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Exxaro Tiles Ltd.

BSE: 543327 Sector: Consumer
NSE: EXXARO ISIN Code: INE0GFE01018
BSE 00:00 | 31 Jan 126.95 -1.35
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NSE 00:00 | 31 Jan 126.65 -0.95
(-0.74%)
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128.75

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129.15

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OPEN 128.70
PREVIOUS CLOSE 128.30
VOLUME 12908
52-Week high 149.60
52-Week low 97.00
P/E 36.17
Mkt Cap.(Rs cr) 568
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 128.70
CLOSE 128.30
VOLUME 12908
52-Week high 149.60
52-Week low 97.00
P/E 36.17
Mkt Cap.(Rs cr) 568
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Exxaro Tiles Ltd. (EXXARO) - Auditors Report

Company auditors report

To the Members of Exxaro Tiles Limited

(Formerly known as "Exxaro Tiles Private Limited" and"RICASIL Ceramic Industries Pvt. Ltd.")

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of ExxaroTiles Limited ("the Company") (Formerly known as Exxaro Tiles PrivateLimited and Ricasil Ceramic Industries Private Limited) which comprises the Balance Sheetas at March 31 2022 the Statement of Profit and Loss (including Other ComprehensiveIncome)

Statement of Cash Flows and Statement of Changes in Equity for theyear then ended and notes to the standalone financial statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022and its profit total comprehensive income its cash flows and the changes in equity forthe year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor?s Responsibilities for theAudit of the Standalone Financial Statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the standalone financial statements under the provisions of the

Companies Act 2013 and the Rules thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

We have determined that there are no other key audit matters tocommunicate in our report except as stated in Emphasis of Matter below.

Information Other than the Standalone Financial Statements andAuditor?s Report Thereon

The Company?s Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board?s Report includingAnnexures to Board?s Report Corporate Governance and Shareholder?s Informationbut does not include the standalone financial statements and our auditor?s reportthereon.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Responsibility of Management for the Standalone Financial Statements

The Company?s Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these Statements standalone that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowschanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the accounting Standards specified under Section 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate implementation and maintenance of accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statement that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone 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 Responsibility for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor?s report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted 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 financial statements.

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

1. Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate 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.

2. Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3) (i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

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

4. 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 doubt on the Company?sthat may cast significant 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 standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor?s report. However future events orconditions may cause the Company to cease to continue as a going concern.

5. Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves 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 financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor?s report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

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 of the Companies Act 2013 we give in "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

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 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 including theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account. d. In ouropinion the aforesaid standalone financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e. On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof Section 164(2) of the Act.

f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".

g. With respect to the other matters to be included in theAuditor?s Report in accordance with the requirements of section 197(16) of the Actas amended In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

h. With respect to the other matters to be included in theAuditor?s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements. Refer Note 36 to the standalonefinancial statements.

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

1. iv The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen advanced or loaned or invested (either from borrowed funds or share premium or anyother sources or kind of funds) by the Company to or in any other person or entityincluding foreign entity ("Intermediaries") with the understanding whetherrecorded in writing or otherwise that the Intermediary shall whether directly orindirectly lend or invest in other persons or entities identified in any manner whatsoeverby or on behalf of the Company ("Ultimate Beneficiaries") or provide anyguarantee security or the like on behalf of the Ultimate

Beneficiaries;

2. The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the

Ultimate Beneficiaries;

3. Basedontheauditproceduresthathavebeenconsidered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (1) and (2) above contain any material misstatement.

v. The Company has not paid any dividends during the year and hencethe provisions of Section 123 of the Act are not applicable to the Company.

For
HB Kalaria and Associates
Firm Reg. No. 104571W
Chartered Accountants
(Hasmukh Kalaria)
Partner
Mem. No. 042002
UDIN:22042002AJSBRU2090
Place: Rajkot
Date: 27/05/2022

Annexure A

Referred to in the section Report on Other Legal and RegulatoryRequirements on of the Independent Auditors? Report of even date to the members ofExxaro Tiles Limited (Formerly known as Exxaro Tiles Private Limited and Ricasil CeramicIndustries Private Limited)on the standalone financial statements as of and for the yearended March 31 2022

(i)

(a) In respect of its property plant and equipment:

(A) The Company has maintained proper records showing full particularsincluding quantitative details and situation of property plant and equipment.

