You are here » Home » Companies » Company Overview » Dalmia Bharat Sugar & Industries Ltd

Dalmia Bharat Sugar & Industries Ltd.

BSE: 500097 Sector: Agri and agri inputs
NSE: DALMIASUG ISIN Code: INE495A01022
BSE 00:00 | 03 Dec 370.40 4.05
(1.11%)
OPEN

369.00

HIGH

373.45

LOW

364.35

NSE 00:00 | 03 Dec 370.25 4.85
(1.33%)
OPEN

367.00

HIGH

373.00

LOW

367.00

OPEN 369.00
PREVIOUS CLOSE 366.35
VOLUME 8930
52-Week high 516.00
52-Week low 131.00
P/E 11.09
Mkt Cap.(Rs cr) 2,998
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 369.00
CLOSE 366.35
VOLUME 8930
52-Week high 516.00
52-Week low 131.00
P/E 11.09
Mkt Cap.(Rs cr) 2,998
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Dalmia Bharat Sugar & Industries Ltd. (DALMIASUG) - Auditors Report

Company auditors report

To

The Members of

Dalmia Bharat Sugar and Industries Limited

Report on the audit of the standalone financial statements

Opinion

We have audited the accompanying standalone financial statements of Dalmia Bharat Sugarand Industries Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2021 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flows for the year ended onthat date and notes to standalone financial statements including a summary of thesignificant 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 the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended thereof ("Ind AS") and other accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2021 and its profit totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor’sResponsibilities for the Audit of the standalone financial statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI’s Code ofEthics.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion 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 standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key Audit Matters Auditor’s Response
1. Recognition of Government subsidies/ Impact of government policies/ notifications on recognition of subsidy accruals/claims. Principal Audit Procedures
During the year Government has announced various incentive to sugar Companies due to depressed sugar prices in the market. The Company has recognised subsidy claims amounting to H189.66 crores. We understood and tested the design and operating effectiveness of controls as established by management in recognition and assessment of the recoverability of the claims.
We considered this as key audit matter because recognition of accruals/claims and assessment of recoverability of the claims is subject to significant judgement of the management. The area of judgement includes certainty in relation to the satisfaction of conditions specified in the notifications/policies collections provisions thereof likelihood of variation in the related computation rates and basis for determination of accruals/ claims. Company has formulated the policy for recognition of subsidy in the books of accounts and based on the same the company has accounted the income during the year.
For details: - Refer Note No. 39 (a) to the Financial Statements. We evaluated the management’s assessment regarding reasonable certainty for complying with the relevant conditions as specified in the notifications/policies and collections.
We considered the relevant notifications/policies issued by various authorities to ascertain the appropriateness of the recognition of accruals/ claims adjustments to claims already recognized pursuant to changes in the rates and basis for determination of claims.
The company has recognized the subsidy to the extent the company has complied with relevant notifications.
Based on the above procedures performed the management’s estimates related to recognition of subsidy accruals/claim and their recoverability are considered to be reasonable.

 

2. Determination of net realizable value of inventory of sugar as at the year ended March 31 2021 Principal Audit Procedures
As on March 31 2021 the Company has inventory of sugar with the carrying value H1187.87 Crores. The inventory of sugar is valued at the lower of cost and net realizable value. We understood and tested the design and operating effectiveness of controls as established by the management in determination of net realizable value of inventory of sugar.
We considered the inventory valuation of sugar as a key audit matter given the relative size of the balance in the financial statements and significant judgment involved in the consideration of factors such as minimum sale price monthly quota fluctuation in selling prices and the related notifications of the Government in determination of net realizable value. Assessing the appropriateness of Company’s accounting policy for valuation of finished goods and compliance of the policy with the requirements of the prevailing accounting standards.
For details: - Refer Note No 8 & 35 to the Financial Statements. We considered various factors including the actual selling price prevailing around and subsequent to the year-end minimum selling price monthly quota and other notifications of the Government of India initiatives taken by the Government with respect to sugar industries.
Compared the cost of the finished goods with the estimated net realizable value and checked if the finished goods were recorded at net realizable value where the cost was higher than the net realizable value.
For the purpose of determination of cost the Company has considered the prevailing market conditions.
Based on the above procedures performed the management’s determination of the net realizable value of the inventory of sugar as at the year end and comparison with cost for valuation of inventory is considered to be reasonable.

