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Butterfly Gandhimathi Appliances Ltd.

BSE: 517421 Sector: Consumer
NSE: BUTTERFLY ISIN Code: INE295F01017
BSE 00:00 | 11 Aug 1534.60 65.95
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NSE 00:00 | 11 Aug 1534.80 63.50
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OPEN 1475.25
PREVIOUS CLOSE 1468.65
VOLUME 2061
52-Week high 1700.00
52-Week low 701.20
P/E 78.34
Mkt Cap.(Rs cr) 2,744
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1475.25
CLOSE 1468.65
VOLUME 2061
52-Week high 1700.00
52-Week low 701.20
P/E 78.34
Mkt Cap.(Rs cr) 2,744
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Butterfly Gandhimathi Appliances Ltd. (BUTTERFLY) - Auditors Report

Company auditors report

to the Members of Butterfly Gandhimathi Appliances Limited

Report on the Audit of Ind AS Financial Statements Opinion

We have audited the accompanying Ind AS financial statements ("thefinancial statements") of Butterfly Gandhimathi Appliances Limited ("theCompany") which comprise the balance sheet as at March 31 2022 and the statementof Profit and Loss (including other comprehensive income) and the statement of changes inequity and the statement of cash flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 (the "Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2022 and its profit including othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditors' Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ("ICAI") together with the ethical requirements that are relevant to ouraudit of the financial statements under the provisions of the Act and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our opinion on thefinancial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matters described below to be the key audit mattersto be communicated in our report.

Sl.No Key Audit Matter Auditors' Response
1 Inventories: Audit Procedures:
The Company has inventory with the carrying value of Rs 20969.14 lakhs as at the year end. We understood and tested the design and operating effectiveness of controls as established by the management in determination of net realizable value of inventory. We considered various factors including the actual selling price prevailing around and subsequent to the year-end. Compared the cost of the finished goods with the estimated net realizable value and checked if the finished goods were recorded at net realizable value where the cost was higher than the net realizable value. Further for the purpose of determination of physical quantity of the inventory as at the year end the Company has conducted an extensive physical verification of inventory and we have observed the process.
The inventory is valued at the lower of cost and net realizable value. We considered the value of the inventory as a key audit matter given the relative size of the balance in the financial statements and significant judgement involved in determining the appropriate valuation of inventory based upon a detailed analysis of slow- moving inventory net realisable value below cost etc.
Sl.No Key Audit Matter Auditors' Response
2 trade receivables Excepted Credit Loss assessment of trade receivables: Audit Procedures:
The company has a trade receivable of Rs 10561.26 lakhs (gross) and Rs 9276.74 lakhs (net) as at the year end. Significant management judgement is required to assess the recoverability of trade receivables. Management performed a detailed analysis taking into account customer's ageing profile credit history and historical payment pattern and the forward-looking information for the estimation of expected credit losses ("ECLs"). We have obtained an understanding of the company's process and control over the collection and the assessment of the recoverability of trade receivables. We evaluated the management's assessment on the ECLs of trade receivables with reference to the historical payment records publicly available information and credit history of the customers and the correspondence with customers. We have verified the completeness and accuracy of the data used in estimation of probability of default and computation of the expected credit loss allowance. We have selected a sample of the customers and tested a sample of invoices to test the accuracy of the ageing data. We have recomputed the expected credit loss allowance considering the above input data and compared the amounts so recomputed with the amounts recorded by the Management to determine if there were any material differences.

Other Information:

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report and Shareholder's Information but does not includethe financial statements and our auditor's report thereon. These reports are expectedto be made available to us after the date of this auditor's report.

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

In connection with our audit of the financial statements ourresponsibility is to read the other information identified above when it becomes availableand in doing so consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained in the audit or otherwise appears tobe materially misstated.

When we read the other information if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance and take appropriate actions.

Responsibilities of Management and those Charged with Governance forthe financial Statements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these financialstatements that give a true and fair view of the financial position financialperformance including other comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements the management and the 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 the Board of Directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing thecompany's financial reporting process.

Auditors' Responsibilities for the Audit of the financial Statements

Our objectives are to obtain reasonable assurance about whether thefinancial 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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

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

Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.

