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Envair Electrodyne Ltd.

BSE: 500246 Sector: Engineering
NSE: KIRLOSELEC ISIN Code: INE601C01013
BSE 00:00 | 23 Jan Envair Electrodyne Ltd
NSE 05:30 | 01 Jan Envair Electrodyne Ltd
OPEN 27.00
PREVIOUS CLOSE 27.00
VOLUME 50
52-Week high 50.55
52-Week low 19.00
P/E
Mkt Cap.(Rs cr) 8
Buy Price 27.10
Buy Qty 5.00
Sell Price 28.55
Sell Qty 1.00
OPEN 27.00
CLOSE 27.00
VOLUME 50
52-Week high 50.55
52-Week low 19.00
P/E
Mkt Cap.(Rs cr) 8
Buy Price 27.10
Buy Qty 5.00
Sell Price 28.55
Sell Qty 1.00

Envair Electrodyne Ltd. (KIRLOSELEC) - Auditors Report

Company auditors report

TO THE MEMBERS OF ENVAIR ELECTRODYNE LIMITED

Report on the Indian Accounting Standards (Ind AS)

Financial Statements

Qualified Opinion

1. We have audited the accompanying financial statements of ENVAIR ELECTRODYNE LIMITED(The Company) which comprise the Balance Sheet as at March 31 2019 the Statement ofProfit and Loss (including other comprehensive income) the Statement of Cash Flows andthe Statement of Changes in Equity for the year then ended and a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas "financial statements").

2. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Financial Statements give the information required by the Actinthe manner so required and except for the effects of the matters described in the basisfor qualified opinion paragraph give a true and fair view in conformity with the IndianAccounting Standards prescribed under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended ("Ind AS") and otheraccounting principles generally accepted in Indiaof the state of affairs of the Company asat March 31 2019 its loss (financial performance including other comprehensive income)its cash flows and the changes in equity for the year ended on that date.

Basis for opinion

3. We conducted our audit of the financial statements in accordance with the Standardson Auditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made there underand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.

Basis for Qualified Opinion Management's Responsibility for the Ind AS FinancialStatements

4. We invite attention to the Note 29.17 in financial statements stating that thebalances of parties and accounts under head trade receivable trade payable advances anddeposits are subject to confirmation and reconciliation. Financial impact of the same hasnot been ascertained. In view of this we were unable to determine whether any adjustmentsare necessary in respect of such balances.

Empasis of Matter

5. We invite attention to Note 29.3 in the financial statements explaining the basisfor preparation of financial statements on going concern assertions. This report is notqualified in this matter.

6. We invite attention to Note 29.25 in financial statements stating that aggregatesales tax liability for past years at the yearend is Rs. 80.05 lakhs following orders ofsales tax authorities for these years. The Company desires to seek benefit under amnestyscheme announced by the State Government in respect of outstanding sales tax liability.The Company has prepared application opting for the amnesty scheme an same shall besubmitted to sales tax authority in couple of days. The management assures compliance withthe conditions and mandate under amnesty scheme. After considering relief available underthe amnesty scheme as measured by the Company when its application is accepted salestax liability can be Rs. 25.50 lakhs as against aggregate demand of Rs. 80.05 lakhs. Incase the Company fails to get qualified for the benefits of the amnesty scheme it isliable to pay differential tax of Rs. 48.55 lakhs with interest. In view of the managementrepresentation that application under amnesty scheme shall be filed in a couple of daysand the confirmation regarding compliance with mandate of such amnesty scheme it has beendecided not to make provision for differential sales tax liability of Rs. 48.55 Lakhs.This report is not qualified in this matter.

7. We invite attention to the Note 29.28 in financial statements stating that theimpact of non-compliance with some of the Indian Accounting Standards (Ind AS) isinsignificant. The impact of same is not ascertained. This report is not qualified in thismatter.

