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Godrej Agrovet Ltd.

BSE: 540743 Sector: Agri and agri inputs
NSE: GODREJAGRO ISIN Code: INE850D01014
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OPEN 526.90
PREVIOUS CLOSE 531.95
VOLUME 8492
52-Week high 746.80
52-Week low 469.70
P/E 32.99
Mkt Cap.(Rs cr) 10,051
Buy Price 0.00
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Sell Price 0.00
Sell Qty 0.00
OPEN 526.90
CLOSE 531.95
VOLUME 8492
52-Week high 746.80
52-Week low 469.70
P/E 32.99
Mkt Cap.(Rs cr) 10,051
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Godrej Agrovet Ltd. (GODREJAGRO) - Auditors Report

Company auditors report

To the Members of Godrej Agrovet Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Godrej AgrovetLimited (‘the Company') which comprise the Standalone Balance Sheet as at 31March 2021 the Standalone Statement of Profit and Loss (including Other ComprehensiveIncome) the Standalone Statement of Changes in Equity and the Standalone Statement ofCash Flows for the year then ended and notes to the standalone financial statementsincluding a summary of the significant accounting policies and other explanatoryinformation.

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 ("Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March 2021and profit and other comprehensive income changes in equity and its cash flows for theyear ended on that date.

Description of Key audit matter Revenue Recognition

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs arefurther described 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 together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion on the standalonefinancial 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 of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

The Key Audit Matter How the matter was addressed in our audit
Refer Note 1 [6(A)(i)] of accounting policy and Note 29 and Note 30 in Our audit procedures included following:
The Company recognizes revenue from sale of goods when control of the goods has transferred and when there are no longer any unfulfilled obligations to the customer. Depending on the contractual terms with the customers this can be either at the time of dispatch or delivery of goods. The Company has large number of customers and the sales contracts with customers have different terms relating to transfer of control of underlying goods and the right of return. We identified the recognition of revenue from sale of products as a key audit matter because: - Assessing the appropriateness of the Company's accounting policies in respect of revenue recognition by comparing with applicable accounting standards;
• The Company and its external stakeholders focus on revenue as a key performance indicator. This could create an incentive for higher revenue to be recognised at period end i.e. before the control of underlying goods have been transferred to the customer; and - Evaluating the design testing the implementation and operating effectiveness of the Company's internal controls over recognition of revenue;
• Estimation of accrual for sales returns mainly in the crop protection segment involves significant judgement. - Performing substantive testing for year-end cutoff testing by selecting samples of revenue transactions recorded during and after the year and verifying the underlying documents which included sales invoices contracts with customer. - Examining journal entries (using statistical sampling) posted to revenue to identify unusual or irregular items
- Evaluating the design and testing the implementation and operating effectiveness of the internal controls over accrual for sales returns in crop protection segment;
- Checking completeness and accuracy of the data used for accrual of sales returns in crop protection segment.
- Examining historical trend of sales return claims to assess the assumptions and judgements used in accrual of sales returns in crop protection segment. Comparing historically recorded accruals to the actual amount of sales returns;
- Examining manual journal entries (using statistical sampling) posted to sales return accrual to identify unusual or irregular items.
- Evaluating adequacy of disclosures given in Note 29 and Note 30 to the standalone financial statements.

Loss allowance on trade receivables - Refer Note 1 [3] to theStandalone financial statements

