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Cera Sanitaryware Ltd.

BSE: 532443 Sector: Consumer
NSE: CERA ISIN Code: INE739E01017
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NSE 00:00 | 23 Jun 4292.85 62.05
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OPEN 4260.00
PREVIOUS CLOSE 4234.85
VOLUME 1375
52-Week high 4892.35
52-Week low 2100.00
P/E 54.92
Mkt Cap.(Rs cr) 5,561
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4260.00
CLOSE 4234.85
VOLUME 1375
52-Week high 4892.35
52-Week low 2100.00
P/E 54.92
Mkt Cap.(Rs cr) 5,561
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Cera Sanitaryware Ltd. (CERA) - Auditors Report

Company auditors report

To

The Members of Cera Sanitaryware Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of CERASANITARYWARE LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2020 the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity and the Statement of Cash Flowsfor the year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone financial statements")

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under the section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs (financial position) of the Companyas at 31st March 2020 the profit (financial performance including othercomprehensive income) changes in the equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing ("SAs") specified under section143(10) of the Act. Our responsibilities under those Standards are further described inthe Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance withthe Code of Ethics issued by the Institute of Chartered Accountants of India("ICAI") together with the ethical requirements that are relevant to our auditof the standalone financial statements under the provisions of the Act and the Rules madethereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics. We believe that the audit evidenceobtained by us is sufficient and appropriate to provide a basis for our opinion onstandalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not provideseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Sr. No Adoption of Ind AS 116 Leases
1. As described in Note No. 3.12 of the standalone financial statements the Company has adopted Ind AS 116 Leases in the current year. The application and transition to this accounting standard is complex and is an area of focus in our audit since the Company has a large number of leases with different contractual terms.
Ind AS 116 introduces a new lease accounting model wherein lessees are required to recognise a right-of-use (ROU) asset and a lease liability arising from a lease on the Balance Sheet.
The lease liabilities are initially measured by discounting future lease payments during the lease term as per the contract/ arrangement. Adoption of the standard involves significant judgements and estimates including determination of the discount rates and the lease term.
Additionally the standard mandates detailed disclosures in respect of transition.
Refer Notes No. 3.12 & 43 to the standalone financial statements
Auditor's Response
Our Audit procedures on adoption of Ind AS 116 include:
• Assessed and tested new processes and controls in respect of lease accounting standard (Ind AS 116);
• Assessed the Company's evaluation on the identification of leases based on the contractual agreements and our knowledge of the business;
• Evaluated the reasonableness of the discount rates applied in determining the lease liabilities;
• Upon transition as at 1st April 2019:
Evaluated the method of transition and related adjustments;
Tested completeness of the lease data by reconciling the Company's operating lease commitments to data used in computing ROU asset and the lease liabilities.
• On a statistical sample we performed the following procedures: assessed the key terms and conditions of each lease with underlying lease contracts; and evaluated computation of lease liabilities and assessed the key estimates such as discount rates and the lease term.
• Assessed and tested the presentation and disclosures relating to Ind AS 116 including disclosures relating to transition.
2. Allowance for expected credit losses in respect of Trade Receivables and Capital Advances
The Company determines the allowance for expected credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Company considered current and anticipated future economic conditions relating to entities the Company deals with. In calculating expected credit loss the Company has also considered credit reports and other related credit information for its customers to estimate the probability of default in future and has taken into account estimates of possible effect from the pandemic relating to COVID-19. The Company has also determined allowance for ECL based on the information available with the Legal department of the Company.
We identified allowance for credit losses as a key audit matter because the Company exercises significant judgement in calculating the expected credit losses.
Refer Notes No. 8 11 35 and 39 to the standalone financial statements
Auditor's Response
Principal Audit Procedures
Our Audit procedures related to the allowance for credit losses for trade receivables and capital advances included the following among others:
We tested the effectiveness of controls over the:
O development of the methodology for the allowance for credit losses including consideration of the current and estimated future economic conditions;
O completeness and accuracy of information used in the estimation of probability of default; and
O computation of the allowance for credit losses.
O For a few customers: We tested the input data such as credit reports and other credit related information used in estimating the probability of default by comparing them to external and internal source of information.
O We also reviewed the internal auditor's report for the history and current scenario of a few customers.
3 Investment in Subsidiary Joint Ventures and Associates:
Investment in Subsidiary Joint Ventures and Associates are valued at cost and adjusted for impairment losses after carrying out impairment testing. Since judgement of the management is required to determine if there is any indication of possible impairment we have considered it to be a key matter.
Refer Notes No. 3.16(f) 6 35 and 38 to the standalone financial statements
Auditor's Response
Our audit procedures comprise of identification and understanding of the reasonableness of the principle assumptions used by the management to judge the need for impairment testing and the auditor's report of such entity not audited by us.
4 Physical Verification of Inventories
On account of COVID-19 related lockdown restrictions the management was not able to perform year end physical verification of inventories at all locations except for work-in-process subsequent to the year end when the operation restarted after the lock down. However the management conducted physical verification of inventories at regular intervals during the year. We have considered this aspect as a key audit matter on the basis of total value of inventories comprised in the total value of financial assets.
Auditor's Response
We were not able to physically observe the stock verification when carried out by the management. Consequently we have performed alternate procedures to audit the existence of inventory as per the guidance provided in SA 501 "Audit Evidence - Specific Considerations for Selected Items" which includes inspection of supporting documentation relating to purchases sales results of cyclical count performed by the management through the year and such other third party evidences where applicable and have obtained sufficient appropriate audit evidences and have carried out appropriate audit procedures under the circumstances.

