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Frontier Capital Ltd.

BSE: 508980 Sector: Financials
NSE: N.A. ISIN Code: INE977E01013
BSE 05:30 | 01 Jan Frontier Capital Ltd
NSE 05:30 | 01 Jan Frontier Capital Ltd

Frontier Capital Ltd. (FRONTIERCAPITAL) - Auditors Report

Company auditors report

TO

THE MEMBERS OF FRONTIER CAPITAL LIMITED

Report on the Audit of the Ind AS Financial Statements

Opinion

We have audited the Ind AS Financial Statements of FRONTIER CAPITAL LIMITED ("theCompany") which comprise the Balance Sheet as at 31st March 2020 theStatement of Profit and Loss (including Other Comprehensive Income) Statement of CashFlows and Statement of Changes in Equity for the year then ended and notes to the Ind ASfinancial statements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "the Ind AS FinancialStatements).

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS Financial Statements give the information required bythe Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31 March 2020 its loss including othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of the IndAS 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 together with the ethical requirements that are relevant to our audit of the Ind ASfinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion on the Ind AS FinancialStatements.

Emphasis of Matter

We draw attention to Note No. 39 of the Ind AS financial statements which describesthe management's assessment of the impact of COVID-19 pandemic and the resultant lockdownson the significant uncertainties involved in developing some of the estimates involved inpreparation of the Ind AS financial statements including but not limited to its assessmentof liquidity and going concern recoverable values of its loans and net realisable valuesof other assets. Based on information available as of this date Management believes thatno further adjustments are required to the financial position. However in view of thehighly uncertain economic environment impacting this industry a definitive assessment ofthe impact is highly dependent upon circumstances as they evolve in future and the actualresults may differ from those estimated as at the date of approval of the Ind AS financialstatements.

Our Opinion is not modified in respect of the aforesaid matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements of the current period. Thesematters were addressed in the context of our audit of the Ind AS financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

Descriptions of Key Audit Matters are given below-:

Key Audit Matters Auditor's Response
1 Change in financial reporting framework First time adoption of Indian Accounting Standards (‘Ind AS') Our audit procedures with regard to the 1st time adoption of Ind AS included assessing the judgements applied by the Management in this regard:
(as described in Note 2 of the Ind AS Financial Statements) • Reading the Ind AS impact assessment performed by the management to identify areas which were impacted on account of Ind AS transition;
In accordance with the roadmap for implementation of Ind AS for non- banking financial companies as announced by the Ministry of Corporate Affairs the Company has adopted Ind AS from April 1 2019 with an effective date of April 1 2018 for such transition. • Understanding the financial statement closure process and the controls established by the Company for transition to Ind AS;
• Reading and assessing the changes made to the accounting policies due to the requirements of the new financial reporting framework;
For periods up to and including the year ended March 31 2019 the Company had prepared and presented its financial statements in accordance with the erstwhile generally accepted accounting principles in India (Previous GAAP). In order to give effect of the transition to Ind AS these financial statements for the year ended March 31 2020 together with the comparative financial information for the previous year ended March 31 2019 and the transition date balance sheet as at April 1 2018 have been prepared under Ind AS. • Assessing the judgements exercised by the management in applying the first-time adoption principles of Ind AS 101 as at transition date;
• Testing accounting adjustments posted as at the transition date and in respect of the previous year to convert the financial information reported under erstwhile Indian GAAP to Ind AS;
• Assessing the disclosures included in the Ind AS Financial Statements in accordance with the requirements of Ind AS (including with respect to the previous periods presented).
Procedures in connection with Sl. No. 1:
Our audit response included (as applicable in each case):
The transition to Ind AS has involved changes in the Company's policies and processes relating to financial reporting. • Assessing the items which has been considered as part of effective interest rate as well as the related computation on a test basis; and
Further the management has also exercised judgement (wherever applicable) in giving effect to various principles of Ind AS in its first-time adoption. In view of the complexity and the resultant risk of a material misstatement arising from an error or omission in correctly implementing the principles of Ind AS at the transition date which could result in a misstatement of one or more periods presented in these Ind AS financials statements this has been an area of significance in our audit. • Assessing the related IT system and manual controls implemented for effective interest rate accounting.
Procedures on the matter discussed in Sl. No. 2
We gained an understanding of the Company's key credit processes comprising granting recording and monitoring of loans as well as impairment provisioning. In addition
• We read and assessed the Company's impairment provisioning policy as per Ind AS 109;
Some of the key adjustments made to the financial statements on first-time adoption of Ind AS for the year ended March 31 2020 are as follows: • Obtained an understanding of the Company's Expected Credit Loss (‘ECL') methodology the underlying assumptions and performed sample tests to assess the staging of outstanding exposures;
1. The Company earns certain interest income and incurs certain expenses which are directly attributable to the origination of loans disbursed by the Company. Under Ind AS the accounting for these upfront charges and interest income are based on the effective interest rate method for loans which is based on the loan cash flows. • We assessed the Exposure at Default used in the impairment calculations on a test basis;
• Obtained an understanding of the basis and methodology adopted by management to determine 12 month and life-time probability of defaults for various homogenous segments and performed test checks;
2. Under the Previous GAAP the identification of delinquent accounts and consequent provisions for loan losses were made on the loans based on the guidelines prescribed by the Reserve Bank of India (‘RBI') in this regard. Under Ind AS estimates regarding the impairment provision against financial assets are based on the expected credit loss model developed by the Company based on the principles prescribed under Ind AS 109. • Obtained an understanding of the basis and methodology adopted by management to determine Loss Given Defaults for various homogenous segments based on past recovery experience qualitative factors etc. and performed test checks;
• Assessed the items of loans and advances credit related contingent items as at the reporting date which are considered in the impairment computation as at the reporting date;
• Assessed the data used in the impairment computation (including the data integrity of information extracted from the Company's IT systems);
As explained in the notes to the financial statements for the year ended March 31 2020 the impairment provision based on the expected credit loss model requires the management of the Company to make significant judgments in connection with related computation. These include: • Enquired with the management regarding significant judgments and estimates involved in the impairment computation;
• Assessed analytical reviews of disaggregated data to observe any unusual trends warranting additional audit procedures; and
(a) Identification of exposures where there is a significant increase in credit risk and those that are credit impaired; • Read the financial statement disclosures made as per Ind AS 109 and Ind AS 107.
(b) Determination of the 12 month and life-time probability of default for each of the segments identified; and
(c) Loss given default for various exposures based on past trends / experience management estimates etc.
Note 3.5 to the Ind AS Financial Statements explains the various matters that the management has considered for developing this expected credit loss model.

