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Genus Power Infrastructures Ltd.

BSE: 530343 Sector: Engineering
NSE: GENUSPOWER ISIN Code: INE955D01029
BSE 00:00 | 30 Sep 80.25 1.45
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OPEN 79.95
PREVIOUS CLOSE 78.80
VOLUME 18854
52-Week high 113.00
52-Week low 58.20
P/E 77.91
Mkt Cap.(Rs cr) 2,066
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 79.95
CLOSE 78.80
VOLUME 18854
52-Week high 113.00
52-Week low 58.20
P/E 77.91
Mkt Cap.(Rs cr) 2,066
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Genus Power Infrastructures Ltd. (GENUSPOWER) - Auditors Report

Company auditors report

<dhhead>INDEPENDENT AUDITOR’S REPORT</dhhead>

To the Members of Genus Power Infrastructures Limited Report on theAudit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements ofGenus Power Infrastructures Limited ("the Company") which comprise the Balancesheet as at March 31 2022 the Statement of Profit and Loss including the statement ofOther Comprehensive Income the Cash Flow Statement and the Statement of Changes in Equityfor the year then ended and notes to the standalone financial statements including asummary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 as amended ("the Act") in themanner 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 at March312022 its profit including other comprehensive income its cash flows and the changesin equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) as specified under section 143(10) of theAct. Our responsibilities 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' issuedby the Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand 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 auditopinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements for thefinancial year ended March 31 2022. These matters were addressed in the context of ouraudit of the standalone financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. For each matter belowour description of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor's responsibilities for the audit of the standalone financial statementssection of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the standalone financial statements. The results of our auditprocedures including the procedures performed to address the matters below provide thebasis for our audit opinion on the accompanying standalone financial statements.

Key audit matters How our audit addressed the key audit matter
Trade receivables (as described in note 10 of the Standalone Financial Statements)
As at March 31 2022 the Company has outstanding trade receivables and retention money of INR 56029.43 Lakhs which represents approximately 37 % of the total assets of the Company. Our audit procedures included the following:
In assessing the recoverability of the trade receivables and determination of allowance for expected credit loss management's judgement involves consideration of aging status historical payment records evaluation of claims for deficiencies/ defective parts the likelihood of collection based on the terms of the contract and the credit information of its customers. - We obtained an understanding and tested on a sample basis the design and operating effectiveness of management control over the recognition and the recoverability of the trade receivables.
We considered this as key audit matter due to the materiality of the amounts and significant estimates and judgements as stated above. - We performed test of details and tested relevant contracts documents and subsequent settlements for material trade receivable balances that are due on performance of future obligations.
- We tested the ageing of receivables as at year end and their classification as due/not due by comparing them with the relevant contractual payment milestones.
- In respect of material trade receivable balances which are past due additional procedures were performed i.e. testing of customer acceptances review of historical payment records correspondence with customers etc.
- We tested the design implementation and operative effectiveness of management's key internal controls over allowance for credit losses.
- We assessed the allowance for expected credit loss made by management.

 

We have determined that there are no other key audit matters tocommunicate in our report.

Other Information

The Company's Board of Directors is responsible for 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. These reports are expected to be made available to us after the date of thisAuditor's report

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether such other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.

Responsibilities of Management for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe 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 the 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.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

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

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements for the financial year ended March 31 2022 and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits 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 subsection(11) of section 143 of the Act we give in the "Annexure 1" a statement on thematters specified in paragraphs 3 and 4 of the Order.

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

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;

(c) The reports on the accounts of the branch office of the Companyaudited under Section 143(8) of the Act by branch auditor have been sent to us and havebeen properly dealt with by us in preparing this report;

(d) The Balance Sheet the Statement of Profit and Loss including theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account;

(e) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withCompanies (Indian Accounting Standards) Rules 2015 as amended;

(f) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 312022 from being appointed as a director in termsof Section 164 (2) of the Act'

(g) With respect to the adequacy of the internal financial controlswith reference to these standalone financial statements and the operating effectiveness ofsuch controls refer to our separate Report in "Annexure 2" to this report'

(h) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended

In our opinion and as explained in note 46 to the standalone financialstatement the managerial remuneration paid / payable to the Chairman Managing directorand Joint Managing director of the Company is INR 794.40 Lakhs as compared to prescribedlimits under section 197 read with Schedule V to the Companies Act 2013 of INR 501.12Lakhs. As per the provisions of the Act the excess remuneration is subject to approval ofthe shareholders which the Company proposes to obtain in the forthcoming Annual GeneralMeeting by way of special resolution.