Emphasis of Matter

The Company has made provision for Expected Credit Losses in respect oftrade receivables and capital advances aggregating ` 704.33 lakhs up to 31stMarch 2020 as against the gross doubtful / litigated amount of ` 1621.76 lakhs due toon-going and continuous efforts / actions taken by the management of the Company whichin their opinion is likely to result into recovery of the balancing unprovided amount inthe foreseeable future. The Management has assured that they shall review the status fromtime to time during the ensuing year.

Our report is not modified in respect of this matter.

Information Other than Financial Statements and Auditor's ReportThereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance Report and Shareholders Informationbut does not include the standalone financial statements and our auditor's reportthereon.

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

In connection with our audit of standalone 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 we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's and Board of Directors' Responsibilities for theStandalone Financial Statements

The Company's Management and the Board of Directors areresponsible for the matters stated in section 134(5) of the Act with respect to thepreparation and presentation of these standalone financial statements that give a true andfair view of the financial position financial performance (including other comprehensiveincome) changes in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standardsspecified under section 133 of the Act read with relevant Rules issued thereunder. 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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements the Management andthe Board of Directors are responsible for assessing the Company's ability tocontinue as a going concern disclosing as applicable matters related to going concernand using the going concern basis of accounting unless management either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso.

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

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

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

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the Company has adequate internal financial controls system in placeand the operating effectiveness of such controls.

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

• Conclude on the appropriateness of 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 standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

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

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

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

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

From the matters communicated with those charged with governance weare required to determine those matters that were of most significance in the audit of thestandalone financial statements of the current period 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.

We draw attention to Notes No. 3.16(g) and 39 to the standalone auditedfinancial results which explains the uncertainties and the management's assessment ofthe financial impact due to the lockdown and other restrictions related to the COVID-19pandemic situation for which a definitive assessment of the impact in the subsequentperiod is highly dependent upon circumstances as they evolve.

Our report is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of subsection(11) of section 143 of the Companies Act 2013 we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

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 havebeen kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss (includingOther Comprehensive Income) the Statement of Changes in Equity and the Statement of CashFlows dealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statementscomply with the Indian Accounting Standards specified under Section 133 of the Act readwith the Companies (Indian Accounting Standards) Rules 2015 as amended.

(e) On the basis of the written representations received from thedirectors as on 31st March 2020 taken on record by the Board of Directorsnone of the directors is disqualified as on 31st March 2020 from beingappointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controlsover financial reporting 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 internalfinancial controls over financial reporting.

(g) With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Actas amended:

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

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

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements – Refer Note 43 to thefinancial statements.

ii. According to the information and explanations provided to us theCompany did not have any long term contracts including derivative contracts for whichthere were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

FOR N. M. NAGRI & CO.
Chartered Accountants
Firm Regn. No.106792W
N. M. NAGRI
Place : Ahmedabad PROPRIETOR
Date : 30th June 2020 Membership No. 016992
UDIN: 20016992AAAAAI4611

ANNEXURE-A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of CERA SANITARYWARE LIMITEDof even date for the year ended 31st March 2020) Based on the audit proceduresperformed for the purpose of reporting a true and fair view on the financial statements ofthe Company and taking into consideration the information and explanations given to us andthe books of account and other records examined by us in the normal course of audit and tothe best of our knowledge and belief we report that: (1) (a) The Company hasmaintained proper records showing full particulars including quantitative details andsituation of fixed assets.

(b) The Company has a regular program of physical verification ofits fixed assets under which fixed assets are verified in a phased manner which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(c) The title deeds of all immovable properties (which are includedunder the head ‘Property Plant and Equipment') are held in the name of theCompany. In respect of immovable properties taken on lease and disclosed as Right-of-useassets in the standalone financial statements the lease agreements are in the name of theCompany where the Company is the lessee in the agreement.

