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G S Auto International Ltd.

BSE: 513059 Sector: Auto
NSE: N.A. ISIN Code: INE736H01024
BSE 00:00 | 30 Jan 15.90 -0.20
(-1.24%)
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NSE 05:30 | 01 Jan G S Auto International Ltd
OPEN 15.95
PREVIOUS CLOSE 16.10
VOLUME 4053
52-Week high 24.90
52-Week low 10.00
P/E
Mkt Cap.(Rs cr) 23
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 15.95
CLOSE 16.10
VOLUME 4053
52-Week high 24.90
52-Week low 10.00
P/E
Mkt Cap.(Rs cr) 23
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

G S Auto International Ltd. (GSAUTOINTL) - Auditors Report

Company auditors report

TO

THE MEMBERS OF G S AUTO INTERNATIONAL LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of G S AUTO INTERNATIONALLIMITED which comprise the Balance Sheet as at 31/03/2022 the statement of profitand loss including the statement of other comprehensive income the cash flow statementand the statement of changes in equity for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation.

Auditor's Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at31/03/2022 and its loss including other comprehensive income its cash flows and thechanges in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of financial statements in accordance with the Standards onAuditing (SAs)as specified under section 143(10) of the Companies Act 2013. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the Companies Act 2013and the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our opinionon the financial statements.

Emphasis of Matter

As explained in Note 57 to the financial statements which describe the uncertaintiesand the impact of Covid-19 pandemic on the Company's operations/supply chains/consumerdemand/financial markets/commodity prices/personnel available for work and results asassessed by the management. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon we do not provide a separate opinion on these matters.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the financial statements section of ourreport including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the financial statements. The results of our audit procedures includingthe procedures performed to address the matters below provide the basis for our auditopinion on the accompanying standalone financial statements.

Key audit matters How our audit addressed the key audit matter
(a) Revenue recognition including price variations (as described in note 3.12 of the financial statements)
Revenue is measured by the Company atthefairvalue of consideration received/ receivable from its customers and in determining the transaction price for the sale of products the Company considers the effects of price variations provided to the customer. Our audit procedures included the following: • Assessed the Company's accounting policy for revenue recognition including the policy for recording price variations in terms of Ind AS 115.
The Company's business also requires passing on price variations to the customer for the sales made by the Company. The Company at the year end has provided for such price variations to be passed on to the customer. • Obtained understanding of the revenue process and the assumptions used by the management in the process of calculation of price variations including design and implementation of controls and tested the operating effectiveness of these controls.
We have considered this as a key audit matter on account of the significant judgement and estimate involved in calculation of price variations to be recorded as at the year end • Tested on sample basis debit/ credit notes in respect of agreed price variations passed on to the customers.

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

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report CorporateGovernance and Shareholder's Information but does not include the financial statementsand 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 financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. If based on the workwe have performed we conclude that there is a material misstatement therein we arerequired to communicate the matter to those charged with governance.

Responsibility of Management and Those Charged with Governance (TCWG)

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 position financial performance including other comprehensive income cash flows and changes inequity of the company in accordance with the accounting principles generally accepted inIndia including the Accounting Standards specified under Section 133 of the Act read withthe Companies (Indian Accounting Standards) Rules 2015 as amended. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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

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

Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists.

Misstatements can arise 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 financial statements.

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

• Identify and assess the risks of material misstatement of the 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 orthe 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 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 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

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

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 ouraudit.

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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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

As required by the Companies (Auditors' Report) Order 2020 ("theOrder") issued by the Central Government of India in terms of sub section (11) ofsection 143 of the Companies Act 2013. We give in the Annexure A statementson 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 explanations which to the bestof our knowledge and beliefwere necessary for the purposes of ouraudit.

(b) In ouropinion proper books of account as required by law have been kept by theCompany so far as it appears from ourexamination of those books.

(c) The Balance Sheet the Statement of Profit and Loss including the statement ofother comprehensive income the cash flow statement and statement of changes in equitydealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended.

