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Cigniti Technologies Ltd.

BSE: 534758 Sector: IT
NSE: CIGNITITEC ISIN Code: INE675C01017
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OPEN 531.25
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VOLUME 1418
52-Week high 670.00
52-Week low 336.30
P/E 32.87
Mkt Cap.(Rs cr) 1,547
Buy Price 550.85
Buy Qty 19.00
Sell Price 552.00
Sell Qty 98.00
OPEN 531.25
CLOSE 546.60
VOLUME 1418
52-Week high 670.00
52-Week low 336.30
P/E 32.87
Mkt Cap.(Rs cr) 1,547
Buy Price 550.85
Buy Qty 19.00
Sell Price 552.00
Sell Qty 98.00

Cigniti Technologies Ltd. (CIGNITITEC) - Auditors Report

Company auditors report

To the Members of Cigniti Technologies Limited Report on the Audit of the StandaloneFinancial Statements

Opinion

We have audited the accompanying standalone financial statements of CignitiTechnologies Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2022 the Statement of Profit the Statement of Other Comprehensive Income theCash Flow Statement and the Statement of Changes in Equity for the year then ended andnotes to the standalone financial statements including a summary of significantaccounting policies and other explanatory information (hereinafter referred to as the"Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid

Standalone Financial Statements give the information required by the Companies Act2013 as amended ("the Act") in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2022 its profit including othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing (SAs) 143(10) of the Act. Our responsibilities under thoseStandards are further as specified described in the ‘Auditor's Responsibilities forthe Audit of the Standalone Financial Statements' section of our report. We areindependent of the Company in accordance with the ‘Code of Ethics' issued bythe Institute of

Chartered Accountants of India (‘ICAI') together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the Standalone Financial Statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the StandaloneFinancialStatementsforthefinancialyear endedMarch 31 2022. 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 providea separate opinion on these matters. For each matter below our description of how ouraudit addressed the matter is provided in that context. We have determined the mattersdescribed below to be the key audit matters to be communicated in our report.

We have fulfilled the responsibilities described in the Auditor's responsibilities forthe audit of the Standalone Financial Statements section of our report including inrelation to these matters. Accordingly our audit included the performance of proceduresdesigned to respond to our assessment of the risks of material misstatement of theStandalone Financial Statements. The results of our audit procedures including theprocedures performed to address the matters below provide the basis for our audit opinionon the accompanying Standalone Financial

Statements.

Key audit matters How our audit addressed the key audit matter
(a) Impairment assessment of investment in subsidiary (as described in note 4 of the Standalone Financial Statements) Our audit procedures included the following:
As at March 31 2022 the Company has investment of Rs. 5549.49 lakhs in Cigniti Technologies Inc. USA which is tested for impairment annually using discounted cash-flow models of subsidiary's recoverable value compared to the carrying value. The determination of recoverable amounts of the Company's investments in the subsidiary relies on management's estimates of forecast of future cash flows and their judgment with respect to the forecast of the subsidiary's future performance. • We tested the design implementation and operative effectiveness of management's key internal controls over investment impairment assessment;
The inputs to the impairment testing model include: • We assessed the methodology applied by the Company in its impairment analysis. In making this assessment we also evaluated the competence professional qualification objectivity and independence of Company's specialists involved in the process;
• Projected revenue growth operating margins and operating cash-flows in the years 1-5; • With the assistance of a specialist we assessed the assumptions around the key drivers of the cash flow forecasts including discount rates expected growth rates and terminal growth rates used in consideration of the current and estimated future economic conditions;
Stable long-term growth rates beyond fiveyears and in perpetuity; and • We assessed the recoverable value headroom by performing sensitivity testing of key assumptions used;
• Discount rates that represent the current market assessment of the risks specific to the subsidiary taking into consideration the time value of money. • We discussed potential changes in key drivers as compared to previous year/ actual performance with management in order to evaluate whether the inputs and assumptions like projected revenue growth EBIDTA etc. used in the cash flow forecasts were suitable;
The impairment test model includes sensitivity testing of key assumptions including revenue growth operating margin and discount rate. • We tested the arithmetical accuracy of the impairment model; and
The impairment testing is considered a key audit matter because the assumptions on which the tests are based are highly judgmental and are affected by future market and economic conditions which are inherently uncertain and because of the materiality of the balance to the standalone financial statements as a whole. We assessed the adequacy of the related disclosures as described in note 4 to the Standalone Financial Statements.
Allowance for credit losses for trade receivables including unbilled revenue (as described in note 38A of the Standalone Financial Statements)
As at March 31 2022 the Company has outstanding trade receivables and unbilled revenue of Rs. 9637. 99 lakhs. The Company has determined the allowance for credit losses based on the ageing status and historical loss experience adjusted to reflect current and estimated future economic conditions. Our audit procedures included the following:
We considered this as key audit matter due to the materiality of the amounts and significant estimate and judgements as stated above. • We tested the design implementation and operative effectiveness of management's key internal controls over allowance for credit losses;
• We assessed the completeness and accuracy of the information used in the estimation of probability of default and tested historical payment record correspondences with customers and subsequent collection of the customers' balances; and
• We performed procedures to test the ageing of receivables tested the mathematical accuracy and computation of the allowance for credit losses and assessed the allowance for expected credit loss made by the management.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe Standalone Financial Statements and our auditor's report thereon.

