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Hitachi Energy India Ltd.

BSE: 543187 Sector: Engineering
NSE: POWERINDIA ISIN Code: INE07Y701011
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VOLUME 24034
52-Week high 3336.30
52-Week low 1199.20
P/E 105.11
Mkt Cap.(Rs cr) 13,201
Buy Price 0.00
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Sell Price 0.00
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OPEN 3204.10
CLOSE 3204.10
VOLUME 24034
52-Week high 3336.30
52-Week low 1199.20
P/E 105.11
Mkt Cap.(Rs cr) 13,201
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Hitachi Energy India Ltd. (POWERINDIA) - Auditors Report

Company auditors report

To the members of ABB Power Products and Systems India Limited.

Report on the Audit of the Ind AS financial statements. Qualified opinion

We have audited the accompanying Ind AS financial statements of ABB Power Products andSystems India Limited ("the Company") which comprise the Balance sheet as atDecember 31 2020 the Statement of Profit and Loss including the statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and notes to the 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 the explanationsgiven to us except for the possible effects of the matters described in the ‘Basisfor Qualified Opinion' section of our report the aforesaid Ind AS financial statementsgive the information required by the Companies Act 2013 as amended ("the Act")in the manner 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 atDecember 31 2020 its profit including other comprehensive income its cash flows and thechanges in equity for the year ended on that date.

Basis for qualified opinion

We draw attention to Note 38 (a) to the accompanying Ind AS financial statementsregarding the Scheme of Arrangement (‘Scheme') for demerger of the power gridbusiness of ABB India Limited with the Company with an appointed date of April 01 2019and approved by the National Company Law Tribunal (‘NCLT') vide its order datedNovember 27 2019. As per the applicable accounting standard Ind AS 103 since thisdemerger was a common control business combination the financial information necessitatedrestatement by the transferee at carrying amounts not from the appointed date but from thebeginning of the preceding period in the financial statements which happens to be the dateof incorporation i.e. February 19 2019. Accordingly the Company was required as per IndAS 103 to give effect to the business combination from February 19 2019 (date of itsincorporation). However the Company had recognized the impact of the business combinationonly from April 01 2019 (i.e. the appointed date specified in the scheme) and has notrestated and disclosed financial results for the period from February 19 2019 to March31 2019 in the comparative period ended December 31 2019. However there is no impactof the same on the Company's Ind AS financial statements of the year ended December 312020. Our opinion on the current year's statement is qualified because of the possibleeffect of this matter on the comparability of the current period's figures and thecorresponding figures.

This matter was also qualified in the comparative period by the preceding auditor.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the ‘Auditor'sResponsibilities for the Audit of the Ind AS Financial Statements' section of our report.We are independent of the Company in accordance with the ‘Code of Ethics' issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ourqualified audit opinion on the Ind AS financial statements.

Key audit matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the Ind AS financial statements for the financial year endedDecember 312020. These matters were addressed in the context of our audit of the Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. In addition to the matter described in the‘Basis for Qualified Opinion' section we have determined the matters described belowto be the key audit matters to be communicated in our report. For each matter below ourdescription of how our audit addressed the matter is provided in that context.

We have determined the matter described below to be the key audit matter to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the Ind AS financial statements section of ourreport including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the Ind AS financial statements. The results of our audit proceduresincluding the procedures performed to address the matters below provide the basis for ouraudit opinion on the accompanying Ind AS financial statements.

