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Arihant Capital Markets Ltd.

BSE: 511605 Sector: Financials
NSE: ARIHANTCAP ISIN Code: INE420B01036
BSE 00:00 | 03 Feb 47.50 -0.65
(-1.35%)
OPEN

49.10

HIGH

49.10

LOW

43.85

NSE 00:00 | 03 Feb 47.80 -0.30
(-0.62%)
OPEN

48.80

HIGH

48.85

LOW

43.90

OPEN 49.10
PREVIOUS CLOSE 48.15
VOLUME 43337
52-Week high 99.00
52-Week low 43.85
P/E 13.81
Mkt Cap.(Rs cr) 494
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 49.10
CLOSE 48.15
VOLUME 43337
52-Week high 99.00
52-Week low 43.85
P/E 13.81
Mkt Cap.(Rs cr) 494
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Arihant Capital Markets Ltd. (ARIHANTCAP) - Auditors Report

Company auditors report

To the Members of

ARIHANT CAPITAL MARKETS LIMITED

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying standalone Ind AS financial statementsof ARIHANT CAPITAL MARKETS LIMITED (“the Company”) which comprise the BalanceSheet as at March 31 2022 the Statement of Profit and Loss (including the statement ofOther Comprehensive Income) Statement of Changes in Equity and statement of Cash Flowsfor the year then ended and notes to the standalone Ind AS financial statementsincluding a summary of significant accounting policies and other explanatory information.(Hereinafter referred to as the “standalone financial statements”).

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Companies Act 2013 (“the Act”) in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardprescribed under section 133 of the act read with the companies (Indian AccountingStandards) rules2015 as amended (“Ind AS”) and other principles generallyaccepted in India of the state of affairs of the Company as at 31st March 2022 and itsProfit and other comprehensive income changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theCompanies Act 2013. Our responsibilities under those Standards are further described inthe 'Auditor's Responsibilities for the Audit of the standalone Ind AS financialstatements' section of our report. We are independent of the Company in accordance withthe 'Code of Ethics' issued by the Institute of Chartered Accountants of India togetherwith the ethical requirements that are relevant to our audit of the standalone Ind ASfinancial statements under the provisions of the Companies Act 2013 and the 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 on the standalone Ind ASfinancial statements.

Key Audit Matters

Key audit matters ('KAM') are those matters that in our professionaljudgment were of most significance in our audit of the standalone Ind AS financialstatements of the current period. These matters were addressed in the context of our auditof the standalone Ind AS financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters.

Information Other than the standalone Ind AS financial statements andAuditor's Report Thereon

The Company's Management and Board of Directors are responsible for theother information. The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexure to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Information butdoes not include the Standalone Ind AS financial statements and our auditor's reportthereon.

Our opinion on the standalone Ind AS financial statements does notcover the other information and we do not express any form of assurance conclusionthereon.

In connection with our audit of the standalone Ind AS financialstatements our responsibility is to read the other information identified above and indoing so consider whether such other information is materially inconsistent with thestandalone Ind AS financial statements or our knowledge obtained in the audit or otherwiseappears to be materially misstated. Based on the work we have performed we conclude thatthere is no material misstatement of this other information;

Management's Responsibility for the Standalone Ind AS financialstatements

The Company's Management and Board of Directors are responsible for thematters stated in Section 134(5) of the Companies Act 2013 (“the Act”) withrespect to the preparation of these financial statements that give a true and fair view ofthe state of affairs Profit/Loss (and other comprehensive income changes in equity andcash flows of the Company in accordance with the accounting principles generally acceptedin India including the Indian Accounting Standards (“Ind AS”) specified undersection 133. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

In preparing the standalone Ind AS financial statements management andBoard of Directors are responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

The Management and Board of Directors are responsible for overseeingthe Company's financial reporting process.

Auditor's Responsibility for the standalone Ind AS financial statements

Our objectives are to obtain reasonable assurance about whether thestandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone Ind AS financialstatements.