The Key Audit Matter How the matter was addressed in our audit
Loss allowance on trade receivables - crop protection segment Our audit procedures to assess the ECL on trade receivables of crop protection segment included the following:
Trade receivables of crop protection segment of Rs 383.53 crores consist of individual / small customers in different jurisdictions within India. Accordingly there are significant large number of customers subject to different business risk climate risk political risk and interest rate risk. The balance of loss allowance for trade receivables of crop protection segment represent the Company's best estimate at the balance sheet date of expected credit losses (ECL) under Ind AS 109. • Testing the design implementation and operating effectiveness of key controls over measurement of ECL on trade receivables in crop protection segment. Evaluating the processes of credit control and collection of trade receivables;
The Company assesses the ECL allowance for these individual / small customers resulting from all possible defaults over the expected life of the receivables. ECL is assessed at each reporting date on collective basis using provision matrix. • Assessing the Company's accounting policy for ECL on trade receivables with applicable accounting standards;
• Using our internal IT specialists to assess and obtain comfort over ageing report. Assessing the classification of trade receivables based on such ageing report generated from system;
• Challenging the ECL estimates by examining the information used to form such estimates;
The measurement of ECL involves significant judgements and assumptions primarily including: • Checking completeness and accuracy of the data used by the Company for computation of assumptions used for computing ECL on trade receivables. Assessing assumptions such as the basis of segmentation of trade receivables historical default rate and other related factors;
- Loss rate in provision matrix depending on days past due - credit risk of customers and - historical experience adjusted for future economic conditions. For measuring ECL the Company adopted provision matrix employed numerous parameters and applied significant estimates and judgements. In addition the exposures of the trade receivables of crop protection segment and the Ecl involve significant amounts. In view of this we identified the assessment of ECL on trade receivables of crop protection segment as a key audit matter. • Obtaining independent customer confirmations on the outstanding invoices on sample (using statistical sampling) basis. Verifying balances obtained from customer with balance in the books along with applicable reconciling items. Inspecting subsequent bank receipts from customers and other relevant underlying documentation relating to closing trade receivable balances when confirmations are not received;
• Examining data inputs to provisioning matrix;
• Examining sample manual journal entries (using statistical sampling) for loss allowances to identify unusual or irregular items.

Other Information

The Company's management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theCompany's annual report but does not include the financial statements and ourauditors' report thereon.

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 and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Management's and Board of Directors' Responsibility for theStandalone Financial Statements

The Company's Management and Board of Directors are responsiblefor the matters stated in section 134(5) of the Act with respect to the preparation ofthese standalone financial statements that give a true and fair view of the state ofaffairs profit/loss and other comprehensive income changes in equity and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements the Management andBoard of Directors are responsible for assessing the Company's ability to continue asa going concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless the Board of Directors either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso.

The Board of Directors is also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

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 in the standalone financialstatements made by the Management and Board of Directors.

• Conclude on the appropriateness of the Management and Board ofDirectors use of the going concern basis of accounting and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant doubt on the Company's ability to continue as a going concern. If weconclude that a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the standalone financial statementsor if such disclosures are inadequate to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of our auditor's report. Howeverfuture events or conditions may cause the Company to 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 of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors' report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016(‘the Order‘) issued by the Central Government of India in terms of section 143(11) of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

(A) 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 Standalone Balance Sheet the Standalone Statement of Profitand Loss (including other comprehensive income) the Standalone Statement of Changes inEquity and the Standalone Statement of Cash Flows dealt with by this report are inagreement with the books of account;

(d) in our opinion the aforesaid standalone financial statementscomply with the Ind AS specified under section 133 of the Act;

(e) on the basis of written representations received from the directorsas on 31 March 2021 and taken on record by the Board of Directors none of the directorsis disqualified as on 31 March 2021 from being appointed as a director in terms ofSection 164(2) of the Act;

(f) with respect to the adequacy of the internal financial controlswith reference to financial statements of the Company and the operating effectiveness ofsuch controls refer to our separate Report in "Annexure B".

(B) With respect to the other matters to be included in theAuditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 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 as at 31March 2021 on its financial position in its standalone financial statements - Refer Note47 to the standalone 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 27 to the standalone financialstatements;

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company; and

iv. The disclosures in the standalone financial statements regardingholdings as well as dealings

in specified bank notes during the period from 8 November 2016 to 30December 2016 have not been made in these financial statements since they do not pertainto the financial year ended 31 March 2021.