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

Conclude on the appropriateness of the management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation. Materiality is the magnitude of misstatement in the financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatement in the financial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the 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 publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2020("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the "Annexure A" a statement on thematters specified 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 and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit; (b) In our opinion proper books of account as required by law have been kept bythe Company so far as it appears from our examination of those books; (c) The BalanceSheet the Statement of Profit and Loss (including other comprehensive income) thestatement of changes in equity and the statement of cash flows dealt with by this Reportare in agreement with the books of account; (d) In our opinion the aforesaid financialstatements comply with the Ind AS specified under Section 133 of the Act; (e) On the basisof the written representations received from the directors as on March 31 2022 taken onrecord by the Board of Directors none of the directors is disqualified as on March 312022 from being appointed as a director in terms of Section 164 (2) of the Act; (f) Withrespect to the adequacy of the internal financial controls over financial reporting of theCompany and the operating effectiveness of such controls refer to our separate Report in"Annexure B". Our report expresses an unmodified opinion on the adequacy andoperating effectiveness of the Company's internal financial controls over financialreporting.

(g) With respect to the matters to be included in the Auditors' Reportunder Section 197(16) of the Act in our opinion and to the best of our information andaccording to the explanations give to us the remuneration paid by the Company to itsdirectors during the year is in accordance with the provisions of section 197 read withSchedule V of the Act and (h) With respect to the other matters to be included in theAuditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us: i. The Company has disclosed the impact of pending litigations as at March31 2022 on its financial statements – Refer Note No. 5.1.1 to the financialstatements. ii. The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses. iii. There has been nodelay in transferring amounts required to be transferred to the Investor Education andProtection Fund by the Company. iv. (a) The Management has represented that to the bestof its knowledge and belief no funds have been advanced or loaned or invested (eitherfrom borrowed funds or share premium or any other sources or kind of funds) by the Companyto or in any other person(s) or entity(ies) including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the Company("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries.

(b) The Management has represented that to the best of it'sknowledge and belief no funds have been received by the Company from any person(s) orentity(ies) including foreign entities ("Funding Parties") with theunderstanding whether recorded in writing or otherwise that the Company shall directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries.

(c) Based on the audit procedures performed that have been consideredreasonable and appropriate in the circumstances nothing has come to our notice that hascaused us to believe that the representations under subclause (i) and (ii) of Rule 11(e)contain any material mis-statement. v. The interim dividend declared and paid during theyear and until the date of this report by the Company is in compliance with Section 123 ofthe Act.

for ASA & Associates LLP
Chartered Accountants
Firm Registration No: 009571N/N500006
G N Ramaswami
Partner
Place: Chennai Membership No: 202363
Date: May 11 2022 UDIN: 22202363AIVKJE7655

Annexure - A

(As referred to in paragraph 7.1 of our Independent Auditors' Report ofeven date to the members of Butterfly Gandhimathi Appliances Limited)

(i) (a) (A) According to the information and explanations given to usand audit procedures performed by us the Company has maintained proper records showingfull particulars including quantitative details and situation of Property Plant andEquipment.

(B) According to the information and explanations given to us and auditprocedures performed by us the Company has maintained proper records showing fullparticulars of intangible assets.

(b) A portion of the Property Plant and Equipment were physicallyverified during the year by the management in accordance with phased program ofverification which in our opinion covers all the fixed assets at reasonable intervals.According to the information and explanation given to us no material discrepancies werenoticed on such physical verification;

(c) According to information and explations given to us and on thebasis of Audit procedures performed by us the title deeds of immovable properties areunder the custody of the lenders as security for the various credit facilities sanctioned;as confirmed by lenders and the Mortgage deed executed between bank and the Company thetile deeds are in the name of the Company except a portion of Freehold land situated atPudupakkam Kanchipuram District in respect of which the transfer of title deeds in thename of the Company is pending.

Description of property Gross carrying value ` Lakhs Held in name of Whether promoter director or their relative or employee Period held indicate range where appropriate Reason for not being held in name of company
Freehold land 10.00 M/s Hercules Metal Processors (Firm) Erstwhile Directors (promotors) were partners of the firm From 1990 for want of original revenue records (name change is under process)

(d)According to information and explanations given to us and auditprocedures performed by us the Company has not revalued its Property Plant and Equipment(including Right of Use assets) or intangible assets during the year.

(e) According to information and explanations given to us and auditprocedures performed by us there are no proceedings initiated or are pending against theCompany for holding any benami property under the Benami Transactions (Prohibition) Act1988 (45 of 1988) and rules made thereunder.

ii. (a) The inventory except stock lying with third parties has beenphysically verified by the management during the year. In our opinion the frequency ofsuch verification is reasonable and procedures and coverage as followed by management wereappropriate. According to information and explanations given to us and audit proceduresperformed by us no discrepancies were noticed on verification between the physical stocksand book records that were more than 10% in the aggregate of each class of inventory.