 

3. Change in method of depreciation Principal Audit Procedures
During the year the management has reviewed the pattern of accrual of benefits along with the commensurate depreciation method which should be followed to depreciate its plant and machinery; and has decided to change the method of depreciation from SLM (straight Line Method) to WDV (Written Down Value) for sugar and distillery segments. We understood and tested the design and operating effectiveness of controls as established by the management in determination of change in method of depreciation and accordingly the revised depreciation has been calculated based on the original useful life taking into account written down value method.
Due to this change the depreciation for the year ended 31st March 2021 is higher by H35.27 crores. Assessing the appropriateness of Company’s accounting policy for depreciation of plant and machinery and compliance of the policy with the requirements of the prevailing accounting standards.
We have considered the change in method of depreciation as a key audit matter given the relative size of the balance in the financial statements and significant judgment involved. For the purpose of determination of cost the Company has considered the pattern of accrual of benefits.
Refer note 4 of the standalone financial statements Based on the above procedures performed the management’s determination of change in method of depreciation and its computation is considered to be reasonable.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the other information. Theother information comprises the information included in the Management Discussion andAnalysis Board’s Report including Annexures to Board’s Report and CorporateGovernance but does not include the standalone financial statements and our auditor’sreport 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 the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

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

Management’s Responsibilities 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 totalcomprehensive income changes in equity and cash flows of the

Company in accordance with accounting principles generally accepted in India includingthe Indian Accounting Standards (Ind AS) specified under Section 133 of the Act read withthe Companies (Indian Accounting Standards) Rules 2015 as amended thereof.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalonefinancial 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 management is responsible forassessing the Company’s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

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

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also: Identify and assessthe risks of material misstatement of the standalone financial statements whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control.

Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the 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 theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor’s report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in

(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 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 alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships 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 statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor’s report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of Section 143(11) of theAct we give in "Annexure A "a statement on the matters specified in paragraphs3 and 4 of the Order.

2. As required by Section 143 (3) of the Act based on our audit 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 of the aforesaidstandalone financial statements;

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 statement of cash flows and the statement of changes in equity dealt with bythis 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 the Companies(Indian Accounting Standards) Rules 2015 as amended thereof;

e. On the basis of the written representations received from the directors as on March31 2021 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2021 from being appointed as a director in terms of Section164 (2) of the Act;

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlsover financial reporting;

g. With respect to the other matters to be included in the Auditor’s Report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of 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 as at March 31 2021 onits financial position in its standalone Ind AS financial statements – Refer Note 31to the standalone financial statements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts; and

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March 312021.

For NSBP & Co.
Chartered Accountants
Firm Registration No. 001075N
Deepak K. Aggarwal
Partner
Place: New Delhi Membership No: 095541
Date: May 24 2021 UDIN: - 21095541AAAAFC8971

Annexure A to the Independent Auditor’s Report to the members of Dalmia BharatSugar and Industries Limited on its standalone financial statements dated May 24 2021.

Report on the matters specified in paragraph 3 of the Companies (Auditor’s Report)Order 2016 ("the Order’) issued by the Central Government of India in terms ofsection 143(11) of the Companies Act 2013 ("the Act") as referred to inparagraph 1 of ‘Report on Other Legal and Regulatory Requirements’ section.

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

(b) The fixed assets are physically verified by the management according to a phasedprogram designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and nature of its assets.Pursuant to the program the fixed assets have been physically verified by the managementduring the year and no material discrepancies were noticed on such verificationdiscrepancies have duly been adjusted in the financials.

(c) In our opinion and according to the information and explanations given to us thetitle deeds of immovable properties are held in the name of the company except for 2.79acres (having gross block and net block of H0.13 Crores) of land at Salem for which alldues for transfer of land in favour of the Company have been paid and transfer of title inthe name of company is awaited.

ii. In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness except for goods-in-transit and stocks lying with third parties including stockat port. For stocks lying with third parties at the year-end written confirmations havebeen obtained and in respect of goods in-transit including port stock subsequent goodsreceipts have been verified or confirmations have been obtained from the parties. Thediscrepancies noticed on verification between the physical stocks and the book recordswere not material and have been properly dealt with in the books of account. In view ofthe lockdown restriction imposed by the Government our attendance at the physicalinventory verification done by the management was impracticable. Related alternate auditprocedures were therefore relied upon to obtain assurance over the existence and conditionof inventory at the year end.

iii. (a) The Company has granted unsecured loans to a company covered in the registermaintained under section 189 of the Act. In our opinion and according to the informationand explanations given to us the terms and conditions of the grants and loans is notprejudicial to the interest of the Company.

(b) The Company has granted loans re-payable on demand to party covered in the registermaintained under section 189 of the Act. As per information and explanations given to usthe company has not demanded repayment of such loans during the year and thus there is nodefault on these loans and advances. The payment of interest has been regular as per thecontractual terms.

(c) Since there is no overdue amount as on the date the relevant reporting is notapplicable.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act in respect ofloans and advances given and investments made. There were no loans granted during the yearunder section 185 of the Act.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted deposits from the public within the directives issued by theReserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act and the rules framed there under.

vi. We have broadly reviewed the Cost Accounting records maintained by the Companypursuant to the Rules prescribed by the Central Government for the maintenance of costrecords under sub-section (1) of section 148 of the Act and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate and complete.

vii. (a) According to the records of the Company examined by us and the information andexplanations given to us the Company is generally regular in depositing its undisputedstatutory dues including Provident Fund employees’ State Insurance Income-taxSales-tax Service Tax goods and service tax duty of customs duty of excise valueadded tax cess and any other statutory dues as applicable with the appropriateauthorities during the year and there are no such undisputed amounts payable which haveremained outstanding as at March 31 2021 for a period of more than six months from thedate they became payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income tax duty of customs goods andservice tax cess & value added tax which have not been deposited on account of anydispute except dues of service tax duty of excise and sales tax along with the forumwhere the dispute is pending as follows:

Name of Statue Nature of dues Forum where dispute is pending Period for which the amount relates Amount (in K Crores)*
Central Excise Act 1944 Demand of differential duty reversed under Rule 6 (3) (A). Assistant Commissioner LTU Delhi. 2012 to 2015 0.29
Central Excise Act 1944 Demand of duty on sale of Electricity. CESTAT Delhi April 2010 to June 2010 1.64
Central Excise Act 1944 Demand of duty on storage loss of R.S. and ENA. CESTAT Delhi December 2009 to March 2010 0.01
Central Excise Act 1944 Denial of cenvat credit on M.S. Pipes MS Angles Steel Channels Aluminium Sheets Bars & Rods etc. High Court Allahabad June 2005 to September 2005 0.04
Finance Act 1994 Denial of credit on Service tax paid by Sugar selling agent. Commissioner (A) LTU April 2011 to July 2014 0.18
Central Excise Act 1944 Demand of Interest on reversal of credit taken on Cement. Dy. Commissioner March 2006 to March 2007 0.06
Central Excise Act 1944 Denial of credit on Welding Electrodes. Commissioner(A) December 2009 to March 2010 0.01
Finance Act 1994 Denial of credit on Service tax paid by Sugar selling agent. Commissioner(A) April 2010 to July 2014 0.47
Finance Act 1994 Demand of Service tax on Commissioning & Installation charges. Dy. Commissioner 2006-07 & 2007-08 0.03
Central Excise Act 1944 Demand of differential duty reversed under Rule 6 (3) (A). Commissioner (A) 2012 to 2015 0.36
Finance Act 1994 Demand of Service tax on the Commission paid by Galilio on their system. Dy. Commissioner December 2008 to September 2009 0.02
Central Excise Act 1944 Denial of Cenvat Credit to erstwhile SDSSKL Rev. Authority 2004-2005 0.13
Finance Act 1994 Demand of Service tax on reimbursement of expenses received from various banks for the dividend a/c under Reverse charge mechanism. Additional Commissioner LTU New Delhi 2013-14 0.05
Central Sales Tax Entry tax demand Additional Commissioner ( Appeal) 2006-2007 0.11
Central Sales Tax Entry tax demand High Court Allahabad 2000-2001 0.03
Central Sales Tax Entry tax demand Additional Commissioner ( Appeal) Lucknow 2012-13 0.12
Central Sales Tax CST demand 1st Appeal Lucknow 2015-16 0.17

*Net of amount deposited.

viii. According to the information and explanations given to us and as per the booksand records examined by us the company has not defaulted in repayment of its dues to afinancial institution banks and Government. The Company has not taken any loans fromdebenture holders.

ix. According to the information and explanations given by the management the Companyhas not raised any monies by way of initial public offer or further public offer duringthe financial year or term loans and hence reporting under clause 3 (ix) of the Order isnot applicable.

x. During the course of our examination of the books and records of the Company carriedout in accordance with the generally accepted auditing practices in India we have neithercome across any instance of fraud on or by the Company or any fraud on the Company by itsofficers or employees has been noticed or reported during the year nor have we beeninformed of such case by the management.

xi. In our opinion and according to the information and explanations given to us themanagerial remuneration has been paid/ provided in accordance the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Act.

xii. The company is not a Nidhi company hence the related reporting requirement of theOrder are not applicable. xiii. In our opinion and according to the information andexplanations given to us during the course of audit transactions with the related partiesare in compliance with section 177 and section 188 of the Act and the details have beendisclosed in the notes to the standalone financial statements as required by theapplicable accounting standards.

xiv. As the Company has not made any preferential allotment and private placement ofshares or fully & partly convertible debentures during the year under review therequirement of section 42 of the Act are not applicable.

xv. In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with directors or persons connectedwith him. xvi. According to the information and explanations given to us the provisionsof section 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For NSBP & Co.
Chartered Accountants
Firm Registration No. 001075N
Deepak K. Aggarwal
Partner
Place: New Delhi Membership No: 095541
Date: May 24 2021 UDIN: - 21095541AAAAFC8971

Annexure B to the Independent Auditor’s Report to the members of Dalmia BharatSugar and Industries Limited (‘the Company’) on its standalone financialstatements dated May 24 2021.

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act") as referredto in paragraph 1(f) of ‘Report on Other Legal and Regulatory Requirements’section

We have audited the internal financial controls over financial reporting of DalmiaBharat Sugar and Industries Limited ("the Company") as of March 31 2021 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The management of the Company is responsible for establishing and maintaining internalfinancial controls based on "the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India" (the "ICAI").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting of the Company based on our audit.

We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing prescribed under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

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

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

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

c) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2021 based on the criteria forinternal financial control over financial reporting established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

For NSBP & Co.
Chartered Accountants
Firm Registration No. 001075N
Deepak K. Aggarwal
Partner
Place: New Delhi Membership No: 095541
Date: May 24 2021 UDIN: - 21095541AAAAFC8971

.