(2) As explained to us the management has conducted physicalverification of inventory at reasonable intervals during the year. No materialdiscrepancies were noticed on such verification between the physical stock and the bookrecords. Attention is drawn to Note No.4 "Physical Verification of Inventories"under the "Key Audit Matters" section of our Audit Report of even date.

(3) As informed to us the Company has not granted any loanssecured or unsecured to Companies Firms Limited Liability Partnership or other partiescovered in the register maintained by the Company under section 189 of the Companies Act2013.

(4) In our opinion the Company has complied with the provisions ofSections 185 and 186 of the Companies Act 2013 in respect of grant of loans andinvestments. The Company has not given any guarantee or provided security during the year.

(5) In our opinion the Company has not accepted any depositsduring the year and does not have any unclaimed deposits as at 31st March 2020and therefore the provisions of the clause 3(v) of the Order are not applicable to theCompany.

(6) We have broadly reviewed the cost records maintained by theCompany pursuant to the Companies (Cost Records and Audit) Rules 2014 as amendedprescribed by the Central Government under section 148(1) of the Companies Act 2013 andare of the opinion that prima facie the prescribed cost records have been made andmaintained. We have however not made a detailed examination of the cost records with aview to determine whether they are accurate and complete.

(7) (a) The Company has generally been regular in depositingundisputed statutory dues including provident fund employees' state insuranceincome-tax sales tax value added tax duty of customs duty of excise service tax cessand any other statutory dues including GST as applicable to the appropriate authorities.Further no undisputed amounts payable in respect thereof were outstanding at the year endfor a period of more than six months from the date they became payable.

(b) The dues of income-tax sales-tax service-tax duty ofcustoms duty of excise value added tax and GST (as applicable) which have not beendeposited as at 31st March 2020 on account of any dispute are as given below:

Sr. No. Name of Statute Nature of Dues Amount ` (Lakhs) Period to which the amount relates (FY) Forum where dispute is Pending
1 Income Tax Act 1961 Income Tax 2.51 (Net) 2004-05 High Court -Gujarat
2 Income Tax Act 1961 Income Tax 31.42 2010-11 CIT-Appeals
3 Income Tax Act 1961 Income Tax 25.17 2011-12 CIT-Appeals
4 Income Tax Act 1961 Income Tax 9.63 2012-13 CIT-Appeals
5 Income Tax Act 1961 Income Tax 18.05 2015-16 CIT-Appeals
6 Income Tax Act 1961 Income Tax 104.65 2016-17 CIT-Appeals
7 Central Excise Act 1944 Central Excise 2.77 1991-92 Supreme Court

(8) The Company has not defaulted in repayment of loans orborrowings to any bank or financial institution or government or dues to debentureholders if any.

(9) The Company did not raise any money by way of initial publicoffer or further public offer (including debt instruments) or term loans during the year.

(10) As explained to us and on the basis of information andexplanations given to us no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.

(11) Managerial remuneration has been paid and provided by theCompany in accordance with the requisite approvals mandated by the provisions of Section197 read with Schedule V to the Companies Act 2013.

(12) The Company is not a Nidhi Company. Accordingly provisions ofclause 3(xii) of the Order are not applicable.

(13) In our opinion and according to the information andexplanations given to us the Company is in compliance with Sections 177 and 188 ofCompanies Act 2013 where applicable for all transactions with the related parties andthe details of related party transactions have been disclosed in the standalone financialstatements as required by the applicable accounting standards.

(14) During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures.

(15) In our opinion the Company has not entered into any non-cashtransactions with its directors or persons connected with them covered under Section 192of the Companies Act 2013.

(16) The Company is not required to be registered under Section45-IA of the Reserve Bank of India Act 1934.

FOR N. M. NAGRI & CO.
Chartered Accountants
Firm Regn. No.106792W
N. M. NAGRI
Place : Ahmedabad PROPRIETOR
Date : 30th June 2020 Membership No. 016992
UDIN: 20016992AAAAAI4611

ANNEXURE-B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph (f) under "Report on Other Legal andRegulatory Requirements" section of our report to the Members of CERA SANITARYWARELIMITED of even date for the year ended 31st March 2020)

Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

In conjunction with our audit of the standalone financial statements ofCERA SANITARYWARE LIMITED (‘the Company') as of and for the year ended31st March 2020 we have audited the internal financial controls overfinancial reporting of the Company as of 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.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under Section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls over financial reporting.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 isa process 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 controlover financial reporting includes those policies and procedures that :

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorizations of management and directors of theCompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company's assetsthat 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 31st March2020 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal controls stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of India.

FOR N. M. NAGRI & CO.
Chartered Accountants
Firm Regn. No.106792W
N. M. NAGRI
Place : Ahmedabad PROPRIETOR
Date : 30th June 2020 Membership No. 016992
UDIN: 20016992AAAAAI4611