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Cummins India Ltd.

BSE: 500480 Sector: Engineering
NSE: CUMMINSIND ISIN Code: INE298A01020
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VOLUME 19162
52-Week high 1065.00
52-Week low 552.90
P/E 33.59
Mkt Cap.(Rs cr) 25,969
Buy Price 936.15
Buy Qty 28.00
Sell Price 937.10
Sell Qty 1.00
OPEN 926.00
CLOSE 924.55
VOLUME 19162
52-Week high 1065.00
52-Week low 552.90
P/E 33.59
Mkt Cap.(Rs cr) 25,969
Buy Price 936.15
Buy Qty 28.00
Sell Price 937.10
Sell Qty 1.00

Cummins India Ltd. (CUMMINSIND) - Auditors Report

Company auditors report

To the Members of Cummins India Limited

Report on the Audit of the Standalone Ind AS Financial Statements Opinion

We have audited the accompanying standalone Ind AS financial statements of CumminsIndia Limited ("the Company") which comprise the Balance sheet as at March 312021 the Statement of Profit and Loss including Other Comprehensive Income the CashFlow Statement and the Statement of Changes in Equity for the year then ended and notesto the standalone Ind AS financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 as amended ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021its profit including other comprehensive income its cash flows and the changes in equityfor the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the ‘Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements' sectionof our report. We are independent of the Company in accordance with the ‘Code ofEthics' issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the standalone Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements for the financialyear ended March 31 2021. These matters were addressed in the context of our audit of thestandalone Ind AS financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. For each matter below ourdescription of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the standalone Ind AS financial statementssection of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the standalone Ind AS financial statements. The results of ouraudit procedures including the procedures performed to address the matters below providethe basis for our audit opinion on the accompanying standalone Ind AS financialstatements.

Key audit matters How our audit addressed the key audit matter
Revenue recognition (refer note 1(i) (accounting policy) note 26 (financial disclosures) and note 35 (significant judgements and estimates) to the standalone Ind AS financial statements) Our audit procedures included:
Revenue for the year ended March 31 2021 amounted to Rs. 432924 lakhs. We obtained and read a sample of customer contracts and confirmed our understanding of the Company's sales process from initiation to collection of receivables including design and implementation of controls and tested the operating effectiveness of these controls.
Revenue is recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. The timing of such revenue recognition in case of sale of goods is when the control over the same is transferred to the customer. We read and understood the Company's accounting policy for recognition of revenue.
The Company uses a variety of shipment terms with customers across its operating markets and this has an impact on the timing of revenue recognition. We performed transaction testing based on a representative sampling of the sales orders including transactions occurring at and around the year end to assess identification and satisfaction of performance obligations for revenue recognition. We performed sales cut off procedures by agreeing deliveries occurring around the year end to supporting documentation. We also considered the impact of local and global restrictions on account of the COVID-19 pandemic on sales cut off procedures.
Given the nature of industry in which the Company operates and the variety of shipment terms with customers along with local and global restrictions on account of the COVID-19 pandemic at the year end ascertainment of timing of revenue recognition is a key focus area for the audit. Compared revenue with historical trends and where appropriate conducted further enquiries and testing. We assessed the disclosures made with respect to revenue in the standalone Ind AS financial statements.
Due to the significance of revenue and judgement involved in the timing of revenue recognition this is considered as a key audit matter.
Significant judgements and estimates in ascertaining warranty provision (refer note 1(n) (accounting policy) note 19 and note 39(i) (financial disclosures) and note 35 (significant judgements and estimates) to the standalone Ind AS financial statements) Our audit procedures included:
The Company issues product warranties under which the performance of products delivered is generally guaranteed for a certain period or term.
The reserve for product warranties includes the expected costs of warranty obligations imposed by the contract as well as the expected costs for additional policy coverage. In addition the Company periodically initiates voluntary service to address various customer satisfaction safety and emissions issues related to engines sold. The estimated future costs of the service are based primarily on historical claim experience for the Company's engines along with the Company's assessment of any impact of the COVID-19 pandemic. We obtained understanding of the warranty process and the assumptions used by the management in the process of calculation of warranty provision including design and implementation of controls testing of management review controls and tested the operating effectiveness of these controls.
We have considered this as a key audit matter on account of the significant assumptions estimates and judgement involved in calculation of the provision which can materially affect the levels of provisions recorded in the standalone Ind AS financial statements. We evaluated management's methodology and assumptions used in the warranty provision calculations and assessed the impact of any changes to the terms of warranty if any on account of the COVID-19 pandemic.
We tested completeness arithmetical accuracy and validity of the data used in the warranty calculations. We assessed the disclosure of warranty provision made in the standalone Ind AS financial statements.
Transactions with related parties (refer note 41(financial disclosures) to the standalone Ind AS financial statements) Our audit procedures included:
The Company has various related party transactions which include amongst others sale and purchase of goods/services and services rendered to and received from its subsidiary associate joint ventures and other related parties. We obtained an understanding of the Company's policies and procedures in respect of identification approval accounting and disclosure of related parties and transactions. We also understood design and implementation of controls and tested the operating effectiveness of these controls.
In view of high volume of business transactions with related parties we identified accuracy completeness and compliance requirements [under the provisions of the Act and Listing Obligations and Disclosure Requirements (LODR)] of related party transactions as a key audit matter. Obtained a complete list of related parties from the management and traced the related parties to declarations given by directors where applicable and to note 41 of the standalone Ind AS financial statements
Read minutes of the meetings of the Board of Directors and Audit Committee and assessed whether approvals have been obtained by the management as required by Act and LODR.
We assessed the management's evaluation of compliance with the provisions of Section 177 and Section 188 of the Act and LODR.
We assessed the management's reconciliations with related parties for balances outstanding as at the year end.
We read the status of tax assessments to assess litigations with respect to related party transactions.
We evaluated the disclosures in accordance with Ind AS 24 Related Party Disclosures in the standalone Ind AS financial statements through review of statutory information books and records and other documents on a test check basis.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Chairman's statement ManagingDirector's statement Director's Report including Annexures to the Director's Report andthe Business Responsibility Report of the Annual Report of the Company but does notinclude the standalone Ind AS financial statements and our auditor's report thereon.

