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Graphite India Ltd.

BSE: 509488 Sector: Engineering
NSE: GRAPHITE ISIN Code: INE371A01025
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NSE 00:00 | 19 Jan 539.05 0.15
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OPEN 547.90
PREVIOUS CLOSE 538.80
VOLUME 86548
52-Week high 815.35
52-Week low 299.10
P/E 20.88
Mkt Cap.(Rs cr) 10,527
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 547.90
CLOSE 538.80
VOLUME 86548
52-Week high 815.35
52-Week low 299.10
P/E 20.88
Mkt Cap.(Rs cr) 10,527
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Graphite India Ltd. (GRAPHITE) - Auditors Report

Company auditors report

To the Members of Graphite India Limited

Report on the Audit of the standalone Ind AS financial statements

Opinion

We have audited the accompanying standalone Ind AS financial statementsof Graphite India Limited ("the Company") which comprise the Balance sheet asat March 31 2020 the Statement of Profit and Loss including other comprehensive incomethe Cash Flow Statement and the Statement of Changes in Equity for the year then endedand notes to the standalone Ind AS financial statements including a summary ofsignificant 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 Ind AS 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 March31 2020 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 Ind AS 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's Responsibilities for the Audit of the standalone Ind AS financialstatements' section of our report. We are independent of the Company in accordancewith 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 Ind AS financial statements under the provisions of the Act and the Rulesthereunder and we have fulfi lled 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 audit opinion on thestandalone Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that in our professionaljudgement were of most signifi cance in our audit of the standalone Ind AS financialstatements for the financial year ended March 31 2020. These matters were addressed inthe context of our audit of the standalone Ind AS financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.For each matter below our description of how our audit addressed the matter is providedin that context.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfi lled the responsibilitiesdescribed in the Auditor's responsibilities for the audit of the standalone Ind ASfinancial statements section of our report including in relation to these matters.Accordingly our audit included the performance of procedures designed to respond to ourassessment of the risks of material misstatement of the standalone Ind AS financialstatements.

The results of our audit procedures including the procedures performedto address the matters below provide the basis for our audit opinion on the accompanyingstandalone Ind AS financial statements.

Key audit matters How our audit addressed the key audit matter
Revenue recognition (as described in Note 2(b) and 21 of the standalone Ind AS financial statements)
The Company recognises revenues when control of the goods is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. Our audit procedures include following:
• Evaluated that the Company's revenue recognition policy is in compliance with terms of Ind AS 115 ‘Revenue from contracts with customers'.
The terms of sales arrangements including the timing of transfer of control delivery specifications including incoterms in case of exports create complexity and judgement in determining timing of sales revenues. The risk is therefore that revenue may not be recognised in the correct period in accordance with Ind AS 115. • Assessed the design and tested the operating effectiveness of internal controls related to revenue recognition.
Accordingly due to the risk associated with revenue recognition it was determined to be a key audit matter in our audit of the standalone Ind AS financial statements. • Performed sample test of individual sales transaction and traced to sales invoices sales orders and other related documents. Further in respect of the samples checked that the revenue has been recognized as per the incoterms and when the conditions for revenue recognitions are satisfied.
• Selected sample of sales transactions made pre and post year end checked the period of revenue recognition to underlying documents.
• Assessed the relevant disclosures made within the standalone Ind AS financial statements.
Assessment of net realisable value of Inventory (as described in Note 2(h) 3 12 23 and 24 of the standalone Ind AS financial statements)
We identified the assessment of net realizable value of finished goods work in progress and raw materials of Electrodes Segment as a key audit matter given the relative size of its balance in the standalone Ind AS financial statements and the significant judgement involved in the estimation of Net realisable value by the management of the Company. The inputs used for the evaluation of the net realisable value viz. future selling prices costs to complete for work in progress & raw material and selling costs may have a material impact on the calculation of net realisable value and resultantly on the carrying value of the inventory as on the balance sheet date. Our audit procedures include following:
• Evaluated that the Company's inventory valuation policy is in compliance with Ind AS-2 ‘Inventories'.
• Evaluated the design and implementation of key controls operating around inventory valuation.
• Held discussions with management to understand and corroborate the assumptions used in the assessment of net realisable value.
• Compared the selling prices of electrodes subsequent to the year end to their year- end carrying amounts on a sample basis to check whether they are stated at the lower of cost and net realizable value.
• Assessed the derived net realizable values of work in progress and raw material on a sample basis by comparing their year-end carrying values with the selling prices of electrodes less future cost of their conversion into finished goods.
• Obtained understanding of the management's process of estimation of future costs to conversion of raw material and WIP into finished goods and assessed their estimates on a sample basis.
• Assessed the relevant disclosures made within the standalone Ind AS financial statements.

Other Information

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Informationbut does not include the standalone Ind AS financial statements and our auditor'sreport thereon.