(e) On the basis of the written representations received from the directors as on31/03/2022 taken on record by the Board of Directors none of the directors isdisqualified as 31/03/2022 from being appointed as a director in terms of Section 164 (2)of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer toourseparate report in "Annexure B".

(g) In our opinion the managerial remuneration for the year ended March 312022 hasbeen paid /provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to 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 in our opinionand to the best of our information and according to the explanations given to us:

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

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

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

iv. (a) The management has represented that to the best of it's knowledge and beliefother than as disclosed in the notes to the accounts no funds have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the company to or in any other person(s) or entity(ies) includingforeign entities ("Intermediaries") with the understanding whether recorded inwriting or otherwise that the Intermediary shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe company ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries.

(b) The management has represented that to the best of it's knowledge and beliefother than as disclosed in the notes to the accounts no funds have been received by thecompany from any person(s) or entity(ies) including foreign entities ("FundingParties") with the understanding whether recorded in writing or otherwise that thecompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries; and.

(c) Based on audit procedures which we considered reasonable and appropriate in thecircumstances nothing has come to their notice that has caused them to believe that therepresentations under subclause (i) and (ii) contain any material misstatement.

v. The company has not declared or paid any dividend during the year in contraventionof the provisions of section 123 of the Companies Act 2013.

ANNEXURE-A

Reports under The Companies (Auditor's Report)

Order 2020 (CARO 2020) for the year ended on 31st

March 2022

To

The Members of

G S AUTO INTERNATIONAL LIMITED

(I) Property Plant and Equipment and Intangible

Assets

(a) (A) The company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment.

(a) (B) The Company has maintained proper records showing full particulars ofIntangible assets.

(b) Property Plant and Equipment have been physically verified by the management atreasonable intervals; No material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties (otherthan immovable properties where the Company is the lessee and the lease agreements areduly executed in favour of the lessee) disclosed in the financial statements are held inthe name of the Company.

FOR SUKHMINDER SINGH AND CO.
(Chartered Accountants)
Reg No. :0016737N
Sd /-
Date : 30/05/2022 SUKHMINDER SINGH
Place : LUDHIANA Partner
M.No. : 093100
UDIN : 22093100AJYSGB6420

(d) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not revalued its Propertyplant and equipment (including Right-of-use assets) or Intangible assets or both duringthe year.

(e) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no proceedings initiated or pendingagainst the Company for holding any Benami property under the Prohibition of BenamiProperty Transactions Act 1988 and rules made thereunder.

(II) Inventory and other current assets

(a) Physical verification of inventory has been conducted at reasonable intervals bythe management.

(b) As disclosed in note 17 to the financial statements the Company has beensanctioned working capital limits in excess of Rs. Five Crores in aggregate from banksduring the year on the basis of security of current assets of the Company. Based on therecords examined by us in the normal course of audit of the financial statements thequarterly returns/statements filed by the Company with such banks are not in agreementwith the books of accounts of the Company and the details are as follows:

Quarter ended Value per books of account Value per Quarterly return/ statement Discrepancy Discrepancy Details
(A) Inventories

As informed by the management quarterly statements filed with the bankwere on provisional numbers and the difference is mainly on account of valuation rate. Also quarterly returns given to bank consists stock held at Unit-I Ludhiana only.

- June 2021- 2702.33 2381.50 320.83
- September 2021 2705.15 2314.11 391.04
December 2021 2667.98 2360.65 307.33
- March 2022 2800.25 2413.53 386.72
(B) Trade Receivable

As informed by the management quarterly statements filed with the bankwere on provisional numbers and the difference is mainly on account of goods in transit Turnover Discount and debtors consists Unit-I Ludhiana only.

June 2021- 1809.94 1795.59 14.35
September 2021 1794.45 1832.47 (38.02)
December 2021 1864.36 1775.26 89.10
- March 2022 1823.83 1708.53 115.30

(III) Investment Loans or Advances by Company

(a) As informed the company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under section 189 ofthe Companies Act 2013 but has provided guarantee on behalf of other Group Companies(i.e. G.S. Autocomp Private Limited & G.S. Consumer Products Private Limited) to bankof Rs.508.00 lakhs.