(i) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements - Refer Note 34B to thestandalone financial statements;

ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts - Refer Note 18 to the standalone financialstatements;

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

iv. a) The management has represented that to the best of itsknowledge and belief no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the Company toor in any other person or entity including foreign entities ("Intermediaries")with the understanding whether recorded in writing or otherwise that the Intermediaryshall whether directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever by or on behalf of the Company ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries;

b) The management has represented that to the best of its knowledgeand belief no funds have been received by the Company from any persons or entitiesincluding 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; and

c) Based on such audit procedures that were considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (a) and (b) contain any materialmisstatement.

v. The dividend declared or paid during the year / subsequent to theyear-end by the Company is in compliance with section 123 of the Act to the extent itapplies to payment of dividend.

For S.R. BATLIBOI & ASSOCIATES LLP

For KAPOOR PATNI & ASSOCIATES

Chartered Accountants

Chartered Accountants

ICAI Firm Registration Number:101049W/E300004

Firm Registration Number: 019927C

per Navneet Rai Kabra

per Abhinav Kapoor

Partner

Partner

Membership Number: 102328

Membership Number: 419689

UDIN: 22102328AIVNDC3553

UDIN: 22419689AIVRFB9755

Place of Signature: Hyderabad

Place of Signature: Jaipur

Date: May 12 2022

Date: May 12 2022

 

Annexure 1 referred to the Independent Auditor's Report Re: Genus PowerInfrastructures Limited ("the Company")

i. (a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of property plant andequipment.

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

(b) The Company has a regular programme of physically verification ofits property plant and equipment by which all the property plant and equipment areverified in a phased manner over a period of three years. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets. No material discrepancies were noticed on such verification.

(c) The title deeds of all the immovable properties (other thanproperties where the Company is the lessee and the lease agreements are duly executed infavour of the lessee) are held in the name of the Company.

(d) The Company has not revalued its Property Plant and Equipment(including Right of use assets) or intangible assets during the year ended March 31 2022.

(e) There are no proceedings initiated or are pending against theCompany for holding any benami property under the Prohibition of Benami PropertyTransactions Act 1988 and rules made thereunder.

(ii) (a) The management has conducted physical verification ofinventory including inventory lying with third parties at reasonable intervals during theyear. In our opinion the coverage and the procedure of such verification by the managementis appropriate. No discrepancies of 10% or more in aggregate for each class of inventorywere noticed on such physical verification.

(b) As disclosed in note 51 to the financial statements the Companyhas been sanctioned working capital limits in excess of INR five crores in aggregate frombanks and/or financial institutions during the year on the basis of security of currentassets of the Company. The quarterly returns/statements filed by the Company with suchbanks and financial institutions are in agreement with the books of accounts of theCompany.

(iii) (a) During the year the Company has provided loans as follows:

Particulars

Security

Amount

Aggregate amount granted/ provided during the year
- Associates

Nil

27.48 Lakhs

- Others

Nil

1000.00 Lakhs

Balance outstanding as at balance sheet date

1027.48 Lakhs

 

(b) During the year the investments made and the terms and conditionsof the grant of all loans and advances in the nature of loans and guarantees to companiesare not prejudicial to the Company's interest.

(c) The Company has granted loans during the year to companies wherethe schedule of repayment of principal and payment of interest has been stipulated and therepayment or receipts are regular.

(d) There are no amounts of loans and advances in the nature of loansgranted to companies firms limited liability partnerships or any other parties which areoverdue for more than ninety days.

(e) There were no loans or advance in the nature of loan granted tocompanies which had fallen due during the year.

(f) The Company has not granted any loans or advances in the nature ofloans either repayable on demand or without specifying any terms or period of repaymentto companies firms Limited Liability Partnerships or any other parties. Accordingly therequirement to report on clause 3(iii)(f) of the Order is not applicable to the Company.

(iv) Loans investments guarantees and security in respect of whichprovisions of sections 185 and 186 of the Companies Act 2013 are applicable have beencomplied with by the Company.

(v) The Company has neither accepted any deposits from the public noraccepted any amounts which are deemed to be deposits within the meaning of sections 73 to76 of the Companies Act and the rules made thereunder to the extent applicable.Accordingly the requirement to report on clause 3(v) of the Order is not applicable tothe Company.

(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148(1) of the Companies Act 2013 related to the manufacture orservice of meter and allied products and are of the opinion that prima facie thespecified accounts and records have been made and maintained. We have not however made adetailed examination of the same.