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

In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management and Those charged with Governance for the Standalone IndAS Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone Ind AS financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian 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 Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

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

Those charged with governance are also responsible for overseeing the Company'sfinancial reporting process.

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

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

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

z Identify and assess the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

z Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

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

z Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

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

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone Ind AS financialstatements for the financial year ended March 31 2021 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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe 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 Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 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 tothese standalone Ind AS financial statements and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure 2" to this report;

(g) In our opinion the managerial remuneration for the year ended March 31 2021 hasbeen paid / provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act; and

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

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements – Refer note 36 to thestandalone Ind AS financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and iii. There has been no delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company.

Annexure 1 referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date on the standalone Ind ASfinancial statements

Re: Cummins India Limited ("the Company")

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) All fixed assets have not been physically verified by the management during theyear but there is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies were noticed on such verification.

(c) According to the information and explanations given by the management the titledeeds of immovable properties included in property plant and equipment right-of-useasset and investment properties are held in the name of the Company.

(ii) The inventory has been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification. Inventories lying with third parties have beenconfirmed by them as at year end and no material discrepancies were noticed in respect ofsuch confirmations.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Accordingly the provisions of clause 3(iii)(a) (b) and (c) of theOrder are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to usthere are no loans investments guarantees and securities given in respect of whichprovisions of section 185 and 186 of the Act are applicable and hence not commented upon.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Act related to the manufacture of engines gensets and spare partsand are of the opinion that prima facie the specified accounts and records have been madeand maintained. We have not however made a detailed examination of the same.

(vii) (a) Undisputed statutory dues including provident fund profession taxemployees' state insurance income-tax duty of custom goods and services tax cess andother statutory dues applicable have generally been regularly deposited with theappropriate authorities.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund profession tax employees' state insuranceincome-tax duty of custom goods and services tax cess and other statutory dues wereoutstanding at the year end for a period of more than six months from the date theybecame payable.

(c) According to the records of the Company the dues of income-tax sales-tax servicetax duty of custom duty of excise value added tax goods and services tax and cess onaccount of any dispute are as follows:

Name of the statute Nature of dues Amount (Rs. Lakhs) #* Period to which the amount pertains Forum where dispute is pending
Finance Act 1994 Demand for short / non- payment of Service tax 128 FY 2014-15 CESTAT
Finance Act 1994 Disallowance of CENVAT credit on input services 1 8 6 FY 2010-11 to FY 2015-16 CESTAT
Finance Act 1994 Rejection of refund claim Nil (Amount recoverable from department Rs. 90) FY 2017-18 CESTAT
Central Excise Act 1944 Rejection of rebate claim Nil (Amount recoverable from department Rs. 82) FY 2007-08 CESTAT
Customs Act 1962 Rejection of duty drawback claim 1296 FY 2005-06 to FY 2009-10 Commissioner Customs
Goods and Services Act 2017 Rejection of refund claim Nil (Amount recoverable Rs. 114) FY 2017-18 Commissioner (Appeals)
Goods and Services Act 2017 Rejection of refund claim Nil (Amount recoverable Rs. 187) FY 2018-19 Commissioner (Appeals)
Income Tax Act 1961 Demand on account of transfer pricing adjustments and other corporate tax disallowances 1209 FY 2014-15 Income tax Appellate Tribunal Pune
Income Tax Act 1961 Demand on account of various disallowances Nil (Net of amount recoverable from department Rs. 879) FY 2013-14 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Demand on account of various disallowances Nil (Net of amount recoverable from department Rs. 310) FY 2005-06 Income tax Appellate Tribunal Pune
The Maharashtra Sales Tax on Transfer of property in goods involved in the execution of works Contract (Re-enacted) Act 1989 Demand on account of Purchase Tax/Works contract Tax and surcharge thereon 183 (Net of amount recoverable from department Rs. 28) FY 1999-00 High Court Mumbai
The Central Sales Tax Act 1956 / Bombay Sales Tax Act 1959 (B.S.T.) / Maharashtra Value Added Tax Act 2002 Disallowances of sales tax declaration forms disallowances of set off and interest thereon taxation of sales turnover under B.S.T. Act disallowance of claim of VAT set-off and inter-state sale u/s 3(a) of C.S.T. Act 1956 502 (Net of amount paid under protest of Rs. 50 and refund amount recoverable from department Rs. 891) FY 2006-07 to FY 2008-09 Maharashtra Sales Tax Tribunal Pune
The Central Sales Tax Act 1956 / Bombay Sales Tax Act 1959 (B.S.T.) / Maharashtra Value Added Tax Act 2002 Disallowances of sales tax declaration forms disallowances of set off and interest thereon taxation of sales turnover under B.S.T. Act disallowance of claim of VAT set-off and inter-state sale u/s 3(a) of C.S.T. Act 1956 Nil (Net of amount paid under protest of Rs. 50 and refund amount recoverable from department Rs. 1598) FY 2004-05 and FY 2009-10 to FY 2015-16 Joint Commissioner of Sales Tax Appeal-1 Pune
Tamil Nadu Value Added Tax Act 2006 Disallowance of input tax credit on clearance to SEZ unit Nil (Net of amount paid under protest Rs. 160) FY 2009-10 to FY 2014-15 Sales Tax Appellate Tribunal Chennai
The West Bengal VAT Act 2003 Jharkhand Value Added Tax Act 2005 Levy of VAT on certain transactions Demand on account of sales suppression and difference between road permit value and actual stock transfer value 5 11 FY 2005-06 FY 2010-11 Joint Commissioner (Appeals) at Asansol Joint Commissioner (Appeals) at Ranchi
The Madhya Pradesh VAT Act 2002 Demand on account of disallowances 221 FY 2015-16 Assistant Commercial Tax Officer at Singrauli
The Central Sales Tax Act 1956 Demand on account of disallowances 1 3 FY 2015-16 Assistant Commercial Tax Officer at Singrauli
The Entry Tax Act 1976 Demand on account of disallowances 3 5 FY 2015-16 Assistant Commercial Tax Officer at Singrauli

(viii) In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowing to afinancial institution or bank. The Company has not issued any debentures.

(ix) According to the information and explanations given by the management the Companyhas not raised any money by way of initial public offer / further public offer / debtinstruments and term loans hence reporting under clause

(ix) is not applicable to the Company and hence not commented upon.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the Company or no material fraud onthe Company by the officers and employees of the Company has been noticed or reportedduring the year.

(xi) According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

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

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 of theAct where applicable and the details have been disclosed in the notes to the financialstatements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year andhence reporting requirements under clause 3(xiv) are not applicable to the Company andnot commented upon.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in section 192 of the Act.

(xvi) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

per Tridevlal Khandelwal

Partner

Membership Number: 501160

UDIN: 21501160AAAABR4600

Place : Pune

Date: May 26 2021

Annexure 2 referred to in paragraph 2 (f) under the heading "Report on Other Legaland Regulatory Requirements" of our report of even date on the Standalone Ind ASfinancial statements

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 over financial reporting of CumminsIndia Limited ("the Company") as of March 31 2021 in conjunction with our auditof the standalone Ind AS financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to the Company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors 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 Ind AS 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 the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls withreference to standalone Ind AS financial statements was established and maintained and ifsuch controls operated 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 Ind AS financial statementsand their operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining an understanding of internal financial controls withreference to standalone Ind AS financial statements assessing the risk that a materialweakness 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 we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls with reference tostandalone Ind AS financial statements.

Meaning of Internal Financial Controls with reference to Standalone Ind AS FinancialStatements

A company's internal financial control over financial reporting with reference to thesestandalone Ind AS financial statements is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingwith reference to these standalone Ind AS 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 Standalone Ind ASFinancial Statements

Because of the inherent limitations of internal financial controls with reference tostandalone Ind AS 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 Ind AS financial statements to future periods aresubject to the risk that the internal financial control over financial reporting withreference to these standalone Ind AS financial statements may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to standalone Ind AS financial statements and such internalfinancial controls with reference to standalone Ind AS financial statements were operatingeffectively as at March 31 2021 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note issued by the ICAI.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

per Tridevlal Khandelwal

Partner

Membership Number: 501160

UDIN: 21501160AAAABR4600

Place : Pune

Date: May 26 2021

.