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Future Enterprises Ltd.

BSE: 523574 Sector: Industrials
NSE: FEL ISIN Code: INE623B01027
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VOLUME 150899
52-Week high 13.92
52-Week low 7.61
P/E
Mkt Cap.(Rs cr) 447
Buy Price 8.81
Buy Qty 100.00
Sell Price 8.84
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OPEN 9.05
CLOSE 8.99
VOLUME 150899
52-Week high 13.92
52-Week low 7.61
P/E
Mkt Cap.(Rs cr) 447
Buy Price 8.81
Buy Qty 100.00
Sell Price 8.84
Sell Qty 108.00

Future Enterprises Ltd. (FEL) - Auditors Report

Company auditors report

To

The Members of

FUTURE ENTERPRISES LMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Future EnterprisesLimited (the "Company") which comprise the Balance Sheet as at March 31 2020the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofCash Flows and the Statement of Changes in Equity for the year ended and a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas the "standalone financial statements"). In our opinion and to the best of ourinformation and according to the explanations given to us the aforesaid standalonefinancial statements give the information required by the Companies Act 2013 (the"Act") in the manner so required and give a true and fair view in conformitywith the Indian Accounting Standards prescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended ("Ind AS") andother accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2020 its loss and total comprehensive income the changes inequity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act ("SA"s). Ourresponsibilities under those Standards are further described in the ‘Auditor'sResponsibilities for the Audit of the Standalone Financial Statements' section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India ("ICAI") together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules made thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the ICAI's Codeof Ethics. We believe that the audit evidence obtained by us is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

Emphasis of Matter

We draw your attention to the following matters:

i. Note no. 50 of the standalone financial statements describes management's assessmentof the impact of the COVID-19 pandemic on the operations and financial results of theCompany.

ii. As stated in note no. 3 of the standalone financial statements for the year endedMarch 31 2020 the company holds investment in following companies:

a. Future E-Commerce Infrastructure Limited being Rs.17.72 crore as Equity SharesRs.48.65 crore as Non-Cumulative Compulsory Convertible Preference Shares and Rs.0.11crore in Non-Cumulative Compulsory Convertible Preference Shares.

b. Futurebazaar India Limited being Rs.19.16 crore in Equity Shares

c. Leanbox Logistics Solutions Private Limited Being Rs.15 crore in Equity Shares.

The management has not provided provision for diminution in value of the above longterm investments totaling to Rs.100.65 crore (Book Value) as in the opinion of themanagement such diminution is temporary in nature considering the intrinsic value of theassets future prospects and claims (impact unascertainable) (read with Note no.48 of thestandalone financial statements).

iii. In reference to deferred tax the company has incurred loss before tax in currentfinancial year 2019-20 amounting to Rs.325.36 crore but have not created any deferred taxasset. The company has reversed its deferred tax liability outstanding as on March 312020 amounting to Rs.36.86 crore. The management is of the opinion that due to currentbusiness scenario there is no certainty that future taxable profit will be availableagainst which the deductible temporary differences and tax losses can be utilised and anygain arriving due to deferred tax will be adjusted in subsequent year.

iv. Note no. 50 of the standalone financial statements describes the uncertainties andthe impact of COVID-19 pandemic on the Company's operations and results as assessed by themanagement. Further due to COVID-19 related lock down restrictions management was ableto perform year end physical verification of inventory and fixed assets at certainlocations subsequent to the year end.

We were unable to physically observe the verification of inventory that was carried outby the management and have relied on the management's representation provided for thesame.