(vii) (a) The Company is generally regular in depositing withappropriate authorities undisputed statutory dues including goods and services taxprovident fund employees' state insurance income-tax duty of customs cess and otherstatutory dues applicable to it. According to the information and explanations given to usand based on audit procedures performed by us no undisputed amounts payable in respect ofthese statutory dues were outstanding at the year end for a period of more than sixmonths from the date they became payable.

(b) The dues of goods and services tax provident fund employees'state insurance income-tax sales-tax service tax duty of custom duty of excise valueadded tax cess and other statutory dues have not been deposited on account of anydispute are as follows:

Name of the Statue Nature of the Dues (including interest and penalty where applicable) Forum

Period to which amount relates

Gross Amount (INR In Lakhs)

Amount Deposited under Protest (INR In Lakhs)

Net Amount (INR In Lakhs)

The Finance Act 1994 Service Tax Rajasthan High Court Jaipur

2006 - 2007

132.69

-

132.69

Rajasthan High Court Jodhpur

2010 - 2013

165.44

-

165.44

Joint Commissioner CGST

2015-17

137.35

-

137.35

Deputy. Commissioner Division F Jaipur

2015-17

37.92

-

37.92

The Commissioner Appeals Dehradun

April 2017 to June 2017

0.86

0.57

0.29

The Central Sales Tax Act 1956 Sales Tax Assessing officer

2009 - 2010

3.05

0.76

2.29

Assistant Commissioner

2010 - 2011

243.47

42.42

201.05

Joint Commissioner (Appeals)

2008 - 2009

263.62

160.00

103.62

Rajasthan Tax Board

2007 - 2009

892.22

-

892.22

The Bihar Value Added Tax Act 2005 Value Added Tax Joint Commissioner (Appeals)

2006 - 2009 2015 - 2016

19.49

5.77

13.72

Assistant Commissioner

2009 - 2010

40.67

10.17

30.50

Commissioner

2009 - 2010

375.29

117.54

257.75

Deputy Commissioner (Appeals)

2011 - 2012

13.30

3.27

10.03

Assessing Officer

2013 - 2014

31.54

1.50

30.04

The Rajasthan Value Added Tax Act 2003 Value Added Tax Deputy Commissioner Appeals

2010 - 2016

64.34

0.85

63.49

The West Bengal Value Added Tax Act 2003 Value Added Tax Tribunal

2013 - 2014

14.69

5.50

9.19

GST Act 2017 Goods and service Tax Dy. Comm. Haridwar

2017-2020

20.63

6 .28

14.35

Customs Act 1962 Customs CESTAT

July 2014 to April 2019

650.88

48.82

602.06

Income Tax Act 1961 Income Tax Commissioner of Income tax (Appeals)

2009 - 2010 2015 - 2017

166.01

22.00

144.01

 

(viii) The Company has not surrendered or disclosed any transactionpreviously unrecorded in the books of account in the tax assessments under the Income TaxAct 1961 as income during the year. Accordingly the requirement to report on clause3(viii) of the Order is not applicable to the Company.

(ix) (a) The Company has not defaulted in repayment of loans or otherborrowings or in the payment of interest thereon to any lender.

(b) The Company has not been declared a wilful defaulter by any bank orfinancial institution or government or any government authority.

(c) The Company did not have any term loans outstanding during the yearhence the requirement to report on clause (ix)(c) of the Order is not applicable to theCompany.

(d) On an overall examination of the financial statements of theCompany no funds raised on short-term basis have been used for long-term purposes by theCompany.

(e) On an overall examination of the financial statements of theCompany the Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries or associates.

(f) The Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries or associate companies. Hence the requirement toreport on clause (ix)(f) of the Order is not applicable to the Company.

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

(b) The Company has not made any preferential allotment or privateplacement of shares /fully or partially or optionally convertible debentures during theyear under audit and hence the requirement to report on clause 3(x)(b) of the Order isnot applicable to the Company.

(xi) (a) No fraud by the Company or no fraud on the Company has beennoticed or reported during the year.

(b) During the year no report under sub-section (12) of section 143 ofthe Companies Act 2013 has been filed by cost auditor or secretarial auditor or by us inForm 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 blowercomplaints received by the Company during the year.

(xii) The Company is not a nidhi Company as per the provisions of theCompanies Act 2013. Therefore the requirement to report on clause 3(xii)(a) of the Orderis not applicable to the Company.

(xiii) Transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the notes to the financial statements as required by the applicableaccounting standards.

(xiv) a) The Company has an internal audit system commensurate with thesize and nature of its business.

(b) The internal audit reports of the Company issued till the date ofthe audit report for the period under audit have been considered by us.

