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BKV Industries Ltd.

BSE: 519500 Sector: Others
NSE: N.A. ISIN Code: INE356C01022
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NSE 05:30 | 01 Jan BKV Industries Ltd
OPEN 8.04
PREVIOUS CLOSE 8.04
VOLUME 478
52-Week high 15.41
52-Week low 6.44
P/E 73.45
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 8.04
CLOSE 8.04
VOLUME 478
52-Week high 15.41
52-Week low 6.44
P/E 73.45
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

BKV Industries Ltd. (BKVINDUSTRIES) - Auditors Report

Company auditors report

To

The Members of

BKV Industries Limited

Report on the Audit of the standalone Indian Accounting standards (Ind AS) FinancialStatements.

Opinion

We have audited the accompanying standalone financial statements of BKV IndustriesLimited (the "Company") which comprise the Balance Sheet as at March 31 2022and the Statement of Profit and Loss (including Other Comprehensive Income) the Statementof Changes in Equity and the Statement of Cash Flow for the year then ended and a summaryof significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the afore said standalone financial statements give the information requiredby the Companies Act 2013 (the "Act") in the manners or required and give atrue and fair view in conformity with the Indian Accounting Standards prescribed undersection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015(Ind AS") and other accounting principles generally accepted in India of the stateof affairs of the Company as at March 31 2022 and its profit total comprehensiveprofit the changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under section 143 (10) of the Act (Sas). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibility for the Audit of the Standalone Financial Statements of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (ICAI) together with the ethical requirements that arerelevant to our audit of the standalone financial statements under the provisions of theAct and the Rules made there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis for our audit opinion on the standalone financial statements.

Key Audit Maters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the standalone financial statements of the current period.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. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Our findings with respect to going concern:

As included in Note No. 25 to the Standalone Ind AS financial statements the company'sfinancial statements have been prepared using the going concern basis of accounting. Theuse of this basis of accounting is appropriate unless management either intend toliquidate the company or to cease operations or has no realistic alternative but to do so.Management has not identified a material uncertainty that cast significant doubt on thecompany's ability to continue as going concern and accordingly none is disclosed in thefinancial statements.

Auditor's Response to KAMS

As part of our audit of the standalone Ind AS financial statements we applied thenecessary audit procedures under auditing standards and after considering the terms of thelease agreement the extending lease period of the farm despite the Covid-19 globaldevelopments and slowdown in the global economics as the lease income is a consistentincome to the company to meet it's commitments. We concluded to concur with management'suse of going concern basis of accounting in preparation of the Company's financialstatements.

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 Board's Report including Annexuresto Board's Report Corporate Governance Report Management Discussion and Analysis Reportexcluding standalone Ind AS financial statements and our auditor's report there on.

Our opinion on the standalone Ind AS financial statements does not cover the otherinformation and does not express any form of assurance conclusions there on.

In connection with our audit of the standalone Ind AS financial statements ourresponsibility 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 on the other information that we obtained priorto the date of this Auditors 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.

Management's Responsibility for Standalone Ind AS 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 Ind AS financialstatements that give a true and fair view of the financial position financial performanceincluding comprehensive income (Profit) changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies making judgements 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 standalone IndAS financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

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

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

Auditor's Responsibility for the Audit of Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the stand alone Ind ASfinancial 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 Ind AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional skepticism throughout the audit.

We also:

Identify and assess the risks of material misstatement of the standalone Ind ASfinancial 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 in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(I)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

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

Conclude on the appropriateness of management's use of the going concern basis ofaccounting in preparation of Standalone Financial Statements and based on the auditevidence obtained whether a material uncertainty exists related to events or conditionsthat may cast significant doubt on the Company's ability to continue as a going concern.If we conclude that a material uncertainty exists we are required to draw attention inour auditor's report to the related disclosures in the standalone financial statements orif such disclosures are in adequate to modify our opinion. Our conclusions are based onthe audit evidence obtained up to the date of our auditor's report. However future eventsor conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone Ind AS financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone Ind AS financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the standalone Ind AS financial statementsmay be influenced. We consider quantitative materiality and qualitative factors in (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 stand alone Ind AS financialstatements.

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 safe guards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone Ind AS financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to out weigh the public interest benefits of suchcommunication.

Emphasis of Mater

We draw attention to the following matters in the Notes to the financial statements:

Note No.25 in the Standalone Ind AS financial statements which indicates that thecompany has accumulated losses the company earned net profit during the current yearthough the company incurred net profit in the previous year and the company's currentliabilities exceeded the current assets as at the Balance sheet Date. These conditionsindicate the existence of material uncertainty that may cast significant doubt about thecompany's ability to continue as a going concern. However as the company has consistentlease income even though the economic slow down uncertainty due to Covid-19 pandemicsituation to meet its financial commitments and hence the accounts have drawn up on goingconcern basis.