Our opinion on the Standalone Financial Statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether such other informationis materially inconsistent with the

Standalone Financial Statements or our knowledge obtained in the audit or otherwiseappears to be materially misstated. If based on the work we have performed we concludethat there is a material misstatement of this other information we are required to reportthat fact. We have nothing to report in this regard.

Responsibilities of Management for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the Indian

Accounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation 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

Financial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Standalone Financial Statements Board of Directors 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.

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

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial

Statements.

As part of an audit 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 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether theCompanyhasadequateinternalfinancialcontrols 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 Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

Evaluate the overall presentation structure and content of the Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation. We communicate with those charged with governance regarding among othermatters 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 we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsfor the financial year ended March 31

2022 and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefitsof such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the Order.

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

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

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

(c) The 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) In our opinion the aforesaid Standalone Financial Statements comply with theAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 from being appointed as a director in terms of Section 164 (2) of theAct;

(f) With respect to the adequacy of the internal financial controls with reference toStandalone Financial

Statements and the operating effectiveness of such controls refer to our separateReport in "Annexure 2" to this report;

(g) In our opinion the managerial remuneration for the year ended March 31 2022 hasbeen paid/ provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act; (h) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 as amended in our opinion and to the best of our information andaccording to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Financial Statements Refer Note 41(c) to the StandaloneFinancial Statements;

ii. The Company did not have any long-term contracts including derivative contractsduring the year ended March 31 2022;

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

iv. a) The management has represented that to the best of its knowledge and belief nofunds have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the company to or in any other person orentity including foreign entities ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the

Intermediaries shall whether directly or indirectly lend or invest in other person orentity identified in any manner whatsoever by or on behalf of the Company ("UltimateBeneficiaries") guarantee security or the like on behalf of the UltimateBeneficiaries;

b) The management has represented that to the best of its knowledge and belief nofunds have been received by the company from any person or entity including foreignentities ("Funding Parties") with the understanding whether recorded inwriting or otherwise that the company shall whether directly or indirectly lend orinvest in other person or entity identified in any manner whatsoever by or on behalf ofthe Funding Parties ("Ultimate Beneficiaries") or like on behalf of the UltimateBeneficiaries; and

c) Based on the audit procedures that were considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (a) and (b) contain any material misstatement.

v. a) The final dividend paid by the Company during the year in respect of the samedeclared for the previous year is in accordance with section 123 of the Act to the extentit applies to payment of dividend.

b) As stated in note 13 to the standalone financial statements the Board ofDirectors of the Company have proposed final dividend for the year which is subject to theapproval of the members at the ensuing Annual General Meeting. The dividend declared is inaccordance with section 123 of the Act to the extent it applies to declaration ofdividend.

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Shankar Srinivasan
Partner
Place of Signature: Hyderabad Membership Number: 213271
Date: May 4 2022 UDIN: 22213271AIJRCL3525

Annexure ‘1' referred to in paragraph under the heading "Report on otherlegal and regulatory requirements" of our report of even date on the StandaloneFinancial Statements of Cigniti Technologies Limited ("the Company")

In terms of the information and explanations sought by us and given by the company andthe books of account and records examined by us in the normal course of audit and to thebest of our knowledge and belief we state that:

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

(a)(B) The Company has maintained proper records showing full particulars ofintangibles assets. (b)

All property plant and equipment have been physically verified by the managementduring the year and no material discrepancies were identified on such verification.

