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Emami Ltd.

BSE: 531162 Sector: Consumer
NSE: EMAMILTD ISIN Code: INE548C01032
BSE 00:00 | 14 Oct 550.40 8.90
(1.64%)
OPEN

540.25

HIGH

552.00

LOW

540.20

NSE 00:00 | 14 Oct 550.25 8.75
(1.62%)
OPEN

544.00

HIGH

551.95

LOW

540.10

OPEN 540.25
PREVIOUS CLOSE 541.50
VOLUME 21258
52-Week high 621.35
52-Week low 334.35
P/E 48.84
Mkt Cap.(Rs cr) 24,465
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 540.25
CLOSE 541.50
VOLUME 21258
52-Week high 621.35
52-Week low 334.35
P/E 48.84
Mkt Cap.(Rs cr) 24,465
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Emami Ltd. (EMAMILTD) - Auditors Report

Company auditors report

To the Members of Emami Limited

Report on the audit of the standalone Ind AS financial statementsOpinion

We have audited the accompanying standalone Ind AS financial statementsof Emami Limited ("the Company") which comprise the Balance sheet as at March31 2020 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 theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Companies Act_2013 as amended ("the Act") in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as atMarch_31_2020 its profit including other comprehensive income its cash flows and thechanges in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing (SAs) as specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the‘Auditor's Responsibilities for the Audit of the standalone Ind AS financialstatements' section of our report. We are independent of the Company in accordancewith the ‘Code of Ethics' issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone Ind AS financialstatements.

Emphasis of Matter

We draw attention to note 3.57 to the standalone Ind AS financialstatements which describes the uncertainties and potential impact of the covid-19pandemic on the Company's operations and results as assessed by the management. Theactual results may differ from such estimates depending on future developments. Ouropinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone Ind AS financial statements forthe financial year ended March 31 2020. These matters were addressed in the context ofour audit of the standalone Ind AS financial statements as a whole and in forming ouropinion thereon and we do not provide a separate opinion on these matters. For eachmatter below our description of how our audit addressed the matter is provided in thatcontext. 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 financialstatements section of our report including in relation to these matters. Accordingly ouraudit included the performance of procedures designed to respond to our assessment of therisks of material misstatement of the standalone Ind AS financial statements. The resultsof our audit procedures including the procedures performed to address the matters belowprovide the basis for our audit opinion on the accompanying standalone Ind AS financialstatements.

