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Hem Holdings & Trading Ltd.

BSE: 505520 Sector: Financials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Hem Holdings & Trading Ltd
NSE 05:30 | 01 Jan Hem Holdings & Trading Ltd

Hem Holdings & Trading Ltd. (HEMHOLDINGST) - Auditors Report

Company auditors report

To the Members

HEM HOLDINGS AND TRADING LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Hem Holding & TradingLimited (the ‘Company') which comprise the standalone balance sheet as at 31st March2020 and 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 (hereinafter referred to as the 'standalone financial statements').

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the ‘Act') in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2020 and profit and other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

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 (the ‘ICAI') together with the ethical requirements that are relevant to ouraudit of the standalone financial statements under the provisions of the Act and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial Statements of the current period.These matters were addressed in the context of our audit of the Standalone Financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

1. Transition to Indian Accounting Standards (“Ind AS”)

The Company has adopted Ind AS notified under section 133 of the Companies Act 2013(“the Act”) read with the Companies (Indian Accounting Standards) Rules 2015from 1st April 2019 and the effective date of such transition is 1st April 2018. Ind ASare new and complex accounting standards which require considerable judgment andinterpretation in its implementation. Further Ind AS 101 (“First-time Adoption ofIndian Accounting Standards”) allows two categories of exceptions to the first-timeadopters which mainly includes prohibition to retrospective application of certainrequirements of Ind AS and exemption from some requirements of Ind AS. We consider thistransition and the required disclosure to be a key audit matter because new accountingpolicies have been developed by the Company to comply with these standards and judgment.Note 3 “Significant Accounting Policies” Note 37 - Explanation to transition toInd AS Note 33 - Financial Instruments and Fair value measurement and Note 34 - FinancialRisk Management objectives and policies to the Standalone Ind AS Financial Statementsprovide detailed information on the significant policies critical judgment and estimationalong with details of exemptions applied from certain requirements under Ind AS based onwhich these Standalone Financial Statements are prepared.

Principal Audit Procedures:

We have performed the following audit procedures in order to obtain sufficient auditevidence:

• Assessed the Company's process to identify the impact of adoption and transitionto the new accounting standards.

• Evaluated the design of internal controls and tested the operating effectivenessof key internal controls around the process of preparation of Standalone FinancialStatements;

• Reviewed the exemptions availed by the Company from certain requirements underInd AS;

• Obtained an understanding of the governance over the determination of keyjudgments;

• Evaluated and tested the key assumptions and judgments adopted by management;

• Assessed the disclosures made against the relevant Ind AS; and

• Determined the appropriateness of the methodologies and models used along withthe responsibility of the outputs.

2. Impairment loss allowance of loans and advances

Impairment loss allowance of loans and advances ("Impairment loss allowance”)is a Key Audit Matter as the Company has significant credit risk exposure to a largenumber of lenders across a wide geographical range. The value of loans and advances on thebalance sheet is significant and there is a high degree of complexity and judgmentinvolved for the Company in estimating individual and collective credit impairmentprovisions and write-offs against these loans. The Company's model to calculate expectedcredit loss (“ECL”) is inherently complex and judgment is applied in determiningthe correct construction of the three stage impairment model (“ECL Model”)including the selection and input of forward-looking information. ECL provisioncalculations require the use of large volumes of data. The completeness and reliability ofdata can significantly impact accuracy of the modeled impairment provisions. The accuracyof data flows and the implementation of related controls are critical for the integrity ofthe estimated impairment provisions.

Principal Audit Procedures:

We have started our audit procedures with understanding of the internal controlenvironment related to impairment loss allowance. Our procedures over internal controlsfocused on recognition and measurement of impairment loss allowance. We assessed thedesign and tested the operating effectiveness of the selected key controls implemented bythe Company.

We also assessed whether the impairment methodology used by the company is in line withInd AS 109 “Financial instruments” requirements. Particularly we assessed theapproach of the Company regarding definition of default Probability of Default LossGiven Default and incorporation of forward-looking information for the calculation of ECL.

