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Ashika Credit Capital Ltd.

BSE: 590122 Sector: Financials
NSE: N.A. ISIN Code: INE094B01013
BSE 00:00 | 30 Oct 23.95 3.55
(17.40%)
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20.25

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24.45

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19.75

NSE 05:30 | 01 Jan Ashika Credit Capital Ltd
OPEN 20.25
PREVIOUS CLOSE 20.40
VOLUME 37666
52-Week high 45.05
52-Week low 13.85
P/E 299.38
Mkt Cap.(Rs cr) 28
Buy Price 24.45
Buy Qty 1699.00
Sell Price 23.90
Sell Qty 35.00
OPEN 20.25
CLOSE 20.40
VOLUME 37666
52-Week high 45.05
52-Week low 13.85
P/E 299.38
Mkt Cap.(Rs cr) 28
Buy Price 24.45
Buy Qty 1699.00
Sell Price 23.90
Sell Qty 35.00

Ashika Credit Capital Ltd. (ASHIKACREDIT) - Auditors Report

Company auditors report

To the Members of

Ashika Credit Capital Limited

Report on the Audit of the Ind AS Financial Statements Opinion

We have audited the accompanying Ind AS financial statements of Ashika Credit CapitalLimited ("the Company") which comprise the Balance Sheet as at March 31 2020the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes tothe Ind AS financial statements including a summary of significant accounting policies andother explanatory information (hereinafter referred to as "Ind AS financialstatements"). In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Ind AS financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India including the Indian Accounting Standards ("Ind AS") prescribed undersection 133 of the Act of the state of affairs of the Company as at March 31 2020 itsloss (including other comprehensive income) changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit in accordance with Standards on Auditing (SAs) specified undersection 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Ind AS FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India("ICAI") together with the ethical requirements that are relevant to our auditof the Ind AS financial statements under the provisions of the Act and Rules thereunderand 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 Ind AS financialstatements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements of the current year. Thesematters were addressed in the context of our audit of the Ind AS financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matters described below to be the key audit mattersto be communicated in our report.