(c) The title deeds of immovable properties (other than properties where the Company isthe lessee and the lease agreements are duly executed in favour of the lessee) included inproperty plant and equipment are held in the name of the Company.

(d) The Company has not revalued its property plant and equipment (including right ofuse assets) or intangible assets during the year ended March 31 2022.

(e) There are no proceedings initiated or are pending against the Company for holdingany benami property under the Prohibition of Benami Property Transactions Act 1988 andrules made thereunder.

(ii) (a) The Company's business does not involve inventories. Accordingly therequirements to report under

3(ii)(a) of the Order is not applicable to the Company.

(b) As disclosed in note 15 to the standalone financial statements the Companyhas been sanctioned working capital limits in excess of Rs. five crores in aggregate frombanks during the year of security of current assets of the Company. The quarterlystatements filed by the Company with such banks are in agreement with the books ofaccounts of the Company. The Company does not have any working capital limits sanctionedfrom financial institutions.

(iii) During the year the investments made in companies are not prejudicial to theCompany's interest. During the year the Company has not provided loans advances in thenature of loans stood guarantee or provided security to companies firms LimitedLiability Partnerships or any other parties. Accordingly the provisions of clause 3(iii)of the Order to such extent is not applicable to the Company.

(iv) Investments in respect of which provisions of section186 of the Act are applicablehave been complied with by the Company. There are no loans guarantees and securitiesgiven in respect of which provisions of section 185 and 186 of the Act are applicable.

(v ) The Company has neither accepted any deposits from the public nor acceptedany amount which are deemed to be deposits within the meaning of Sections 73 to 76 of theAct and rules made thereunder to the extent applicable. Accordingly the requirement toreport on clause 3(v) of the Order is not applicable to the

Company.

(vi) The Company is not in the business of sale of any goods or provision of suchservices as prescribed by the Central Government for maintenance of cost records underSection 148(1) of the Act. Accordingly the requirement to report on clause 3(vi) of theOrder is not applicable to the Company.

(vii) (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income-tax duty ofcustoms goods and service tax and other statutory dues applicable to it. The provisionsrelating to sales tax duty of excise value added tax and cess are not applicable to theCompany. According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax goods andservice tax and other statutory dues were outstanding at the year end for a period ofmore than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofincome tax goods and service tax provident fund employees' state insurance customsduty cess and other statutory dues which have not been deposited on account of anydispute. (viii) The Company has not surrendered or disclosed any transaction previouslyunrecorded in the books of account in the tax assessments under the Income Tax Act 1961as income during the year. Accordingly the requirement to report on clause 3(viii) of theOrder is not applicable to the Company.

(ix) (a) The Company has not defaulted in repayment of loans or borrowing or in paymentof interest thereon to any lender.

(b) The Company has not been declared wilful defaulter by any bank or financialinstitution or government or any government authority.

(c) The Company did not have any term loans outstanding during the year. Accordinglythe requirement to report on clause (ix)(c) of the Order is not applicable to the Company.

(d) On an overall examination of the standalone financial statements of the Company nofunds raised on short-term basis have been used for long-term purposes by the Company.

(e) On an overall examination of the standalone financial statements of the Companythe Company has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries. The Company does not have any associate or joint venture.(f) The Company has not raised loans during the year on the pledge of securities held inits subsidiaries.

Hence the requirement to report on clause (ix)(f) of the Order is not applicable tothe Company.

(x) (a) The Company has not raised any money during the year by way of public offer(including debt instruments). Accordingly the requirement to report on clause 3(x)(a) ofthe Order is not applicable to the Company.

(b) The Company has not made any preferential allotment or private placement of shares/fully or partially or optionally convertible debentures during the year under audit.Accordingly the requirement to report on clause 3(x)(b) of the Order is not applicable tothe Company.

(xi) (a) No fraud by the Company or no fraud on the Company has been noticed orreported during the year.

(b) During the year no report under sub-section (12) of section 143 of the Act hasbeen filed by secretarial auditor or by us in Form ADT 4 as prescribed under Rule 13 ofCompanies (Audit and Auditors) Rules 2014 with the Central Government.

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

(xii) The Company is not a nidhi company as per the provisions of the Act. Accordinglythe requirement to report on clause 3(xii) of the Order is not applicable to the Company.