8. As stated in Note 29.22 in the financial statements there is a change in method ofaccounting during the year in respect of provision of gratuity and leave encashment.Hitherto the said liability was provided on accrued basis now the liability is providedon the basis of actuarial valuation carried out the at the year end. This constitutes achange in method of accounting in respect of gratuity and leave encashment liability. Onaccount of aforesaid change the loss for the year and accumulated losses at the year endare higher by Rs. 0.53 lakhs and provision is overstated by Rs. 0.53 lakhs. This report isnot qualified in this matter. An audit also includes evaluating the appropriateness of theaccounting policies used and the reasonableness of the accounting estimates made by theCompany's Directors as well as evaluating the overall presentation of the Ind ASfinancial statements.

Key Audit Matters

17. Key audit matters are those matters that in our professional judgment were ofmost significance in our audit of the financial statements of the current period. Thesematters were addressed in the context of our audit of the financial statements as a wholeand in forming our opinion thereon and we do not provide a separate opinion on thesematters. We have determined the matters described below to be the key audit matters to becommunicated in our report.

Sr. No. Key Audit Matter Auditor's Response
1. Issue of Share Warrants during the year Principal Audit Procedures
The Company has issued Share Warrants during the year. The issue of Warrants has impact on ownership composition of the Company. Details have been stated in Note 11 in the Financial Statements. We have examined secretarial data and communication with the Stock Exchange and other authorities to confirm following of appropriate procedure for issue of Share Warrants.
Financial record bank statements and books of account and application forms have been verified for ascertaining actual realization of amounts for issue of Share Warrants and the terms and conditions attached to issue of share warrants.
2. Change in Management and Ownership of the Company Principal Audit Procedures
There is change in ownership and controlling interest in the Company. The earlier ownership group has transferred equity shares in the Company to the new owners and persons controlling the Company. We have examined secretarial data and communication with the Stock Exchange and other authorities to confirm following of appropriate procedure for transfer of Equity Share to ascertain the observance of due process of law for the purpose.
3. Verification of Employee Cost Principal Audit Procedures
There is increase in employee cost as compared with the previous accounting period. Our audit approach was a combination of test of internal controls and substantive procedures which included the following:
We have examined human resource records and accounts record to ascertain proper recognition of employee cost. We have noted composition of the cost and checked underlying record to confirm appropriateness of the cost.
4. Cost of material consumption Principal Audit Procedures
There is increase in employee cost as compared with the previous accounting period. Our audit approach was a combination of test of internal controls and substantive procedures which included the following:
We have examined purchase and accounts record to ascertain proper recognition of materials cost. We have noted composition of the cost and checked underlying record to confirm appropriateness of the cost.

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

10. The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse 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.

11 Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese 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 in the Companies(Indian Accounting Standards) Rules 2015 under Section 133 of the Act.

12 This responsibility also includes the 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 ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error the Balance Sheet the Statement of Profit and Loss the Statementof Cash Flows and the Statement of Changes in Equity dealt with by this Report are inagreement with the books of account;

13 In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Statements

27 Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

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

i. Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

ii. Obtain an understanding of internal financial controls 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.

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

iv. Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

v. Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

vi. The Company does not have any pending litigations having impact on its financialposition in its Ind AS financial statements except in Notes 25.2 of financial statements.

vii. The Company did not have any long-term contract including derivative contracthaving any material foreseeable losses for which provision was required to be made underthe applicable law or accounting standard.

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

16. Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

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

18. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

19. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror 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

20 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 theAct we give in the "Annexure A" a statement on the matters specified inparagraph 3 and 4 of the Order to the extent applicable.