Key audit matters How our audit addressed the key audit matter
Revenue recognition for long term projects and contract estimates
(as described in Note 37(a) of the Ind AS financial statements)
A significant portion of the Company's business comprises long-term fixed price projects. Revenue from these contracts is recognized in accordance with the principles laid down in Ind AS 115 Revenue from Contracts with Customers and as detailed in "significant accounting policies" of the Ind AS financial statements. In accordance with Ind AS 115 the Company classifies its various contracts with customers and determines whether revenue should be recognized at "point in time" or "over the time" basis. There are various areas involving complexities judgements and estimates involved in accounting for revenue recognized on "over the time" basis including: In view of the significance of the matter we applied the following audit procedures in this area among others to obtain sufficient appropriate audit evidence:
• We assessed the revenue recognition accounting policies by comparing with applicable accounting standards.
• We tested key controls (both design and operating effectiveness) with respect to revenue recognition and related cost estimations.
• We carried out analytical procedures on revenue recognized during the year to identify unusual variances.
• Estimation of total contract costs at inception and remaining costs to completion which is a critical factor in measuring progress of a contract and amounts of revenue to be recognized; and • We performed substantive testing by selecting samples of revenue transactions recorded during the year by testing the underlying documents using statistical sampling.
• Assessment of various risks emanating from operational delays contract terms changes in estimations and scope accounting for onerous obligations technical legal external environment etc. This requires the Company to estimate various costs to capture such risks including liquidated damages and warranties. In view of the above and because the Company and its external stakeholders focus on revenue as a key performance indicator we determined this area to be an area involving significant risk an area of audit focus and accordingly a key audit matter. • We evaluated management's estimates (contract costs and risk provisions) by performing analytical procedures on such estimates.
• We performed a retrospective review for contracts completed during the current year by comparing the final outcome of the contracts with previous estimates made for those contracts to assess the reliability of the management's estimation process.
• We performed tests for completeness and appropriateness of actual cost booked in the correct period by testing the underlying documents for samples selected using statistical sampling.
• We assessed the disclosures made in the Ind AS financial statements.
Trade receivables unbilled revenue and contract assets (as described in Note 37 (b) of the Ind AS financial statements)
Trade receivables including retention money with customers unbilled revenue and contract assets forms a significant part of the Ind AS financial statements. Customer contracts typically involve time consuming and complex conditions around closure of contracts including technical acceptances. This generally leads to longer and significant time for realization of receivables. As a result of the above management's assessment of recoverability of trade receivables unbilled revenue and contract assets involves critical evaluation of all factors impacting recoverability including impact of external environment capability of customers to pay historical payment records evaluation of litigations etc. including the possible effect from the pandemic relating to COVID-19. In view of the significance of the matter we applied the following audit procedures in this area among others to obtain sufficient appropriate audit evidence:
• We obtained an understanding of the processes implemented by management over the recognition and the recoverability of the trade receivables unbilled revenue and contract assets.
• We tested key controls (both design and operating effectiveness) over the recognition and the recoverability of the trade receivables unbilled revenue and contract assets.
• We obtained and tested the ageing of aforesaid receivables / assets on a sample basis.
• We performed test of details and tested relevant contracts documents and subsequent settlements for material trade receivable balances unbilled revenue and amounts included in contract assets.
Key audit matters How our audit addressed the key audit matter
Trade receivables unbilled revenue and contract assets
(as described in Note 37 (b) of the Ind AS financial statements)
Management makes an impairment allowance for trade receivables unbilled revenue and contract assets on the basis of it's assessment of recoverability of specific customers and on the basis of expected credit loss model for the remaining customers in accordance with Ind AS 109 financial instruments. For the purposes of impairment assessment significant judgements and assumptions are made including assessing credit risk timing and amount of realization etc. In view of above we determined this area to be an area of audit focus and accordingly a key audit matter. • We evaluated the model adopted by management to estimate the expected credit loss including the possible effect from the pandemic relating to COVID-19. We enquired the management in respect of the various judgements and estimates made relating to impairment provision against trade receivable unbilled revenue and contract assets.
• We obtained and discussed management assessment of impairment for specific customer balances and understood reasons for the determination.
• We have circulated direct confirmations on a sample basis using statistical sampling. In case of non-receipt of such confirmations alternate test procedures such as testing subsequent receipts and underlying documents have been performed.
• We assessed the disclosures made in the Ind AS financial statements.

Information other than the financial statements and Auditor's Report thereon

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

Our opinion on the Ind AS financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS financial statements our responsibility isto read the other information and in doing so consider whether such other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially 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 necessary actions as applicable under the applicable laws and regulations.

Responsibilities of the management for the Ind AS financial statements

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 Ind AS financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash

flows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended. 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 judgements and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Ind AS financial statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

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

Auditor's responsibilities for the Audit of the Ind AS financial statements

Our objectives are to obtain reasonable assurance about whether the Ind AS 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 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 Ind AS financial statements.

