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Biocon Ltd.

BSE: 532523 Sector: Health care
NSE: BIOCON ISIN Code: INE376G01013
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OPEN 363.00
PREVIOUS CLOSE 357.60
VOLUME 42831
52-Week high 469.00
52-Week low 314.90
P/E 345.10
Mkt Cap.(Rs cr) 42,675
Buy Price 355.30
Buy Qty 85.00
Sell Price 355.60
Sell Qty 846.00
OPEN 363.00
CLOSE 357.60
VOLUME 42831
52-Week high 469.00
52-Week low 314.90
P/E 345.10
Mkt Cap.(Rs cr) 42,675
Buy Price 355.30
Buy Qty 85.00
Sell Price 355.60
Sell Qty 846.00

Biocon Ltd. (BIOCON) - Auditors Report

Company auditors report

To the Members of Biocon Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Biocon Limited ("theCompany") which comprise the standalone balance sheet as at 31 March 2020 and thestandalone statement of profit and loss (including other comprehensive income) standalonestatement of changes in equity and standalone statement of cash flows for the year thenended and notes to the standalone financial statements including a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas "the 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 ("Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2020 and profit and other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance withthe Code of Ethics issued by the Institute of Chartered Accountants of India together withthe ethical requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current year.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

Taxation
The key audit matters How the matter was addressed in our audit
The Company is subject to complexities with respect to various tax positions on matters such as: Our audit procedures in relation to Taxation include the following:
- deductibility of transactions
We obtained an understanding of the key uncertain tax positions based on list of ongoing litigations and tax computation for the current year;
- availability of tax incentives and exemptions
- impact of group restructurings
- cross border transfer pricing arrangements etc. We analysed select key correspondences with the tax authorities to identify any additional uncertain tax positions;
Judgment is required in assessing the range of possible outcomes for some of these tax matters. These judgments could change over time as each of the matter progresses depending on experience on actual assessment proceedings by tax authorities and other judicial precedents. We analysed the Company's judgment regarding the eventual resolution of matters with various tax authorities. In this regard we understood how the Company has considered past experience where available with the tax authorities in the respective jurisdictions;
The Company makes an assessment to determine the outcome of these uncertain tax positions and decides to make an accrual or consider it to be a possible contingent liability. We also considered external legal opinions and consultations made by the Company for key uncertain tax positions;
Where the amount of tax liabilities are uncertain the Company recognizes accruals which reflect its best estimate of the outcome based on the facts known. Accordingly we focused on this area. We used our own tax specialists' expertise to assess key assumptions made by the Company.
Taxation
For further information refer to:
- Significant accounting policies which includes General accounting principles Key accounting judgements estimates and assumptions - Note 2(l)
- financial disclosures set out in Note 33 for Tax expense and Note 34 for contingent liabilities. in the standalone financial statements for the year ended 31 March 2020.
Group restructuring and discontinued operations
During the current year the Company has executed certain restructuring plans in order to consolidate its Biologics business in its subsidiary Biocon Biologics India Limited (‘BBIL'). As part of the restructuring plan the Company transferred its Branded Formulations and Biologics divisions to BBIL. Our audit procedures in relation to Group restructuring and discontinued operations include the following:
We read minutes of meetings of Board of Directors of the Company and analysed the key terms and conditions of the underlying agreements for the business transfers;
We analysed the accounting treatment and disclosure done by the Company to assess its compliance with respect to the requirements of applicable Ind AS;
The aforesaid disposals meet the definition of discontinued operations from a standalone financial statements perspective in accordance with Ind AS 105: Non current Assets Held for Sale and Discontinued Operations (IndAs 105). In accordance with the accounting principles the Company has reclassified the revenue expenses tax and gain/loss on disposal arising from these businesses as discontinued operations for current and previous year. Given the significance of amounts and complexities involved in carving out the results of the respective businesses we determined this to be an area of focus for our audit. We obtained the Company's evaluation of the income- tax impact of the above business transfers (from a seller's perspective) to verify compliance;
For further information refer to Note 39 in the Standalone Financial Statements for the year ended 31 March 2020. We verified the analysis prepared by the Company to verify the amount to be disclosed as discontinued operations in the statement of profit and loss for the current and previous year. In particular we focused on the allocation of costs between continuing and discontinuing operations to verify the presentation in results.

Information Other than the Standalone Financial Statements and Auditors' Report Thereon

The Company's Management and Board of Directors are responsible for the otherinformation. The other information comprises of Management Reports such as Board's ReportManagement Discussion and Analysis Corporate Governance Report and BusinessResponsibility Report (but does not include the Standalone Financial Statements and ourAuditors' Report thereon) which we obtained prior to the date of this Auditor's Reportand the remaining section of the Company's Annual Report which are expected to be madeavailable to us after that date.

