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Brahmaputra Infrastructure Ltd.

BSE: 535693 Sector: Infrastructure
NSE: N.A. ISIN Code: INE320I01017
BSE 00:00 | 12 Aug 28.10 0.50
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NSE 05:30 | 01 Jan Brahmaputra Infrastructure Ltd
OPEN 28.75
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VOLUME 1656
52-Week high 38.75
52-Week low 14.35
P/E 16.93
Mkt Cap.(Rs cr) 82
Buy Price 0.00
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Sell Price 0.00
Sell Qty 0.00
OPEN 28.75
CLOSE 27.60
VOLUME 1656
52-Week high 38.75
52-Week low 14.35
P/E 16.93
Mkt Cap.(Rs cr) 82
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Brahmaputra Infrastructure Ltd. (BRAHMAPUTRAINF) - Auditors Report

Company auditors report

To

The Members

Brahmaputra Infrastructure Limited

R.O. A-7 Main Mahipalpur

New Delhi -110037

Report on the Standalone Ind AS Financial Statements

Qualified Opinion

We have audited the accompanying standalone Ind AS financial statements of BrahmaputraInfrastructure Limited ("the Company") which comprises the Balance Sheet as atMarch 31 2021 the Statement of Profit and Loss (including Other Comprehensive Income)Statement of Changes in Equity and statement of cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us and based on the consideration of the reports of other auditors on theseparate financial statements/ financial information of the joint operations except forthe possible effects of the matters described in the Basis for Qualified Opinion sectionof our report the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ('Act') in the manner so required and give a true and fair viewin conformity with the accounting principles generally accepted in India including IndianAccounting Standards ('Ind AS') specified under section 133 of the Act of the state ofaffairs of the Company as at 31 March 2021 and its loss (including other comprehensiveincome) its cash flows and the changes in equity for the year ended on that date.

Basis for Qualified Opinion

During the year under reference the company has made provision for interest in itsquarterly statement for all four quarter but in the financial statements of quarter 4ththe company has reversed the provision made towards interest payable which was not paidfor the year under audit. This constitute a departure from the Indian AccountingStandards-37 "Provisions Contingent Liabilities and Contingent Assets" referredto in section 133 of the Companies Act 2013. Sum of Rs. 23.75 crore has been reversedfrom the interest expenses resulting in understatement of expenses and over statement ofNet profit before Tax. Balance in "Other Equity" in the Balance sheet isoverstated by the said amount.

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013 (the Act). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Standalone Financial Results section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial results under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our qualified opinion.

Key Audit Matters

Key Audit Matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements of the currentperiod. These matters were addressed in the context of our audit of the Standalone Ind ASfinancial statements as a whole and informing our opinion thereon and we do not providea separate opinion on these matters. In addition to the matters described in the Basis forQualified Opinion we have determined the matters described below to be the key auditmatters to be communicated in our report.

(i) Inventories

(As described in note 12 of the standalone Ind AS financial statements)

Management's Physical verification of closing Inventories was not physically observed by us subsequent to the year-end due to the restriction imposed on account of COVID-19. We have carried out following procedures with respect to the existence of inventories as at the year-end:
On account of COVID-19 related national wide lockdown we were unable to carry out inventories verification at the year end. Consequently we have performed the following alternate procedures to audit the existence of inventories:
• We have relied on the verification report performed by the Management at regular intervals
• Obtained verification reports of the independent chartered account firms which were engaged by the company for the Management Inventory verification process. Verified the instruction provided by the management to those independent firms. Evaluated the differences identified by these independent firms during their physical verification of inventories and it was noted that there were no major deviation found.

(ii) Valuation of Claims Under Settlement

The Company has certain significant open legal proceedings under arbitration for various matters with the Clients and other parties continuing from earlier years which are as under Principal Audit Procedures Our audit procedures included the following:
: • Non acceptance of certain work by the client. • Assessing the procedures implemented by the Company to identify and gather the risks it is exposed to.
• Cost overrun in certain contracts. • Obtaining an understanding of the risk analyses performed by the Company with the relating supporting documentation and studying written statements from internal and external legal experts where applicable.
• Reimbursement of the cost incurred by the company for the client.
Due to complexity involved in these litigation matters the recognition of claims/variations are included in revenues when it is highly probable of recovery based on estimate and assessment of each item by the management based on their experience of recovery • Discussion with the management on the development in these litigations during the year ended March 312021.
• Obtaining representation letter from the management on the assessment of these matters as per SA 580 (revised) - Written representations.

