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Hindalco Industries Ltd.

BSE: 500440 Sector: Metals & Mining
NSE: HINDALCO ISIN Code: INE038A01020
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VOLUME 270395
52-Week high 547.40
52-Week low 165.30
P/E 63.73
Mkt Cap.(Rs cr) 122,169
Buy Price 543.35
Buy Qty 101.00
Sell Price 543.75
Sell Qty 25.00
OPEN 530.00
CLOSE 516.00
VOLUME 270395
52-Week high 547.40
52-Week low 165.30
P/E 63.73
Mkt Cap.(Rs cr) 122,169
Buy Price 543.35
Buy Qty 101.00
Sell Price 543.75
Sell Qty 25.00

Hindalco Industries Ltd. (HINDALCO) - Auditors Report

Company auditors report

ON THE STANDALONE FINANCIAL STATEMENTS

To the Members of HindaLco Industries Limited

Report on the audit of the standalone financial statements

Opinion

1. We have audited the accompanying standalone financial statements of HindalcoIndustries Limited ("the Company") which comprise the Balance Sheet as at March31 2021 and the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year then endedand notes to the financial statements including a summary of significant accountingpolicies and other explanatory information.

2. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2021 and total comprehensive income(comprising of profit and other comprehensive income) changes in equity and its cashflows for the year then ended.

Basis for opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Key audit matters

4. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Key audit matter How our audit addressed the key audit matter
A. Measurement of inventory quantities of coal bauxite copper concentrate and work in progress consisting of precious metals
Refer Notes 1D (j) and 11 (d) to the standalone financial statements. Our audit procedures relating to the measurement of inventory quantities of coal bauxite copper concentrate and work in progress of precious metals included the following:
Of the Company's Rs. 15989 crores of inventory as at March 31 2021 Rs. 3179 crores of inventory comprised of coal bauxite copper concentrate and work in progress consisting of precious metals.
• Understanding and evaluating the design and operating effectiveness of controls over physical count and measurement of such inventory;
This was determined a key audit matter as the measurement of these inventory quantities lying at the Company's yards smelters and refineries is complex and involves significant judgement and estimate resulting from measuring the surface area dip measurement of materials in tanks/silos etc. • Evaluation of competency and capabilities of management's experts;
• Physically observing inventory measurement and count procedures carried out by management using experts to ensure its appropriateness and completeness and performing roll forward procedures; and
The Company uses internal and external experts as applicable to perform volumetric surveys and assessments basis which the quantities of these inventories are estimated. • Obtaining and inspecting inventory measurement and physical count results for such inventories including assessing and evaluating the results of analysis performed by management in respect of differences between book and physical quantities.
Based on the above procedures performed we did not identify any material exceptions in the measurement of inventory quantities of coal bauxite copper concentrate and work in progress inventories consisting of precious metals.
Key audit matter How our audit addressed the key audit matter
B. Provisions recognised and contingencies disclosed with regard to certain legal and tax matters
Refer Notes 1D (i) 10 22 23 and 44 to the standalone financial statements. Our audit procedures relating to provisions recognised and contingencies disclosed regarding certain legal and tax matters included the following:
As at March 31 2021 the Company has paid deposits under protest recognised provisions and disclosed contingent liabilities towards various legal and tax matters. There are number of legal direct and indirect tax cases against the Company including environmental mining local and state levies income tax holidays availing of input tax credits etc.
This is a key audit matter as evaluation of these matters requires management judgement and estimation interpretation of laws and regulations and application of relevant judicial precedents to determine the probability of outflow of economic resources for recognising provisions disclosing contingent liabilities and making related disclosures in the standalone financial statements. • Understanding and evaluating the design and operating effectiveness of controls over the recognition measurement presentation and disclosures made in the standalone financial statements in respect of these matters;
• Obtaining details of legal and tax matters inspecting
the supporting documents to evaluate management's assessment of probability of outcome and the magnitude of potential loss and testing related to provisions and disclosures in the standalone financial statements;
• Reviewing orders and other communication from regulatory authorities and management responses thereto;
• Reviewing management expert's legal advice and opinion as applicable obtained by the Company's management for evaluating certain legal matters and evaluating competence and capabilities of the experts; and
• Using auditor's experts for assistance in evaluating certain significant and complex direct and indirect tax matters.
Based on the above procedures performed we did not identify any material exceptions in the provisions recognised and contingent liabilities disclosed in the standalone financial statements with regard to such legal and tax matters.
C. Accounting of derivatives and hedging transactions
Refer Notes 1B (Q) and 49 to the standalone financial statements. Our audit procedures related to accounting of derivatives and hedging transactions included the following:
Company's financial performance is significantly impacted by fluctuations in prices of aluminium copper gold silver furnace oil coal coal tar pitch foreign exchange rates and interest rates. The Company takes a structured approach to the identification quantification and hedging of such risks by using various derivatives (e.g. forwards swaps futures options and embedded derivatives) in commodities and/ or foreign currencies. These hedges are designated as either cash flow or fair value hedges and in certain cases remains non-designated. • Understanding and evaluating the design and operating effectiveness of controls over accounting of derivatives and hedging transactions;
As at March 31 2021 the carrying value of the Company's derivatives included derivative assets amounting to Rs. 720 crores and derivative liabilities amounting to Rs. 1945 crores. Derivative and hedge accounting is considered a key audit matter because of its significance to the standalone financial statements the volume nature and types of hedging relationships including complexity involved in the application of hedge accounting principles in accordance with Ind AS 109 Financial Instruments. • Testing qualifying criteria for hedge accounting in accordance with Ind AS 109 including:
P Understanding the risk management objectives and strategies for different types of hedging programs;
P Evaluating that the hedging relationship consists only of eligible hedging instruments and hedged items;
P Using auditor's expert for assistance in verifying hedge effectiveness requirements of Ind AS 109 Financial Instruments including the economic relationship between the hedged item and the hedging instrument.
• Testing appropriateness of hedge accounting to qualified hedge relationships i.e. cash flow and fair value hedges; and
• Testing related presentation and disclosures in the standalone financial statements.
Based on the above procedures performed we did not identify any material exceptions in the amounts presentation and disclosures made in the standalone financial statements relating to accounting of derivatives and hedging transactions.

