the year and no material discrepancies have been noticed on suchverification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties and/orlease agreements where immovable properties are taken on lease are held in the name of theCompany except:

Sr Description No of property Gross carry ing value as at 31s* March 2022 Held in name of Whether promoter director or their relative or employee Period held since Reason for not being held in name of Company (dispute if any)
1 Lease Hold Land 484.55 Lakhs Company has received the allotment letter from GIDC. GIDC is in the process of executing the lease deeds in the name of the Company NA 06-Feb-2016 Company has received the allotment letter from GIDC. GIDC is in the process of executing the lease deeds in the name of the Company

(d) The company has not revalued its Property Plant and Equipment (including right ofuse assets) or intangible assets during the year.

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

(ii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Management has conducted physicalverification of the inventories at reasonable intervals. No discrepancies of 10% or morein the aggregate for each class of inventory were noticed during such verifications.

(b) The Company has been sanctioned working capital limits in excess of Rs Five croresin aggregate from a bank on the basis of security of the current assets. Quarterly returnsor statements filed by the company with such bank are in agreement with the books ofaccounts of the Company.

(iii) The Company has made investments in shares of various companies and units ofmutual funds and granted unsecured loans to employees during the year in respect ofwhich:

(a) The company has not provided any loans and advances in the nature of loans or stoodguarantee or provided security to any other entity during the year and hence reportingunder clause 3(iii)(a) of the Order is not applicable.

(b) In our opinion and according to the information and explanations given to us theinvestments made and the terms and conditions of the grant of loans during the year areprima facie not prejudicial to the interest of the Company.

(c) In respect of loans granted by the Company the schedule of repayment of principaland payment of interest has been stipulated and the repayments regular as per thestipulation.

(d) In respect of loans granted by the Company there are no overdue amount remainingoutstanding as at the balance sheet date.

(e) No loan granted by the Company which has fallen due during the year has beenrenewed or extended or fresh loans granted to settle the overdue of existing loans givento the same parties.

(f) The Company has not granted any loans or advances in the nature of loans eitherrepayable on demand or without specifying any terms or period of repayment during theyear. Hence reporting under clause 3(iii)(f) is not applicable.

(iv) In our opinion and according to the information and explanations given to us theCompany has not advanced any loans to the parties covered under section 185 of the Act.The company has not given any loans and guarantees but has made investments in thesecurities of other body corporate in respect of which provisions of section 186 of theAct have been complied with.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public as per the provisions of section 73 74 75 and 76or any other relevant provisions of the Act and the Rules framed there under to the extentnotified.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government of India for the maintenance of cost recordsunder section 148(1) of the Act and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however made a detailedexamination of the records with a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and based on therecords of the Company examined by us in our opinion the Company is generally regular indepositing the undisputed statutory dues including Provident Fund Employees' StateInsurance Income-tax Excise Duty Custom Duty Goods and Service Tax Cess and othermaterial statutory dues as applicable with the appropriate authorities.

(b) According to the information and explanations given to us and based on the recordsof the Company examined by us in our opinion no undisputed amounts payable in respect ofProvident Fund Employees' State Insurance Income- tax Excise Duty Custom Duty Goodsand Service Tax Cess and other material statutory dues as applicable were in arrears asat 31st March 2022 for a period of more than six months from the date theybecame payable.

(c) According to the information and explanations given to us and based on the recordsof the Company examined by us the particulars of dues of Income Tax Service Tax SalesTax Excise Duty Custom Duty Value Added Tax Goods and Service Tax Cess and otherstatutory dues as at 31st March 2022 which have not been deposited on accountsof any disputes are as follows:

Name of the Statute Nature of Dues Amount (Rs. in Lakhs) Financial Year for which amount relates Forum where the dispute is pending
Income Tax Act 1961 Income Tax 613.84 2002-03 2010-11 2011-12 2016-17 & 2017-17 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax 8.00 2007-08 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 105.55 2009-10 Bombay High Court
Income Tax Act 1961 Income Tax 6.59 2012-13 Commissioner of Income Tax (Appeals)
Maharashtra Value Added Tax Value Added Tax 1.70 2006-07 Bombay High Court
Maharashtra Value Added Tax Value Added Tax 127.51 2007-08 to 2011-12 2014-15 & 2016-17 Joint Commissioner of Sales Tax (Appeals)
Profession Tax Profession Tax 3.19 2007-08 & 2009-10 Joint Commissioner Appeals
Customs Act Custom Duty 142.09 2000-01 to 2004-05 Supreme Court
Central Excise Act Excise Duty 0.13 2007-08 Tribunal
Central Excise Act Excise Duty 1.59 2009-10 to 2011-12 Deputy Commissioner
Central Excise Act Service Tax 140.38 2005-06 to 2017-18 Customs Excise and Service Tax Appellate Tribunal
Central Excise Act Service Tax 11.62 2017-18 Commissioner (Appeals)
Maharashtra Municipal Corporation Act 1949 Local Body Tax 152.17 2016-17 Bombay High Court
Maharashtra Municipal Corporation Act 1949 Property Tax 38.25 2021-22 Bombay High Court