(xiii) Transactions with the related parties are in compliance with section 177 and 188of the Act where applicable and the details have been disclosed in the notes to thestandalone financial statements as required by the applicable accounting standards.

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

(b) The internal audit reports of the Company issued till the date of the audit reportfor the period under audit have been considered by us.

(xv) The Company has not entered into any non-cash transactions with directors orpersons connected with its directors. Accordingly the requirement to report on clause3(xv) of the Order is not applicable to the

Company.

(xvi) (a) The provisions of section 45-IA of the Reserve Bank of India Act 1934 arenot applicable to the Company.

Accordingly the requirement to report on clause (xvi)(a) of the Order is notapplicable to the Company. (b) The Company has not conducted any Non-Banking Financial orHousing Finance activities without obtained a valid Certificate of Registration (CoR) fromthe Reserve Bank of India as per the Reserve Bank of India Act 1934.

(c) The Company is not a Core Investment Company as defined in the regulations made byReserve Bank of India. Accordingly the requirement to report on clause 3(xvi) of theOrder is not applicable to the Company.

(d) There is no Core Investment Company as part of the Group hence the requirement toreport on clause

3(xvi) of the Order is not applicable to the Company.

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

(xviii)There has been no resignation of the statutory auditors during the year andaccordingly requirement to report on Clause 3(xviii) of the Order is not applicable to theCompany.

(xix) On the basis of the financial ratios disclosed in note 42 to thestandalone financial statements ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the standalonefinancial statements our knowledge of the Board of Directors' and management's 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 Company is not capable of meeting its liabilities existingat the date of balance sheet as and when they fall due within a period of one year fromthe balance sheet date. We however state that this is not an assurance as to the futureviability of the Company. We further state that our reporting is based on the facts 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) (a) In respect of other than ongoing projects there are no unspent amounts thatare required to be transferred to a fund specified in Schedule VII of the Act incompliance with second proviso to sub section 5 of section 135 of the Act. This matter hasbeen disclosed in note 27 to the standalone financial statements.

(b) All amounts that are unspent under section 5 of section 135 of Companies Actpursuant to any ongoing project has been transferred to special account in compliance ofwith provisions of sub section 6 of section 135 of the said Act. This matter has beendisclosed in note 27 to the standalone financial statements.

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Shankar Srinivasan
Partner
Place of Signature: Hyderabad Membership Number: 213271
Date: May 4 2022 UDIN: 22213271AIJRCL3525

Annexure 2 to the Independent auditor's report of even date on the Standalone FinancialStatements of Cigniti Technologies Limited ("the Company")

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

We have audited the internal financial controls with reference to Standalone FinancialStatements of Cigniti

Technologies Limited ("the Company") as of March 31 2022 in conjunction withour audit of the Standalone

Financial Statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company are responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the ‘Guidance Note') issued by the Institute of Chartered Accountants ofIndia (‘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 to theCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to Standalone Financial Statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditing asspecified under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both issued by ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internalfinancialcontrols with reference toStandalone Financial Statements was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to Standalone Financial Statements andtheir operating effectiveness. Our audit of internal financial controls with reference toStandalone Financial Statements included obtaining an understanding of with reference toStandalone Financial Statements assessing the risk that a material internalfinancialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgement including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Company's internal financial controls withreference to Standalone FinancialStatements.

Meaning of Internal Financial Controls with reference to Standalone FinancialStatements

A company's internal financialcontrols with reference to Standalone FinancialStatements is a process designed to provide reasonable assurance regarding the reliabilityof financialreporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrols with reference to Standalone Financial Statements includes those policies andprocedures 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 as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.

Inherent Limitations of Internal Financial Controls with reference to StandaloneFinancial Statements

Because of the inherent limitations of internal financial controls with reference toStandalone Financial Statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to Standalone Financial Statements to future periods are subjectto the risk that the internal financial controls with reference to Standalone FinancialStatements may become inadequate of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has maintained in all material respects adequate internalfinancial controls with reference to Standalone Financial Statements and such internalfinancial controls with reference to Financial Statements were operating effectively as atMarch 31 2022 based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note issued by the ICAI.

Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Shankar Srinivasan
Partner
Place of Signature: Hyderabad Membership Number: 213271
Date: May 4 2022 UDIN: 22213271AIJRCL3525

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