Our opinion is not modified in respect of the above matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key Audit Matters How our audit addressed the key audit matter
Implementation of IND AS 116 – Lease
Disclosure of leases requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under Ind AS 17. Our audit procedures in respect of implementation of Ind- AS 116 included the following:
The Company has applied the Modified retrospective approach to ongoing leases as of April 1 2019. • We assessed the Company's accounting policies with respect to recognition of leases and for assessing compliance with Ind AS 116;
The adoption of Ind AS 116 resulted in transitional impact amounting to Rs.5.53 crores (net of taxes) in retained earnings. As at March 31 2020 the Company has Rs.132.31 crores of Right of use assets and ` 137.84 crores of Lease liabilities. We obtained an understanding evaluated the design and tested the operating effectiveness of controls that the Company has in relation to accounting of leases under Ind AS 116;
Application of Ind AS 116 requires significant judgement and estimate in determining the RoU assets and lease liabilities based on terms of the underlying lease agreements hence we considered this as a key audit matter. • We tested the accuracy and completeness of the underlying lease master by agreeing the underlying data pertaining to lease rentals term escalation and other relevant terms and conditions to lease agreements and recomputed on a sample basis calculation involved;
• We assessed the underlying assumptions and estimates including the appropriateness of the discount rates;
• We also assessed the Company's disclosures made in accordance with the requirements of Ind AS 116.
Carrying value of trade receivables
As at March 31 2020 trade receivables constitutes approximately 11% of total assets of the Company. The company is required to regularly assess the recoverability of its Trade Receivables. Our audit procedures in respect of evaluation of receivables included the following:
Recoverability of trade receivables was significant to our audit due to the value of amounts which also represents significant portion of the Company's working capital. • Tested the ageing of trade receivables and receipts subsequent to the year-end;
Considering the expected credit loss involves judgement as the expected credit losses must reflect information about past events current conditions and forecasts of future conditions as well as the time value of money. • Evaluated Management's assessment of the current financial situation of the major entities whose balances are receivable as the year-end.
Management has made provision for expected credit loss of Rs.4.91 crores. • Assessed the company's expected credit loss calculations made in determining the recoverable amount. In making this assessment we evaluated the objectivity and independence of company's personnel involved in the process.
Accordingly the recoverability of trade receivables is a key audit matter in our audit of Ind AS financial statements. • Sent and obtained confirmations for major parties possible.
• Assessed the adequacy of the company disclosures in relation to trade receivables included in the standalone Ind AS financial statements as per Ind AS 109.
Related Party Transactions
The Company has significant transactions with related parties which includes sale of products services rent loans and advances given. Performed test of controls over related party transactions with respect to approval of transactions by the Board of Directors of the Company entering into agreements/ contracts and recording in books of account;
Company's major portion of total revenue comes from related party. • Read contracts and agreements with related parties to understand the nature of the transactions;
Considering the high volume of transactions with related parties and determination of arm's length price to be a key audit matter in our audit of the standalone Ind AS financial statements. • Assessed the disclosures made in the standalone Ind AS financial statements as per Ind AS 24.
External Confirmations
COVID-19 has impacted the procedure of external confirmation request to vendors and customers at the year-end and therefore positive external confirmation request was sent through electronic mode. Our audit procedures included among others the following:
However due to suspension of business activities of the many confirming parties most confirmations were not received. • Revised assessed risk and modify our audit procedures to mitigate these risks.
The Company seeks and had sought confirmations from vendors and customers during the year. • Obtained a reliable assurance pertaining to transactions with confirming parties in sense for accurate and complete process of routine and significant classes of transactions such as revenue purchases etc.
In such events we auditors performed alternative audit procedures. • Selected samples and tested the effectiveness of controls related to accuracy and completeness of transactions in totality considering the frequency and regularity of transactions.
This matter is considered to be key audit matter given the circumstances of the year-end confirmations under COVID-19 vis-a-vis non-COVID-19 scenario.
• Performed alternative audit procedures like
- For accounts receivable balances : scrutiny of ledger accounts and verification of subsequent receipts.
- For accounts payable balances : scrutiny of ledger accounts and other documents/records such as bills from vendors.

Information Other than the 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 Management Discussion and AnalysisBoard's Report including Annexures to Board's Report Business Responsibility ReportCorporate Governance Report and Shareholder's Information but does not include thestandalone financial statements and our auditor's report thereon.

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

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course 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.

Management's Responsibilities for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. 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 and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

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

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

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

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial control 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.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of 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 standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone 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 standalone 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 standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by 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.

b) 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.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flows dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 from being appointed as a director in terms of Section 164(2) of theAct.

f) 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 A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) 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.

h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

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

ii. TheCompanyhasmadeprovisionasrequired under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii. There were no amounts required to be transferred to the Investor Education andProtection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For DMKH & Co.
Chartered Accountants
FRN : 116886W
Shikha Kabra
Partner
Place : Mumbai Membership Number: 179437
Date : September 07 2020 UDIN: 20179437AAAAAK6107

ANNEXURE – ‘A' to the Independent Auditors' Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date) Report on the Internal FinancialControls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act 2013 ("the Act").

We have audited the internal financial controls over financial reporting of FUTUREENTERPRISES LIMITED (the "Company") as of March 31 2020 in conjunction with ouraudit of the standalone 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 criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company 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 prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial 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 proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

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

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 authorizations of themanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the 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 to the best of our information and according to the explanations givento us the Company has in all material respects adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2020 based on the internal financialcontrol over financial reporting 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.

