You are here » Home » Companies » Company Overview » Bhagiradha Chemicals & Industries Ltd

Bhagiradha Chemicals & Industries Ltd.

BSE: 531719 Sector: Agri and agri inputs
NSE: BHAGCHEM ISIN Code: INE414D01019
BSE 00:00 | 28 Sep 1329.10 -48.50
(-3.52%)
OPEN

1350.00

HIGH

1355.05

LOW

1320.15

NSE 00:00 | 28 Sep 1334.10 -42.00
(-3.05%)
OPEN

1355.00

HIGH

1385.00

LOW

1326.00

OPEN 1350.00
PREVIOUS CLOSE 1377.60
VOLUME 302
52-Week high 1557.55
52-Week low 560.81
P/E 34.36
Mkt Cap.(Rs cr) 1,384
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1350.00
CLOSE 1377.60
VOLUME 302
52-Week high 1557.55
52-Week low 560.81
P/E 34.36
Mkt Cap.(Rs cr) 1,384
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bhagiradha Chemicals & Industries Ltd. (BHAGCHEM) - Auditors Report

Company auditors report

The Members

Of Bhagiradha Chemicals and Industries Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone financial statements ofBhagiradha Chemicals and Industries Limited (the "Company") which comprise theBalance Sheet as at March 31 2022 the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity and the Statement of Cash Flowsfor the year ended on that date and a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as the "Standalone financialstatements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone 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 Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022and its profit total comprehensive income changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit of the Standalone financial statements inaccordance with the Standards on Auditing ("SA"s) specified under section143(10) of the Act. Our responsibilities under those Standards are further described inthe Auditor's Responsibilities for the Audit of the Standalone financial statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India ("ICAI")together with the ethical requirements that are relevant to our audit of the Standalonefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for our audit opinion on the Standalonefinancial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone Standalone financial statementsof the current period. These matters were addressed in the context of our audit of thestandalone Standalone financial statements as a whole and in forming our opinion thereonand we do not provide a separate opinion on these matters. We have determined the mattersdescribed below to be the key audit matters to be communicated in our report.

Sl.No Key Audit Matter Auditor's Response
1 Net Realisable value of Finished Goods 1. Evaluated the design of internal controls relating the management judgments and estimates relating to quantity purity fair value less costs to sell and also tested the operating effectiveness of the aforesaid controls.
Finished goods are valued at lower of cost or net realizable value. Considering that there is always a volatility in the Selling price of the AgroChemicals which is dependent upon various market conditions determination of net realizable value for these chemicals involves significant management judgement and therefore has been considered as a key audit matter. 2. Obtained an understanding of the significant management judgements applied in determination of the quantity purity and their fair value and assessed and tested the reasonableness of these judgements.
The total value of finished goods (Agro chemicals) as at 31st March 2022 is H1796.95 lakhs which is in accordance with the accounting policies referred to in Note no. 2.10(b). of Standalone financial statements. 3. Obtained the market information for the fair values and compared them with the rates considered by the management in determining the fair values.
4. Assessed the appropriateness of the disclosure in the Standalone financial statements in accordance with the applicable Standalone financial reporting framework.

Information Other than the Financial Statements and Auditor's ReportThereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the Standalone Financial Statements and our auditor's report thereon.

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

In connection with our audit of the Standalone Financial Statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone Financial Statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these Standalone FinancialStatements that give a true and fair view of the financial position financialperformance including other comprehensive income changes in equity and cash flows of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; 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 presentation of the StandaloneFinancial 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 isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors is responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue 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 Financial Statements.

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

• Identify and assess the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate 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.

• Obtain an understanding of internal financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

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

• 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 Financial Statements or if such disclosures areinadequate 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.

• Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the StandaloneFinancial Statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the Standalone FinancialStatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the Standalone FinancialStatements.

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 StandaloneFinancial Statementsof 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("the Order") issued by the Central Government in terms of Section 143(11) ofthe Act we give in "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 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 othercomprehensive income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account.

d) In our opinion the aforesaid Standalone Financial Statements complywith 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 Section164(2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

g) 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.

In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

h) 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 asamended in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Financial Statements.

ii. The Company did not have any long term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to betransferred on account of unpaid dividend to the Investor Education and Protection Fundby the Company as at 31st March 2022.

iv. (a) As per the written representation received from the managementand to the best of its knowledge and belief other than as disclosed in the notes to theaccounts no funds (which are material either individually or in the aggregate) have beenadvanced or loaned or invested (either from borrowed funds or share premium or any othersources or kind of funds) by the company to or in any other person(s) or entity includingforeign entities ("Intermediaries") with the understanding that theIntermediary shall whether directly Or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the company("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries;

(b) As per the written representation received from the management andto the best of its knowledge and belief other than as disclosed in the notes to theaccounts no funds (which are material either individually or in the aggregate) have beenreceived by the company from any person(s) or entity including foreign entities("Funding Parties") with the understanding that the company shall whetherdirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries; and

(c) Based on such audit procedures that we have considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material mis-statement.

v. (a) The interim dividend declared and paid by the Company during theyear until the date of this report is in compliance with section 123 of the Companies Act2013.

