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Ganesha Ecosphere Ltd.

BSE: 514167 Sector: Industrials
NSE: GANECOS ISIN Code: INE845D01014
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OPEN 891.85
PREVIOUS CLOSE 882.95
VOLUME 7151
52-Week high 985.05
52-Week low 543.25
P/E 24.77
Mkt Cap.(Rs cr) 1,974
Buy Price 893.85
Buy Qty 51.00
Sell Price 0.00
Sell Qty 0.00
OPEN 891.85
CLOSE 882.95
VOLUME 7151
52-Week high 985.05
52-Week low 543.25
P/E 24.77
Mkt Cap.(Rs cr) 1,974
Buy Price 893.85
Buy Qty 51.00
Sell Price 0.00
Sell Qty 0.00

Ganesha Ecosphere Ltd. (GANECOS) - Auditors Report

Company auditors report

To

The Members of

Ganesha Ecosphere Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of Ganesha EcosphereLimited ("the Company") which comprise the balance sheet as at March 31 2022and the statement of profit and loss (including other comprehensive income) the cash flowstatement and the statement of changes in equity for the year then ended and notes to thestandalone financial statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the 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 Indiaincluding Indian Accounting Standards (‘Ind AS') specified under Section 133 of theAct of the state of affairs (financial position) of the Company as at March 31 2022 andits profit (financial performance including other comprehensive income) its cash flowsand changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the "Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements" section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (‘ICAI') together with the ethical requirements that are relevant to our auditof the standalone financial statements under the provisions of the Act and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw attention to Note 41.0 of the standalone financial statements which describesthe effects of a fire in one of the Company's production facilities. Our opinion on thestandalone financial statements is not modified in respect of this matter.

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 Matter How our audit addressed the key audit matter
Revenue Recognition (as described in note 2.d of the standalone financial statements)
Revenue is one of the key profit drivers and is therefore susceptible to misstatement. Cut-off is the key assertion insofar as revenue recognition is concerned since an inappropriate cut-off can result in material misstatement of results for the year. Our audit procedures with regard to revenue recognition included testing controls automated and manual around dispatches/deliveries inventory reconciliations and circularization of receivable balances testing of cut-offs and performing analytical review procedures.
Evaluation of pending litigations (as described in note 30.2 of the standalone financial statements)
The Company has pending litigations for demand in dispute under various statutes which involves significant judgment to determine the possible outcome of these disputes. We have obtained the details of litigations under various statutes for the year ended March 31 2022 from the management.
We have reviewed the management's underlying assumptions in estimating the provisions in respect to the disputed matters and the possible outcome of the disputes. We have also reviewed the legal precedence where available and other documents provided for review by the management in evaluating its position in these matters.
We have also reviewed the assumptions made by the management as at March 31 2022 and evaluated whether any change was required on account of information and updates made available during the year.

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 AnnualReport but does not include the standalone financial statements and our auditor's reportthereon.

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.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial 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 state of affairs (financial position) profit(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 Ind AS specified under Section 133 of the Act. 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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error which have been used for the purpose of preparation of thestandalone financial statements by the Directors of the Company as aforesaid.

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 unlessthe management either intends to liquidate the Company or to cease operations or has norealistic 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 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 Standards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SA's 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch 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 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.

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 alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships 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 the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the "Annexure A" a statement on the matters specified in paragraphs 3 and 4of the Order to the extent applicable.

2. Further to our comments in Annexure A as required by Section 143(3) of the Act wereport 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) the cash flow statement and the statement of changes in equity dealt with by thisreport are in agreement with the books of accounts. (d) In our opinion the aforesaidstandalone financial statements comply with the Ind AS specified under Section 133 of theAct.