For DMKH & Co.
Chartered Accountants
FRN : 116886W
Shikha Kabra
Partner
Place : Mumbai Membership Number: 179437
Date : September 07 2020 UDIN: 20179437AAAAAK6107

ANNEXURE – ‘A' to the Independent Auditors' Report

(Referred to in Paragraph 2 under the heading of "Report on other Legal andRegulatory Requirements" of our report to the members of Future Enterprise Limited ofeven date)

Report on the Companies (Auditor's Report) Order 2016 issued in terms of Section143(11) of the Companies Act 2013 ("the Act") of Future Enterprises Limited("the Company"):

i. In respect of company's property plant and equipment:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment.

b. All property plant and equipment have not been physically verified by themanagement as on March 31 2020 due to the nationwide lockdown implemented on account ofCOVID pandemic but the company has been verifying the same on regular interval of timewhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. No material discrepancies were noticed on such verification.

c. According to the information and explanations given by the management the titledeeds of immovable properties included in property plant and equipment are held in thename of the Company.

ii. As explained to us the Management has conducted physical verification of inventoryat regular intervals during the year. In our opinion and according to the information andexplanations given to us the procedure of physical verification of inventory followed bythe management were reasonable and adequate in relation to the size of the Company andnature of its business.

iii. According to the information and explanations given to us the Company has notgranted loans secured or unsecured to companies firms Limited Liability Partnershipsor other parties listed in the register maintained under Section 189 of the Companies Act2013. Accordingly the provisions of clauses 3(iii) (a) (b) and (c) of the order are notapplicable to the Company.

iv. In our opinion and according to the information and explanations given to usprovisions of section 185 and 186 of the Companies Act 2013 in respect of loans todirectors including entities in which they are interested and in respect of loans andadvances given investments made and guarantees and securities given have been compliedby the company.

v. The Company has accepted deposits within the meaning of Sections 73 to 76 of the Actand the Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordingly theprovisions of clause 3(v) of the Order have been complied.

vi. To the best of our knowledge and as explained the Central Government has notspecified the maintenance of cost records under clause 148(1) of the Companies Act 2013for the products/services of the Company.

vii. According to the information and explanation given to us in respect of statutorydues:

a. The Company has been generally regular during the year in depositing undisputedstatutory dues including provident fund income-tax employees' state insurance goodsand service tax cess and other statutory dues applicable to it to the appropriateauthorities. The provisions relating to duty of excise are not applicable to the Company.

b. There were no undisputed amounts payable in respect of provident fund employees'state insurance income-tax goods and service tax cess and other statutory duesoutstanding at the year end for a period of more than six months from the date theybecame payable. c. Details of dues of income-tax sales-tax service tax duty of customvalue added tax goods and service tax and cess which have not been deposited as on March31 2020 on account of disputes are given below:

Name of Statute Nature of Dues Amount* (in ` crore) Period to which the amount relates Forum where dispute is pending
The Income Tax Act 1961 Income Tax 3.10 A.Y. 2014-15 Commissioner of Income Tax Appeal
The West Bengal Tax on Entry of Goods into Local Areas Act 2012 Entry Tax 1.75 F.Y. 2016-17 & 2017- 18 Calcutta High Court
Customs Act 1962 Custom Duty* 2.18 FY 2017- 18 Commissioner of Custom (Preventive) Kolkata

* Net of amounts paid.

viii. In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowing to a bank ordues to debenture holders. There are no dues payable to any financial institution andgovernment.

ix. In our opinion and according to the information and explanation given by themanagement we are of the opinion that money raised by Company by way of term loan hasbeen applied for the purpose for which they were raised. The Company did not raise anymoney by way of Initial Public offer or further public offer.

x. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the company or no material fraud onthe company by the officers and employees of the Company has been noticed or reportedduring the year.

xi. According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Therefore the provisions of clause 3(xii) of the Orderare not applicable to the company and hence not commented upon.

xiii. According to the information and explanations given by the managementtransactions with the related parties are in compliance with Sections 177 and 188 of theCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) are not applicable tothe company and not commented upon.

xv. According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in section 192 of the Companies Act 2013.

xvi. According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For DMKH & Co.
Chartered Accountants
FRN : 116886W
Shikha Kabra
Partner
Place : Mumbai Membership Number: 179437
Date : September 07 2020 UDIN: 20179437AAAAAK6107

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