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Diamines & Chemicals Ltd.

BSE: 500120 Sector: Industrials
NSE: N.A. ISIN Code: INE591D01014
BSE 09:38 | 06 Oct 503.60 4.55
(0.91%)
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499.90

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504.80

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496.00

NSE 05:30 | 01 Jan Diamines & Chemicals Ltd
OPEN 499.90
PREVIOUS CLOSE 499.05
VOLUME 544
52-Week high 574.00
52-Week low 229.00
P/E 20.50
Mkt Cap.(Rs cr) 493
Buy Price 500.75
Buy Qty 5.00
Sell Price 503.60
Sell Qty 5.00
OPEN 499.90
CLOSE 499.05
VOLUME 544
52-Week high 574.00
52-Week low 229.00
P/E 20.50
Mkt Cap.(Rs cr) 493
Buy Price 500.75
Buy Qty 5.00
Sell Price 503.60
Sell Qty 5.00

Diamines & Chemicals Ltd. (DIAMINESCHEM) - Auditors Report

Company auditors report

To the Members of

Diamines and Chemicals Limited

Report on the Audit of the Standalone financial statements Opinion

We have audited the accompanying standalone financial statements of Diamines andChemicals Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2022 the Statement of Profit and Loss including Other Comprehensive income theStatement of Changes in Equity and the Statement of Cash Flows for the year then endedand notes 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 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 specified under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended (‘Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2022 and total comprehensiveincome (comprising of profit and other comprehensive income) changes in equity and itscashflows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditors'Responsibilities 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 together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules made 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.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of these 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 donot provide a separateopinion on these matters. We have determined the matter described below to be the keyaudit matter to be communicated in our report.

Sr. Key Audit Matter How our audit addressed the key audit matter
No.
1 Litigations and claims Our audit procedures inter alia included the following:
(Refer to note 36(c) to the standalone financial statements)
The cases are pending with multiple tax authorities like Income Tax Excise/Service Tax and Provident Fund Authority etc. ? Evaluation of management's judgment of tax risks estimates of tax exposures other claims and contingencies. Past and current experience with the tax authorities and management's response on the subject matter were used to assess the appropriateness of management's best estimate of the most likely outcome of each uncertain contingent liability.
In normal course of business financial exposures may arise from pending proceedings and from litigation and claims. Whether a claim needs to be recognised as liability or disclosed as contingent liability in the standalone financial statements is dependent on number of significant assumptions and judgments. The amounts involved are potentially significant and determining the amount if any to be recognised or disclosed in the standalone financial statements is inherently subjective. ? Understanding the current status of the tax assessments & other litigations and discussing selected matters with the entity's management.
? Assessing the entity's assumptions and estimates in respect of claims included in the contingent liabilities disclosed in the standalone financial statements.
We considered the above area as a key audit matter due to associated uncertainty related to the outcome of these matters and application of material judgement in interpretation of law. ? Assessment of the probability of negative result of litigation and the reliability of estimates of related obligations.
Conclusion:
Based on procedure described above we did not identify any material exceptions relating to management's assertions and treatment presentation and disclosure of the subject matter in the standalone financial statements.

Information Other than the Standalone Financial Statements and Auditors' Report Thereon

The Company's Board of Directors is responsible for preparation of the otherinformation. The other information comprises the information included in the Board'sReport including Annexures to Board's Report Management Discussion and Analysis/Corporate Governance Report and Shareholder's Information but does not include thestandalone financial statements and our auditors' report thereon.The above-referredinformation is expected to be made available to us after the date of this audit report.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 in the audit or otherwise appears to be materially misstated.

When we read the information if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance andtake appropriate actions necessitated by the circumstances and the applicable laws andregulations.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial 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 cashflows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (IndAS) prescribed under section 133 of the Act. 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 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements 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.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditors' 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 auditors' 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 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 standalone financial statements inplace and the operating effectiveness of such controls.

