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Balasore Alloys Ltd.

BSE: 513142 Sector: Metals & Mining
NSE: ISPATALLOY ISIN Code: INE135A01024
BSE 00:00 | 31 Mar 7.21 0.34
(4.95%)
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7.00

HIGH

7.21

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6.92

NSE 05:30 | 01 Jan Balasore Alloys Ltd
OPEN 7.00
PREVIOUS CLOSE 6.87
VOLUME 19249
52-Week high 25.45
52-Week low 6.52
P/E
Mkt Cap.(Rs cr) 67
Buy Price 7.21
Buy Qty 2151.00
Sell Price 7.18
Sell Qty 300.00
OPEN 7.00
CLOSE 6.87
VOLUME 19249
52-Week high 25.45
52-Week low 6.52
P/E
Mkt Cap.(Rs cr) 67
Buy Price 7.21
Buy Qty 2151.00
Sell Price 7.18
Sell Qty 300.00

Balasore Alloys Ltd. (ISPATALLOY) - Auditors Report

Company auditors report

To the Members of

BALASORE ALLOYS LIMITED

Report on the Audit of Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of Balasore AlloysLimited ("the Company") which comprise the Balance Sheet as at March 312019the Statement of Profit and Loss including the statement of Other Comprehensive Incomethe Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of significant accounting policies and other explanatory information(hereinafter referred to as " Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 (" the Act") in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2019 its Losses includingOther Comprehensive Income its Cash Flows and the changes in equity for the year ended onthat date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing (SAs) as specified under Section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the ‘Auditor'sResponsibilities for the Audit of the Standalone Financial Statements' section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our opinionon the Standalone Financial Statements.

Emphasis of Matter

We draw attention to Note No 41 of the Standalone Financial Statements regarding slowimplementation of underground mining project at Sukinda. As represented by the managementfinancial tie-ups has been delayed in past and may further delay but the company isconfident that it would be able to tie-up the requisite finance and implement the projectin due course. Hence no adjustments have been carried out for carrying value of capitalwork in progress of Rs.9520.90 lacs and the advances to vendor of Rs.15961.36 lacs atthis stage.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key Audit Matters (KAM) are those matters that in our professional judgment were ofmost significance in our audit of the Standalone financial statements as at and for theyear ended March 312019. These matters were addressed in the context of our audit of theStandalone financial statements as a whole and in forming our opinion thereon; we do notprovide a separate opinion on these matters.

Except for the matter described in the Emphasis of Matter we have determined followingkey audit matters to communicate in our report:

Sr.No. Key Audit Matters How our audit addressed the Key Audit Matter
1 Contingent Liabilities:
(Refer Note 36 to 39 of Standalone Financial Statements)
There are number of legal regulatory and tax cases against the company. High level of judgements is required in estimating the level of provisioning required. Our audit procedures in relation to management's identification/judgements/ estimation of contingent liabilities includes the following:
• Obtaining an understanding of and assessing the design implementation and operating effectiveness of Company's key controls around the recording and assessment of contingent liabilities;
• Meeting company's legal team to understand the ongoing and potential legal/ tax matters impacting the company.
There is an inherent risk that all legal exposures are not identified and considered for disclosure and provisioning for financial reporting purpose on a timely basis making it a significant matter for our audit. • Read the Board minutes for an update on the status of significant legal cases and assess whether any constructive obligation had arisen in individual cases based on available records.
• Understanding relevant historical judgments set in the similar cases as well as reading legal opinions from external lawyers/experts when obtained by the management;
• Performed the substantive procedures on the underlying calculations for the provisions recorded for completeness and accuracy.
• Reviewing the accounting and disclosure of legal exposures. Our testing as described above showed that management's judgments/ estimation/assessment in relation to the contingent liabilities are reasonable and does not require additional provisioning. The disclosures made with respect to the contingent liabilities are adequate.
2 Advances towards Supply/Services: (Refer Note 6 of Standalone Financial Statements) Company regularly make advance payments to vendors for securing the timely supply of materials and services. The terms of the supply/ service contracts and the supply schedules varies for individual contract.
Our audit procedures with respect to advances and it's impairment includes:
• Obtaining an understanding of and assessing the design implementation and operating effectiveness of the company's key controls over the processes of authorisation of advances for supply of material/services and tracking of receipt of the same as per agreement.
• Reviewing ageing of advances.
When advances are long overdue provisions/write-off are made by managements based on its assessment of counterparty solvency liquidity position and evaluation of the capability of the future performance which can be highly subjective and involves significant degree of management judgement. For the said reasons we identified this area as key audit matter. • Conducting discussions with the management and it's assessment of the recoverability of advance or future delivery of the goods/services by the vendors where balances are still pending to be adjusted for substantial period. Reviewing the adequacy of the impairment provisions made by management.
• Circulating and obtaining independent confirmations from parties on the outstanding balances on sample basis. Testing the reconciliation if any between the balances confirmed by party and balance in the books.
The results of our testing of confirmations floated and other test as described above were satisfactory.
3 Revenue Recognition
(Refer note 19 and Para 1B(m) of the significant accounting policies of Consolidated Financial Statements)
Revenue is recognised when the control of the underlying products has been transferred to customer along with the satisfaction of the company's performance obligation under a contract with customer. Our audit procedures to assess the appropriateness of revenue recognised included the following: Our audit procedures considering the significant risk of misstatement related to revenue recognition included amongst other:
• Obtaining an understanding of an assessing the design implementation and operating effectiveness of the Company's key internal controls over the revenue recognition process.
The company focuses on revenue as a key performance measure which could create an incentive for revenue to be recognized before completion of the performance obligation. • Examination of significant contracts entered into close to year end to ensure revenue recognition is made in correct period.
• Testing a sample of contracts from various revenue streams by agreeing information back to contracts and proof of delivery as appropriate and ensure revenue recognition policy is in accordance with principles of Ind AS 115.
There is a significant risk of misstatement due to risk related to inappropriate recognition of the revenue and hence was determined to be a key audit matter • Assessing the adequacy of Company's disclosure in accordance with requirements of Ind AS 115.
Our testing as described above showed that revenue has been recorded in accordance with the terms of underlying contracts and accounting policy in this area. The disclosures made relating to revenues are in agreement with Ind AS 115.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual report but does not includethe Standalone Financial Statements and our auditor's report thereon.