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 in the 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.

When we read the other sections of Annual Report (other than those mentioned above) ifwe conclude that there is a material misstatement therein we are required to communicatethe matter to those charged with governance and take necessary actions as applicableunder the applicable laws and regulations.

Management's and Board of Directors' Responsibility for the Standalone FinancialStatements

The Company's Management and Board of Directors are 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 state of affairs profit/loss and othercomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring accuracy and completenessof the 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 the Management and Board of Directorsare responsible 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 the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

The Board of Directors is 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 inaccordance with SAs we exercise professional judgment and maintain professionalskepticism 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 control relevant to the audit in orderto 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 with reference to financial statements inplace and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures in the standalone financialstatements made by the Management and Board of Directors

Conclude on the appropriateness of the Management and Board of Directors useof the going concern basis of accounting and based on the audit evidence obtainedwhether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company's ability to continue as a going concern. If we concludethat a material uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue 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.

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 statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors' report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143 (11) of the Act we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

(A) 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 standalone balance sheet the standalone statement of profit and loss (includingother comprehensive income) the standalone statement of changes in equity and thestandalone statement of cash flows dealt with by this Report are in agreement with thebooks of account.

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31March 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2020 from being appointed as a director in terms of Section164(2) of the Act.

f) 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 B".

(B) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

a) The Company has disclosed the impact of pending litigations as at 31 March 2020 onits financial position in its standalone financial statements - Refer Note 34 to thestandalone financial statements;

b) 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- Refer Note 36 to the standalone financial statements;

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

d) The disclosures in the standalone Financial Statements regarding holdings as well asdealings in specified bank notes during the period from 8 November 2016 to 30 December2016 have not been made in these Standalone Financial Statements since they do not pertainto the financial year ended 31 March 2020.

(C) With respect to the matter to be included in the Auditors' Report under Section197(16):

In our opinion and according to the information and explanations given to us theremuneration paid by the company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.

for B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Sampad Guha Thakurta
Partner
Membership No. 060573
UDIN: 20060573AAAABT8112
Place: Bengaluru
Date: 14 May 2020

Annexure A to the Independent Auditor's Report

With reference to the Annexure A referred to in the Independent Auditor's Report to themembers of the Company on the standalone financial statements for the year ended 31 March2020 we report the following:

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

(b) The Company has a regular programme of physical verification of its fixed assetsby which all fixed assets are verified in a phased manner over a period of three years. Inour opinion this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets. Pursuant to the programme certain fixedassets were physically verified during the year and no material discrepancies were noticedon such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company except for one immovable property amounting to Rs35 million as at 31 March 2020 for which the Company is in the process of obtainingregistration.

(ii) Inventories apart from goods in transit and inventories lying with outside partieshave been physically verified by the Management during the year and the discrepanciesnoticed on such verification between the physical stock and book records were notmaterial. In our opinion the frequency of such verification is reasonable. Inventorieslying with outside parties have been substantially confirmed by them as at the year-endand no material discrepancies were noticed in respect of such confirmations.

(iii) The Company has granted loans to Companies covered in the register maintainedunder Section 189 of the Companies Act 2013 (‘the Act').

(a) In our opinion the rate of interest and other terms and conditions on which theloans have been granted to the companies listed in the register maintained under Section189 of the Act are not prima facie prejudicial to the interest of the Company.

(b) In the case of the loans granted covered in the register maintained under Section189 of the Act the borrower has been regular in the payment of the principal and interestas stipulated.

(c) There are no overdue amounts in respect of the loans granted to companies coveredin the register maintained under Section 189 of the Act

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act with respectto the loans given investments made guarantees and securities given.

(v) According to information and explanations given to us the Company has not acceptedany deposits. Accordingly paragraph 3(v) of the Order is not applicable to the Company.

(vi) We have broadly reviewed the books of accounts maintained by the Company pursuantto the Companies (Cost Records and Audit) Rules 2014 as amended prescribed by theCentral Government under Section 148 of the Act and are of the opinion that prima faciethe prescribed accounts and records have been made and maintained. However we have notmade a detailed examination of such records.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Employees' StateInsurance Income-tax Goods and Services tax duty of Customs Cess and other materialstatutory dues have been regularly deposited during the year by the Company with theappropriate authorities

According to the information and explanations given to us no undisputed amountspayable in respect of Provident fund Employees' State Insurance Income-tax Goods andServices tax duty of Customs Cess and other material statutory dues were in arrears asat 31 March 2020 for a period of more than six months from the date they became payable

(b) According to the information and explanations given to us there are no dues ofIncome-tax or Sales tax or Service tax or Goods and Services tax or duty of Customs orduty of Excise or Value added tax which have not been deposited by the Company on accountof any disputes other than those set out in Appendix I.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to banks financial institutions orGovernment. The Company did not have any borrowings during the year by way of debentures.