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

- 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 auditors' 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 ourauditors' 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 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 financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors' report unless law or regulation precludes public disclosure about thematters or when 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 benefits of 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 "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that: a. we have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit; b. in our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c. the Balance Sheet the Statement of Profit and Lossincluding other comprehensive income the Statement of Changes in Equity and the Statementof Cash Flows dealt with by this Report are in agreement with the books of account; d. inour opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards (Ind AS) prescribed under Section 133 of the Act; e. on the basis ofthe written representations received from the directors as on March 31 2022 taken onrecord by the Board of Directors none of the directors is disqualified as on March 312022 from being appointed as a director in terms of Section 164(2) of the Act; f. withrespect to the adequacy of the internal financial controls with reference to standalonefinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B"; g. with respect to the othermatters to be included in the Auditors' Report in accordance with the requirements ofsection 197(16) of the Act as amended: in our opinion and to the best of our informationand according to the explanations given to us the remuneration paid by the Company to itsdirectors during the year is in accordance with the provisions of section 197 of the Act;and h. with respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us: i. theCompany has disclosed the impact of pending litigations on its financial position in itsstandalone financial statements– Refer Note 36(c) to the standalone financialstatements; ii. the Company did not have any long term contracts including derivativecontracts as at March 31 2022 for which there were any material foreseeable losses; iii.there has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company. iv. (a) The management hasrepresented that to the best of its knowledge and belief no funds (which are materialeither individually or in the aggregate) have been advanced or loaned or invested (eitherfrom borrowed funds or share premium or any other sources or kind of funds) by the Companyto or in any other person or entity including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of thecompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries; (b) The management has represented that tothe best of its knowledge and belief no funds (which are material either individually orin the aggregate) have been received by the Company from any person or entity includingforeign entity ("Funding Parties") with the understanding whether recorded inwriting or otherwise that the company shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Party ("Ultimate Beneficiaries") or provide any guarantee securityor the like on behalf of the Ultimate Beneficiaries;

(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement. v. As stated in Note 15 (iii) to thestandalone financial statements (a) The final dividend proposed in the previous yeardeclared and paid by the Company during the year is in accordance with Section 123 of theAct as applicable.

(b) The Board of Directors of the Company has proposed final dividend for the yearwhich is subject to the approval of the members at the ensuing Annual General Meeting. Theamount of dividend proposed is in accordance with section 123 of the Act as applicable.

For K.C. Mehta & Co.
Chartered Accountants
Firm's Registration No. 106237W
Neela R. Shah
Partner
Membership No. 045027
UDIN: 22045027AIUFUE4155
Place : Vadodara
Date : May 11 2022

"ANNEXURE A" TO THE INDEPENDENT AUDITORS' REPORT

The annexure referred to in our Independent Auditors' Report to the members of Diaminesand Chemicals Limited ("the Company") on the standalone financial statementsfor the year ended March 31 2022 we report that: i. (a) (A) The Company has maintainedproper records showing full particulars including quantitative details and situation ofProperty Plant and Equipment.

(B) The Company has maintained proper records showing full particulars of intangibleassets. (b) The Company has a regular programme of physical verification of its PropertyPlant and Equipment by which Property Plant and Equipment are verified in a phased mannerover a period of three years. In accordance with this programme certain Property Plantand Equipment were verified during the year and no material discrepancies were noticed onsuch verification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of records of the Company the title/ lease deeds of all the immovableproperties (other than properties where the Company is the lessee and the leaseagreements are duly executed in favour of the lessee) disclosed in the financialstatements are held in the name of the Company.

(d) The Company has not revalued any of its Property Plant and Equipment during theyear and hence reporting under clause 3(i)(d) of the Order is not applicable to theCompany.

(e) No proceedings have been initiated during the year or are pending against theCompany as at March 31 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (as amended in 2016) and rules made thereunder. ii. (a) In ouropinion and according to the information and explanations given to us physicalverification of inventory has been conducted at reasonable intervals by the management. Inour opinion the coverage and procedure of such verification by the management isappropriate and discrepancies noticed were not in excess of 10% or more in aggregate foreach class of inventory and same have been properly dealt with in the books of account.