As part of audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

2. Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

3. Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone Ind AS financial statements or if such disclosuresare inadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

5. Evaluate the overall presentation structure and content of thestandalone Ind AS financial statements including the disclosures and whether thestandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the Standalone IndAS financial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 issuedby the Central Government of India in terms of sub-section (11) of section 143 of theCompanies Act 2013 we give in the 'Annexure A' a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended: Inour opinion and to the best of our information and according to the explanations given tous the remuneration paid/provided by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

3. Further as required by Section 143 (3) of the Act we report that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss (including theStatement of Other Comprehensive Income) the Statement of Changes in Equity and thestatement of Cash Flow dealt with by this Report are in agreement with the books ofaccount.

d) In our opinion the aforesaid Standalone Ind AS financial statementscomply with the Ind AS specified under Section 133 of the Act.

e) On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2022 from being appointed as a director interms of Section 164 (2) of the Companies Act 2013.

f) With respect to the adequacy of the internal financial control overfinancial reporting of the company with reference to these Standalone Ind AS financialstatements and the operating effectiveness of such control refer to our separate reportin Annexure “B”.

g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

i. The Company as detailed in note 42 to the Standalone Ind ASfinancial statements has disclosed the impact of pending litigations on its financialposition as at 31 March 2022.

ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts;

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

iv. (a) The management has represented that to the best of it'sknowledge and belief other than as disclosed in the notes to the accounts no funds havebeen advanced or loaned or invested (either from borrowed funds or share premium or anyother sources or kind of funds) by the company to or in any other person(s) orentity(ies) including foreign entities (“Intermediaries”) with theunderstanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the company (“Ultimate Beneficiaries”)or provide any guarantee security or the like on behalf of the Ultimate Beneficiaries.

(b) The management has represented that to the best of it's knowledgeand belief other than as disclosed in the notes to the accounts no funds have beenreceived by the company from any person(s) or entity(ies) including foreign entities(“Funding Parties”) with the understanding whether recorded in writing orotherwise that the company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party (“Ultimate Beneficiaries”) or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries.

(c ) Based on such audit procedures that the auditor has consideredreasonable and appropriate in the circumstances nothing has come to their notice that hascaused them to believe that the representations under sub-clause (a) and (b) contain anymaterial mis-statement.

v. (a) The final dividend proposed in the previous year declared andpaid by the Company during the year is in accordance with section 123 of the act asApplicable.

(b) The interim dividend declared and paid by the company during theyear and until the date of this report is in accordance with section 123 of the act asApplicable.

(c) The Board of directors of the company have proposed final dividendfor the year which is subject to the approval of the members at the ensuing Annual GeneralMeeting. The amount of dividend proposed is in accordance with section 123 of the act asApplicable.

For Dinesh Ajmera & Associates

Chartered Accountants

Firm Reg. No. 011970C

CA Dinesh Ajmera

Partner

Membership No. : 402629

UDIN : 22402629AHTQQQ2428

Indore April 25 2022

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 to the Members of ARIHANT CAPITAL MARKETSLIMITED on the accounts for the year ended 31st March 2022)

i. In respect of the Company's Property Plant & Equipments:

(a) (A) The Company has maintained proper records to show fullparticulars including quantitative details and situation of Property Plant &Equipment.

(B) The Company has maintained proper records to show full particularsof Intangible assets.

(b) The Property Plant & Equipment of the Company are physicallyverified by the management at regular intervals. During the year as informed to us nodiscrepancies have been noticed on such verification. (c) According to the information andexplanations given to us and the records examined by us we report that the title deedscomprising all the immovable properties are held in the Company's name as at the balancesheet date.

(d) The company has not revalued any of its property plant andequipment and intangible assets during the year. (e) No proceedings have been initiatedor are pending against the company for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (45 of 1988) and rules made thereunder.

ii. In respect of the Company's Inventory:

(a) The securities held as stock in trade have been verified by theManagement with the statement of holdings provided by depository participants and brokersat reasonable intervals. In our opinion the frequency of verification is reasonable andno material discrepancies between the book records and the statement of holdings providedby NSDL other depository participants and brokers have been noticed.

(b) During the year the company has been sanctioned working capitallimits in excess of five crore rupees from banks on the basis of security of currentassets. The quarterly returns or statements filed by the company with banks are inagreement with the books of account of the Company.

iii. During the year the company has not made investments in notprovided any guarantee or security or not granted any loans or advances in the nature ofloans secured or unsecured to companies firms Limited Liability Partnerships or anyother parties except as:-

(a) During the year the company has provided loans or advances in thenature of loans secured or unsecured to any other entity details of which are asfollows:- (A) During the year the company has granted loan aggregate of Rs. 2781.12 Lacsto its subsidiaries and there is no outstanding balance at the balance sheet date.