For loans and advances which are assessed for impairment on a portfolio basis weperformed particularly the following procedures:

• We tested the reliability of key data inputs and related management controls;

• We checked the stage classification as at the balance sheet date as perdefinition of default of the company;

• We validated the ECL model and calculation by involving our InformationTechnology Expert;

• We have also calculated the ECL provision manually for a selected sample; and

• We have assessed the assumptions made by the Company in making acceleratedprovision considering forward looking information and based on an event in a particulargeographical range.

For loans and advances which are written off during the year under audit we read andunderstood the methodology and policy laid down and implemented by the Company in thisregard along with its compliance on sample basis.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion &Analysis Director's Report and Corporate Governance Report but does not include theStandalone Financial Statements and our auditor's report thereon.

Our opinion on the Standalone Financial Statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone Financial Statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact.

We have nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements The Company's Boardof Directors is responsible for the matters stated in section 134(5) of the Companies Act2013 (“the Act”) with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the 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 the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error

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

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

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

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

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

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

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 (“the Order”)issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

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

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

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

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31 st March 2020 from being appointed as a director in terms ofSection 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in “Annexure A”.

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended noremuneration has been paid/ provided by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses during the year ended 31st March 2020

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

For M/s Taunk & Srikanth
Chartered Accounts
(FRN - 001524C)
CA B Srikanth)
Partner
Mem No.: 072217
Place Bhilai (UDIN - 20072217AAAABB9666)

ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT

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

We have audited the internal financial controls over financial reporting of HenHoldings and Trading Limited (“the Company”) as of 31st March 2020 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). 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 company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the “Guidance Note”) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting were established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting

ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT

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

We have audited the internal financial controls over financial reporting of HenHoldings and Trading Limited (“the Company”) as of 31st March 2020 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the “Guidance Note”) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting were established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by ICAI.

For M/s Taunk & Srikanth
Chartered Accounts
(FRN - 001524C)
CA B Srikanth)
Partner
Mem No.: 072217
Place Bhilai (UDIN - 20072217AAAABB9666)

 

Annexure ‘B' to the Auditors' Report

The Annexure referred to in our Report to the members of Hem Holdings and TradingLimited on the Financial Statements for the year ended 31st March 2020.

i. In respect of its Fixed Assets:-

a. The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

b. As explained to us the Company has a program for the physical verification of fixedassets at periodic intervals. In our opinion the period of verification is reasonablehaving regard to the size of the company and nature of its assets. No significantdiscrepancies were noticed on such verification.

c. We have inspected the original deeds of the immovable properties of the company heldas fixed assets which are in the custody of the Company. Based on our audit procedures andthe information and explanation received by us we report that all title deeds ofimmovable properties of the company held as fixed assets are held in the name of theCompany. However we express no opinion on the validity of the title of the Company tothese properties.

In respect of its Inventories there being no inventory this clause is not applicable

The Company has not granted any loans or advances in the nature of Loans to partiescovered in the register maintained under Section 189 of the Companies Act 2013. Hencethe question of reporting whether the terms and conditions of such loans are prejudicialto the interest of the Company whether reasonable steps for recovery of overdue of suchloans are taken does not arise.

iv In our opinion and according to information and explanations given to us theCompany has complied with provisions 4 of Section 185 and 186 of the Act in respect ofloans investments guarantees and security.

v The Company has not accepted any deposits from the public during the period to whichthe directives issued by the Reserve Bank of India and the provisions of sections 73 to 76or any other relevant provisions of the Companies Act 2013 and the rules made thereunderare applicable.

vi. According to the information and explanations provided by the management theCompany is not engaged in production of any such goods or provision of any such servicesfor which Central Govt has prescribed particulars relating to utilization of material orlabour or other items of cost. Hence no cost records as prescribed by the centralgovernment under section 148(1) of the Companies Act 2013 have been prepared by theCompany.

vii. In respect of statutory dues:-

a. According to the information and explanations given to us undisputed statutory duesincluding Provident Fund Employees State Insurance Income Tax Sales Tax Wealth TaxService Tax Duty of Customs Duty of Excise Value Added Tax Cess Goods & ServiceTax and other statutory dues have been regularly deposited with the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of the aforesaid dues were outstanding as at 31st March 2020for a period of more than six months from the date of becoming payable.