(viii) There were no transactions relating to previously unrecorded income that havebeen surrendered or disclosed as income during the year in the tax assessments under theIncome Tax Act 1961 (43 of 1961).

(ix) (a) According to the records of the Company examined by us and the information andexplanations given to us the

Company has not defaulted in repayment of loans or borrowings to the bank. The companydoes not have dues to financial institution government or debenture holders as at thebalance sheet date.

(b) The Company has not been declared wilful defaulter by any bank or financialinstitution or other lender

(c) The term loans obtained during the year by the Company have been applied for thepurposes for which they were obtained.

(d) 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.

(e) The Company does not have subsidiaries associates or joint ventures. Hence thereporting requirements of paragraph 3(ix)(e) of the Order are not applicable.

(f) The Company has not raised loans during the year on the pledge of securities heldin its subsidiaries joint ventures or associate companies an d hence the reportingrequirements of paragraph 3(ix)(f) of the Order are not applicable.

(x) (a) In our opinion and according to the information and explanations given to usthe Company did not raise any money by way of initial public offer or further public offer(including debt instruments) during the year.

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

(xi) (a) No material fraud on or by the Company has been noticed or reported during theyear nor have we been informed of any such case by the Management.

(b) No report under sub-section (12) of section 143 of the Companies Act has been filedin Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government during the year and up to the date of this report

(c) As represented by the management there are no whistle blower complaints receivedby the company during the year.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly reporting as per paragraph 3(xii) of theOrder is not required.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableIndian Accounting Standards.

(xiv) (a) In our opinion the Company has an internal audit system commensurate with thesize and nature of its business.

(b) We have considered the internal audit reports for the year under audit issued tothe Company in determining nature timing and extent of our audit procedure.

(xv) 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 its directors or persons connected with them. Accordingly reporting asper paragraph 3(xv) of the Order is not required.

(xvi) (a) In our opinion the company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934

hence reporting requirement of paragraph 3(xvi) (a) (b) and (c) of the Order are notapplicable to the Company.

(b) The Company does not have any Core Investment Companies which are part of thegroup.

(xvii) The Company has not incurred cash losses in the financial year and in theimmediately preceding financial year.

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

(xix) On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

(xx) There are no unspent amounts towards Corporate Social Responsibility (CSR)requiring a transfer to a Fund specified mpanycoin Schedule VII to the Companies Act incompliance with second proviso to sub-section (5) of Section 135 of the said Act. Furtherthe company has not undertaken any ongoing project as a part of CSR Accordingly reportingunder clause 3(xx)(a) and (b) of the Order are not applicable for the year.

For SGDG & ASSOCIATES LLP

Chartered Accountants

Firm's Registration No: W100188

Sharad Gupta

Partner

Membership No: 116560

Place: Mumbai

Dated: 27th April 2022

UDIN: 22116560AHWUJX1072

ANNEXURE - B TO THE INDEPENDENT AUDITOR’S REPORT

The Annexure referred to in paragraph 2(f) under "Report on Other Legal andRegulatory Requirements" section of our report of even date Report on the InternalFinancial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act")

We have audited the internal financial controls over financial reporting of ApcotexIndustries Limited ("the Company") as of 31st March 2022 inconjunction with our audit of the financial statements of the Company for the year endedon that 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 I ntern al Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

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 on Audit of Internal Financial Controls over Financial Reportingissued by ICAI (the "Guidance Note") and the Standards on Auditing prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 over Financial Reporting

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

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly 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 FinancialControls 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 31st March 2022based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For SGDG & ASSOCIATES LLP

Chartered Accountants

Firm’s Registration No: W100188

Sharad Gupta

Partner

Membership No: 116560

Place: Mumbai

Dated: 27th April 2022

UDIN: 22116560AHWUJX1072

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