(b) The Board of Directors has proposed final dividend for the yearwhich is subject to the approval of the members at the ensuing annual general meeting. Theamount of dividend proposed is in accordance with section 123 of the Companies Act 2013as applicable.

For S Singhvi & Co.
Chartered Accountants
Firm Regn. No. 003872S
Shailendra Singhvi
Proprietor
Membership No.023125 /ICAI
UDIN No. : 023125AJQSDB2767
Place: Hyderabad
Date: 26.05.2022

Annexure "A" to the Auditor's Report

Referred to in paragraph 1 under the head "Report on other legal& regulatory requirements" of our report of even date.

i) a. (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant and Equipmentand relevant details of right of use assets.

(B) The Company has maintained proper records showing full particularsof intangible assets.

b. The Company has a program of verification to cover all the items ofProperty Plant and Equipment and right of use assets in a phased manner which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the program certain Property Plant and Equipment and right of useassets were physically verified by the management during the year. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification

c. According to the information and explanations given to us and therecords examined by us and based on the examination of the registered title deeds ofimmovable properties provided to us we report that the title deeds comprising all theimmovable properties of land and buildings which are freehold and included in PropertyPlant and Equipment are held in the name of the Company as at the balance sheet date. Inrespect of immovable properties of land and buildings that have been taken on lease anddisclosed as Right of Use assets in the Standalone financial statements the leaseagreements are in the name of the Company where the Company is the lessee in theagreement.

d. The Company has not revalued its Property Plant and Equipment(including right of use assets) or intangible assets or both during the year.

e. No proceedings have been initiated or are pending against thecompany for holding any benami property under the Benami Transactions (Prohibition) Act1988 (45 of 1988) and rules made there under.

ii) . a. The inventory has been physically verified during the year bythe management at reasonable intervals. In our opinion the frequency of verification isreasonable. No discrepancies were noticed on verification between the physicalverification and the book records that were more than 10% in the aggregate of each classof inventory.

b. The Company has been sanctioned working capital limit of H4775.00Lakhs in aggregate during the year from bank on the basis of security of its currentassets. In our opinion and based on the information and explanations given to us and ourverification of the stock statements submitted by the Company to the bank in relation tothe aforesaid working capital limits such stock statements are broadly in all materialrespect in agreement with the books of account of the Company except for the deviationsdetailed in Note No. 50 of the audited Standalone financial statements.

iii). The Company has made investments in and granted loans or advancesin the nature of loans unsecured to its subsidiary company during the year. However thecompany has not provided any guarantee or security to the companies firms limitedliability partnership or any other parties during the year.

a. According to the information and explanations given to us duringthe year the Company has provided loans to its subsidiary company and the aggregateamount of loan given was H 105.00 Lakhs and balance outstanding as at balance sheet dateis H 40.49 Lakhs.

b. According to the information and explanations given to us and basedon the audit procedures performed by us we are of the opinion that during the yearinvestment made and the terms and conditions of the grant of loans are prima facie notprejudicial to the interest of the Company.

c. The company has not granted any loans where the schedule ofrepayment of principal and payment of interest has been stipulated. Hence reporting underclause 3(iii)(c) of the Order is not applicable.

d. In respect of loans granted by the Company to its subsidiary thereis no overdue amount remaining outstanding as at the balance sheet date.

e. No loan granted by the Company which has fallen due during the yearhas been renewed or extended or fresh loan granted to settle the overdue of existing loansto the same parties.

f. According to the information and explanations given to us companyhas granted loans and advances in the nature of loans which are repayable on demand. Theaggregate amount of loan given to its subsidiary was H 105.00 Lakhs which is 100 % of thetotal loan granted and balance outstanding as at balance sheet date is H 40.49 Lakhs.

iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of grant of loans making investments and providingguarantees and securities as applicable.

v) According to the information and explanations given to us theCompany has not accepted any deposits from the public as per the directives issued by theReserve Bank of India and as per the provisions of section 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under. Hence thereporting under clause 3(v) of the Order is not applicable.

vi) The Company has made and maintained cost records as specified bythe Central Government under section 148(1) of the Companies Act 2013.

vii) a. According to the information and explanations given to us noneof the undisputed statutory dues including Goods and Service Tax Provident FundEmployees State Insurance Income Tax Sales Tax Service Tax Custom Duty Excise DutyValue Added Tax Cess and any other Statutory Dues were outstanding as at last day of thefinancial year concerned for a period of more than six months from the date they becamepayable.

b. According to the information and explanations given to us there areno dues in respect of disputed amount to be deposited in respect of provident fundemployees state insurance income tax sales tax service tax custom duty excise dutyvalue added tax cess and any other statutory dues as on 31st March 2022.The duesoutstanding in respect of goods and service tax and entry tax on account of any disputeare as follows:

Nature of Statue Nature of dues Amount (Rs. In lakhs) Period to which the amount relates Forum where the dispute is pending
Telangana Tax in Entry of Goods into Local Areas Act 2001 Entry Tax 3.75 2012-13 High court for the State of Telangana
Entry Tax 8.64 2013-14 High court for the State of Telangana
Entry Tax 1.61 2014-15 High court for the State of Telangana
Goods and Service Tax Act 2017 Goods and Service Tax 65.69 2017-18 Appeal has to be filed on or before 23.10.2022 before Commissioner (Appeals)