(B) During the year the company has not granted loan to parties otherthan subsidiaries joint ventures and associates hence this clause is not applicable.

(b) In our opinion the terms and conditions of the grant of loansduring the year are prima facie not prejudicial to the company's interest.

(c) In respect of the loans granted by the company no schedule ofrepayment of principal and payment of interest has been stipulated hence this clause isnot applicable.

(d) No amount is overdue as the loan has been squared off during theyear hence this clause is not applicable. (e) No loan has been renewed or extended orfresh loans granted to settle the overdues of existing loans as the loan has been squaredoff during the year hence this clause is not applicable.

(f) The company has granted loans or advances in nature of loansrepayable on demand aggregate of Rs. 2781.12 Lacs to its subsidiaries as defined in clause(76) of section 2 of the Companies Act 2013 which is 100% of total loans granted.

iv. The company has complied with the provisions of section 185 and 186of Companies Act 2013 in respect of loans investments guarantees and securities asapplicable.

v. According to the information and explanation given to us thecompany has not accepted deposits from the public within the meaning of the directivesissued by the Reserve Bank of India under provisions of section 73 to 76 or any otherrelevant provisions of the Companies Act and the rules framed there under.

vi. According to the information and explanations given to us themaintenance of cost records has not been prescribed by the Central Government undersub-section (1) of section 148 of the Companies Act 2013 in respect of the activitiescarried by the company.

vii. a) As per the records of the Company the company is generallyregular in depositing the statutory dues including GST provident fund employees' stateinsurance income tax sales tax service tax duty of customs duty of excise valueadded tax cess and any other material statutory dues applicable to it with theappropriate authorities. According to the information and explanations given to us noundisputed amount in respect of GST income tax sales tax service tax custom dutyexcise duty cess applicable to it is outstanding as at the last day of the financialyear concerned 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 thebasis of examination of records of the Company there is no provident fund sales taxincome tax wealth tax cess which have not been deposited on account of dispute exceptfor the following instances:

(` in Amount)

Statute In which pending Nature of Dues Financial Year Forum at which pending Amount involved
Income Tax Act 1961 Tax and Interest thereon 2012-13 Commissioner of Income Tax (Appeals) 1846840
Income Tax Act 1961 Tax and Interest thereon 2017-18 Commissioner of Income Tax (Appeals) 2761640
Income Tax Act 1961 Penalty 2011-12 Commissioner of Income Tax (Appeals) 160000
Income Tax Act 1961 Penalty 2013-14 Commissioner of Income Tax (Appeals) 160000
Income Tax Act 1961 Penalty 2014-15 Commissioner of Income Tax (Appeals) 120000

viii. There were no transactions relating to previously unrecordedincome that have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961).

ix. (a) In our opinion and according to the information andexplanations given to us the Company has not defaulted in the repayment of loans orborrowings or in the payment of interest thereon to any banks financial institutionsgovernment or other lender.

(b) The company is not declared willful defaulter by any bank orfinancial institution or other lender. (c) The company has not taken any term loan duringthe year hence this clause is not applicable. (d) The funds raised on short term basishave not been utilized for long term purposes.

(e) The company has not taken any such type of funds from any entity orperson on account of or to meet the obligations of its subsidiaries associates or jointventures.

(f) The company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries joint ventures or associate companies.

x. (a) According to the information and explanation given to us and therecord examined by us the Company has not raised any money by way of initial public offeror further public offer during the year. Hence clause 3(ix) of the order is notapplicable.

(b) Based on our audit procedures and according to the informationgiven by the management the company has not made any preferential allotment or privateplacement of shares or convertible debentures.

xi. (a) To the best of our knowledge and according to the informationand explanations given to us no material fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the course of our audit.

(b) No report under sub-section (12) of section 143 of the CompaniesAct has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies(Audit and Auditors) Rules 2014 with the Central Government during the year and upto thedate of this year.

(c) According to the information and explanations given to us there isno whistle-blower complaints received during the year by the company hence this clause isnot applicable.

xii. Company is not a Nidhi Company as prescribed under Section 406 ofthe Act. Accordingly paragraph 3(xii) of the Order is not applicable to the Company.

xiii. In our opinion all transactions with the related parties are incompliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements etc. as required by the applicableIndian Accounting Standards.