Annexure ‘B' to the Auditors' Report

The Annexure referred to in our Report to the members of Hem Holdings and TradingLimited on the Financial Statements for the year ended 31st March 2020.

In respect of its Fixed Assets:-

a. The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

b. As explained to us the Company has a program for the physical verification of fixedassets at periodic intervals. In our opinion the period of verification is reasonablehaving regard to the size of the company and nature of its assets. No significantdiscrepancies were noticed on such verification.

c. We have inspected the original deeds of the immovable properties of the company heldas fixed assets which are in the custody of the Company. Based on our audit procedures andthe information and explanation received by us we report that all title deeds ofimmovable properties of the company held as fixed assets are held in the name of theCompany. However we express no opinion on the validity of the title of the Company tothese properties.

In respect of its Inventories there being no inventory this clause is notapplicable..

iii. The Company has not granted any loans or advances in the nature of Loans toparties covered in the register maintained under Section 189 of the Companies Act 2013.Hence the question of reporting whether the terms and conditions of such loans areprejudicial to the interest of the Company whether reasonable steps for recovery ofoverdue of such loans are taken does not arise.

iv In our opinion and according to information and explanations given to us theCompany has complied with provisions 4 of Section 185 and 186 of the Act in respect ofloans investments guarantees and security.

v The Company has not accepted any deposits from the public during the period to whichthe directives issued by the Reserve Bank of India and the provisions of sections 73 to 76or any other relevant provisions of the Companies Act 2013 and the rules made thereunderare applicable.

vi According to the information and explanations provided by the management theCompany is not engaged in production of any such goods or provision of any such servicesfor which Central Govt has prescribed particulars relating to utilization of material orlabour or other items of cost. Hence no cost records as prescribed by the centralgovernment under section 148(1) of the Companies Act 2013 have been prepared by theCompany.

vii In respect of statutory dues:-

a. According to the information and explanations given to us undisputed statutory duesincluding Provident Fund Employees State Insurance Income Tax Sales Tax Wealth TaxService Tax Duty of Customs Duty of Excise Value Added Taxi Cess Goods & ServiceTax and other statutory dues have been regularly deposited with the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of the aforesaid dues were outstanding as at 31st March 2020for a period of more than six months from the date of becoming payable.

b. There are no disputed statutory dues.

c. According to the information and explanations given to us the provisions of theInvestor Education and Protection Fund in accordance with the relevant provisions of theCompanies Act 1956 (1 of 1956) and the rules made thereunder is not applicable to theCompany.

viii According to the records of the Company the Company has not borrowed fromfinancial institutions or banks or government or issued debentures till 31st March 2020.Hence in our opinion the provisions of the said clause are not applicable.

ix. The company has neither raised any money from public issue nor availed any termloan.

x. In our opinion and according to the information and explanation given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the year that causes the financial statements to be materiallymisstated.

xi. During the year no managerial remuneration has been paid/provided by the company

xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company as prescribed under section 406 of the Act. Accordinglyparagraph 3(xii) of the Order is not applicable.

xiii According to the information and explanations given to us all transactions withthe related parties are in compliance with Section 177 and 188 of Act where applicableand the details have been disclosed in the Financial Statements as required by theapplicable accounting standards.

xiv According to the information and explanations given to us and based on ourexamination of the records of the Company no preferential allotment or private placementof shares or fully or partly convertible debentures has been made by the Company duringthe year.

xv According to the information and explanations given to us and based on our

examination of the records of the Company the Company has not entered into cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable.

xvi. The Company is required to be registered under Section 45-IA of the Reserve Bankof India Act 1934 and it has obtained the registration.

For M/s Taunk & Srikanth
Chartered Accounts
(FRN - 001524C)
CA B Srikanth)
Partner
Mem No.: 072217
Place Bhilai (UDIN - 20072217AAAABB9666)

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