(e) On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 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 B". 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 auditor's report in accordancewith the requirements of Section 197(16) of the Act: In our opinion and to the best of ourinformation and according to the explanations given to us the remuneration paid/ providedby the Company to its director's during the year is in accordance with the provisions ofSection 197 of the Act 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. theCompany has disclosed the impact of pending litigations on its financial position in itsstandalone financial statements - refer note 30.2; ii. the Company has made provision asrequired under the applicable law or Ind AS for material foreseeable losses if any onlong-term contracts including derivative contracts – refer note 8.6; iii. there hasbeen no delay in transferring amounts required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 31 2022; iv. (a)the management has represented that to the best of it's knowledge and belief asdisclosed in the notes to the accounts no funds have been advanced or loaned or invested(either from borrowed funds or share premium or any other sources or kind of funds) by theCompany to or in any other person(s) or entity(ies) including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries – refer note 47.0; (b) the managementhas represented that to the best of it's knowledge and belief as disclosed in the notesto the accounts no funds have been received by the Company from any person or entityincluding foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the Company shall whether directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Party ("Ultimate Beneficiaries") or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries – refer note 47.0; (c)based on the audit procedures that has been considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (a) and (b) above contain any material mis-statement; v.The dividend declared or paid during the year by the Company is in compliance with Section123 of the Act.

For Narendra Singhania & Co.
Chartered Accountants
Firm Reg No. 009781N
Narendra Singhania
Partner
Membership No.: 087931
Place: Kanpur
Date: May 21 2022
UDIN - 22087931AJJXGR9045

Annexure A to the Independent Auditor's Report

(Referred to in paragraph 1 under the heading of ‘Report on Other Legal andRegulatory Requirements' of our report of even date to the Members of Ganesha EcosphereLimited ("the Company") on the standalone financial statements as of and for theyear ended March 31 2022)

Based on the audit procedures performed for the purpose of reporting a true and fairview on the standalone financial statements of the Company and taking into considerationthe information and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

(1) (a) i) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment and right of useassets on the basis of available information. ii) The Company has maintained properrecords showing full particulars of intangible assets.

(b) As explained to us the property plant and equipment are physically verified bythe management according to a phased programme designed to cover all the items over aperiod of three years which in our opinion is reasonable having regard to the size ofthe Company and nature of its assets. Pursuant to the programme a portion of propertyplant and equipment has been physically verified by the management during the year and asinformed to us no material discrepancies were noticed on such physical 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 properties where the Company is the lessee and the lease agreements are duly executedin favour of the Company) as disclosed in the standalone financial statements and includedin the property plant and equipment are held in the name of the Company.

(d) The Company has not revalued its property plant and equipment (including right ofuse assets) and intangible assets during the year.

(e) According to the information and explanations given to us no proceedings have beeninitiated during the year or are pending against the Company as at March 31 2022 forholding any benami property under the Benami Transactions (Prohibition) Act 1988 (asamended in 2016) and rules made thereunder.

(2) (a) As explained to us the physical verification of inventory except goods intransit has been conducted at reasonable intervals by the management during the year andin our opinion the coverage and procedure of such verification by management isappropriate having regard to the size of the Company & nature of its operations. Forstock held with third parties at the year end if any written confirmations have beenobtained. No discrepancies of 10% or more in the aggregate for each class of inventorieswere noticed on such physical verifications of inventories.

(b) During the year the Company has been sanctioned working capital limits in excessof RS 5 crores in aggregate from banks on the basis of security of current assets. TheCompany has filed quarterly returns or statements with such banks in which there are fewdifferences when compared with the unaudited books of accounts (refer note 44.0).