Key audit matters How our audit addressed the key audit matter
(a) Non-recognition of Unused Minimum Alternate standalone Ind AS financial statements) Tax ("MAT") Credit (as described in note 3.46 of
As at March 31 2020 the Company has unused MAT credit balance of H28681.82 lacs which has not been recognized in the books. Our audit procedures amongst others included the following:
Some of the manufacturing facilities of the Company are availing tax benefits under section 80IC / 80IE of Income Tax Act 1961 as a result of which the Company is paying taxes under MAT to the government basis book profits. • Understood the income tax computation process for normal tax and minimum alternate tax and reviewed controls around recognition of MAT credit. Evaluated the design and tested the effectiveness of relevant controls in this regard.
The credit of such taxes paid under MAT shall be allowed to be utilized in subsequent years when tax becomes payable on the total income in accordance with the normal provisions of the Act. • Reviewed management's assumptions that substantiate the probability that the unused MAT credit will not be recovered through taxable income under normal provision in future years and also assessed the tax planning strategies budgets and the plans prepared by the management and the relevant tax legislations.
In order to determine the utilization of such credit in future years the management has projected its book profits and tax profits; and based on such projections after considering the potential impact of • Assessed the historical accuracy of management's assumptions.
the pandemic MAT credit has not been recognized. • Evaluated the adequacy of the disclosures made by the Company in this regard in the standalone Ind AS financial statements.
Significant management judgement is required to determine the forecasted profits expected future market scenario economic conditions tax laws and the management's expansion plans and these factors impact the timing of utilization of MAT credits.
Accordingly the non-recognition of MAT credit basis the forecasted profits is determined to be a key audit matter in our audit of the standalone Ind AS financial statements.
Impairment assessment of Intangible assets (as described in note 3.53(v) of the standalone Ind AS financial statements)
The Company has significant intangible assets arising from the acquisition of brand trademark know-how etc. in the normal course of its business. Our audit procedures amongst others included the following:
There are indicators that the carrying value of the intangibles may not be recovered through its continuing use and hence the management has performed impairment testing in accordance with Ind AS 36. Recoverability of the intangible asset is based on projected cash flows over the remaining useful life of underlying intangible assets and their discounted present value (after considering terminal value) which are inherently highly judgmental and is subject to achieving forecasted results. • Tested the Company's internal controls around cash flow projections.
• Assessed the adequacy of the Company's valuation methodology applied in determining the recoverable amount.
• Evaluated the assumptions used in projecting cash flows and arriving at discounted cash flows. We also evaluated the adequacy of sensitivity analysis on key assumptions performed by the management after considering possible impact arising out of the pandemic. We involved specialists when performing these procedures.
Accordingly the impairment testing of intangible asset is considered as a key audit matter because the underlying assumptions including any possible impact arising out of the pandemic are highly judgmental and are affected by future market and economic conditions which are inherently uncertain. • Assessed the relevant disclosures made in the standalone Ind AS financial statements.
Revenue from sale of goods (as described in note 2.2.a note 3.29 and note 3.60 to the standalone Ind AS financial statements)
The Company recognizes revenues when control of the goods is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. In determining the sales price the Company considers the effects of rebates and discounts (variable consideration). The terms of arrangements in case of domestic and exports sales including the timing of transfer of control the nature of discount and rebates arrangements delivery specifications including incoterms create complexity and judgment in determining sales revenues. Our audit procedures included the following:
• Considered the adequacy of the Company's revenue recognition policy and its compliance in terms of Ind AS 115 ‘Revenue from contracts with customers'.
• Assessed the design and tested the operating e_ectiveness of internal financial controls related to revenue recognition.
• Performed sample tests of individual sales transaction and traced to sales invoices and other related documents. In respect of the samples selected tested that the revenue has been recognized in accordance with Ind AS 115.
The risk is therefore that revenue is not recognised in accordance with terms of Ind AS 115 ‘Revenue from contracts with customers' and accordingly it was determined to be a key audit matter in our audit of the standalone Ind AS financial statements. • Selected sample of sales transactions made pre- and post-year end agreed the period of revenue recognition to underlying documents.
• Selected samples of rebates and discounts during the year compared them with the supporting documents and performed re-calculation of those variable considerations as per scheme documents.
• Assessed the relevant disclosures made in the standalone Ind AS financial statements.

Other Information

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

Our opinion on the standalone Ind AS financial statements does notcover the other information and we do not express any form of assurance conclusionthereon.

In connection with our audit of the standalone Ind AS financialstatements our responsibility is to read the other information and in doing so considerwhether such other information is materially inconsistent with the financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Responsibilities of Management for the standalone Ind AS financialstatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standaloneInd AS financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) specified under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone Ind AS financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

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

Auditor's Responsibilities for the Audit of the standalone Ind ASfinancial statements

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

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

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

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the 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 thestandalone Ind AS financial statements including the disclosures and whether thestandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation.

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

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

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalone IndAS financial statements for the financial year ended March 31 2020 and are therefore thekey audit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits 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 of the Act we give in the "Annexure_1" a statement on thematters specified in paragraphs 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss including othercomprehensive income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Companies (Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from thedirectors as on March 31 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on March_31_2020 from being appointed as a director in termsof Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company with reference to these standalone Ind ASfinancial statements and the operating effectiveness of such controls refer to ourseparate Report in "Annexure 2" to this report;

(g) In our opinion the managerial remuneration for the year endedMarch 31 2020 has been paid / provided by the Company to its directors in accordance withthe provisions of section 197 read with Schedule V to the Act; (h) With respect to theother matters to be included in the Auditor's Report in accordance with Rule_ 11 ofthe Companies (Audit and Auditors) Rules 2014 as amended in our opinion and to the bestof our information and according to the explanations given to us: i. The Company hasdisclosed the impact of pending litigations on its financial position in its standaloneInd AS financial statements – Refer Note 3.28 note 3.38 and note 3.41 to thestandalone Ind AS financial statements; ii. The Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses; iii. There has been no delay in transferring amounts required to be transferredto the Investor Education and Protection Fund by the Company.