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

• Identify and assess the risks of material misstatement of the Ind AS 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 Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to Ind AS financial statements inplace and 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 Ind AS financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

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 Ind AS financial statements forthe financial year ended December 312020 and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Other matter

The Ind AS financial statements of the Company for the year ended December 312019included in these Ind AS financial statements have been audited by the predecessorauditor who expressed a qualified opinion on those statements on February 28 2020.

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 ofthe Act we give in the "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the Order.

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

(a) We have sought and except for the matter described in the Basis for QualifiedOpinion paragraph obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit;

(b) Except for the matter described in the Basis for Qualified Opinion paragraph inour opinion proper books of account as required by law have been kept by the Company sofar as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss including the Statement ofOther Comprehensive Income the Cash Flow Statement and Statement of Changes in Equitydealt with by this Report are in agreement with the books of account;

(d) Except for the effects of the matter described in the Basis for Qualified Opinionparagraph above in our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;

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

(f) The qualification relating to the maintenance of accounts and other mattersconnected therewith are as stated in the Basis for Qualified Opinion paragraph above;

(g) With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these Ind AS financial statements and theoperating effectiveness of such controls refer to our separate Report in "Annexure2" to this report;

(h) In our opinion the managerial remuneration for the year ended December 31 2020has been paid / provided by the Company to its directors in accordance with the provisionsof section 197 read with Schedule V to the Act.

(i) 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

as amended in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements - Refer Note 34 to the Ind AS financialstatements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on longterm contracts includingderivative contracts - Refer Notes 17 and 21 to the Ind AS financial statements;

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

For S.R. Batliboi & Associates LLP

Chartered Accountants

ICAI Firm Registration Number: 101049W/E300004

per Sandeep Karnani

Partner

Membership Number: 061207

UDIN: 21061207AAAAB J9418

Place: Bengaluru

Date: February 26 2021

Annexure - 1 to the Independent Auditors' Report

Annexure 1 referred to in clause 1 of paragraph on the report on other legal andregulatory requirements of our report of even date.

Re: ABB Power Products and Systems India Limited

(‘the Company')

i) a The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b Fixed assets have been physically verified by the management during the year and nomaterial discrepancies were identified on such verification.

c According to the information and explanations given to us by the management of theCompany the title deeds of the immovable properties acquired as per the scheme ofarrangement approved by the National Company Law Tribunal vide its order dated November27 2019 included in property plant and equipment and as tabulated below are not held inthe name of the Company.

Particulars Number of cases Gross block (Rs in crores) Net block (Rs in crores)
Freehold/ Leases hold land and building attached to it 6 194.49 173.63

ii) The inventory has been physically verified by the management during the year. 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 to the management as at December 31 2020 and no material discrepancieswere noticed in respect of such confirmations.

iii) According to the information and explanations given to us by the management of theCompany 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 Companies Act 2013 (‘the Act'). Accordingly the provisions ofclause 3(iii)(a) (b) and (c) of the Order are not applicable to the Company and hence notcommented upon.

iv) In our opinion and according to the information and explanations given to us by themanagement of the Company there are no loans investments guarantees and securitiesgiven in respect of which provisions of section 185 and 186 of the Act are applicable andhence not commented upon.

v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 ofthe Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordinglythe provisions of clause 3(v) of the Order are not applicable.

vi) We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Act related to the products manufactured by the Company and are of theopinion that prima facie the specified accounts and records have been made andmaintained. We have not however made a detailed examination of the same.

vii) a Undisputed statutory dues including provident fund employees' state insurancegoods and service tax income tax duty of custom cess and other material statutory duesas applicable to the Company have generally been regularly deposited with the appropriateauthorities.

b According to the information and explanations given to us by the management of theCompany and audit procedures performed by us no undisputed amounts payable in respect ofprovident fund employees' state insurance income tax service tax sales tax duty ofcustom duty of excise value added tax goods and service tax cess and other statutorydues as applicable to the Company were outstanding at the year end for a period of morethan six months from the date they became payable.

c According to the information and explanations given to us by the management of theCompany there are no dues of income tax sales tax service tax goods and service taxcustoms duty excise duty value added tax and cess which have not been deposited onaccount of any dispute.