(xv) The Company has not entered into any non-cash transactions withits directors or persons connected with its directors and hence requirement to report onclause 3(xv) of the Order is not applicable to the Company.

(xvi) a) The provisions of section 45-IA of the Reserve Bank of IndiaAct 1934 (2 of 1934) are not applicable to the Company. Accordingly the requirement toreport on clause (xvi)(a) of the Order is not applicable to the Company.

(b) The Company has not conducted any Non-Banking Financial or HousingFinance activities without obtained a valid Certificate of Registration (CoR) from theReserve Bank of India as per the Reserve Bank of India Act 1934.

(c) The Company is not a Core Investment Company as defined in theregulations made by Reserve Bank of India. Accordingly the requirement to report onclause 3(xvi) of the Order is not applicable to the Company.

(d) There is no Core Investment Company as a part of the Group hencethe requirement to report on clause 3(xvi) of the Order is not applicable to the Company.

(xvii) The Company has not incurred cash losses in the current year andin the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors duringthe year and accordingly requirement to report on Clause 3(xviii) of the Order is notapplicable to the Company.

(xix) On the basis of the financial ratios disclosed in note 55 to thefinancial statements ageing and expected dates of realization of financial assets andpayment of financial liabilities other information accompanying the financial statementsour knowledge of the Board of Directors and management plans and based on our examinationof the evidence supporting the assumptions nothing has come to our attention whichcauses us to believe that any material uncertainty exists as on the date of the auditreport that Company is not capable of meeting its liabilities existing at the date ofbalance sheet as and when they fall due within a period of one year from the balance sheetdate. We however state that this is not an assurance as to the future viability of theCompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.

(xx) (a) In respect of other than ongoing projects there are nounspent amounts that are required to be transferred to a fund specified in Schedule

VII of the Companies Act (the Act) in compliance with second provisoto sub section 5 of section 135 of the Act. This matter has been disclosed in note 53 tothe financial statements

(b) There are no unspent amounts in respect of ongoing projects thatare required to be transferred to a special account in compliance of provision of subsection (6) of section 135 of Companies Act. This matter has been disclosed in note 53 tothe financial statements.

For S.R. BATLIBOI & ASSOCIATES LLP

For KAPOOR PATNI & ASSOCIATES

Chartered Accountants

Chartered Accountants

ICAI Firm Registration Number:101049W/E300004

Firm Registration Number: 019927C

per Navneet Rai Kabra

per Abhinav Kapoor

Partner

Partner

Membership Number: 102328

Membership Number: 419689

UDIN: 22102328AIVNDC3553

UDIN: 22419689AIVRFB9755

Place of Signature: Hyderabad

Place of Signature: Jaipur

Date: May 12 2022

Date: May 12 2022

 

Annexure - 2 to the Independent Auditor's Report of even date on thestandalone financial statements of Genus Power Infrastructures Limited Report on theInternal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act 2013 ("the Act")

We have audited the internal financial controls with reference tostandalone financial statements of Genus Power Infrastructures Limited ("theCompany") as of March 31 2022 in conjunction with our audit of the standalonefinancial 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 andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting 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 to theCompany'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 Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to these standalone financial statements based on ouraudit. We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing as specified under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both issued by ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to these standalone financial statements was establishedand maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system with reference to these standalonefinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to standalone financial statements included obtaining anunderstanding of internal financial controls with reference to these standalone financialstatements assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols with reference to these standalone financial statements.

Meaning of Internal Financial Controls With Reference to theseStandalone Financial Statements

A company's internal financial controls with reference to standalonefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sinternal financial controls with reference to standalone financial statements includesthose policies and procedures that (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls With Reference tothese Standalone Financial Statements

Because of the inherent limitations of internal financial controls withreference to standalone financial statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial control with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls with reference to standalone financial statements and suchinternal financial controls with reference to standalone financial statements wereoperating effectively as at March 31 2022 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note issued by the ICAI

For S.R. BATLIBOI & ASSOCIATES LLP

For KAPOOR PATNI & ASSOCIATES

Chartered Accountants

Chartered Accountants

ICAI Firm Registration Number: 101049W/E300004

Firm Registration Number: 019927C

per Navneet Rai Kabra

per Abhinav Kapoor

Partner

Partner

Membership Number: 102328

Membership Number: 419689

UDIN: 22102328AIVNDC3553

UDIN: 22419689AIVRFB9755

Place of Signature: Hyderabad

Place of Signature: Jaipur

Date: May 12 2022

Date: May 12 2022

 

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