(b) The Company has been sanctioned working capital limits in excess offive crore rupees in aggregate from banks on the basis of security of current assets.According to information and explanations given to us and on the basis of our examinationof the records of the Company the quarterly returns or statements filed by the Companywith such banks or financial institutions are in agreement with the books of account ofthe Company except as follows:

(Amounts in lakhs)
Name of the Banks Quarter Amount as per books of account Amount as reported in the quarterly Return/ Statement Amount of Differences Reason for Discrepancies (As explained by the management)
State Bank of India Jun-21 13240.32 14766.87 1526.55 Provisions Regrouping Final Entries are not part of Bank data the details get shared with initial reports.
South Indian bank Sep-21 11476.81 14101.84 2625.03
Indusind Bank IDBI Bank Limited. Dec-21 16752.93 19054.52 2301.59
Mar-22 17338.05 19867.54 2529.49

iii. a) According to the information and explanations given to us andon the basis of our examination of the records of the Company the Company has not madeany investments provided any guarantee or security or granted any loans or advances inthe nature of loans secured or unsecured to companies firms and Limited Liabilitypartnerships or any other parties during the year except for First Loss Default Guarantee(FLDG) as per the detailed below. a. The company does not have any subsidiaries jointventures or associates. Accordingly reporting under clause 3(iii) (a) (A) is notapplicable. b. The company has issued corporate guarantee to non-banking financialcompanies aggregating to Rs 10 Crores during the year and balance outstanding as at theyear-end is Rs 24 Crores. b) The terms and conditions of the guarantee are not prejudicialto the interest of the company.

iv. According to information and explanations given to us and auditprocedures performed by us the Company has neither made any investments nor has givenloans or security and therefore the relevant provisions of Section 185 and 186 of theCompanies Act 2013 are not applicable to the Company. In respect of guarantee issued bythe Company the provisions of section 186 of the Companies Act 2013 have been compiledwith. v. The Company has not accepted any deposits or amounts which are deemed to bedeposits from the public. Accordingly reporting under clause 3(v) of the Order is notapplicable. vi. We have broadly reviewed the books of account maintained by the Companypursuant to the rules made by the Central Government for the maintenance of cost recordsunder section 148(1) of the specified accounts and records have been made and maintained.We have not however made a detailed examination of the records with a view to determinewhether they are accurate or complete. vii.(a) According to the information provided andexplanations given to us and based on our examination of the records of the Company theCompany is generally regular in depositing with appropriate authorities undisputedstatutory dues including Goods and Services Tax provident fund employees' stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax cess and other material statutory dues applicable to it. There are no materialoutstanding statutory dues existing as on the last day of the financial year which isoutstanding for more than six months from the day they becomes payable.

(b) According to the information provided and explanations given to usthe details of duty of excise and value added tax that have not been deposited on accountof dispute are as under:

Sl.No Name of the Statue Nature of the dues Amount ` ( in Lakh) Period to which the amount relates Forum where the dispute is pending
1 Central Excise Act 1944 Excise Duty 66.24 FY 2012-13 Customs Excise Service Tax Appellate Tribunal (CESTAT)
2 Tamil Nadu Value Added Tax Act 2006 Value Added Tax (VAT) 64.70 FY 2006-07 to 2008-09 Assistant Commissioner (CT)
3 Tamil Nadu Value Added Tax Act 2006 Value Added Tax (VAT) 33.78 FY 2009-10 to 2012-13 Sales Tax Appellate Tribunal
4 Maharashtra Value Added Tax Act 2002 Value Added Tax (VAT) 30.18 FY 2015-16 Joint Commissioner (Appeals)
5 ESI and labour law related matters Employees' State Insurance Act 1948 8.58 FY 1992-1993 to Employees Insurance Court. FY 2008-2009

viii. According to the information provided and explanations given tous and on the basis of our examination of the records of the Company the Company has notsurrendered or disclosed any transactions previously unrecorded as income in the books ofaccount in the tax assessment under the Income Tax Act 1961 as income during the yearand accordingly reporting under clause 3(viii) of the Order is not applicable to theCompany. ix. (a) According to the information and explanations given to us and auditprocedures performed by us the Company has not defaulted in repayment of loans andborrowings or in the payment of interest thereon to the lenders during the year. (b)According to the information and explanations given to us the Company has not beendeclared as willful defaulter by any bank or financial institution or government or anygovernment authority.