21. 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 except as statedin Note 29.17 in the financial statements the balances of accounts and parties underhead trade receivable payable deposits and loans & advances are subject toconfirmation and reconciliation.

b. In our opinion except for the effect of the matters described in the Basis forQualified Opinion paragraph above proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;

c. The Balance Sheet the Statement of Profit and Loss the Statement of Cash Flows andthe Statement of Changes in Equity dealt with by this Report are in agreement with therelevant books of account except net loss as per books is not matching with loss as perfinancial statement showing discrepancies of Rs.1.78 lakhs.

d. In our opinion except for the matters described in the basis for qualified opinionparagraph the aforesaid financial statements comply with the Indian Accounting Standardsprescribed under Section 133 of the Companies Act 2013 read with Rule 7 of Companies(Accounts) Rules 2014 and amendments thereof.

e. On the basis of the written representations received from the directors as on March31 2019 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2019 from being appointed as a director in terms of Section164 (2) of the Act.

f. The going concern matter described under the Material Uncertainty Related to GoingConcern paragraph above in our opinion may have an adverse effect on the functioning ofthe Company.

g. 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".

h. 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 opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

i. The qualifications relating to maintenance of accounts and other matters connectedtherewith are as stated in the basis for Qualified Opinion paragraph above.

j. 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 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.

ii. The Company did not have any long-term contract including derivative contracthaving any material foreseeable losses for which provision was required to be made underthe applicable law or accounting standard.

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

For C V Chitale & Co

Chartered Accountants

FRN:126338W

CA Abhay Avchat

Partner

ICAI M No. 112265

Place: Pune

Date: June 7 2019.

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

With reference to the Annexure referred to in paragraph 10 (Report on Other Legal andRegulatory Requirements) of the Companies' Auditors' Report to the members of the Companyon the financial statements for the year ended March 31 2019 we report that:

i. In respect of its fixed assets:

a) The Company is in process of updating its fixed asset register showing fullparticulars including quantitative details and situation of fixed asset.

b) The fixed assets have not been physically verified during the year.

c) According to the information and explanation given to us the records examined by usand based on the examination of the conveyance deeds and lease deeds provided to us wereport that in respect of immovable properties of land and buildings that have been takenon lease and disclosed as fixed assets in the financial statements the lease agreementsare in the name of the Company.

ii. In respect of its inventories:

a) The Management has conducted physical verification of inventory at reasonableintervals. In our opinion the frequency of verification is reasonable.

b) According to information and explanation given to us the procedures of physicalverification of inventory followed by the management are reasonable and adequate inrelation to the size and the nature of its business.

c) The Company is maintaining reasonably proper records showing quantitative details ofinventory. As informed to us the discrepancies noticed on verification between physicalstock and book records have been properly dealt with accounts.

iii. As per the information and explanations given to us the Company has not grantedany loans secured or unsecured to companies firms or other parties covered in theregister maintained under Section 189 of the Companies Act 2013.

iv. As informed to us the Company has not entered into any transaction which attractsthe provisions of the Section 185 and 186 of the Companies Act2013.

v. In our opinion and according to the information and explanations given to us thecompany has not accepted deposit from the public hence the directives issued by theReserve Bank of India and provisions of the sections 73 to 76 or Companies Act and rulesframed thereunder are not applicable to it. According to information and explanationgiven to us no order has been passed against the Company by Company Law Board or NationalLaw Tribunal or Reserve Bank of India or any Court or any other Tribunal.

vi. To the best of our information and as per the explanation given to us arequirement relating to maintenance of cost records is not applicable to the Companysince its turnover is below the threshold limit prescribed by the Central Government undersection 148(1) of the Act.

vii. In respect of statutory dues:

a) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees state insurance income tax sales taxservice tax duty of custom duty of excise value added tax goods and service tax cesswere outstanding as at March 31 2019 for a period of more than six months from the dateof becoming payable except amount payable with respect to VAT of Rs 53233/-

b) According to the information and explanation given to us there are no dues ofincome-tax wealth-tax sales tax service tax custom duty excise duty value added taxand cess which have not been deposited on account of any dispute except the following:-