Other information

5. The Company's Board of Directors is responsible for the other information. The otherinformation comprise the information included in the annual report but does not includethe financial statements and our auditor's report thereon. The annual report is expectedto be made available to us after the date of this auditor's report.

Our opinion on the financial statements does not cover the other information and wewill not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

When we read the annual report if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance andtake appropriate action as applicable under the relevant laws and regulations.

Responsibilities of management and those charged with

governance for the standalone financial statements

6. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance changesin equity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the accounting Standards specified under Section133 of the Act. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and

design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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

Auditor's responsibilities for the audit of the financial

statements

8. 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.

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

• Identify and assess the risks of material misstatement

of the 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

material misstatement resulting from fraud is higher than for one resulting from erroras fraud may involve collusion forgery intentional omissions misrepresentations or theoverride 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 Act we are also responsible for expressing our opinion on whether the Companyhas adequate internal financial controls with reference to financial statements in placeand the operating effectiveness 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.

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

11. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

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

Report on other legal and regulatory requirements

13. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 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.

14. 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 (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows dealt with bythis 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;

(e) On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164 (2) of theAct;

(f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B";

(g) 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 has disclosed the impact of pending Litigations on its financialposition in its financial statements - Refer Notes 22 23 and 44 to the standalonefinancial statements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts - Refer Notes 22 and 49 to the standalone financial statements;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company except amount of Rs. * crore;

iv. The reporting on disclosures relating to Specified Bank Notes is not applicable tothe Company for the year ended March 31 2021.

* represent figures below the rounding convention used in this report

15. The Company has paid/ provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

For Price Waterhouse & Co Chartered Accountants LLP Firm Registration Number:304026E/ E-300009

Sumit Seth
Partner
Membership Number: 105869
UDIN: 21105869AAAAAK1640
Mumbai
May 21 2021

ANNEXURE A TO INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph 13 of the Independent Auditor's Report of even date to themembers of

HindaLco Industries Limited on the standalone financial statements as of and for theyear ended March 31 2021

i. (a) The Company is maintaining proper records

showing full particulars including quantitative details and situation of fixedassets.

(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of 3 years which in our opinionis reasonable having regard to the size of the Company and the nature of its assets.Pursuant to the programme a portion of the fixed assets has been physically verified bythe Management during the year and no material discrepancies have been noticed on suchverification.

(c) The title deeds of immovable properties as disclosed in Note 2 on Property Plantand Equipment and Note 3 on Investment Properties to the standalone financial statementsare held in the name of the Company except for the following:

i. in respect of freehold land (Birla Copper Muri and Hirakud units) having grossblock of Rs. * crore and building (Birla Copper unit Delhi and Mumbai branch) havinggross block of Rs. 11 crores the title deeds of which are held in the name of erstwhilecompanies which have subsequently been amalgamated with the Company.

ii. in respect of freehold land (Mahan and Kathotia units) having gross block of Rs. 31crores the title deeds of which are yet to be transferred in the name of the Company; and

iii. in respect of building (Birla Copper unit Mumbai and Delhi branch) having grossblock of Rs. 18 crores appearing in the fixed asset register the title deeds for suchassets amounting to Rs. 15 crores are presently not readily available with the Company.

*Represent figures below the rounding off convention used in this report

ii. The physical verification of inventory excluding stocks with third parties havebeen conducted at reasonable intervals by the Management during the year. In respect ofinventory lying with third parties these have substantially been confirmed by them. Thediscrepancies noticed on physical verification of inventory as compared to book recordswere not material.

iii. The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Act. Therefore the provisions of Clause 3(iii) (iii)(a) (iii)(b) and(iii)(c) of the said Order are not applicable to the Company.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofthe loans and investments made and guarantees and security provided by it.

v. The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed thereunder to the extentnotified.