(b) During the year the guarantees provided security given and the terms andconditions of the grant of guarantees to bank on behalf of other Group Companies (i.e.G.S. Autocomp Private Limited & G.S. Consumer Products Private Limited) are notprejudicial to the Company's interest as per information and explanations given to us.

(c) (d) (e) (f) According to the information and explanations given to us and onthe basis of our examination of the records of the Company there is no loans &advances. So this provision is not applicable.

(IV) Loan to Directors and Investment by the Company

There are no loans investments guarantees and security in respect of whichprovisions of sections 185 of the Companies Act 2013 are applicable. Loans investmentsguarantees and security in respect of which provisions of section 186 of the CompaniesAct 2013 are applicable have been complied with by the Company.

(V) Deposits Accepted by the Company

The Company has neither accepted any deposits from the public nor accepted any amountswhich are deemed to be deposits within the meaning of sections 73 to 76 of the CompaniesAct and the rules made thereunder to the extent applicable. Accordingly the requirementto report on clause 3(v) of the Order is not applicable to the Company.

(VI) Maintenance of Cost records

We have broadly reviewed the books of accounts relating to materials labour and otheritems of cost maintained by the company pursuant to the Rules made by the CentralGovernment for the maintenance of cost records under sub-section (1) of section 148 of theCompanies Act 2013 and we are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. We have not however made a detailed examinationof the same.

(VII) Statutory Dues

(a) The company is depositing with appropriate authorities undisputed statutory duesincluding provident fund employees' state insurance income tax GST any other statutorydues applicable to it but in some cases there is delay in deposit.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of goods and service tax provident fund employees' state insuranceincome-tax sales- tax service tax duty of customs duty of excise value added taxcess and other statutory dues were outstanding at the year end for a period of more thansix months from the date they became payable.

(c) Detail of Disputed I ncome Tax amount payable to statutory authorities as percompany officials are as given below.

Related To Authority where Pending Assessment Year Disputed Amount (In lakhs)
Income Tax Act 1961 Commissioner (Appeals) 2008-09 97.54+ Interest
Income Tax Act 1961 IT Appellate Tribunal 2009-10 36.30+ Interest
Income Tax Act 1961 IT Appellate Tribunal 2012-13 269.65+ Interest

(VIII) Disclosure of Undisclosed Transactions

According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not surrendered or disclosedany transactions previously unrecorded as income in the books of account in the taxassessments under the Income- TaxAct 1961 as income during the year.

(IX) Loans or Other Borrowings

(a) The company has not defaulted in repayment of dues to financial institution orabank.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not been declared a wilfuldefaulter by any bank or financial institution or government or government authority.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company. The Company has applied term loans for thepurpose for which the loans were obtained.

(d) According to the information and explanations given to us and on an overallexamination of the balance sheet of the Company The fund raised on short term basis havenot been used for long term purpose.

(e) According to the information and explanations given to us and on an overallexamination of the financial statements of the Company we report that the Company has nottaken any funds from any entity or person on account of or to meet the obligations of itssubsidiaries Associate and Joint Ventures as defined under the Companies Act 2013.Accordingly clause 3(ix)(e) of the Order is not applicable.

(f) According to the information and explanations given to us and procedures performedby us we report that the Company has not raised loans during the yearon the pledge ofsecurities held in its subsidiaries as defined under the Companies Act 2013. Accordinglyclause 3(ix)(f) of the Order is not applicable.

(X) Money raised by IPO FPOs

(a) The Company has not raised any money during the year by way of initial public offer/ further public offer (including debt instruments) hence the requirement to report onclause 3(x)(a) of the Order is not applicable to the Company.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly clause 3(x) (b) of the Order is not applicable.

(XI) Reporting of Fraud During the Year

(a) No fraud by the Company or no material fraud on the Company has been noticed orreported during the year.

(b) According to the information and explanations given to us no report undersub-section (12) of Section 143 of the Companies Act 2013 has been filed by the auditorsin Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government.

(c) As represented to us by the management there are no whistle blower complaintsreceived by the Company during the year.