We have determined that there are no other key audit matters to communicate in ourreport.

Emphasis of Matter

(i) We draw attention to the Standalone Financial Statement which describes theeffects of uncertainties relating to COVID-19 pandemic outbreak on the Company'soperations and management's evaluation of its impact on the accompanying Statement as atthe balance sheet date the extent of which is significantly dependent on futuredevelopments.

(ii) We draw attention to the Standalone Financial Statement the Company hassuccessfully executed the One Time settlement with the Consortium lender State Bank ofIndia via letter reference no SAMB-1/04109/CL-II/2020- 21/1303 dated 30.12.2020 and HDFCBank Limited via reference no FC1003210123 dated 24.03.2021. Accordingly the Company hasreversed the provision of Interest as well as principal which was shown in Note No. 36 ofthe Financial Statement under the head "Exceptional Items" amounting to Rs.30.96 crore.

(iii) We draw attention to the Standalone Financial Statement Non-Current Investmentsincludes investments made in unquoted Equity shares in its loss making subsidiarycompanies Rs. 56.75 lakhs and one of its joint operation M/s DRA-BCL-JV of Rs. 24.62 lakhsin accordance with Ind As-36 "Impairment of assets"/Ind AS 109 "FinancialInstruments". The impact of loss on value of investments is unascertainable andmanagement has provided Expected Credit loss on the same.

(iv) We draw attention to the Standalone Financial Statement which described Net worthof one of its joint ventures M/s BIL BLA GSCO (JV) was fully eroded and there was noproject pending under the joint venture. So that management has written off total amountof Investment of Rs. 8.66 Crore.

(v) We draw attention to the Standalone Financial Statement during the year Managementhas provided the concession of rental Income under COVID-19 situation of Rs. 3.25 Crores(approx.)

(i) We draw attention to the standalone Statement regarding uncertainties relating torecoverability of unbilled work- in-progress (Inventories) trade receivablesRetention/withheld by clients Receivables amounting and Advances to suppliers to Rs.215.51 Crore Rs. 96.48 Crore Rs. 50.43 Crore Rs. 14.10 Crore respectively as at 31March 2021 which represent various claims raised in the earlier years in respect ofprojects substantially closed and where the claims are currently undernegotiation/discussions/arbitration/litigation. Based on legal opinion/past experiencewith respect to such claims management is of the view that the aforementioned thebalances are fully recoverable.

Our report is not modified on above matter

Information Other than the Standalone Ind AS Financial Statements and Auditor's ReportThereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and AnalysisBoard's Report including Annexures to Board's Report Business Responsibility ReportCorporate Governance and Shareholder's Information but does not include the standaloneInd AS financial statements and our auditor's report thereon.

Our opinion on the standalone Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

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 Ind AS financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Management Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income changesin equity and cash flows of the Company in accordance with accounting principles generallyaccepted in India.

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 financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

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

The Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibilities for the Audit of Standalone Ind AS Financial Statement

Our objectives are to obtain reasonable assurance about whether the Standalone 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 judgment 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has internal financial controls with reference to Financial Statements inplace and the operating effectiveness of such controls.

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

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

• Evaluate the overall presentation structure and content of the standalone IndAS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

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 Ind AS financialstatements for the financial year ended March 312021 and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Other Matters

- Inventories consisting of Building Materials Raw Materials and Store & Spares atvarious sites of company amounting to Rs. 21.17 crore as on 31st March 2021. Because ofCOVID-19 situation these have not been physically verified by us. However management hassubmitted report of stock auditors which does not have any adverse observation

- The company is required to take Impact of Joint Operations for the financial year2020-21 as per accounting principles laid under Ind AS 111 "Joint Arrangement".However till reporting date 31st march' 2021 the company has not been taken Impact of itsfinancial statements for the period 2020-21.

- During the year search/survey was conducted u/s 132/133A of the Income Tax Act 1961at the all the premises of the Company. As per discussions held with the managementregarding this matter they have not received any communication from the Departmentregarding any disputed income/tax.

- The standalone financial results include the results for the quarter ended March 312021 being the balancing figure between the audited figures in respect of the fullfinancial year and the published unaudited year to date figures up to the third quarter ofthe current financial year which were subject to limited review by by us.

Our report is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

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

(A) We have sought andexcept for the matters described in the Basis for QualifiedOpinion section obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit.