(C) With respect to the matter to be included in the Auditors'Report under section 197(16) of the Act:

In our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under Section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) ofthe Act which are required to be commented upon by us.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Koosai Lehery
Partner
Mumbai Membership No: 112399
07 May 2021 UDIN: 21112399AAAABE3809

Annexure A to the Independent Auditors' Report - 31 March 2021

(Referred to in our report of even date)

With reference to the Annexure referred to in paragraph 1 in"Report on Other Legal and Regulatory Requirements" of the IndependentAuditors' Report to the Members of the Company on the standalone financial statementsfor the year ended 31 March 2021 we report that:

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The Company has a regular program of physical verification of itsfixed assets by which all fixed assets are verified every year. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets. In accordance with the above programme the Companyhas verified all fixed assets during the year and no material discrepancies were noticedin respect of the assets verified during the year.

(c) According to the information and explanations given to us and therecords examined by us including registered title deeds we report that the title deedscomprising all the immovable properties of land and buildings which are freehold are heldin the name of the Company as at the balance sheet date except as mentioned in the tablebelow. Further in respect of immovable properties of land that have been taken on leaseand disclosed as Right of use assets in the financial statements the lease agreements arein the name of the Company where the Company is lessee in the agreement except asmentioned in the table below:

S r . No Total No. of cases Type of Assets Gross block as at March 312021 (Rs in crore) Net block as at March 31 2021 (Rs in crore) Remarks
1 1 Free Hold Land 0.04 0.04 Received on merger of the erstwhile Companies. Company is in the process of transferring the title deeds
2 1 Free Hold Land 0.46 0.46 Received on demerger of Godrej Soap Business. Company is in the process of transferring the title deeds.
3 2 Lease Hold Land 8.13 7.71 Company has received the allotment letter from GIDC. Company is in process of registration
4 1 Factory Building 1.24 0.98 Received on merger of the erstwhile Companies. Company is in the process of transferring the title deeds.
5 1 Factory Building 0.22 o.oo Received on demerger of Godrej Soap Business. Company is in the process of transferring the title deeds.
6 1 Office Building 0.54 0.47 Received on merger of the erstwhile Companies. Company is in the process of transferring the title deeds.
7 1 Office Building 0.33 0.29 Received on demerger of Godrej Soap Business. Company is in the process of transferring the title deeds.

(ii) The inventory has been physically verified by the managementduring the year. In our opinion the frequency of such verification is reasonable. Thediscrepancies noticed on verification between the physical stocks and the book recordswere not material and have been properly dealt with in books of account.

(iii) (a) The Company has granted unsecured loans to five companiescovered in the register maintained under Section 189 of the Companies Act 2013 (‘theAct'). The Company has not granted any loans secured or unsecured to other bodycorporate firms limited liability partnerships or other parties covered in the registermaintained under Section 189 of the Act. In our opinion the rate of interest and otherterms and conditions on which the unsecured loans have been granted to companies listed inthe register maintained under Section 189 of the Act is not prima facie prejudicial tothe interest of the Company.

(b) The unsecured loans granted to the companies covered in theregister maintained under Section 189 of the Act are repayable on demand. The borrower hasbeen regular in the payment of interest.

(c) The unsecured loans granted to the companies covered in theregister maintained under Section 189 of the Act are repayable on demand and there is noamount overdue for more than ninety days in respect of such loans.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Section 185 and 186 of theAct in respect of grant of loans making investments providing guarantees andsecurities as applicable.

(v) In our opinion and according to the information and explanationsgiven to us the Company has not accepted deposits as per the directives issued by theReserve Bank of India under the provisions of Sections 73 to 76 or any other relevantprovisions of the Act and the rules framed there under. Accordingly paragraph 3 (v) ofthe Order is not applicable to the Company.

(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the rules prescribed by the Central Government for maintenance of costrecords under Section 148 (1) of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the records.

(vii) (a) According to the information and explanations given to

us and on the basis of our examination of records of the Companyamounts deducted/ accrued in the books of account in respect of Provident fundEmployees' State Insurance Income tax Goods and services tax

Professional tax Duty of customs Cess and other material statutorydues have generally been regularly deposited with the appropriate authorities during theyear.

According to the information and explanations given to us noundisputed amounts payable in respect of Provident fund Employees' State InsuranceIncome tax Goods and services tax Professional tax Duty of customs Cess and othermaterial statutory dues were in arrears as at 31 March 2021 for a period of more than sixmonths from the date they became payable.