(B) The Company has maintained proper records showing full particularsof its intangible assets.

(b) The Company has a programme of verification of property plant andequipment to cover all the items in a phased manner over a period of 3 years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme certain property plant and equipment were physicallyverified by the Management during the current reporting period. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us and therecords examined by us and based on the examination of the registered sale deed/transferdeed/conveyance deed we report that the title deeds comprising all the immovableproperties of land and acquired buildings which are freehold are held in the name of theCompany as at the balance sheet date.

(d) The Company has not revalued its property plant and equipmentduring the reporting period and hence clause (i)(d) of the Order is not applicable.

(e) As explained to us by the management of the Company there have notbeen any proceedings initiated or pending against the Company under the BenamiTransactions (Prohibition) Act 1988 and rules made thereunder during the currentreporting period or as at the balance sheet date.

(ii)

(a) As per the information and explanation 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 of 10% or more in aggregate for each of the class ofinventory were not noticed on physical verification.

(b) In our opinion and according to the information and explanationsgiven to us the Company has been sanctioned working capital limits in excess of fivecrore rupees in aggregate from banks on the basis of security of current assets; thequarterly returns/statements filed by the Company with the banks during the reportingperiod are in agreement with the books of accounts of the Company.

(iii) According to the information and explanations given to us thecompany has made investments in provided any guarantee or security or granted any loansor advances in the nature of loans secured or unsecured to companies firms LimitedLiability Partnerships or any other parties during the year in respect of which:

(a) In our opinion the Company has not provided any loans or providedadvances in the nature of loans or stood guarantee or provided security to any otherentity and hence reporting under clause (iii)(a) of the Order is not applicable.

(b) In our opinion and as per the explanations provided to us theinvestment made by the Company are prima facie not prejudicial to the Company?sinterest.

(c) In our opinion the Company has not provided any loan to any partyand hence reporting under clause (iii)(c) of the Order is not applicable.

(d) In our opinion the Company has not provided any loan to any partyand hence reporting under clause (iii)(d) of the Order is not applicable.

(e) In our opinion the Company has not provided any loan to any partyand hence reporting under clause (iii)(e) of the Order is not applicable.

(f) The Company has not granted any loans or advances in the nature ofloans either repayable on demand or without specifying any terms or period of repaymentduring the year. Hence reporting under clause 3(iii)(f) is not applicable.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of grant of loans making investments and providingguarantees and securities as applicable

(v) According to the information and explanations given to us theCompany has not accepted any deposits during the current reporting period in terms ofprovisions of Sections 73 to 76 or any other relevant provisions of the Companies Act2013 and the rules made thereunder. Hence reporting under clause (v) of the Order is notapplicable.

(vi) In our opinion the provisions for maintenance of cost recordsunder section 148(1) of the Companies Act 2013 are not applicable to the Company. Hencereporting under clause (vi) of the Order is not applicable.

(vii) In our opinion and according to the information and explanationsgiven to us in respect of statutory dues:

(a) The Company has generally been regular in depositing undisputedstatutory dues including Goods and Services Tax provident fund employees? stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues to the appropriate authorities apart from afew delays in the payment of income tax and provident fund.

There were no undisputed amounts payable in arrears as at the balancesheet date for a period of more than six months from the date they became payable.