(3) During the year the Company has made investments and granted unsecured loans andguarantees to its wholly owned subsidiaries and other parties. However the Company hasnot provided any advances in the nature of loans or security to any other party during theyear.

a) The aggregate amount during the year and balance outstanding at the balance sheetdate with respect to such loans guarantees and securities to subsidiaries and other partyare as per the table given below:

(Rs in Lakh)

Particulars Loans Guarantees
Aggregate amount granted/ provided during the year:
- subsidiaries 14330.00 37075.00
- others 125.00 -
Balance outstanding as at the balance sheet date:
- subsidiaries 3745.00 37075.00
- others 94.50 -

b) In our opinion the investments made guarantees provided and the terms andconditions of the grant of all loans and guarantees provided are not prejudicial to theCompany's interest. c) The schedule of repayment of principal and payment of interest onthe above loans has been stipulated and the repayments are regular. d) There were nooverdue amounts remaining outstanding as at the balance sheet date in respect of the aboveloans. e) There were no loans granted which has fallen due during the year and which havebeen renewed or extended or fresh loans granted to settle the overdues of existing loansgiven to the same parties. f) The Company has not granted any loans which are repayable ondemand or without specifying any terms or period of repayment.

(4) In our opinion and according to the information and explanations given to us theCompany has not granted any loans or provided any guarantees or security to the partiescovered under Section 185 of the Act. The Company has complied with the provisions ofSection 186 of the Act in respect to the investments made by it during the year.

(5) According to the information and explanations given to us the Company has notaccepted any deposits or amounts which are deemed to be deposits within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified.

(6) Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under Section 148 (1) of the Act in respectof its products. We have broadly reviewed the same and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determining whetherthey are accurate or complete.

(7) (i) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company has generally been regular indepositing with the appropriate authorities undisputed statutory dues including goods andservices tax provident fund employees state insurance income-tax duty of customs andother material statutory dues applicable to it. Further no undisputed amounts payable inrespect thereof were outstanding at the year-end for a period of more than six months fromthe date they became payable.

(ii) According to the records of the Company and as per the information andexplanations given to us there are no dues of provident fund employees state insuranceduty of customs and goods and services tax which have not been deposited on account ofany dispute The particulars of dues of income-tax and value added tax as at March 312022 which have not been deposited on account of a dispute are as follows:

Name of the Statute Nature of the Dues Amount of demand Amount paid under protest Period to which the amount relates Forum where dispute is pending
(Rs in Lakh) (Rs in Lakh)
Uttarakhand Value Added Tax Act 2005 Value Added Tax 2.60 0.48 2010-11 to 2011-12 Joint Commissioner (Appeals) (First) Commercial Tax Haldwani Uttarakhand
Income Tax Act 1961 Income Tax Demand u/s 143(3) 35.92 7.50 2015-16 Commissioner of Income Tax (Appeals) Kanpur

(8) According to the information and explanations given to us and based on ourexamination of the records of the Company there are no transactions which have not beenrecorded in the books of account and which have been surrendered or disclosed as incomeduring the year in the tax assessments under the Income Tax Act 1961.

(9) (a) Based on our audit procedures and according to the information andexplanations given to us the Company has not defaulted in repayment of loans or otherborrowings or in the payment of interest thereon to any lender during the year.

(b) Based on our audit procedures and according to the information and explanationsgiven to us the Company has not been declared wilful defaulter by any bank or financialinstitution or government or any government authority.

(c) In our opinion and according to the information and explanations given to us theterm loans have been applied for the purposes for which they were obtained.

(d) Based on our audit procedures and according to the information and explanationsgiven to us and on an overall examination of the standalone financial statements of theCompany we report that no funds raised on short-term basis have been utilised forlong-term purposes by the Company during the year.

(e) According to the information and explanations given to us and on an overallexamination of the standalone financial statements of the Company we report that the theCompany has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries. The Company doesn't have any associate or joint venture.(f) Based on our audit procedures and according to the information and explanations givento us the Company has not raised loans during the year on the pledge of securities heldin its subsidiaries.

(10) (a) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Accordingly the reportingunder Clause 3(x)(a) of the said Order is not applicable to the Company during the year.

(b) The Company has not made any preferential allotment or private placement of sharesor fully or partly or optionally convertible debentures during the year under audit.Accordingly the reporting under Clause 3(x)(b) of the said Order is not applicable to theCompany during the year.