Information Other than the Ind AS financial statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual report but does not includethe Ind AS financial statements and our auditor's report thereon.

Our opinion on the Ind AS financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the Ind AS financial statements or our knowledge obtained inthe audit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information; weare required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Ind ASfinancial 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 and cash flows of the Company in accordance with the accountingprinciples generally accepted in India specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation of the Ind AS financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.

In preparing the Ind AS financial statements Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Ind AS financial statements

Our objectives are to obtain reasonable assurance about whether the Ind AS 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.

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

• Identify and assess the risks of material misstatement of the Ind AS financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe 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 the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on 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 Ind AS financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the Ind AS financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Ind AS financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the Ind AS financial statements.

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

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Ind AS 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.

Other Matter

Due to Complete lockdown imposed by the Government to restrict the spread of COVID-19the audit finalization process for the year under report was carried out from remotelocations i.e. other than the office of the Company based on the data/ details madeavailable and based on financial information/records remitted by the management throughdigital medium. Our report is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Master Direction - Non-Banking Financial Companies Auditor'sReport (Reserve Bank) Directions 2016 ("the Directions") issued by the ReserveBank of India ("the Bank") in exercise of powers conferred by Section 45MA(1A)of the Reserve Bank of India Act 1934 and on the basis of such checks as we consideredappropriate and according to the information and explanations given to us we herebyreport on the matters specified in paragraphs 3 and 4 of the said Directions to the extentapplicable:

i. The Company is engaged in the business of a non-banking financial institution andhas duly obtained a Certificate of Registration (COR) from the Bank.

ii. The Company has more than 50% of its assets in financial assets and it has earnedmore than 50% of its income from financial assets. In terms of its principal businesscriteria (financial asset/income pattern) as on 31st March 2020 the Companyis entitled to continue to hold CoR issued by the Bank.

iii. The Company meets the Net Owned Fund requirement as laid down in the MasterDirection - Non-Banking Financial Company Non-Systemically Important Non-Deposit takingCompany (Reserve Bank) Directions 2016.

iv. The Board of Directors of the company have duly passed a resolution fornon-acceptance of the "Public Deposits" within the meaning of paragraph 3 (xv)of the Master Direction - Non-Banking Financial Companies Acceptance of Public Deposits(Reserve Bank) Directions 2016 for the financial year ended 31st March 2020.

v. The Company has not accepted any "Public Deposits" within the meaning ofparagraph 3 (xv) of the Master Direction - Non-Banking Financial Companies Acceptance ofPublic Deposits (Reserve Bank) Directions 2016 during the year ended 31st March 2020.

vi. The company has complied with the prudential norms relating to income recognitionaccounting standards asset classification and provisioning for bad and doubtful debts asapplicable to it in terms of Master Direction - Non-Banking Financial CompanyNon-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions 2016.

vii. The Company is not systematically important non-deposit taking NBFC as defined inMaster Direction - Non-Banking Financial Company - Systemically Important Non-Deposittaking Company and Deposit taking Company (Reserve Bank) Directions 2016 &accordingly para 3(C)(iv) of the Directions is not applicable.

2. 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 ofthe Act we give in the Annexure "A" a statement on the matters specified inthe paragraph 3 and 4 of the Order to the extent applicable.