As more specifically explained in Note:32 to the financial statements the company hasmade a detailed assessment of its liquidity position for the next year and therecoverability and carrying value of its assets comprising property plant and equipmentand other assets. Based on current indicators of future economic conditions the companyexpects to recover the carrying amount of these assets. The company continues to evaluatethem as highly probable considering the lease and inherent uncertainty around the extentand timing of the potential future impact of the Covid-19 pandemic The company willcontinue to closely monitor any material changes arising of future economic conditions andimpact on its business.

Our opinion is not qualified in this matter.

1. Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2020 (the "Order")issued by the Central Government in terms of Section 143 (11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. As required by Section 143 (3) of the Act based on our audit we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome(Profit) the Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the relevant books of account.

d) In our opinion the afore said standalone financial statements comply with the IndAS specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors are disqualifiedas on March 31 2022 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 and the operating effectiveness of such controls refer to ourseparate Report in "Annexure - B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197 (16) of the Act as amended In ouropinion and to the best of our information and according to the explanations given to usthe remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act.

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

i . The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements.

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

iii. There has been no delay in transforming amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv. The management of the Company and associates which are companies incorporated inIndia whose financial statements have been audited under the Act have represented to usand the other auditors of such associates respectively that to the best of its knowledgeand belief

(a) No funds have been advanced or loaned or invested (either from borrowed funds orshare premium or any other sources or kind of funds) by the company and by the associatesto or in any other person or entity including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of any ofsuch associates ("Ultimate Beneficiaries") or provide any guarantee securityor the like on behalf of the Ultimate Beneficiaries;

b) No funds have been received by the Company and respective associates from any personor entity including foreign entities ("Funding Parties") with theunderstanding whether recorded in writing or otherwise that the Company and any of suchassociates shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries; and

c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances performed by us and that performed by the auditors of the associateswhich are companies incorporated in India whose financial statements have been auditedunder the Act nothing has come to our or other auditor's notice that has caused us or theother auditors to believe that the representations under sub-clause (a) and (b) containany material mis-statement.

v. The company has not declared any final or interim dividend during the year from it'sinception. Hence the applicability of Section 123 of the Act to the extent it applies tothe payment of dividend does not arise. The company do not have any Holding Companies andit's subsidiary companies and joint venture companies. No associate companies havedeclared any interim and final dividend for the year. Hence the question of applicabilityof Sec 123 of the Act to the extent it applies to declaration of dividend -approval ofthe members of the respective companies at the respective ensuing Annual General Meetingdoes not arise.

Annexure - A of Independent Auditors' Report

Referred to in Paragraph of Report on Other Legal and Regulatory Requirements of ourreport of even date on the Accounts of the BKV Industries Limited for the year ended 31stMarch 2022.

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment.

(b) The Company has maintained proper records showing full particulars of intangibleassets.

(c) The company has a program of verification to cover all the items of Property Plantand Equipment in a phased manner which in our opinion is reasonable having regard to thesize of the company and the nature of its assets. Pursuant to the program certain fixedassets were physically verified by the management during the year. According to theinformation and explanations given to us no material discrepancies were notified on suchverification.

( d ) The title deeds of all the immovable properties of the Company shown under theProperty Plant and Equipment schedule are held in the name of Company.

(e) The Company has not revalued it's Property Plant and Equipment (including right ofuse assets) or intangible assets or both during the year.

(f) According to information and explanations given to us and on the basis of ourexamination of the records of the Company there are no proceedings initiated or pendingagainst the Company for holding any benami property under the Prohibition of BenamiProperty Transaction Act 1988 and rules made thereunder.

(ii) The company has given it's farm on operating lease and hence does not hold anyInventory and the Company has not been sanctioned any working capital limits during theyear from banks or financial institutions on the basis of security of current assets.Hence Paragraph 3 (ii) is therefore not applicable to the company.

(iii) The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Act. -Hence Clause 3 (iii) of the order is not applicable.

(iv) The Company has not granted any loans/ investments/ guarantees to which theprovisions of Section 185 and 186 of the Act are applicable -Hence Clause 3 (iv) of theorder is not applicable.

(v) The Company has not accepted deposits during the year. Hence Clause 3 (v) of theOrder is not applicable.

(vi) As the company's farm given on operating lease and no other manufacturing activityis undertaken during the financial year 2021- 22 maintenance of cost records under section48 does not arise. Thus paragraph 3 (vi) of CARO is not applicable to the company.