(b) Details of statutory dues which have not been deposited as at thebalance sheet date on account of disputes are given below:

Name of statute Nature of dues Forum where dispute pending Period to which the amount relates Gross amount due Amount unpaid
(in Rs lakhs) (in Rs lakhs)
The Income Tax Act 1961 Income Tax The Commissioner of Income tax (Appeals) Ahmedabad - 2 A.Y. 2013-14 40.64 36.52
The Income Tax Act 1961 Income Tax The Commissioner of Income tax (Appeals) Ahmedabad - 2 A.Y. 2015-16 263.78 211.03
The Income Tax Act 1961 Income Tax The Commissioner of Income tax (Appeals) Ahmedabad - 2 A.Y. 2016-17 8.73 6.98
The Income Tax Act 1961 Income Tax The Commissioner of Income tax (Appeals) Ahmedabad - 2 A.Y. 2017-18 1.00 Nil
The Gujarat Value Added Tax Act 2003 Value Added Tax Dy. Commissioner of Commercial Tax Appeal Commercial Tax Office Baroda F.Y. 2011-12 110.89 110.89

(viii) According to the information and explanations given to us theCompany does not have any transactions which were not recorded in the books of accountsand which have been surrendered or disclosed as income during the current reporting periodin the tax assessments under the Income-tax Act 1961.

(ix) (a) In our opinion and according to the information andexplanations given to us the Company has not defaulted in the repayment of loans orborrowings to financial institutions or banks. The Company has not taken any loans orborrowings from the government.

(b) In our opinion by the auditors in Form ADT-4 and according to theinformation and explanations given to us the Company has not been declared as a willfuldefaulter by any bank or financial institution or other lender during the reportingperiod.

(c) The Company has obtained term loans during the current reportingperiod which in our opinion and according to the information and explanations given tous have been utilized for their stated purpose(s).

(d) According to the information and explanations given to us and theprocedures performed by us and on an overall examination of the standalone financialstatements of the company we believe that no funds raised on short-term basis have beenused for long-term purposes by the Company. We have however not made a detailedexamination of the same.

(e) In our opinion and according to the information and explanationsgiven to us the Company has not taken any funds from any entity or person on account ofor to meet the obligation of its subsidiary.

(f) In our opinion and according to the information and explanationsgiven to us the Company has not raised any loans during the reporting period on thepledge of any securities held in its subsidiary.

(x) (a) During the current reporting period the Company has raisedfunds of Rs 13392.69 lakhs by way of initial public offer. In our opinion and as per theexplanations given to us the funds were applied for the purposes for which they wereraised.

(b) During the current reporting period the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures and hence reporting under clause (x)(b) of the Order is not applicable to theCompany.

(xi) (a) To the best of our knowledge and according to the informationand explanations given to us no fraud by the Company and no material fraud on the Companyhas been noticed or reported during the current reporting period.

(b) To the best of our knowledge and according to the information andexplanations given to us no report under sub-section (12) of section 143 of the Companies

Act 2013 has been filed as prescribed under rule 13 of Companies(Audit and Auditors) Rules 2014 with the Central Government.

(c) To the best of our knowledge and according to the information andexplanations given to us the Company has not received any whistle-blower complaintsduring the current reporting period.

(xii) The Company is not a Nidhi Company and hence reporting underclause (xii) of the Order is not applicable.

(xiii) In our opinion and according to the information and explanationsgiven to us the Company is in compliance with Section 177 and 188 of the Companies Act2013 where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the standalone financial statements etc.as required by the applicable accounting standards.

(xiv) (a) In our opinion the Company has an internal audit systemcommensurate with the size and nature of its business.

(b) We have considered the reports of the Internal Auditors for theperiod under review during our audit of the Company.

(xv) In our opinion and according to the information and explanationsgiven to us during the current reporting period the Company has not entered into anynon-cash transactions with its directors or directors of its holding subsidiary orassociate company if any or persons connected with them and hence provisions of Section192 of the Companies Act 2013 are not applicable.

(xvi) (a) The Company is not required to be registered under Section45-I of the Reserve Bank of India Act 1934.

(b) The Company has not conducted any Non-Banking Financial or HousingFinance activities during the current reporting period and hence is not required toobtain a Certificate of Registration from the Reserve

Bank of India as per the Reserve Bank of India Act 1934.