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

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

to us and the records of the Company examined by us in our opinion the Company isgenerally regular in depositing undisputed statutory dues in respect of provident fundemployees' state insurance income tax sales tax service tax duty of customs duty ofexcise value added tax cess goods and services tax and other material statutory duesas applicable with the appropriate authorities. Also refer Note 31 to the standalonefinancial statements regarding management's assessment on certain matters relating toprovident fund.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income tax which have not been deposited onaccount of any dispute. The particulars of dues of sales tax service tax duty ofcustoms duty of excise value added tax and goods and services tax as at March 31 2021which have not been deposited on account of a dispute are as follows:

Name of the statute Nature of dues Amount (Rs in Crores) Period to which the amount relates Forum where the disputes are pending
Central Sales Tax Act and Local Sales Tax (including VAT) Act Sales Tax 32 1995-2009 2014-2016 Assistant Commissioner/Deputy Commissioner /Commissioner/ Revisionary Authorities/ Joint Commissioner (A) /Additional Commissioner (A)
* 2005-2006 2009-2011 Tribunal
33 1999-2004 2006-2007 2012-2013 High Court
The Central Excise Act 1944 Excise Duty 11 2000-2003 2008-2009 2012-2018 Assistant Commissioner/ Commissioner/ Revisionary Authorities/ Commissioner (A)
1059 2001-2018 Customs Excise and Service Tax Appellate Tribunal (CESTAT)
10 2001-2008 High Court
The Customs Act 1962 Custom Duty * 2004-2005 2020-2021 Commissioner (Appeal)
1 2004-2005 2016-2017 Customs Excise and Service Tax Appellate Tribunal (CESTAT)
The Service Tax under the Finance Act 1994 Service Tax 5 2001-2002 2008-2013 2016-2018 Assistant Commissioner/ Commissioner/ Revisionary Authorities/ Commissioner (A)
402 2004-2013 2015-2018 Customs Excise and Service Tax Appellate Tribunal (CESTAT)
16 2013-2016 High Court
The Central Goods and Service Tax Act 2017 Goods and Services Tax 1 2017-2018 Commissioner (Appeal)
27 2017-2018 High Court

*Represent figures below the rounding off convention used in this report

viii. According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to any banks financial institution or dues to debenture holders as at thebalance sheet date. The Company does not have any loans or borrowings from Government asat the balance sheet date therefore the provisions of Clause 3(viii) of the Order to theextent are not applicable to the Company.

ix. In our opinion and according to the information and explanations given to us themoneys raised by way of term loans have been applied for the purposes for which

they were obtained. The Company has not raised any moneys during the year by way ofinitial public offer and further public offer (including debt instruments).

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

xi. The Company has paid/ provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct. Also refer paragraph 15 of our main audit report.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are notapplicable to it the provisions of Clause 3(xii) of the Order are not applicable to theCompany.

xiii. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the standalone financial statements as required underIndian Accounting Standard (Ind AS) 24 Related Party Disclosures specified under Section133 of the Act.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of Clause 3(xiv) of the Order are not applicable to the Company.

xv. The Company has not entered into any non-cash transactions with its directors orpersons connected with them to which Section 192 of the Act applies. Accordingly theprovisions of Clause 3(xv) of the Order are not applicable to the Company.

xvi. The Company is not required to be registered under Section 45-iA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For Price Waterhouse & Co Chartered Accountants LLP Firm Registration Number:304026E/ E-300009

Sumit Seth
Partner
Membership Number: 105869
UDIN: 21105869AAAAAK1640
Mumbai
May 21 2021

ANNEXURE B TO INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph 14 (f) of the Independent Auditor's Report of even date to themembers of HindaLco Industries Limited on the standalone financial statements as of andfor the year ended March 31 2021

Report on the internal financial controls with reference to

financial statements under Clause (i) of Sub-section 3 of

Section 143 of the Act

1. We have audited the internal financial controls with reference to financialstatements of Hindalco Industries Limited ("the Company") as of March 31 2021in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.

Management's responsibility for internal financial controls

2. 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 Act.

Auditor's responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing deemedto be prescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal financial controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls with reference to financial statementswas established and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to 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.

5. 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 systemwith reference to financial statements.

Meaning of internal financial controls with reference to financial statements

6. A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent limitations of internal financial Controls with reference to financialstatements

7. Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 31 2021 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 Reporting issued by theInstitute of Chartered Accountants of India.

For Price Waterhouse & Co Chartered Accountants LLP Firm Registration Number:304026E/ E-300009

Sumit Seth
Partner
Membership Number: 105869
UDIN: 21105869AAAAAK1640
Mumbai
May 21 2021

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