Our opinion on the standalone Ind AS financial statements does notcover the other information and we do not express any form of assurance conclusionthereon. In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the standalone Ind AS financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. 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 for the standalone Ind AS financialstatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standaloneInd AS financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) specified under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended.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 judgements and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone Ind AS 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 arealso responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the standalone Ind ASfinancial statements

Our objectives are to obtain reasonable assurance about whether thestandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that anaudit conducted 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 Ind AS financialstatements.

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

• Identify and assess the risks of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate 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 thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone Ind AS financial statements including the disclosures and whether thestandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation. We communicate with those charged withgovernance regarding among other matters the planned scope and timing of the audit andsignificant audit findings including any significant defi ciencies in internal controlthat we identify during our audit.

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 signifi cance in the audit of the standalone IndAS financial statements for the financial year ended March 31 2020 and are therefore thekey audit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

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 sub-section(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 Balance Sheet the Statement of Profit and Loss including othercomprehensive income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Companies (Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from thedirectors as on March 31 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2020 from being appointed as a director in termsof Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company with reference to these standalone Ind ASfinancial statements and the operating effectiveness of such controls refer to ourseparate Report in "Annexure 2" to this report;

(g) In our opinion the managerial remuneration for the year endedMarch 31 2020 has been paid/ provided by the Company to its directors in accordance withthe provisions of section 197 read with Schedule V to the Act;

(h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind AS financial statements– Refer Note 34 tothe standalone Ind AS financial statements;

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;

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

For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Sanjay Kumar Agarwal
Partner
Membership No.: 060352
UDIN: 20060352AAAABY1145
Place of Signature: Kolkata
Date: June 9 2020

Annexure 1 Referred to In Paragraph 1 of the section on "Report onother legal and regulatory requirements" of our report of even date on the standaloneInd AS financial statements of Graphite India Limited

To the members of Graphite India Limited (‘the Company')

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

(b) Majority of the fixed assets have been physically verifi ed by themanagement during the year and there is a regular programme of verification which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given by themanagement the title deeds of immovable properties included in property plant andequipment/right of use assets are held in the name of the Company except seven immovableproperties aggregating Rs. 0.24 crores as at March 31 2020 (details of which are set outin Note 4.6 and Note 4.7 to the standalone Ind AS financial statements).

Particulars Whether leasehold/ freehold Gross block (Rs. in crores) Net block (Rs. in crores)
Five Freehold
Land at Nashik and Titilagarh Freehold Land 0.09 0.09
Two Leasehold Land at Titilagarh Leasehold Land 0.22 0.15

(ii) Inventory at certain locations were verified by the managementduring the year while at other locations the physical verification was carried out by themanagement subsequent to the balance sheet date because of the National Lockdown imposedby Government of India during the last week of March 2020 owing to Covid-19 pandemic. Inour opinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification. Inventories lying with third parties have beenconfirmed by them as at March 31 2020 and no material discrepancies were noticed inrespect of such confirmations.

(iii) According to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013. Accordingly the provisions of clause 3(iii) (a) (b) and(c) of the Order are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanationsgiven to us there are no loans and securities given in respect of which provisions ofsection 185 and 186 of the Companies Act 2013 are applicable and hence not commentedupon. In respect of investments made and guarantees given provisions of section 185 and186 of the Companies Act 2013 have been complied with by the Company.

(v) The Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

(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 ofCompany's products and are of the opinion that prima facie the specified accountsand records have been made and maintained. We have not however made a detailedexamination of the same.

(vii) (a) Undisputed statutory dues including provident fundemployees' state insurance income-tax duty of custom goods and service tax cessand other material statutory dues have generally been regularly deposited with theappropriate authorities though there has been a slight delay in a few cases.

(b) According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome-tax duty of custom goods and service tax cess and other material statutory dueswere outstanding at the year end for a period of more than six months from the date theybecame payable.

(c) According to the records of the Company the dues outstanding ofincome-tax sales-tax service tax goods and service tax duty on custom duty of excisevalue added tax and cess on account of any dispute are as follows:

Name of the Statute Nature of Dues Amount (Rs. in Crores)* Period to which the amount relates Forum where dispute is pending
0.15 1996-97 and 1999-00 Assistant Commissioner/Deputy Commissioner of Central Excise
Central Excise Act 1944 Excise Duty Interest and Penalty 9.48 2010-11 2011-12 & 2013 to 2017 Commissioner (Appeals)
3.55 2003-04 to 2012-13 CESTAT
0.001 2009-10 Deputy Commissioner of Sales Tax
0.003 2005-06 Additional Commissioner of Commercial Taxes
Central Sales Tax Sales Tax 0.01 2011-12 Additional Commissioner Corporate Division (Appeal)
Act 1956 Interest and Penalty 0.32 2006-07 Joint Commissioner of Sales Tax (Appeals)
0.23 2006-07 to 2007-08 Commissioner (Appeals)
1.87 2002-03 2003-04 & 2005-06 to 2008-09 Sales Tax Tribunal
0.04 1988-89 Chief Metropolitan Magistrate
Custom Duty 0.13 2012-13 & 2013-14 Assistant Commissioner Customs
Customs Act 1962 Interest and Penalty 8.56 2005-06 to 2007-08 Commissioner of Customs
1.67 1991-92 2007-08 & 2008-09 CESTAT
0.07 2006-07 to 2010-11 Assistant Commissioner/Deputy Commissioner of Central Excise
0.16 2007-2008 Additional Commissioner Central Excise
Finance Act 1994 Service Tax Interest and 2010-11 to 2015-16
Penalty 1.28 April 2017 to June 2017 & July 2013 to April 2014 Commissioner (Appeals)
5.10 2004-05 to 2011-12 CESTAT
Karnataka Value Value Added 0.07 2006-07 Karnataka High Court
Added Tax Act 2003 Tax Interest and Penalty 0.08 2008-09 Assistant Commissioner Commercial taxes
Orissa Value Value Added
Added Tax Act 2003 Andhra Pradesh Tax Interest and Penalty Value Added 0.02 2005-06 Sales Tax Tribunal
Value Added Tax Act 2005 Tax Interest and Penalty 0.01 2008-09 Commercial Tax Officer
6.99 2011-12 & 2012-13 Commissioner of Income Tax (Appeals)
Income-tax Act 1961 Income Tax Demand and Interest 68.87 2006-07 to 2012-13 Income Tax Appellate Tribunal
18.77 1991-92 to 1993-94 1998-99 to 2005-06 Hon'ble Calcutta High Court

* Includes disputed amounts pertaining to cases where appellateauthority has decided in favour of the Company against which department has made appeal toa higher authority.

(viii) In our opinion and according to information and explanationsgiven by the management Company has not defaulted in repayment of loans or borrowings tobanks. The Company did not have any outstanding loans or borrowings dues in respect of afinancial institution or to government or dues to debenture holders during the year.

(ix) According to the information and explanations given by themanagement the Company has not raised any money by way of initial public offer / furtherpublic offer / debt instruments and term loans hence reporting under clause (ix) is notapplicable to the Company and hence not commented upon.

(x) Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the standalone Ind AS financial statements andaccording to the information and explanations given by the management we report that nofraud by the Company or on the Company by the officers and employees of the Company hasbeen noticed or reported during the year.

(xi) According to the information and explanations given by themanagement the managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.

(xii) In our opinion the Company is not a nidhi company. Thereforethe provisions of clause 3(xii) of the order are not applicable to the Company and hencenot commented upon.

(xiii) According to the information and explanations given by themanagement transactions with the related parties are in compliance with section 177 and188 of the Companies Act 2013 where applicable and the details have been disclosed in thenotes to the standalone Ind AS financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and onan overall examination of the balance sheet the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and hence reporting requirements under clause 3(xiv) are notapplicable to the Company and not commented upon.

(xv) According to information and explanations given by the managementthe Company has not entered into any non-cash transactions with directors or personsconnected with him as referred to in section 192 of the Companies Act 2013.

(xvi) According to the information and explanations given to us theprovisions of section 45-IA of the Reserve Bank of India Act 1934 are not applicable tothe Company.

For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Sanjay Kumar Agarwal
Partner
Membership No.: 060352
Place of Signature: Kolkata
Date: June 9 2020

Annexure 2 to the Independent Auditor's Report of Even Date on thestandalone Ind AS financial statements of Graphite India Limited

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

We have audited the internal financial controls over financialreporting of Graphite India Limited ("the Company") as of March 31 2020 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor 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. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting with reference to these standaloneInd AS financial statements based on our audit. We conducted our audit in accordance withthe Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting with reference to these standalone Ind ASfinancial statements was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls over financial reporting with reference tothese standalone Ind AS financial statements and their operating effectiveness. Our auditof internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting with reference tothese standalone Ind AS financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on theinternal financial controls over financial reporting with reference to these standaloneInd AS financial statements.

Meaning of Internal Financial Controls Over Financial Reporting WithReference to these standalone Ind AS financial statements

A company's internal financial control over financial reportingwith reference to these standalone Ind AS financial statements is a process designed toprovide 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 with reference to these standalone Ind AS financial statements includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a materialeffect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting With Reference to these standalone Ind AS financial statements

Because of the inherent limitations of internal financial controls overfinancial reporting with reference to these standalone Ind AS financial statementsincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingwith reference to these standalone Ind AS financial statements to future periods aresubject to the risk that the internal financial control over financial reporting withreference to these standalone Ind AS financial statements may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls over financial reporting with reference to these standaloneInd AS financial statements and such internal financial controls over financial reportingwith reference to these standalone Ind AS financial statements were operating effectivelyas at March 31 2020 based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India.

For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Sanjay Kumar Agarwal
Partner
Membership No.: 060352
Place of Signature: Kolkata
Date: June 9 2020

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