(XII) Compliance by Nidhi Company Regarding Net Owned Fund to Deposits Ratio

The Company is not a Nidhi Company as per the provisions of the Companies Act 2013.Therefore the requirement to report the Companies Act 2013. Therefore the requirementto report on clause 3(xii)(a) clause 3(xii)(b) and clause 3(xii)(c) of the Order is notapplicable to the Company.

(XIII) Related party transactions

All transactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards.

(XIV) Internal Audit System

(a) Based on information and explanations provided to us and our audit procedures inour opinion the Company has an internal audit system commensurate with the size andnature of its business.

(b) We have considered the internal audit reports of the Company issued till date forthe period underaudit.

(XV) Non cash transactions

The Company has not entered into any non-cash transactions with its directors orpersons connected with its directors and hence requirement to report on clause 3(xv) ofthe Order is not applicable to the Company.

(XVI) Requirement of Registration under 45-IA of Reserve Bankof India Act 1934

(a) The company is not required to be registered under section 45-IA of the ReserveBank of India Act. Accordingly clause 3(xvi)(a) of the Order is not applicable.

(b) The Company has not conducted any Non-

Banking Financial or Housing Finance activities. Accordingly clause 3(xvi)(b) of theOrder is not applicable.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of the Order is notapplicable.

(d) According to the information and explanations provided to us during the course ofaudit the Group does not have more than one CIC as part of the group. Accordingly therequirements of clause 3(xvi)(d) is not applicable.

(XVII) Cash Losses

The Company has not incurred cash losses in the current and in the immediatelypreceding financial year.

(XVIII) Consideration of outgoing auditors

There has been no resignation of the statutory auditors during the year. Accordinglyclause 3(xviii) of the Order is not applicable.

(XIX) Material uncertainty in relation to realisation of financial assets and paymentof financial liabilities

On the basis of the financial ratios disclosed in note no.58 ageing and expecteddates of realisation of financial assets and payment of financial liabilities otherinformation accompanying the financial statements and our knowledge of the Board ofDirectors and management plans and based on our examination of the evidence supporting theassumptions nothing has come to our attention which causes us to believe that anymaterial uncertainty exists as on the date of the audit report indicating that company isnot capable of meeting its liabilities existing at the date of balance sheet as and whenthey fall due within a period of one year from the balance sheet date. We however statethat this is not an assurance as to the future viability of the Company. We further statethat our reporting is based on the facts up to the date of the audit report and we neithergive any guarantee nor any assurance that all liabilities falling due within a period ofone year from the balance sheet date will get discharged by the company as and when theyfall due.

(XX) Compliance of CSR

(a) In our opinion and according to the information and explanations given to us thereis no unspent amount under sub-section (5) of Section 135 of the Companies Act 2013pursuant to any project. Accordingly clauses 3(xx)(a) and 3(xx)(b) of the Order are notapplicable.

FOR SUKHMINDER SINGH AND CO.
(Chartered Accountants)
Reg No. :0016737N
Sd/-
Date : 30/05/2022 SUKHMINDER SINGH
Place : LUDHIANA Partner
M.No.: 093100 UDIN : 22093100AJYSGB6420

"Annexure B" to the Independent Auditor's Report of even date on theFinancial Statements of G S AUTO INTERNATIONAL LIMITED.

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

We have audited the internal financial controls over financial reporting of M/s G SAUTO INTERNATIONAL LIMITED as of March 31 2022 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as requiredunderthe Companies 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 aboutwhetheradequate internal financial controls overfinancial 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 control system overfinancial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reportingassessing the risk that a material weakness exists and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend upon on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial 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 systemoverfinancial 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 overfinancialreporting 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 ofmanagement 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 overfinancialreporting 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 March 31 2022 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 issues by the Institute of CharteredAccountants of India.

FOR SUKHMINDER SINGH AND CO.
(Chartered Accountants)
Reg No. :0016737N
Sd /-
Date : 30/05/2022 SUKHMINDER SINGH
Place : LUDHIANA Partner
M.No. : 093100
UDIN : 22093100AJYSGB6420

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