For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Sanjay Kumar Agarwal
Partner
Membership Number: 060352
UDIN: 20060352AAAACE4087
Place of Signature: Kolkata
Date: June 26 2020

Annexure 1 referred to in paragraph 1 of the section on "Report onother legal and regulatory requirements" of our report of even date on the standaloneInd AS financial statements of Emami Limited

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) All fixed assets have not been physically verified by themanagement during the year but there is a regular programme of verification of all thefixed assets over a period of three years which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. No material discrepancieswere noticed on such verification.

(c) According to the information and explanations given by themanagement the title deeds of immovable properties included in property plant andequipment are held in the name of the Company except for following 2 number of immovableproperties aggregating to H16.35 lacs as at March 31 2020 details of which are set outin note 3.1 to the standalone Ind AS financial statements.

Asset Class Gross Block Net Block
As at 31st March 2020 As at 31st March 2020 No. of cases
(in Rs Lacs) (in Rs Lacs)
Freehold 16.35 16.35 2
Land
Grand Total 16.35 16.35 2

(ii) The management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies were noticed on suchphysical verification.

(iii) (a) The Company has granted loans to one of its wholly ownedsubsidiary and one associate covered in the register maintained under section 189 of theCompanies Act 2013. In our opinion and according to the information and explanationsgiven to us the terms and conditions of the grant of such loans are not prejudicial tothe Company's interest.

(b) The Company has granted loans to two of its wholly ownedsubsidiaries (including loan granted to one of its wholly owned subsidiary in the previousyear) and one associate covered in the register maintained under section 189 of theCompanies Act 2013. The schedule of repayment of principal and payment of interest hasbeen stipulated for the loans granted and the receipt of interest is regular whereverdue. Repayment of principal has not fallen due during the year. (Refer note no 3.52 of thestandalone Ind AS financial statements for terms of repayment of the loans) (c) There areno amounts of loans granted to companies firms or other parties listed in the registermaintained under section 189 of the Companies Act 2013 which are overdue for more thanninety days.

(iv) In our opinion and according to the information and explanationsgiven to us provisions of section 185 and 186 of the Companies Act 2013 in respect ofloans and advances given investments made and guarantees and securities given have beencomplied with by the Company.

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

(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148(1) of the Companies Act 2013 and are of the opinion that primafacie the specified accounts and records have been made and maintained. We have nothowever made a detailed examination of the same.

(vii) (a) Undisputed statutory dues including provident fundemployees' state insurance income-tax goods and service tax duty of custom cessand other statutory dues have generally been regularly deposited with the appropriateauthorities except for clause (vii) (b) below. (b) According to the information andexplanations given to us undisputed dues in respect of provident fund employees'state insurance income-tax service tax sales-tax duty of custom duty of excise valueadded tax goods and service tax cess and other statutory dues which were outstanding atthe year end for a period of more than six months from the date they became payable areas follows:

Statement of Arrears of Statutory Dues Outstanding for More than SixMonths:

Name of the statute Nature of dues Amount (Rsin lacs) Period to which the amount relates (Financial Year) Due Date Date of Payment
PF Act Employer's and Employee's contribution to PF 31.48 April 2019 to August 2019 15th of the next month Paid subsequent to Balance Sheet date on various dates

(c) According to the records of the Company the dues outstanding ofincome-tax sales-tax service tax goods and service tax duty on custom duty of excisevalue added tax and cess on account of any dispute are as follows:

Name of the statute Nature of dues Amount (Rs in lacs) Period to which the amount relates (Financial Year) Forum where dispute is pending
Sales Tax and Central Various Sales tax 3084.35 1989-90 1993- Tribunal/ Supreme
Sales Tax related matters 94 to 2007-08 2009-10 to 2015-16 Court/ High Court/ DC(Appeal)/ Jt. Commissioner (Appeals)/ AC/ DC/ Appellate Deputy Commissioner
The Central Excise Act 1994 Excise duty demand 367.29 2008-09 to 2013-14 CESTAT / Assistant Commissioner
MP Entry Tax Act 1976 Entry Tax demand 9.28 2001-02 Supreme Court
The West Bengal Tax on Entry of Goods into Local Areas Act 2012. Entry Tax demand 622.82 2013-14 to 2016-17 High Court
Customs Act 1962 Custom Duty demand 25.39 2008-09 Commissioner (A)
Service Tax (Finance Service tax demand 325.88 2008-09 to Assistant
Act 1994) 2011-12 2015-16 Commissioner/
to 2017-18 Commissioner (A)

(viii) According to information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of loansor borrowings to banks or financial institution. The Company did not have any outstandingloans or borrowings dues in respect of government or dues to debenture holders during theyear.

(ix) According to the information and explanations given by themanagement the Company has not raised any money way of initial public offer / furtherpublic offer / debt instruments and term loans hence reporting under clause (ix) is notapplicable to the Company and hence not commented upon. (x) Based upon the auditprocedures performed for the purpose of reporting the true and fair view of the standaloneInd AS financial statements and according to the information and explanations given by themanagement we report that no fraud by the Company or on the Company by the officers andemployees of the Company has been noticed or reported during the year.

(xi) According to the information and explanations given by themanagement the managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.

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

(xiii) According to the information and explanations given by themanagement transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in thenotes to the standalone Ind AS financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and onan overall examination of the balance sheet the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and hence not commented upon.

(xv) According to information and explanations given by the managementthe Company has not entered into any non-cash transactions with directors or personsconnected with him as referred to in section 192 of Companies Act 2013.

(xvi) According to the information and explanations given to us theprovisions of section 45-IA of the Reserve Bank of India Act 1934 are notapplicable to the Company.

For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Sanjay Kumar Agarwal
Partner
Membership Number: 060352
UDIN: 20060352AAAACE4087
Place of Signature: Kolkata
Date: June 26 2020

Annexure 2 to the Independent Auditors's report of even date onthe standalone Ind AS financial statements of Emami Limited

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Emami Limited ("the Company") as of March_ 31_ 2020 in conjunctionwith our audit of the standalone Ind AS financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the 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 Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting with reference to these standaloneInd AS financial statements based on our audit. We conducted our audit in accordance withthe Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing as specified under section143(10) of the Companies Act_ 2013 to the extent applicable to an audit of internalfinancial controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting with reference to these standalone Ind ASfinancial statements was established and maintained and if such controls operatedeffectively in all material respects.

Ourauditinvolvesperformingprocedurestoobtainaudit evidence about theadequacy of the internal financial controls over financial reporting with reference tothese standalone Ind AS financial statements and their operating effectiveness. Our auditof internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting with reference tothese standalone Ind AS financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlsover financial reporting with reference to these standalone Ind AS financial statements.

Meaning of Internal Financial Controls Over Financial Reporting WithReference to these Ind AS Financial Statements

A company's internal financial control over financial reportingwith reference to these standalone Ind AS financial statements is a process designed toprovide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting with reference to these standalone Ind AS 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 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 materialeffect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting With Reference to these Standalone Ind AS Financial Statements Because of theinherent limitations of internal financial controls over financial reporting withreference to these standalone Ind AS financial statements including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting with reference to these standalonefinancial statements to future periods are subject to the risk that the internal financialcontrol over financial reporting with reference to these standalone Ind AS 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 haveadequate internal financial controls over

financial reporting with reference to these standalone Ind AS financialstatements and such internal financial controls over financial reporting with reference tothese standalone financial statements were operating effectively as at March_31_2020based on the internal control over financial reporting 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.

For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Sanjay Kumar Agarwal
Partner
Membership Number: 060352
UDIN: 20060352AAAACE4087
Place of Signature: Kolkata
Date: June 26 2020

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