Also refer note 47.2 to the standalone financial statements.

(b) According to the information and explanations given to us thereare no dues of Goods and services tax which have not been deposited with the appropriateauthorities on account of any dispute. According to the information and explanations givento us the following dues of Income- tax Duty of excise and Duty of customs have not beendeposited as on 31 March 2021 by the Company on account of disputes:

Name of the statute Nature of the Dues Amount (Rs in crore)* Period to which the amount relates Forum where dispute is pending
Central Excise Act 1944 Excise interest duty (including 7.59 April 2008 - March 2015 CESTAT/ Assessing officer
Central Excise Act 1944 Excise interest) duty (including 10.08 November 2006 - October 2014 cestat
Central Excise Act 1944 Excise interest) duty (including 4.31 May 2009 - June 2017 cestat
Central Excise Act 1944 Excise interest) duty (including 2.47 March 2003 - May 2006 Commissioner of Central Excise (Appeals)
Customs Act 1962 Custom interest) duty (including 0.58 April 2011 - March 2012 Joint Commissioner of Customs Group -1 Chennai
Customs Act 1962 Custom interest) duty (including 0.68 April 2012 - March 2013 cestat
Income tax Act 1961 Income interest) tax (including 1.06 AY 2017-18 Commissioner of Income tax (Appeals)

* Net of amounts paid in protest.

(viii) In our opinion and according to the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to banks financial institutions and government. The Company did not have anyoutstanding dues to debenture holders during the year.

(ix) In our opinion and according to the information and explanationsgiven to us the Company has not raised any moneys by way of initial public offer orfurther public offer (including debt instruments) and the term loans taken by the Companyhave been applied for the purpose for which they were raised.

(x) According to the information and explanations given to us no fraudby the Company and no material fraud on the Company by its officers or employees has beennoticed or reported during the course of our audit.

(xi) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has paid/ provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company and the Nidhi Rules 2014 are notapplicable to it. Accordingly paragraph 3(xii) of the Order is not applicable to theCompany.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with Sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

(xiv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly paragraph 3 (xIv) of the order is not applicableto the Company.

(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intoany non-cash transactions with directors or persons connected with him during the year.Accordingly paragraph 3(xv) of the Order Is not applicable to the Company.

(xvI) According to the information and explanations given to us theCompany Is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly paragraph 3(xvI) of the Order Is not applicable to the Company.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Koosai Lehery
Partner
Mumbai Membership No: 112399
07 May 2021 UDIN: 21112399AAAABE3809

Annexure B to the Independent Auditors' Report on the standalonefinancial statements of Godrej Agrovet Limited for the year ended 31

Report on the internal financial controls with reference to theaforesaid standalone financial statements under Clause (i) of Subsection 3 of Section 143of the Companies Act 2013 ("the Act")

(Referred to in paragraph 1 A(f) under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date)

Opinion

We have audited the internal financial controls with reference to thefinancial statements of Godrej Agrovet Limited ("the Company") as of 31 March2021 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.

In our opinion the Company has in all material respects an adequateinternal financial controls with reference to financial statements and such internalfinancial controls were operating effectively as at 31 March 2021 based on the internalfinancial controls with reference to financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India (the "Guidance Note").

Management's Responsibility for Internal Financial Controls

The Company's management and the Board of Directors areresponsible for establishing and maintaining internal financial controls based on theinternal financial controls with reference to financial statements criteria established bythe Company considering the essential components of internal control stated in theGuidance Note. These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013(hereinafter referred to as "the Act").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to financial statements. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols with reference to financial statements were established and maintained and ifsuch controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of such internal financialcontrols 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 ofthe risks of material misstatement of the standalone financial statements whether due tofraud 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 internalfinancial controls with reference to financial statements.

Meaning of Internal Financial Controls with reference to financialstatements

A company's internal financial controls with reference tofinancial 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. Acompany's internal financial controls with reference to financial statements includethose 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 havea material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference tofinancial statements

Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial controls with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Koosai Lehery
Partner
Mumbai Membership No: 112399
07 May 2021 UDIN: 21112399AAAABE3809

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