(c) The Company is not a Core Investment Company ("CIC") asdefined in the regulations made by the Reserve Bank of India.

(d) The Company does not have any CICs as part of the Group and henceclause (xvi)(d) of the Order is not applicable to the Company.

(xvii) In our opinion the Company has not incurred any cash lossesduring the current reporting period and in the immediately preceding reporting period.

(xviii) There has not been any resignation of the statutory auditorsduring the current reporting period under review.

(xix) According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the standalonefinancial statements our knowledge of the Board of Directors and management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report that company is not capable of meeting its liabilities existingat the date of balance sheet as and when they fall due within a period of one year fromthe balance sheet date. We however state that this is not an assurance as to the futureviability of the company. We further state that our reporting is based on the facts up tothe date of the audit report and we neither give any guarantee nor any assurance that allliabilities falling due within a period of one year from the balance sheet date will getdischarged by the company as and when they fall due.

(xx) (a) According to the information and explanations given to usthere are no unspent amount towards Corporate Social Responsibility (CSR) on other thanongoing projects requiring a transfer a Fund specified in Schedule VII to the CompaniesAct

2013 within a period of six months of the expiry of the financial yearin compliance with the second provison to sub-section (5) of section 135 of the Act.

(b) According to the information and explanations given to us theCompany does not have any ongoing project(s) for which funds remain unspent undersub-section (5) of section 135 of the Companies Act and hence is not required to transferany funds to a special account in compliance with the provision of sub-section (6) ofsection 135 of the Companies Act 2013.

(xxi) Clause (xxi) of the Order is not applicable in the report on thestandalone financial statements of the Company.

For
HB Kalaria and Associates
Firm Reg. No. 104571W
Chartered Accountants
(Hasmukh Kalaria)
Partner
Mem. No. 042002
UDIN: 22042002AJSBRU2090

Place: Rajkot

Date: 27/05/2022

Annexure B

Referred to in point f. of the section Report on Other Legal andRegulatory Requirements of the Independent Auditors? Report of even date to themembers of Exxaro Tiles Limited (Formerly known as Exxaro Tiles Private Limited andRicasil Ceramic Industries Private Limited) on the standalone financial statements for theyear ended March 31

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

In conjunction with our audit of the standalone financial statements ofthe Company as of and for the year ended

March 31 2022 we have audited the internal financial controls overthe financial reporting of Exxaro Tiles Limited

("the Company") (Formerly known as Exxaro Tiles PrivateLimited and Ricasil Ceramic Industries Private Limited) as of that date.

Management?s Responsibility for Internal Financial Controls

The Company?s management is responsible for establishing andmaintaining internal financial controls based on internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India ("ICAI").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the respective company?spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors? Responsibility

Our responsibility is to express an opinion on the Company?sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the ICAI and the Standardson Auditing deemed to be prescribed under Section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both applicable to an audit ofinternal financial controls and both issued by the

ICAI. Those Standards and the Guidance Note require that we comply withthe ethical requirements and plan and perform 2022 the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects. financial reporting

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system 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 assessed risk. The proceduresselected depend on the auditors? judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company?s internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company?s internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A company?s internalfinancial control over financial reporting includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of standalone financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of theCompany are being made only in accordance with authorizations of management and directorsof the company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company?s assetsthat could have a material effect of standalone financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controlsoverof collusion or improper management override of controls material misstatements due toerror or fraud may occur and not be detected. Also projections of any evaluation of theinternal financial control over financial reporting to future periods are subject to therisk that the internal financial control over financial reporting may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion except above the Company has in all materialrespects an adequate internal financial controls system over financial reporting and suchinternal financial controls over financial reporting were operating effectively as atMarch 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 issued by ICAI.

For
HB Kalaria and Associates
Firm Reg. No. 104571W
Chartered Accountants
(Hasmukh Kalaria)
Partner
Place: Rajkot Mem. No. 042002
Date: 27/05/2022 UDIN: 22042002AJSBRU2090

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