3. As required by Section 143 (3) of the Act we report that:

i) 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.

ii) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

iii) The Balance Sheet the Statement of Profit and Loss including the Statement ofOther Comprehensive Income Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account.

iv) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) rules 2014.

v) On the basis of the written representations received from the directors as on 31March 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2020 from being appointed as a director in terms of Section164(2) of the Act.

vi) 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".

vii) 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.

viii) 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:

a. The Company does not have any pending litigations which would impact its financialposition.

b. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

For A.C. Bhuteria & Co.
Chartered Accountants
Firm's Registration No. 303105E
Bikas Kumar Burnwal
Partner
Membership No. 311785
UDIN: 20311785AAAABL6544
Place of Signature: Kolkata
Date: 30/07/2020

Annexure 'A' to Independent Auditor's Report referred to in Paragraph 2 under theheading of "Report on Other Legal and Regulatory Requirements" of our report ofeven date.

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

(b) Property Plant and Equipment have been physically verified by the managementduring the year which in our opinion is reasonable having regard to the size of thecompany and the nature if its business. No discrepancies were noticed on suchverification.

(c) The Company does not have an immovable property held as fixed assets thereforeparagraph 3(i)(c) of the Order is not applicable.

(ii) The Company does not have any inventory and therefore paragraph 3(ii) of the Orderis not applicable.

(iii) In our opinion and according to the information and explanations given to us andexamination of records we considered necessary the Company has not granted any loansecured or unsecured to Companies firms limited liability partnerships or partiescovered in the register maintained under Section 189 of the Companies Act 2013 (‘theAct'). Accordingly paragraph 3(iii)) of the Order is not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us theCompany has not given any loan/guarantee/security to or on behalf of any party referred toin Section 185 of the Companies Act 2013. The Company being a Non-Banking Finance Companyis engaged in the business of financing of companies hence provisions of Section 186 ofthe Companies Act 2013 is not applicable to the Company.

(v) On the basis of our examination of books and records of the Company in our opinionand according to the information and explanations given to us the company has notaccepted deposits during the year and therefore the directives issued by the Reserve bankof India and the provisions of Sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the rules framed there under are not applicable to the Company.

(vi) In our opinion the Company is not required to maintain Cost records under section148(1) of the Companies Act 2013.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the books and records of the Company the company is not regular indepositing undisputed statutory dues (except income-tax) and other material statutory dueswith the appropriate authorities.

According to the information and explanations given to us and on the basis of ourexamination of the books and records of the Company no undisputed amounts payable inrespect of income tax GST cess and other material statutory dues were in arrears as at31st March 2020 for a period of more than six months from the date they became payableexcept for Service tax payable under reverse charge mechanism amounting to Rs 18600/-Profession Tax of Rs 11800/- and Goods and Services Tax of Rs 129600/-.

(b) According to the information & explanation give to us there are no dues ofIncome tax and other applicable Statutory Dues which have not been deposited on account ofany dispute.

(viii) The Company does not have any loans or borrowings from any financialinstitution banks or government. The company has not issued any debentures during theyear. Accordingly paragraph 3(viii) of the Order is not applicable.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(x) On the basis of our examination of books and records of the Company and accordingto the information and explanation provided to us no fraud by the company or on theCompany by its officers or employees has been noticed or reported during the year.

(xi) On the basis of our examination of books and records of the Company and accordingto the information and explanation provided to us the managerial remuneration paid isaccording to the provisions of Section 197 read with Schedule V of the Companies Act 2013.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Companies Act 2013. Details of transactionswith the related parties have been disclosed in the Ind AS financial statements asrequired by the applicable accounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has complied with provisions ofSection 42 of the Companies Act 2013 in respect of preferential allotment of sharesduring the year. The amount raised by preferential allotment of shares has been used forthe purposes for which it was raised. No debentures whether fully or partly convertibledebentures have been issued during the year.

(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 non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is required to be registered under section 45-IA of the Reserve Bankof India Act 1934 as a Non-Banking Finance Company and the registration has been soobtained.

For A. C. Bhuteria & Co.
Chartered Accountants
Firm's Registration No. 303105E
Bikas Kumar Burnwal
Partner
Place of Signature: Kolkata Membership No. 311785
Date: 30/07/2020 UDIN: 20311785AAAABL6544

Annexure ‘B' to the Independent Auditors' Report

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 of FrontierCapital Limited ("the Company") as of 31st March 2020 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.

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 with referenceto these financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India (‘ICAI'). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reporting withreference to financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the Ind AS financial statementswhether due to fraud or error.

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

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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the Ind AS financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

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

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For A. C. Bhuteria & Co.
Chartered Accountants
Firm's Registration No. 303105E
Bikas Kumar Burnwal
Partner
Membership No. 311785
UDIN: 20311785AAAABL6544
Place of Signature: Kolkata
Date: 30/07/2020

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