(c) According to the information and explanations given to us and auditprocedures performed by us term loans were applied for the purposes for which they wereobtained.

(d) According to the information and explanations given to us and on anoverall examination of the financial statements of the Company we report that no fundsraised on short-term basis have been used for long-term purposes by the Company. (e) TheCompany does not hold any investment in any subsidiary associate or joint venture asdefined under the Companies Act 2013 during the year and accordingly reporting underclause 3 (ix)(e) and clause 3 (ix)(f) of the Order is not applicable to the Company. x.(a) The Company has not raised any moneys by way of initial public offer or further publicoffer (including debt instruments) during the year. Accordingly reporting under clause3(x)(a) of the Order is not applicable.

(b) According to the information provided and explanations given to usand on the basis of our examination of the records of the Company the Company has notmade any preferential allotment or private placement of shares or convertible debentures(fully partially or optionally convertible) during the year. Accordingly reporting underclause 3(x)(b) of the Order is not applicable. xi. (a) According to the information andexplanations given by the management and based upon the audit procedures performed for thepurpose of reporting the true and fair view of the financial statements we report that nofraud by the Company or any fraud on the Company has been noticed or reported during theyear accordingly reporting under clause 3 (xi)(a) of the order is not applicable.

(b) According to the information and explanations given to us noreport under sub-section 12 of section 143 of the Act in ADT-4 has been filed by theauditors during the year and hence clause 3 (xi)(b) of the order is not applicable.

(c) As represented to us by the management there are no whistle blowercomplaints received by the Company during the year. xii. According to the information andexplanation given to us the Company is not a Nidhi Company. Accordingly reporting underclause 3(xii) of the Order is not applicable. xiii. In our opinion and according to theinformation and explanations given to us the transactions entered with the relatedparties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and details have been disclosed in the financial statements as required by theapplicable Indian Accounting Standards.

xiv.(a)According to the information and explanations given to us andaudit procedures performed by us in our opinion the Company has an internal audit systemcommensurate with the size and nature of its business.

(b) We have considered the internal audit reports of the Company issuedtill date for the year under audit. xv. According to the information and explanationsgiven to us in our opinion the Company has not entered into any non-cash transactionswith its directors or persons connected with its directors and hence provisions of section192 of the Companies Act 2013 are not applicable to the Company. xvi. (a) According tothe information and explanations given to us the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934.

(b) According to the information and explanations given to us theCompany has not conducted any Non-Banking Financial or Housing Finance activities.

(c) The Company is not Core Investment Company (CIC) as defined in theregulations made by the Reserve Bank of India. Accordingly reporting under clause3(xvi)(c) and (d) of the Order are not applicable. xvii. According to the information andexplanations given to us and on an overall examination of the financial statements of theCompany the Company has not incurred cash losses in the financial year and in theimmediately preceding financial year. xviii. There has been no resignation of thestatutory auditors during the year and accordingly reporting under clause 3(xviii) of theOrder is not applicable. xix. According to the information and explanations given to usand on the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements our knowledge of the Board of Directors and management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report that the Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on theinformation and explanation as made available to us by the management of the Company up tothe date of the audit report and we neither give any guarantee nor any assurance that allliabilities falling due within a period of one year from the balance sheet date will getdischarged by the Company as and when they fall due. xx. As per the provision of CorporateSocial Responsibility u/s 135 of The Companies Act 2013 the company is not required tospend towards corporate social responsibility and hence reporting under clause 3 (xx) ofthe Order is not applicable to the Company.

for ASA & Associates LLP
Chartered Accountants
Firm Registration No: 009571N/N500006
G N Ramaswami
Partner
Place: Chennai Membership No: 202363
Date: 11th May 2022 UDIN: 22202363AIVKJE7655

Annexure - B

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

We have audited the internal financial controls over financialreporting of Butterfly Gandhimathi Appliances Limited (the "Company") as ofMarch 31 2022 in conjunction with our audit of the financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

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

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that(1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

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

for ASA & Associates LLP
Chartered Accountants
Firm Registration No: 009571N/N500006
G N Ramaswami
Partner
Place: Chennai Membership No: 202363
Date: 11th May 2022 UDIN: 22202363AIVKJE7655

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