Sr.
Key Audit Matters How the matter was addressed in our audit:
1. Transition to Ind AS
The Company has adopted Ind AS prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 from April 01 2019 and the effective date - of such transition is April 01 2018. For periods up to and including the year ended March 31 2019 the Company had prepared and - presented its financial statements in accordance with Accounting Standards prescribed under the section 133 of the Act (Indian GAAP). Our audit procedures included but were not limited to the following: Assessed the Company's process to identify the impact of adoption and transition to Ind AS; Evaluated the design of internal controls and tested the operating effectiveness of key internal controls around the process of preparation of standalone Ind AS financial statements;
Accordingly for transition to Ind AS the Company has prepared its - financial statements for the year ended March 31 2020 together with the comparative financial information for the previous year ended March 31 2019 and the opening Balance Sheet as at April 01 2018 under Ind AS. Reviewed the mandatory and optional exemptions and exceptions allowed by Ind AS and availed by the Company in applying the first-time adoption principles of Ind AS 101;
- Ind AS are new and complex accounting standards which require considerable judgment and interpretation in their implementation. Further Ind AS 101 ("First-time Adoption - of Indian Accounting Standards") allows two categories of exceptions to the first-time adopters which mainly includes prohibition to retrospective application of certain requirements - of Ind AS and exemption from some requirements of Ind AS. Obtained an understanding of the governance over the determination of key judgments; Evaluated and tested the key assumptions and judgments adopted by management in line with principles under Ind AS; Assessed the disclosures made as required by the relevant Ind AS; and
We consider this transition and the required disclosures to be a - key audit matter because new accounting policies have been adopted by the Company to comply with these standards. Note No. 1(b) "Significant Accounting Policies" Note No. 32 "First time Adoption" and Note No. 34 "Financial Instruments and Related Disclosures" to the Ind AS financial statements provides detailed information on the significant policies critical judgement and estimation along with details of exemptions applied from certain requirements under Ind AS based on which these Ind Determined the appropriateness of the methodologies and models used along with the responsibility of the outputs.
AS financial statements are prepared.
2. Impairment loss allowance of loans
Impairment loss allowance of loans ("Impairment loss allowance") is a key audit matter as the Company has significant credit risk exposure. The value of loans on the balance sheet is significant and there is a high degree of complexity and judgment involved for the Company in estimating individual and collective credit impairment provisions write-offs against these loans and to additionally determine the potential impact of unprecedented COVID-19 pandemic on asset quality and provision of the Company. We started our audit procedures with the understanding of the internal control environment related to Impairment loss allowance. Our procedures over internal controls focused on recognition and measurement of impairment loss allowance. We assessed the design and tested the operating effectiveness of the selected key controls implemented by the Company.
The Company's model to calculate expected credit loss ("ECL") is inherently complex and judgment is applied in determining the three-stage impairment model ("ECL Model") including the selection and input of forward-looking information. ECL provision calculations require the use of large volumes of data. The completeness and reliability of data can significantly impact the accuracy of the modelled impairment provisions. The accuracy of data flows and the implementation of related controls are critical for the integrity of the estimated impairment provisions. We also assessed whether the impairment methodology used by the Company is in accordance with the assumptions and methodology approved by the Board of Directors of the Company which is based on and in compliance with Ind AS 109 "Financial instruments" More particularly we assessed the approach of the Company regarding the definition of default Probability of Default Loss Given Default and incorporation of forward-looking information for the calculation of ECL.
For loans which are assessed for impairment on a portfolio basis we performed particularly the following procedures:
- tested the reliability of key data inputs and related management controls;
- checked the stage classification as at the balance sheet date as per definition of default;
- validated the ECL model and calculation;
- calculated the ECL provision manually for a selected sample; and
- We have checked the provision on Loan Assets as per Income Recognition Asset Classification and Presentation ("IRACP") norms as required under RBI circular dated March 13 2020. We have checked the DPD and provision in accordance with the RBI regulations in that regard further considering the Regulatory Packages issued by RBI dated March 27 2020 April 17 2020 and May 23 2020.
For loans which are assessed for impairment on a portfolio basis we performed particularly the following procedures:
- tested the reliability of key data inputs and related management controls;
- checked the stage classification as at the balance sheet date as per definition of default;
- validated the ECL model and calculation;
- calculated the ECL provision manually for a selected sample; and
- We have checked the provision on Loan Assets as per Income Recognition Asset Classification and Presentation ("IRACP") norms as required under RBI circular dated March 13 2020. We have checked the DPD and provision in accordance with the RBI regulations in that regard further considering the Regulatory Packages issued by RBI dated March 27 2020 April 17 2020 and May 23 2020.

Emphasis of Matter

We draw attention to Note No. 38 to the Ind AS financial statements which explainsthat the classification of assets overdue but standard as on February 29 2020 and wheremoratorium benefit has been granted the staging of those accounts as on March 31 2020 isbased on the days past due status as on February 29 2020 which will remain at astandstill during the moratorium period in accordance with the Reserve Bank of IndiaCOVID-19 Regulatory Package. Further the Company considers that all the assets arerecoverable. Also the extent to which COVID-19 pandemic will impact the Company'soperations and financial results is dependent on future developments which are uncertainat this point of time.

Our opinion is not modified in respect of this matter.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and AnalysisBoard's Report including Annexures to Board's Report Report on Corporate Governance butdoes not include the Ind AS financial statements and our auditor's report thereon. Theabove mentioned other information are expected to be made available to us after the dateof this auditor's report. Our opinion on the Ind AS financial statements does not coverthe other information and accordingly we do not express any form of assurance conclusionthereon. In connection with our audit of the Ind AS financial statements ourresponsibility is to read the other information identified above when it becomes availableand in doing so consider whether the other information is materially inconsistent withthe Ind AS financial statements or our knowledge obtained in the audit or otherwiseappears to be materially misstated. When we read the other information if we concludethat there is a material misstatement therein we are required to communicate the matterto those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Ind ASFinancial 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 Ind AS financial statementsthat give a true and fair view of the financial position financial performance (includingother comprehensive income) changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including Ind AS prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and 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 Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Ind AS financial statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

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

Auditor's Responsibilities for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS 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 this Ind AS financial statements. As part of an audit in accordance with SAs weexercise professional judgment and maintain professional skepticism throughout the audit.We also:

Identify and assess the risks of material misstatement of the Ind AS financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on 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 Ind AS 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 Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships 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 Ind AS financial statements ofthe current year and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Other Matter

The comparative financial information of the Company for the year ended March 31 2019and the transition date opening balance sheet as at April 01 2018 included in these IndAS financial statements are based on the previously issued statutory financial statementsprepared in accordance with the Companies (Accounting Standards) Rules 2006 audited by uswhose report for the year ended March 31 2019 and March 31 2018 dated April 22 2019 andMay 28 2018 respectively expressed a modified opinion and unmodified opinion respectivelyon those financial statements as adjusted for the differences in the accountingprinciples adopted by the Company on transition to the Ind AS which have been audited byus.

Our opinion is not modified in respect of this 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 section 143(11) of the Act we givein "Annexure 1" a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable.

(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) 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 Ind AS financial statements comply with the Ind ASprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended; e. The matter described under the Emphasis of Mattersection above in our opinion may have an adverse effect on the functioning of theCompany;

f. On the basis of the written representations received from the directors as on March31 2020 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2020 from being appointed as a director in terms of section164(2) of the Act;

g. With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure 2";

h. With respect to the other matter to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act; In our opinion and to thebest of our information and according to the explanations given to us the remunerationpaid/ provided by the Company to its directors during the year is in accordance with theprovisions of section 197 of the Act. Further the remuneration paid by the Company to itsChairman and Managing Director during the year is in excess of the limits laid down undersub-section (3) of section 197 of the Act and the requisite approval in accordance withthe said section read with Schedule V to the Act has been obtained by the Company –refer Note No.36.1 to the Ind AS financial statements; i. With respect to the othermatters to be included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements – Refer Note No.28 to the Ind ASfinancial statements;

s(ii) The Company did not have any long-term contracts including derivative contracts.Hence the question of any material foreseeable losses does not arise.

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No.103523W/W100048
Mahesh Agarwal
Partner
Membership No.067806
UDIN : 20067806AAAAAF3811
Place: Kolkata
Date: June 15 2020

[Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section in the Independent Auditor's Report of even date to the members ofAshika Credit Capital Limited ("the Company") on the Ind AS financial statementsfor the year ended March 31 2020.]

Based on the audit procedures performed for the purpose of reporting a true and fairview on the Ind AS financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that: (i) (a) The Company hasmaintained proper records showing full particulars including quantitative details andsituation of fixed assets. (b) During the year the fixed assets of the Company have beenphysically verified by the management and no material discrepancies were noticed on suchverification. In our opinion the frequency of verification is reasonable having regard tothe size of the Company and the nature of its assets.

(c) The title deeds of immovable properties recorded as fixed assets in the books ofaccounts of the Company are held in the name of the Company except for the details givenbelow:

Land/ Building Total number of cases Leasehold/ Freehold Gross Block as on March 31 2020 Net Block as on March 31 2020 Remarks
Building 1 Freehold Rs 13.26 Lacs Rs 12.76 Lacs Conveyance is pending

(ii) The Company does not have any inventory and hence reporting under clause 3(ii) ofthe Order is not applicable to the Company.

(iii) The Company has granted unsecured loans to companies covered in the registermaintained under section 189 of the Act. (a) The terms and conditions of the aforesaidloans granted by the Company are not prejudicial to the interest of the Company.

(b) The schedule of repayment of principal and payment of interest in respect of theaforesaid loans has been stipulated and the repayments or receipts of principal amountsand interest are regular. (c) There is no amount which is overdue in respect of theaforesaid loans.

Further no loan secured or unsecured has been granted to firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theAct.

(iv) The Company has complied with the provisions of sections 185 and 186 of the Act inrespect of grant of loans making investments and providing guarantees and securities asapplicable.

(v) In our opinion the Company has not accepted any deposits from the public withinthe provisions of sections 73 to 76 of the Act and the rules framed there under.Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) The Central Government has not prescribed the maintenance of cost records for anyof the products of the Company under sub-section (1) of section 148 of the Act and therules framed there under.