viii) In our opinion and according to the information and explanations given to us bythe management of the Company the Company has not defaulted in repayment of loans orborrowing to banks. The Company did not have any outstanding loans or borrowing dues inrespect of a financial institution or to government or dues to debenture holders duringthe year.

ix) According to the information and explanations given to us by the management of theCompany the Company has not raised any money by way of initial public offer/ furtherpublic offer/debt instruments and term loans during the year and hence reporting underclause (ix) is not applicable to the Company and hence not commented upon. Also refer note15(f) to the Ind AS financial statements.

x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the Ind AS financial statements and according to the information andexplanations given to us by the management of the Company we report that no fraud by theCompany or no fraud on the Company by the officers and employees of the Company has beennoticed or reported during the year.

xi) According to the information and explanations given to us by the management of theCompany the managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theAct.

xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company and hence not commented upon.

xiii) According to the information and explanations given to us by the management ofthe Company transactions with the related parties are in compliance with section 177 and188 of the Act where applicable and the details have been disclosed in the notes to theInd AS financial statements as required by the applicable accounting standards.

xiv) According to the information and explanations given to us by the management of theCompany and on an overall examination of the balance sheet the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review and hence reporting requirements under clause3(xiv) are not applicable to the Company and hence not commented upon.

xv) According to the information and explanations given to us by the management of theCompany the Company has not entered into any non-cash transactions with directors orpersons connected with him as referred to in section 192 of the Act during the year andhence reporting requirements under clause 3(xv) are not applicable to the Company andhence not commented upon.

xvi) According to the information and explanations given to us by the management of theCompany the provisions of section 45-IA of the Reserve Bank of India Act 1934 are notapplicable to the Company.

For S.R. Batliboi & Associates LLP

Chartered Accountants

ICAI firm registration number: 101049W/E300004 Per

Sandeep Karnani

Partner Membership number: 061207

UDIN: 21061207AAAAB J9418

Place: Bengaluru

Date: February 26 2021

Annexure - 2 to the Independent Auditors' Report

Annexure 2 to the independent auditor's report of even date on the Ind AS financialstatements of ABB Power Products and Systems India Limited.

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 ABB PowerProducts and Systems India Limited ("the Company") as of December 312020 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended on 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 controlstated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India ("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to theCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor's responsibility

Our responsibility is to express an opinion on the Company‘s internal financialcontrols over financial reporting with reference to these Ind AS financial statementsbased on our audit. We conducted our audit in accordance with the Guidance Note and theStandards on Auditing as specified under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls and both issued by theICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting with reference to these IndAS financial statements was 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 over financial reporting with reference to these Ind ASfinancial statements and their operating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining an understanding of internalfinancial controls over financial reporting with reference to these Ind AS financialstatements assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the Ind AS financial statements whether due to fraud orerror.

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 overfinancial reporting with reference to these Ind AS financial statements.

Meaning of internal financial controls over financial reporting with reference to theseInd AS financial statements.

A company‘s internal financial control over financial reporting with reference tothese Ind AS financial statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of the Ind ASfinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company‘s internal financial control over financialreporting with reference to these Ind AS financial statements includes those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of Ind AS 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 Ind AS financial statements.

Inherent limitations of internal financial controls over financial reporting withreference to these Ind AS financial statements.

Because of the inherent limitations of internal financial controls over financialreporting with reference to these Ind AS financial statements including the possibilityof collusion or improper management override of controls material misstatements due toerror or fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting with reference to these Ind ASfinancial statements to future periods are subject to the risk that the internal financialcontrol over financial reporting with reference to these Ind AS financial statements maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these Ind AS financial statements andsuch internal financial controls over financial reporting with reference to these Ind ASfinancial statements were operating effectively as at December 31 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 the Institute of CharteredAccountants of India.

For S.R. Batliboi & Associates LLP

Chartered Accountants ICAI Firm

Registration Number: 101049W/E300004 per

Sandeep Karnani

Partner Membership Number: 061207

UDIN: 21061207AAAAB J9418

Place: Bengaluru

Date: February 26 2021

.