(B) Except for the possible effects of the matters described in the Basis for QualifiedOpinion sectionin our opinion proper books of account as required by law have been keptby the Company so far as it appears from our examination of those books.

(C) The Balance Sheet the Statement of Profit and Loss including the Statement ofOther Comprehensive Income the Cash Flow Statement and Statement of Changes in Equitydealt with by this Report are in agreement with the books of account.

(D) Except for the possible effects of the matters described in the Basis for QualifiedOpinion sectionin our opinion the aforesaid standalone Ind AS financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withCompanies (Indian Accounting Standards) Rules 2015 as amended.

(E) The matters described under the Basis for Qualified Opinion section /Emphasis ofMatters/Key Audit Matters section in our opinion may have an adverse effect on thefunctioning of the Company;

(F) On the basis of the written representations received from the directors as on March312021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312021 from being appointed as a director in terms of Section 164 (2) of theAct.

(G) With respect to the adequacy of the Internal Financial Control with reference toFinancial Statements of the Company and the operating effectiveness of such controlsrefer to 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.

(H) In our opinion the managerial remuneration for the year ended March 312021 hasbeen paid/provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act.

(I) 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 in our opinionand to the best of our information and according to the explanations given to us:

(i) Except for the possible effects of the matters described in Basis for QualifiedOpinion section the standalone financial statements disclose the impact of pendinglitigations on the standalone financial position of the Company as at 31 March 2021 asdetailed in Notes 38 to the standalone financial statements;

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;

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

(iv) the disclosure requirements relating to holdings as well as dealings in specifiedbank notes were applicable for the period from 8 November 2016 to 30 December 2016 whichare not relevant to these standalone financial statements. Hence reporting under thisclause is not applicable.

For Goyal Nagpal & Co.

Chartered Accountants

(Firm's Registration No. 018289C)

CA Virender Nagpal

Partner

(Membership No. 416004)

Place: New Delhi

UDIN: 21416004AAAAHI5598

Date: 16 August 2021

INDEPENDENT AUDITORS' REPORT

(Annexure - A)

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone Ind AS financial statements of Brahamputra InfrastructureLimited for the year ended March 312021 we report that:

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) The Company has a program of verification of fixed assets to cover all the items ina phased manner over a period of three years which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. Pursuant to the programcertain fixed assets were physically verified by the Management during the year. Accordingto the information and explanations given to us no material discrepancies were noticed onsuch verification.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deed/transfer deed/conveyancedeed provided to us we report that the title deeds/ sale deed/transfer deed comprisingall the immovable properties of land and buildings are held in the name of the Company asat the balance sheet date

ii. As explained to us the inventories were physically verified during the year by theManagement at reasonableintervals and no material discrepancies were noticed on physicalverification

iii. The Company has granted any loans to companies firms or other parties covered inthe register maintained under section 189 of the Companies Act 2013 ('the Act').

iv. The company has compliedwith the provisions of section 185 and section 186 of theCompanies Act 2013in respect of loans investments guarantees and security.

v. The Company has not accepted any deposits within the meaning of sections 73 to 76 ofthe act and the Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordinglythe provisions of clause 3(v) of the order are not applicable.

vi. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 as amended prescribed by the CentralGovernment under sub-section (1) of Section 148 of the Companies Act 2013 and are of theopinion that prima facie the prescribed cost records have been made and maintained.

vii. According to the information and explanations given to us in respect of statutorydues

a) The Company has generally not been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales Tax Service TaxProfessional Tax Customs Duty Excise Duty Value Added Tax Goods and Service Tax Cessand other statutory dues to the appropriate authorities during the year..

b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fundemployees' state insurance income-tax service taxsales-tax duty of custom duty of excise value added tax goods andservice tax cess andother material statutory dues were outstanding at the year end 31st March 2021 except thefollowing :

Nature of Amount Amount (Rs.) As at 31st March 2021
Service Tax 459.05 Lakhs
TDS 14.79 Lakhs
Vat/Entry Tax/WCT 136.67 Lakhs
Provident Fund/ESI and Prof. Tax/Misc 12.03 Lakhs
GST Payable 16.77 Lakhs

(c) According to the records of the company the dues outstanding of employees' stateinsurance income-tax sales-tax dutyof custom duty of excise goods and service taxcess and other statutory dues on account of any dispute are as follows:

Name of Nature Nature of Dues Amount in (Rs. in lakhs) Forum where dispute is pending
West Bengal Vat Act Vat Liability for Project Executed in West Bengal 98.31 Pending before Commissioner
UP Vat Act Vat Liability for Lucknow Project/Penalty for Non Submission of C Form 168.11 Pending before Commissioner
MSME Pushpa Sales Private Limited 38.30 Pending before Patiala House Court New Delhi
Income Tax Demand including interest u/s 153A/143(3) raised by Income Tax Department in respect of AY 2006-07 to 201112 156.58 Pending before ITAT New Delhi

viii. As per Books and Records maintained by the company and according to theinformation and explanations given to us the company has defaulted in repayment of duesto financial institutions and banks. Such continuing default as on balance sheet date wereof Rs.18152 Lakhs as reported to financial statements.

ix. In our opinion and according to the information and explanations given by themanagement the Company has utilized themonies raised by way of term loans for thepurposes for which they were obtained. The Company has not raised any money byway ofinitial public offer/further public offer/debt instruments during the year.

x. In our opinion no material fraud by the company or on the Company by its officers oremployees has been noticed or reported during the course of our audit.

xi. In our opinion and according to the information and the explanations given to usand based on examination of records of the company the company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act.

xii. In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.

xiii. In our opinion and according to the information and the explanations given to usand based on our examination of the records of the company all transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013 whereever applicable and the details of such transactions have been disclosed in the FinancialStatements as required by 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.

xv. According to the information and the explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with him underthe provisions of section 192 of Companies Act 2013

xvi. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934

For Goyal Nagpal & Co.

Chartered Accountants

(Firm's Registration No. 018289C)

CA Virender Nagpal

Partner

(Membership No. 416004)

Place: New Delhi

UDIN: 21416004AAAAHI5598

Date: 16 August 2021

INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE IND AS FINANCIAL STATEMENTSOF BRAHAMPUTRA INFRASTRUCTURE LIMITED

(Annexure - B)

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

1. We have audited the internal financial controls over financial reporting ofBrahamputra Infrastructure Limited ('the company') as of March 312021 in conjunction withour audit of the standalone Ind AS financial statements of the Company for the year endedon that date.

Responsibilities of Management and Those Charged with Governance for Internal FinancialControls

2. 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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility for the Audit of the Internal Financial Controls withReference to Financial Statements

3. 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 extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing 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 financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified opinion on the Company's internal financial controlswith reference to financial statements

Meaning of Internal Financial Controls over Financial Reporting

6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that

I pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

ii provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

iii Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. 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.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Qualified Opinion

8. According to the information and explanations given to us and based on our auditthe following material weaknesses have been identified as at 31 March 2021:

- During the year under reference the company has made provision for interest in itsquarterly statement for all four quarter but in the financial statements of quarter 4ththe company has reversed the provision made towards interest payable which was not paidfor the year under audit. This constitute a departure from the Indian AccountingStandards-37 "Provisions Contingent Liabilities and Contingent Assets" referredto in section 133 of the Companies Act 2013. Sum of Rs. 23.75 crore has been reversedfrom the interest expenses resulting in understatement of expenses and over statement ofNet profit before Tax. Balance in "Other Equity" in the Balance sheet isoverstated by the said amount.

9. A 'material weakness' is a deficiency or a combination of deficiencies in internalfinancial controls with reference to financial statements such that there is a reasonablepossibility that a material misstatement of the company's annual or interim financialstatements will not be prevented or detected on a timely basis.

10. In our opinion except for the possible effects of the material weakness describedin paragraph "8" above on the achievement of the objectives of the controlcriteria the Company in all material respects has adequate internal financial controlswith reference to standalone financial statements as at 31 March 2021 and except for theeffects/ possible effects of the material weaknesses described in paragraph above on theachievement of the objectives of the control criteria such controls were operatingeffectively as at 31 March 2021 based on internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note issued by the ICAI.

11. We have considered the material weaknesses identified and reported above indetermining the nature timing and extent of audit tests applied in our audit of thestandalone financial statements of the Company as at and for the year ended 31 March 2021and these material weaknesses have affected our opinion on the standalone financialstatements of the Company and we have issued a modified opinion on the standalonefinancial statements.

For Goyal Nagpal & Co.

Chartered Accountants

(Firm's Registration No. 018289C)

CA Virender Nagpal

Partner

(Membership No. 416004)

Place: New Delhi

UDIN: 21416004AAAAHI5598

Date: 16 August 2021.

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