Nature of the Statue Nature of Dues Amount due (In Rs) Period to which amount relates Forum at which dispute is pending
Maharashtra Value Added Tax Act 2002 & Central Sales Tax CST Liability 5304454/- FY 2010-11 Asst. Commissioner of Sales Tax Pune
Maharashtra Value Added Tax Act 2002 VAT Liability 2493801/- FY 2010-11 Dy. Commissioner of Sales Tax Pune
Maharashtra Value Added Tax Act 2002 & Central Sales Tax CST Liability 376793/- FY 2011-12 Asst. Commissioner of Sales Tax Pune
Income Tax Act 1961 Income Tax Penalty 648900/- FY 2012-13 Commissioner of Income Tax (A) Pune
Income Tax Act 1961 Late filing fee of TDS 227596/- FY 2008-09 to 201415 Commissioner of Income Tax (A) Pune

viii. Our opinion and according to the information and explanation given to us theCompany has generally not defaulted in repayment of loan or borrowings to banks financialinstitutions and Government. The Company has not borrowed any sum through debentures.

ix. According to the information and explanation given to us The Company has notraised any money by way of initial public offer or further public offer (including debtinstruments) and term loans during the year. Accordingly paragraph 3 (ix) of the Order isnot applicable.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xi. According to the information and explanations given to us the Company has paid /provided for managerial remuneration in accordance with requisite approvals mandated byprovisions of section197 read with schedule V to the Act.

xii. As per the information and explanation given to us the company is not a Nidhicompany. Accordingly Clause xii of the Order is not applicable.

xiii. According to the information and explanations given to us transactions withrelated parties are in compliance with provisions of section 177 and 178 of the Act anddetails of such transactions have been disclosed in the financial statement as required bythe applicable accounting standards. However while reporting under this sub-clause we haverelied on the list of related parties and transaction with them as provided to us by themanagement.

xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly Clause xiv of the Order is not applicable.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into noncashtransactions with directors or persons connected with them as per section 192 of CompaniesAct 2013. Accordingly clause (xv) of the Order is not applicable.

xvi. The Company is not required to be registered under section 45-IAoftheReserveBankofIndiaAct1934.

For C V Chitale & Co

Chartered Accountants

FRN:126338W

CA Abhay Avchat

Partner

ICAI M No. 112265

Place: Pune

Date: June 7 2019.

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT ON THE IND AS FINANCIAL STATEMENTS OFENVAIR ELECTRODYNE LIMITED FOR THE YEAR ENDED ON MARCH 312019.

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

We have audited the internal financial controls over financial reporting with referenceto Ind AS financial statements of Envair Electrodyne Limited ("the Company") asof March 31 2019 in conjunction with our audit of the Ind AS 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 over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India (the"ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that we re-operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of it assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to Ind AS financial statements based onour audit. We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting (the "Guidance Note") andthe Standards on Auditing prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 procedureselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Ind AS financial statements whether due to fraud or error.

Because of the matter described in Disclaimer of Opinion paragraph below we were notable to obtain sufficient appropriate audit evidence to provide a basis for an auditopinion on Internal financial controls system over financial reporting of the Company.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide 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 includes those policies and procedures that

(1) Pertain to the maintenance of records that in reason able detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of the Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company ;and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the Ind AS financial statements.

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 in adequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Disclaimer of Opinion

Framework for Internal Financial Control over Financial Reporting not established butdoes not Impact the audit opinion on Financial Statements.

According to the information and explanation given to us the Company has notestablished its internal financial control over financial reporting on criteria based onor considering 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.

Because of this reason we are unable to obtain sufficient appropriate audit evidenceto provide a basis for our opinion whether the Company has adequate internal financialcontrols over financial reporting and whether such internal financial controls wereoperating effectively as at March 312019.

We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the financial statements of the Company andthe disclaimer does not affect our opinion on the Ind AS financial statements of theCompany.

For C V Chitale & Co

Chartered Accountants

FRN:126338W

CA Abhay Avchat

Partner

ICAI M No. 112265

Place: Pune

Date: June 7 2019.