(vii) (a) The Company is regular in depositing with appropriate authorities amountsdeducted/accrued in the books of account in respect of undisputed statutory dues includingprovident fund employees' state insurance income tax goods and services tax (GST)customs duty cess and any other material statutory dues applicable to it except thatthere have been slight delay in few cases. During the year 2017-18 sales tax value addedtax service tax and duty of excise subsumed in GST and are accordingly reported underGST.

No undisputed amounts payable in respect of aforesaid dues were outstanding at theyear end for a period of more than six months from the date they became payable.

(b) There are no dues with respect to sales tax service tax value added tax GSTcustoms duty and duty of excise which have not been deposited on account of any dispute.The dues outstanding as at March 31 2020 with respect to income tax on account of anydispute are as follows:

Name of the Statute Nature of dues Amount Rs in Lacs Period to which the amount relates Forum where dispute is pending
Incme Tax Act 1961 Income Tax 0.35 Financial Year 2014-15 Commissioner of Income Tax (Appeals) Kolkata
Income Tax Act 1961 Income Tax *23.85 Financial Year 2016-17 Commissioner of Income Tax (Appeals) Kolkata

* Net of amount paid under protest amounting toRs 6.30 lacs.

(viii) During the year the Company has not defaulted in repayment of loans orborrowings to financial institution. During the year the Company has not taken any loansor borrowings from any bank or government nor has it issued any debentures. (ix) TheCompany has not raised any moneys by way of initial public offer further public offer(including debt instruments) or term loans during the year. Accordingly clause 3(ix) ofthe Order is not applicable to the Company.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by the Company or any fraud on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such instance by themanagement.

(xi) Managerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

(xii) In our opinion the Company is not a Nidhi Company. Therefore clause 3(xii) ofthe Order is not applicable to the Company. (xiii) All transactions entered into by theCompany with the related parties are in compliance with sections 177 and 188 of Act whereapplicable and the details have been disclosed in the Ind AS financial statements asrequired by the applicable accounting standards.

(xiv) The Company had made preferential allotment of 1080000 fully convertible equitywarrants during the FY 2017-18 and pursuant to exercise of option by warrant holder540000 warrants were converted into fully paid-up equity shares during FY 2018-19 andremaining 540000 warrants were converted into fully paid-up equity shares during theyear. In our opinion the requirement of section 42 of the Act has been complied with andthe amount raised has been used for the purposes for which funds were raised.

(xv) The Company has not entered into any non-cash transactions with directors orpersons connected with them during the year and hence provisions of section 192 of the Actare not applicable.

(xvi) The Company is required to be registered under section 45-IA of the Reserve Bankof India Act 1934 and the registration has been obtained by the Company.

For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No.103523W/W100048
Mahesh Agarwal
Partner
Membership No.067806
UDIN : 20067806AAAAAF3811
Place: Kolkata
Date: June 15 2020

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 2(g) under ‘Report on Other Legal and RegulatoryRequirements' section in our Independent Auditor's Report of even date to the members ofAshika Credit Capital Limited ("the Company") on the Ind AS financial statementsfor the year ended March 31 2020.] Report on the Internal Financial Controls withreference to Financial Statements under clause (i) of sub-section 3 of section 143 of theCompanies Act 2013 ("the Act")

We have audited the internal financial controls with reference to financial statementsof the Company as of March 31 2020 in conjunction with our audit of the Ind AS financialstatements of the Company for the year ended on 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 with reference to 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 (the "Guidance Note") issued by the Institute of Chartered Accountantsof India ("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing specified under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth issued by the ICAI. 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 with reference to financial statements wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness.

Our audit of internal financial controls with reference to financial statementsincluded obtaining an understanding of internal financial controls with reference tofinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal controls based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto 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 withreference to financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements 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 authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to financial statements and such internal financial controls withreference to financial statements were operating effectively as at March 31 2020 basedon the internal control with reference to financial statements criteria established by theCompany considering the essential components of internal controls stated in the GuidanceNote issued by the ICAI.

For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No.103523W/W100048
Mahesh Agarwal
Partner
Membership No.067806
UDIN : 20067806AAAAAF3811
Place: Kolkata
Date: June 15 2020

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