Our opinion on the Standalone Financial Statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone Financial Statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed on the other information that we obtained priorto the date of this auditor's report we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Responsibilities of Management for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these Standalone FinancialStatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and the changes in equity of the Companyin accordance with the accounting principles generally accepted in India including theIndian Accounting Standards(Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofthe appropriate accounting policies; making judgements and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and fair presentation of thestandalone financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Standalone Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

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

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.

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

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

• Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

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

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

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

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

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsfor the financial year ended March 312019 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 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.

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 appears from our examination of those books;

c) The Balance Sheet Statement of Profit and Loss including Other Comprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealt with by this report arein agreement with the books of account;

d) In our opinion the aforesaid Standalone Financial Statements comply with theaccounting standards specified under section 133 of the Act; read with Companies (IndianAccounting Standards) Rules 2015 as amended;

e) On the basis of written representations received from the directors as on March312019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312019 from being appointed as a director in terms of section 164(2) of theAct;

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these Standalone Financial Statements and theoperating effectiveness of such controls refer to our separate Report in "AnnexureB" to this report;

g) In our opinion and to the best of our information and according to the explanationsgiven to us the Managerial remuneration for the year ended March 31 2019 has beenpaid/provided by the Company to its directors is in accordance with the provisions ofsection 197 read with Schedule V to the Act except Rs.41.44 lacs for remuneration paid inexcess to Key management personnel which is subject to shareholders approval in theensuing annual general meeting of the company.

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

i) The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Financial Statements as referred to in Note 36 to 39 to theStandalone Financial Statements;

ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

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

For Chaturvedi & Shah LLP

Chartered Accountants

(Firm Registration no. 101720W/W100355)

Amit Chaturvedi

Partner

Membership No.: 103141

Kolkata

Date: May 30 2019

"Annexure A" to the Independent Auditors' Report on the Standalone FinancialStatements of Balasore Alloys Limited

(Referred to in Paragraph 1 under the heading of "Report on other legal andregulatory requirements" of our report of even date)

i) In respect of its fixed assets :

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

b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.

c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deeds provided to us we reportthat the title deeds comprising all the immovable properties of lands which arefreehold are held in the name of the Company as at the balance sheet date except certainportion of land which company is in process of getting in its name. In respect ofimmovable properties of land that have been taken on lease and disclosed as fixed asset inthe financial statements the lease agreements for the said lands and building thereof arein the name of the Company except certain building which is pending for title clearance.

ii) The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

iii) In respect of the loans secured or unsecured granted by the company to companiescovered in the register maintained under Section 189 of the Act:

a. The terms and conditions of the grant of such loans are in our opinion primafacie not prejudicial to the Company's interest.

b. The repayment of principal and payment of interest are as per stipulated terms.

c. In respect of the said loan there are no overdue amounts at the end of the year.

iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

v) According to the information and explanations given to us the Company has notaccepted any deposit within the meaning of provisions of sections 73 to 76 or any otherrelevant provisions of the Act and the rules framed thereunder. Therefore the provisionsof clause (v) of paragraph 3 of the Order are not applicable to the Company.

vi) The maintenance of cost records has been specified by the Central Government undersection 148(1) of the Act. We have broadly reviewed the cost records maintained by theCompany pursuant to the Companies (Cost Records and Audit) Rules 2014 prescribed by theCentral Government under Section 148(1) (d) of the Act and are of the opinion that primafacie the prescribed - cost records have been maintained. We have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

vii) In respect of statutory dues:

a. According to the records of the Company undisputed statutory dues includingProvident Fund Employees' State Insurance Income-Tax Sales Tax Goods and Service Tax Customs Duty Excise Duty Value Added Tax Cess and any other statutory dues have beengenerally regularly deposited with the appropriate authorities. According to theinformation and explanations given to us undisputed amounts in respect of the Statutorydues referred above outstanding as at March 31 2019 for a period of more than sixmonths from the date they became payable are as under:

Nature of Dues Amount (f in Lacs) Period to which amount Relates
Income Tax 794.95 AY 2014-15
(including Interest) 2220.39 AY 2015-16
684.86 AY 2016-17
4313.34 AY 2017-18
3383.73 AY 2018-19
Total 11397.26

b. The disputed statutory dues aggregating f 1930.88 Lacs that have not beendeposited on account of disputed matters pending before appropriate authorities are asunder :

Sr. No

Name of the Statute

Nature of Dues Amount (f in lacs) Period to which the amount relates Forum where dispute is pending
1

Income Tax Act1961

Income Tax (Including Interest) 534.34 2011-12 to 2013-14 Commissioner of Income Tax (Appeal)
2

Income Tax Act1961

Income Tax (Including Interest) 125.49 2013-14 Income Tax Appellate Tribunal
3

Central Sales Tax Act 1956 and Orrisa Sales Tax Act

Sales tax/VAT (including interest and Penalty) 70.92 1997-98 Sales Tax Appellate Tribunal
1.93 1994-96 Additional Commissioner
437.97 2007-2013 Orissa High Court Cuttack
4

Entry Tax Act 1999

Entry Tax 92.96 2007-13 Orissa High Court Cuttack
4.88 2015-16 Joint Commissioner
5

Chapter V of Finance Act 1994

Service tax 6.80 2005-07 Orissa High Court Cuttack
655.58 2004-2012 Central Excise & Service Tax Appellate Tribunal

TOTAL

1930.88

viii) In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans to banks. The Company has not borrowedany funds from financial institutions or government or by issue of debentures.

ix) In our opinion and according to the information and explanations given to us termloans have been applied by the Company during the year for the purposes for which theywere raised. The Company has not raised moneys by way of initial public offer or furtherpublic offer during the year.

x) Based on the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per information and explanations given to usno fraud by the Company and no fraud on the Company by its officers or employees has beennoticed or reported during the year.

xi) In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the provisions ofsection 197 read with Schedule V to the Act except Rs.41.44 lacs for remuneration paid inexcess to Key management personnel which is subject to shareholders approval in theensuing annual general meeting of the company.

xii) The Company is not a Nidhi Company and hence reporting under clause (xii) ofparagraph 3 of the Order is not applicable to the company.

xiii) In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 188 and 177 of the Act where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the financial statements etc. as required by the applicable accountingstandards.

xiv) In our opinion and according to the information and explanations given to us theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year and hence clause (xiv) of paragraph 3 of theOrder is not applicable to the company.

xv) In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transaction with the directors or personsconnected with him and covered under section 192 of the Act. Hence clause (xv) of theparagraph 3 of the Order is not applicable to the Company.

xvi) To the best of our knowledge and as explained the Company is not required to beregistered under section 45-IA of the Reserve Bank of India Act 1934.

For Chaturvedi & Shah LLP

Chartered Accountants

(Firm Registration no. 101720W/W100355)

Amit Chaturvedi

Partner

Membership No.: 103141

Place : Kolkata

Date : May 30 2019

"Annexure B" to Independent Auditors' Report on the Standalone FinancialStatements of Balasore Alloys Limited

(Referred to in paragraph 2(f) under the heading "Report on other legal andregulatory requirements" of our report of even date.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the Internal Financial Control over financial reporting of BalasoreAlloys Limited ("the company") as of March 312019 in conjunction with our auditof the Standalone Financial Statements of the Company for the year then ended.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of 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.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these Standalone Financial Statementsbased on our audit. We conducted our audit in accordance with the Guidance Note issued byICAI and the Standards on Auditing prescribed under Section 143(10) of the Act to theextent applicable to an audit of internal financial controls. 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 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 system over financial reporting with reference to theseStandalone Financial Statements and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting with reference to these StandaloneFinancial Statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control 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 systemover financial reporting with reference to these Standalone Financial Statements.

Meaning of Internal Financial Controls Over Financial Reporting With Reference To TheseStandalone Financial Statements

A company's internal financial control over financial reporting with reference to theseStandalone Financial Statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company's internal financial control over financial reporting with referenceto these Standalone Financial Statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company ; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the Financialstatements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting WithReference To These Standalone Financial Statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to these Standalone Financial Statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these Standalone Financial Statements to future periods are subject to the risk thatthe internal financial control over financial reporting with reference to these StandaloneFinancial Statements may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these Standalone Financial Statementsand such internal financial controls over financial reporting with reference to theseStandalone Financial Statements were operating effectively as at March 312019 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Noteissued by ICAI.

For Chaturvedi & Shah LLP

Chartered Accountants

(Firm Registration no. 101720W/W100355)

Amit Chaturvedi

Partner

Membership No.: 103141

Place : Kolkata

Date : May 30 2019.