(b) According to the information and explanations given to us the company has beensanctioned working capital limits in excess of five crore rupees in aggregate from bankson the basis of security of current assets and the quarterly returns or statements filedby the company with such banks are in agreement with the books of account of the Company.iii. The Company has made investments in companies and Limited Liability Partnershipduring the year in respect of which: (a) The Company has not provided any loans oradvances in the nature of loans or stood guarantee or provided security to any otherentity during the year and hence reporting under clause 3(iii)(a) (c) (d) (e) and (f)of the Order is not applicable to the Company.

(b) According to the information and explanations given to us in our opinion theinvestments made during the year are not prejudicial to the Company's interest. iv. TheCompany has not granted any loans or provided any guarantees or security to the partiescovered under section 185 of the Act. In our opinion and according to the information andexplanation given to us the Company has complied with the provisions of section 186 ofthe Act in respect of the Investments made. v. According to the information andexplanations given to us the Company has not accepted any deposits during the year fromthe public within the meaning of provisions of section 73 to 76 of the Act and the rulesframed thereunder or under the directives issued by the Reserve Bank of India andtherefore reporting under clause (v) of the Order is not applicable to the Company.

vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe order of the Central Government for maintenance of cost records under section 148(1)of the Companies Act 2013 and are of the opinion that prima facie the prescribed recordshave been made and maintained.

We have however not made a detailed examination of the records with a view todetermining whether they are accurate or complete.

vii. (a) In our opinion and according to the information and explanations given to usthe Company has been regular in depositing with appropriate authorities undisputedstatutory dues including provident fund income-tax duty of customs cess goods andservices tax and any other statutory dues applicable to it. Further no undisputed amountspayable in respect of income tax duty of customs duty of excise goods and services taxcess and other statutory dues were in arrears as at March 31 2022 for a period of morethan six months from the date they become payable.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no disputed dues in respect of goodsand services tax which have not been deposited. According to the information andexplanations given to us the following are the particulars of Income tax Service taxduty of customs and duty of excise as at March 31 2022 which have not been deposited onaccount of dispute:

Name of the statute (Nature of disputed dues) Amount (Rs in lakhs) Period to which the amount relates Forum where pending
Income Tax Act 1961(Income Tax) 4.45 A.Y 2010-11 Income-tax Appellate Tribunal – Ahmedabad
Income Tax Act 1961 (Income Tax) 5.64 A.Y 2016-17 Commissioner of Income-Tax (Appeals) Vadodara
Income Tax Act 1961 (Income Tax) 38.75 A.Y 2017-18 Commissioner of Income-Tax (Appeals) Vadodara
Finance Act 1994 (Service tax/ Excise) 62.63 F.Y. 2004-05 to 2012-13 Customs Excise & Service Tax Appellate Tribunal (CESTAT) Ahmedabad.
Finance Act 1994 (Service tax/ Excise) 3.71 F.Y. 2011-12 to 2016-17 Superintendent - Central Excise Customs and Service Tax Vadodara-I

viii. There were no transactions relating to previously unrecorded income that havebeen surrendered or disclosed as income during the year in the assessments under theIncome Tax Act 1961 (43 of 1961). ix. (a) In our opinion and according to the informationand explanations given to us the Company has not defaulted in repayment of loans or otherborrowings or in the payment of 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 has not taken any term loan during the year and there are nooutstanding term loans at the beginning of the year and hence reporting under clause3(ix)(c) of the Order is not applicable to the Company.

(d) On an overall examination of the financial statements of the Company funds raisedon short-term basis have not been used during the year for long-term purposes by theCompany.

(e) On an overall examination of the financial statements of the Company the Companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its subsidiary. (f) The Company has not raised any loans during the year and hencereporting under clause 3(ix)(f) of the Order is not applicable to the Company. x. (a)According to information and explanation given to us the Company has not raised any moneyby way of initial public offer or further public offer (including debt instruments) duringthe year and hence reporting under clause 3(x)(a) of the Order is not applicable to theCompany.

(b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause 3(x)(b) of the Order is not applicable to the Company. xi. (a) Tothe best of our knowledge and according to information and explanations given to us nomaterial fraud by the Company or on the Company has been noticed or reported during theyear.

(b) No report under sub-section (12) of section 143 of the Companies Act has been filedin Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government during the year and upto the date of this report.