(11) (a) Based upon the audit procedures performed for the purpose of reporting thetrue and fair view of the standalone financial statements and according to the informationand explanations given to us we report that no fraud by the Company or no fraud on theCompany has been noticed or reported during the year.

(b) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the standalone financial statements and according to the information andexplanations given to us we report that no report under sub-section (12) of Section 143of the Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Auditand Auditors) Rules 2014 with the Central Government.

(c) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the standalone financial statements and according to the information andexplanations given to us there are no whistle-blower complaints received by the Companyduring the year.

(12) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly the provisions of Clause 3(xii) of the saidOrder are not applicable to the Company.

(13) The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the standalone financial statements as required underInd AS 24 Related Party Disclosures specified under Section 133 of the Act.

(14) (a) In our opinion and according to the information and explanations given to usthe Company has an internal audit system commensurate with the size and nature of itsbusiness.

(b) The reports of the internal auditor for the period under audit have been consideredby us.

(15) 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 its Directors or persons connected with them covered under Section 192of the Act. Accordingly the reporting under Clause 3(xv) of the said Order is notapplicable to the Company during the year.

(16) (a) The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly the provisions of Clause 3(xvi)(a) of thesaid Order are not applicable to the Company.

(b) The Company has not conducted any non-banking financial/ housing finance activitiesduring the year.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly the provisions of Clause 3(xvi)(c) of thesaid Order are not applicable to the Company.

(d) According to the information and explanations given to us there is no CoreInvestment Company as a part of the Group. Accordingly the provisions of Clause 3(xvi)(d)of the said Order are not applicable to the Company.

(17) The Company has not incurred any cash losses in the financial year or in theimmediately preceding financial year. (18) There has been no resignation of the statutoryauditors during the year. Accordingly the reporting under Clause 3(xviii) of the saidOrder is not applicable to the Company during the year.

(19) According to the information and explanations given to us and on the basis offinancial ratios (refer note 40.0) ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the standalonefinancial statements our knowledge of the Board of Directors and management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that the Company is not capable of meeting itsliabilities existing at the date of balance sheet as and when they fall due within aperiod of one year from the balance sheet date. We however state that this is not anassurance as to the future viability of the Company. We further state that our reportingis based on the facts up to the date of the audit report and we neither give any guaranteenor any assurance that all liabilities falling due within a period of one year from thebalance sheet date will get discharged by the Company as and when they fall due.

(20) (a) In respect of other than ongoing projects as at balance sheet date there areno unspent amounts that are required to be transferred to a fund specified in Schedule VIIof the Act in compliance with second proviso to sub section 5 of Section 135 of the Act.

(b) The Company has transferred the amount of Corporate Social Responsibility remainingunspent under Section 135(5) of the Act pursuant to ongoing projects to a special accountin compliance with the provisions of Section 135(6) of the Act (refer note 32.0).

(21) The reporting under clause 3(xxi) of the Order is not applicable in respect of theaudit of standalone financial statements.

For Narendra Singhania & Co.
Chartered Accountants
Firm Reg No. 009781N
Narendra Singhania
Partner
Membership No.: 087931
Place: Kanpur
Date: May 21 2022
UDIN – 22087931AJJXGR9045

Annexure B to the Independent Auditor's Report

(Referred to in paragraph 2(f) under the heading of ‘Report on Other Legal andRegulatory Requirements' of our report of even date to the Members of Ganesha EcosphereLimited on the standalone financial statements as of and for the year ended March 312022)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofsub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of GaneshaEcosphere Limited ("the Company") as of March 31 2022 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 controls over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note and the Standards on Auditing prescribed under Section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth issued by ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting were 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 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 standalone financial statements whether due to fraud orerror.

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 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 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 2022 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Narendra Singhania & Co.
Chartered Accountants
Firm Reg No. 009781N
Narendra Singhania
Partner
Membership No.: 087931
Place: Kanpur
Date: May 21 2022
UDIN - 22087931AJJXGR9045

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