(ix) According to the information and explanations given to us the Company has notraised any money by way of public issue or further public offer (including debtinstruments) during the year. The term loans raised by the Company have been applied forthe purpose for which they were raised.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations given to us and based on examinationof the records of the Company the Company has paid/provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone Ind AS financial statements as requiredby the applicable accounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable to the Company.

(xvi) According to the information and explanation given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

for B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Sampad Guha Thakurta
Partner
Membership No: 060573
UDIN: 20060573AAAABT8112
Place: Bengaluru
Date: 14 May 2020

Appendix I referred to in paragraph vii (b) of Annexure A to the Independent Auditor'sReport

Name of the statute Nature of dues Amount disputed (INR in million) Amount paid under protest (INR in million) Period to which the amount relates Forum where dispute is pending
Income-Tax Act 1961 Income Tax 4 4 FY 1996 – 97 Supreme Court
Income-Tax Act 1961 Income Tax 1284 494 FY 2009-10 to FY 2014-15 Income Tax Appellate
Tribunal ("ITAT")
Income-Tax Act 1961 Income Tax 31 30 FY 1997-98 FY 2003-04 to FY 2006-07 High Court of Karnataka
Income-Tax Act 1961 Income Tax 62 62 FY 2013-14 Commissioner (Appeals)
Finance Act 1994 Service-Tax 68 FY 2009-10 to FY 2012-13 Commissioner
Finance Act 1994 Service-Tax 101 FY 2006-07 to FY 2011-12 and FY 2013-14 Customs Excise and Service Tax Appellate Tribunal ("CESTAT")
Finance Act 1994 Service-Tax 12 FY 2014-15 Principal Commissioner
Finance Act 1994 Service-Tax 13 FY 2010-11 FY 2013-14 and FY 2015-16 Commissioner (Appeals)
Finance Act 1994 Service-Tax 10 FY 2015-16 to FY 2016-17 Assistant Commissioner
Entry Tax (The West Bengal Tax on Entry of goods into Local Areas Act 2012) Entry Tax 20 FY 2012-13 to FY 2016-17 High Court of West Bengal
Value Added Tax Act 2005 Value Added Tax 1 1 FY 2006-07 and FY 2007-08 Commissioner (Appeals)
Value Added Tax Act 2005 Value Added Tax 19 3 FY 2008-09 to FY 2014-15 Joint Commissioner Appeals
Central Sales Tax Act 1956 CST 38 1 FY 2008-09 to FY 2014-15 Joint Commissioner Appeals
The Central Excise Act 1944 Excise Duty 273 53 FY 2005-06 to FY 2009-10 and FY 2011-12 to FY 2013-14 Customs Excise and Service Tax Appellate Tribunal ("CESTAT")
The Central Excise Act 1944 Excise Duty 59 FY 2007-08 to FY 2013-14 Commissioner (Appeals)
The Customs Act 1962 Customs duty 45 45 FY 1992-93 to FY 1994-95 FY 2003-04 to FY 2008-09 and FY 2010-11 Customs Excise and Service Tax Appellate Tribunal ("CESTAT")
The Customs Act 1962 Customs duty 5 1 FY 2003-04 FY 2005-06 Commissioner (Appeals)
FY 2007-08 FY 2008-09
FY 2010-11 and FY 2011-12

Annexure B to the Independent Auditors' Report on the standalone financial statementsof Biocon Limited for the year ended 31 March 2020

Report on the Internal Financial Controls with reference to the aforesaid standalonefinancial statements under Clause (i) of Sub-section 3 of Section 143 of the CompaniesAct 2013 ("the Act")

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

Opinion

We have audited the internal financial controls with reference to financial statementsof Biocon Limited ("the Company") as of 31 March 2020 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to financial statements and such internal financial controls wereoperating effectively as at 31 March 2020 based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India (the "Guidance Note").

Management's and Board of Directors' Responsibility for Internal Financial Controls

The Company's Management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note. 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 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 prescribed underSection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols with reference to financial statements. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements were established and maintained and whether such controls operatedeffectively in all material respects.

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 financialstatements included obtaining an understanding of such internal financial controlsassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

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 controls 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 controlswith reference to financial statements include 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 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.

for B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Sampad Guha Thakurta
Partner
Membership No: 060573
UDIN: 20060573AAAABT8112
Place: Bengaluru
Date: 14 May 2020

   

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