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

(b) We have considered the internal audit reports for the year underaudit issued to the Company during the year in determining the nature timing and extentof our audit procedures.

xv. In our opinion and according to the information and explanationsgiven to us during the year the Company has not entered into any non-cash transactionswith its Directors or persons connected to its directors and hence provisions of section192 of the Companies Act 2013 are not applicable to the Company.

xvi. (a) According to the information and explanation given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934 hence this clause is not applicable.

(b) The company has not conducted any Non-Banking Financial or HousingFinance activities without a valid Certificate of Registration (CoR) from the Reserve Bankof India as per the Reserve Bank of India Act 1934 hence this clause is not applicable.

(c ) The company is not a Core Investment Company (CIC) as defined inthe regulations made by the Reserve Bank of India hence this clause is not applicable.

(d) The group has no CIC as part of the group hence this clause is notapplicable.

xvii. The Company has not incurred cash losses during the financialyear covered by our audit and in the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors of theCompany during the year.

xix. On the basis of the financial ratios ageing and expected dates ofrealisation of financial assets and payment of financial liabilities other informationaccompanying the financial statements in our opinion no material uncertainty exists as onthe date of the audit report that company is capable of meeting its liabilities existingat the date of balance sheet as and when they fall due within a period of one year fromthe balance sheet date.

xx. (a) The company has spent full amount as required to be spent asper the Companies Act 2013. No amount remained unspent which were required to betransferred in respect of other than ongoing projects in Funds specified in Schedule VIIto the Companies Act within a period of six months of the expiry of the financial year incompliance with second proviso to sub-section (5) of section 135 of the said Act.

(b) The company has spent full amount as required to be spent as perthe Companies Act 2013. No amount remained unspent which were required to be transferredin respect of ongoing projects in Funds specified in Schedule VII to the Companies Actwithin a period of six months of the expiry of the financial year in compliance withsecond proviso to sub-section (5) of section 135 of the said Act.

For Dinesh Ajmera & Associates

Chartered Accountants

Firm Reg. No. 011970C

CA Dinesh Ajmera

Partner

Membership No. : 402629

UDIN : 22402629AHTQQQ2428

Indore April 25 2022

ANNEXURE “B”

(Referred to in paragraph 2(f) under 'Report on Other Legal andRegulatory Requirements' section of our report even date to the Members of ARIHANT CAPITALMARKETS LIMITED on the accounts for the year ended 31st March 2022)

Report on the Internal Financial Controls with reference to theaforesaid standalone Ind AS financial statements under Clause (i) of Sub-section 3 ofSection 143 of the Companies Act 2013

We have audited the internal financial controls with reference toStandalone Ind AS financial statements of Arihant Capital Markets Limited (“theCompany”) as of 31 March 2022 in conjunction with our audit of the Standalone Ind ASfinancial statements of the Company for the year ended on that date.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls with reference to Standalone Ind AS financial statements andsuch internal financial controls were operating effectively as at 31 March 2022 based onthe internal financial controls with reference to standalone Ind AS financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India (the “GuidanceNote”).

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. 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' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to these standalone Ind AS financial statements based onour audit. We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting (the “Guidance Note”) andthe Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting with reference to these standalone Ind AS financial statementswere established and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting withreference to these standalone Ind AS financial statements and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reporting withreference to these Standalone Ind AS financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting with reference to these standalone Ind ASfinancial statements.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control with reference to Standalone IndAS financial statements is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of Standalone Ind AS financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company's internal financial control over financial reporting includes thosepolicies and procedures that;

1. pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

2. provide reasonable assurance that transactions are recorded asnecessary to permit preparation of standalone Ind AS financial statements in accordancewith generally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and

3. Provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the standalone Ind AS financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial withreference to financial statement including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to Standalone Ind AS financial statements to future periods aresubject to the risk that the internal financial control with reference to Standalone IndAS financial statements financial statement may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

For Dinesh Ajmera & Associates

Chartered Accountants

Firm Reg. No. 011970C

CA Dinesh Ajmera

Partner

Membership No. : 402629

UDIN : 22402629AHTQQQ2428

Indore April 25 2022

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