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.

ix) a. According to the information and explanations given to us andon the basis of our examination of the records of the Company the company has notdefaulted in repayment of loans and borrowing or in the payment of interest thereon tobank or financial institutions or any other lender during the year.

b. According to the information and explanations given to us and on thebasis of our audit procedures we report that the company has not been declared willfuldefaulter by any bank or financial institutions or government or any government authority.

c. According to the information and explanations given to us and onthe basis of our examination of the records the company has not taken any term loanduring the year hence reporting under clause 3(ix) (c) of the Order is not applicable.

d. According to the information and explanations given to us and theaudit procedures performed by us and on an overall examination of the Standalonefinancial statements of the company we report that no funds raised on short term basishave been used for long term purposes by the company.

e. According to the information and explanations given to us and on anoverall examination of the Standalone financial statements of the company we report thatthe company has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries associates or joint ventures.

f. According to the information and explanations given to us and theaudit procedures performed by us we report that the company has not raised any loansduring the year on the pledge of its securities held in its subsidiary joint ventures orassociate company hence reporting on clause 3(ix)(f) of the Order is not applicable.

x) a. In our opinion and according to the information and explanationsgiven to us the company has not raised money by way of initial public offer or furtherpublic offer (including debt instruments) during the year and hence reporting under clause3(x)(a) of the Order is not applicable.

b. In our opinion and according to the information and explanationsgiven to us the company has not made any preferential allotment or private placement ofshares or convertible debentures (fully partially or optionally convertible) during theyear hence reporting under clause 3(x) (b) of the Order is not applicable.

xi) a. In our opinion and according to the information andexplanations given to us no fraud has been noticed or reported either on company or bythe company during the year.

b. According to the information and explanations given to us no reportunder sub section (12) of section 143 of the Companies Act 2013 has been filed byauditors in form ADT - 4 as prescribed under Rule 13 of the Companies (Audit and Auditors)Rules 2014 with central government.

c. As represented to us by management there are no whistle blowercomplaints received by the company during the year.

xii) In our opinion the Company is not a Nidhi Company. AccordinglyClause 3(xii) of the Order is not applicable.

xiii) According to the information and explanations given to us alltransactions with the related parties are in compliance with the requirements of section177 and 188 of Companies Act 2013 and the same have been disclosed in the Note No. 52 ofthe audited Standalone financial statements as required by the applicable Ind AS.

xiv) a. In our opinion and based on our examination the Company has aninternal audit system commensurate with its size and nature of its business.

b. We have considered the internal audit reports for the year underaudit issued to the Company during the year and till date in determining the naturetiming and extent of our audit procedures.

xv) According to the information and explanations given to us in ouropinion during the year the company has not entered into non cash transactions with itsdirectors or persons connected with its directors and hence provisions of section 192 ofthe Companies Act 2013 is not applicable to the company.

xvi) The company is not required to be registered under section 45-IAof Reserve Bank of India Act 1934 (2 of 1934).Accordingly reporting under clause 3(xv)(a) (b) (c ) and (d) of the Order is not applicable.

xvii) The Company has not incurred cash losses during the financialyear and in the immediately preceding financial year.

xviii) There has been no resignation of statutory auditors during theyear and accordingly clause 3((xviii) of the Order is not applicable.

xix) According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the Standalonefinancial statements our knowledge of the Board of Directors and management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report that company is not 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. We however state that this is not an assurance as to the futureviability of the company. We further state that our reporting is based on the facts up tothe date of the audit report and we neither give any guarantee nor any assurance that allliabilities falling due within a period of one year from the balance sheet date will getdischarged by the company as and when they fall due.

xx) According to the information and explanations given to us there isno unspent amount for projects / ongoing project covered under section135 of the CompaniesAct 2013. Accordingly reporting requirement in the clause 3(XX) (a) and (b) of the Orderis not applicable.

For S Singhvi & Co.
Chartered Accountants
Firm Regn. No. 003872S
Shailendra Singhvi
Proprietor
Membership No.023125 /ICAI
UDIN No. : 023125AJQSDB2767
Place: Hyderabad
Date: 26.05.2022

Annexure "B" to the Auditor's Report of even date on theStandalone financial statements of Bhagiradha Chemicals & Industries Limited

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Bhagiradha Chemicals and Industries Limited ("the Company") as ofMarch 31 2022 in conjunction with our audit of the Standalone financial statements of theCompany for the year ended on that date.

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 over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system over financial reporting andtheir operating effectiveness.

Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the Standalone financial statements whether due tofraud 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.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial reporting includes those policies 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 financial statements in accordance withgenerally 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 financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2022 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For S Singhvi & Co.
Chartered Accountants
Firm Regn. No. 003872S
Shailendra Singhvi
Proprietor
Membership No.023125 /ICAI
UDIN No. : 023125AJQSDB2767
Place: Hyderabad
Date: 26.05.2022

.