(vii) (a) According to the information and explanations given to us and records of theCompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues including provident fund employees' state insurance income-tax goods and service tax Duty of customs cess and any other statutory dues to theappropriate authorities. There are no arrears of undisputed statutory dues outstanding asat March 31 2022 for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income tax or goods and service tax or dutyof customs or duty of excise or value added tax cess have not been deposited on accountof any dispute.

(viii) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has not surrendered ordisclosed any transactions previously unrecorded as income in the books of account inthe tax assessments under the Income Tax Act 1961 as income during the year.

(ix) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has not defaulted in repaymentof loans and borrowing or in the payment of interest thereon to any lender.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not been declared a willfuldefaulter by any bank or financial institution or government or government authority.

(c) According to the information and explanations given to us by the management theCompany has not obtained any term loans during the year. Accordingly clause 3(ix)( c ) ofthe Order is not applicable.

(d) According to the information and explanations given to us and on an overallexamination of the balance sheet of the Company we report that no funds raised onshort-term basis have been used for long-term purposes by the Company.

(e) According to the information and explanations given to us and on an overallexamination of the standalone financial statements of the Company we report that theCompany has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries or associates as defined under the Companies Act. TheCompany does not hold any investment in any joint venture as defined under the CompaniesAct.

(f) According to the information and explanations given to us and procedures performedby us we report that the Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries or associate companies as defined under the CompaniesAct. The Company does not hold any investment in any joint venture as defined under theCompanies Act.

(x) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) any preferential allotment or private placementof shares or convertible debentures ( fully partially or optionally convertible ) duringthe year. Hence Paragraph 3 (x) of the order is not applicable to the company.

(xi) (a) Based on examination of the books and records of the Company and according tothe information and explanations given to us no material fraud by the Company or on theCompany has been noticed or reported during the course of the audit.

(b) According to the information and explanations given to us no report undersub-section (12) of Section 143 of the Act has been filed by the auditors in Form ADT-4 asprescribed under Rule 13 of the Companies (Audit and Auditors) Rules 2014 with theCentral Government.

(c) As represented to us by the management there are no whistle blower complaintsreceived by the Company during the year.

(xii) The Company is not a Nidhi Company/as per Nidhi rules 2014 and hence Clause 3(xii) of the Order is not applicable.

(xiii) All the transactions with the related parties are in compliance with Section 177and 188 of the Companies Act wherever applicable and the details have been disclosed inthe Financial Statements as required by the applicable accounting standards.

(xiv) (a) The Company has an Internal audit system commensurate with the size andnature of the business.

(b) We have considered the reports of the Internal auditors for the period under audit.

(xv) According to the information and explanation provided to us and based on ourexamination of records the Company has not entered in to any non-cash transactions withDirectors or persons connected with him and hence Clause 3 (xv) is not applicable.

(xvi) (a) The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly clause 3(xvi)(a) of the Order is notapplicable.

(b) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly clause 3(xvi)(b) of the Order is not applicable.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly clause 3(xvi)( c ) of the Order is notapplicable.

(d) According to the information and explanations provided to us the Group (as per theprovisions of the Core Investment Companies (Reserve Bank) Directions 2016) does not haveany CIC.

(xvii) The Company has not incurred cash losses in the current and in the immediatelypreceding financial year.

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

xix) According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realisation of financial assets and paymentof financial liabilities our knowledge of the Board of

Directors and management plans and based on our examination of the evidence supportingthe assumptions nothing has come to our attention which causes us to believe that anymaterial uncertainty exists as on the date of the audit report that the Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the Company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the Company as and when they falldue.

(xx) (a) In our opinion and according to the information and explanations given to usSec 135 of the Companies Act is not applicable to the company as the net worth turnoverand net profit are within the limits applicable for the CSR activity. Accordingly clause3(xx) of the Order is not applicable.

"Annexure - B" of Independent Auditors' Report

(Referred to in paragraph (f) under 'Report on Other Legal and Regulatory Requirements'of our report of even date) Report on the Internal Financial Controls under Clause (I) ofSubsection 3 of Section 143 of the Companies Act 2013 (the act).

We have audited the internal financial controls over financial reporting of BKVIndustries Limited ("the Company") as of March 31 2022 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control 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 Reportingissued by the Institute of Chartered Accountants of India ("ICAI").

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed

under section 143(10) of the Companies Act 2013 to the extent applicable to an auditof internal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects. Our audit involves performing procedures toobtain audit evidence about the adequacy of the internal financial controls system overfinancial Reporting and their operating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining an understanding of internalfinancial controls over financial reporting assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to 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.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting 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 an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2022 based oninternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Kurapati Subba Rao & Co Chartered Accountants
Firm Regn. No. 001618S
CA K. Rajendra Prasad Partner
Place: Guntur M.No.:207646
Date :25thMay 2022 UDIN: 22207646AJOGTQ8787

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