(c) As represented to us by the management there are no whistle blower complaintsreceived by the Company during the year. xii. In our opinion the Company is not a Nidhicompany and therefore reporting under clause (xii) of the Order is not applicable to theCompany. xiii. In our opinion and according to the information and explanations given tous transactions with the related parties are in compliance with sections 177 and 188 ofthe Act where applicable and the details of such transactions have been disclosed in thefinancial statements as required by the applicable Indian accounting standards. xiv. (a)In our opinion and based on our examination the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date in determining the nature timing and extent ofour audit procedures. xv In our opinion and according to the information and explanationsgiven to us the Company has not entered into non-cash transactions with directors orpersons connected with him. Accordingly reporting under clause (xv) of the Order are notapplicable to the Company. xvi (a) In our opinion and according to the information andexplanations given to us the Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934. Hence reporting under clause 3(xvi)(a) (b) and(c) of the Order is not applicable to the Company.

(d) In our opinion and according to the information and explanations given to us thereis no core investment company within the Group (as defined in the Core InvestmentCompanies (Reserve Bank) Directions 2016) and accordingly reporting under clause3(xvi)(d) of the Order is not applicable to the Company. xvii The Company has not incurredcash losses during the financial year covered by our audit and the immediately precedingfinancial year. xviii There has been no resignation of the statutory auditors of theCompany during the year and accordingly this clause is not applicable.

xix In our opinion and according to the information and explanations given to us onthe basis of the financial ratios ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the financialstatements and our knowledge of the Board of Directors and Management plans and based onour examination of the evidence supporting the assumptions nothing has come to ourattention which causes us to believe that any material uncertainty exists as on the dateof the audit report indicating that company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due. xx (a) There areno unspent amounts towards Corporate Social Responsibility (CSR) on other than ongoingprojects requiring a transfer to a Fund specified in Schedule VII to the Companies Act incompliance with second proviso to sub-section (5) of Section 135 of the said Act.Accordingly reporting under clause (3)(xx)(a) of the Order is not applicable for theyear.

(b) The Company does not have any ongoing project for Corporate Social Responsibility(CSR) and accordingly reporting under clause (3)(xx)(b) of the Order is not applicable forthe year. xxi There are no qualifications or adverse remarks in the Companies (Auditor'sReport) Order 2020 (CARO) report of the company included in the consolidated financialstatements.

For K.C. Mehta & Co.
Chartered Accountants
Firm's Registration No. 106237W
Neela R. Shah
Partner
Membership No. 045027
UDIN: 22045027AIUFUE4155
Place : Vadodara
Date : May 11 2022

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Diamines and Chemicals Limited onthe standalone financial statements of even date)

Report on the Internal Financial Controls with reference to standalone financialstatements under Clause(i) of Sub section 3 of Section 143 of the Act.

We have audited the internal financial controls with reference to standalone financialstatements of Diamines and Chemicals Limited ("the Company") as of March31 2022 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control based on the internal control withreference to standalone financial statements criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India ("ICAI"). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.

Auditors' 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 on Audit of Internal FinancialControls over Financial Reporting (the "Guidance note") and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of theCompanies Act to the extent applicable to an audit of internal financial controls bothapplicable to an audit of Internal Financial Controls with reference to standaloneFinancial Statement and both issued by the 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 internal financial controls with reference tostandalone financial statements were 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 internal financialcontrols with reference to standalone financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors' judgement including the assessment of the risks of materialmisstatement of the standalone financial 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 Company's internal financial controls withreference to standalone financial statements.

Meaning of Internal Financial Controls with reference to standalone financialstatements

A Company's internal financial controls with reference to standalone financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of standalone financial statements for externalpurposes in accordance with generally accepted accounting principles. A Company's internalfinancial controls with reference to standalone financial statements includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe Company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of standalone financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorisations of management and directors of theCompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the standalone 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 control with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to standalone financial statements and such internal financialcontrols with reference to standalone financial statements were operating effectively asat March 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 on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants ofIndia.

For K.C. Mehta & Co.
Chartered Accountants
Firm's Registration No. 106237W
Neela R. Shah
Partner
Membership No. 045027
UDIN: 22045027AIUFUE4155
Place : Vadodara
Date : May 11 2022

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