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Hitech Corporation Ltd.

BSE: 526217 Sector: Industrials
NSE: HITECHCORP ISIN Code: INE120D01012
BSE 00:00 | 06 Feb 215.85 0.85
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NSE 00:00 | 06 Feb 212.75 -0.50
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OPEN 211.70
PREVIOUS CLOSE 215.00
VOLUME 4360
52-Week high 337.50
52-Week low 205.40
P/E 11.95
Mkt Cap.(Rs cr) 371
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 211.70
CLOSE 215.00
VOLUME 4360
52-Week high 337.50
52-Week low 205.40
P/E 11.95
Mkt Cap.(Rs cr) 371
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Hitech Corporation Ltd. (HITECHCORP) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

HITECH CORPORATION LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Hitech Corporation Limited("the Company") which comprise the Balance Sheet as at March 312022 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement of CashFlows and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas ‘financial statements').

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 (the "Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standard) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 312022 the profit and total comprehensiveincome its cash flows and the changes in equity for the year ended on that date.

Basis of Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the ‘Auditor's Responsibilities for theAudit of the Financial Statements' section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the ethical requirements that are relevant toour audit of the 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 ICAI's Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our opinion on thefinancial statements.

Key Audit Matters

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. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Key Audit Matters Auditor's Response
Inventory Existence and Valuation To address the risk of material misstatement on inventories our audit procedures included amongst others:
As at March 31 2022 the Company held Inventory amounting to Rs 4358.74 lakhs. - assessing the Company's accounting policy for inventory valuation.
Inventories are valued at lower of cost and Net realisable value. The Company's major part of inventory comprises raw materials and work-in-progress which are spread across multiple factories. These inventories are physically counted by Management on a periodical basis. - assessing the inventory valuation processes and testing the key controls around inventory existence and valuation assertions.
There is significant management judgement involved in estimating the overhead costs allocation on inventories assessing provision towards non-moving or obsolete inventories as well as net realisable value of items held. - verifying the existence and condition of inventory by attending inventory physical counts across various locations.
The Management's estimates of net realisable value are based on the most reliable evidence available at the time the estimates are made of the amount the inventories are expected to realise. The Management also provides for non-moving or obsolete stock on the basis of age of inventory. Such methodology relies upon certain assumptions made in determining appropriate provisioning for such inventories. - Challenging management judgements regarding estimates of net realisable value the methodology used for overhead costs allocation on inventory and provisioning for non-moving or obsolete stock.
Based on above existence and valuation of inventories have been identified as a key audit matters.
Refer Notes 2.4 (9) and 9 to the 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 in the Management Discussion and Analysis Board'sReport including Annexures to Board's Report Report on Corporate Governance andShareholder's Information but does not include the financial statements and our auditor'sreport thereon.

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

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. If based on the workwe 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 thisregard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in Section 134(5) ofthe Act with respect to the preparation of these financial statements that give a true andfair view of the financial position financial performance total comprehensive incomechanges in equity and cash flows of the Company in accordance with the Ind AS and otheraccounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provision of the Act forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due 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 theManagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

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

Auditor's Responsibility 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 financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls with reference to 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 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.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of the usersof the financial statements may be influenced. We consider quantitative materiality andqualitative factors in (i) planning the scope of our audit work and in evaluating theresults of our work; and (ii) to evaluate the effect of any identified misstatements inthe financial statements.

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

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraphs3 and 4 of the Order.

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

a) We have sought and obtained all the information and 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 Cash Flows and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS prescribedunder section 133 of the Act read with relevant rules issued thereunder.

e) On the basis of the written representations received from the directors as on March312022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312022 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 the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe 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 has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 34 to the financial statements.

ii. The Company did not have any material foreseeable losses on long term contractsincluding derivative contracts requiring provision under the applicable law or accountingstandards.

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

iv. (a) The Management has represented that to the best of its knowledge and beliefno funds have been advanced or loaned

or invested (either from borrowed funds or share premium or any other sources or kindof funds) by the Company to or in any other person(s)/ entity(ies) including foreignentities ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the Company("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries;

(b) The Management has represented that to the best of its knowledge and belief nofunds have been received by the Company from any person(s) or entity(ies) includingforeign entity ("Funding Parties") with the understanding whether recorded inwriting or otherwise that the Company shall directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;

(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under iv(a)and iv(b) above contain any material misstatement.

v. The final dividend proposed in the previous year declared and paid by the Companyduring the year is in accordance with Section 123 of the Act as applicable.

As stated in Note 33 to the financial statements the Board of Directors of the Companyhave proposed final dividend for the year which is subject to the approval of the membersat the ensuing Annual General Meeting. The amount of dividend proposed is in accordancewith section 123 of the Act as applicable.

Annexure A to the independent Auditor's Report

Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our Independent Auditors' Report to the members of the Company onthe financial statements for the year ended March 312022.

Statement on Matters specified in paragraphs 3 & 4 of the Companies (Auditor'sReport) Order 2020:

i) a) A) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of Property Plant and Equipment and relevantdetails of right-of-use assets.

B) The Company has generally maintained proper records showing full particulars ofintangible assets.

b) As explained to us the Company has a program for physical verification of PropertyPlant and Equipment at periodic intervals. In our opinion the period of verification isreasonable having regard to the size of the Company and the nature of its assets. Pursuantto the program certain Property Plant and Equipment were physically verified by theManagement during the year. The discrepancies reported on such verification are notmaterial and have been properly dealt with in the books of account.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties (otherthan properties where the Company is the lessee and the lease agreements are duly executedin favour of the lessee) disclosed in the financial statements are held in the name of theCompany except for the following:

(Rs in Lakhs)

Sr. Description of No. property Gross carrying value as on March 31 2022 Held in the name of Whether promoter director or their relative or employee Period held- indicate range where appropriate Reason for not being held in the name of company
1 Freehold Land 55.39 Clear Mipak Packaging Solutions Limited No 17 to 18 years The title deeds of the properties which are undisputed are in the name of erstwhile merged entity and the Company is in the process of transferring the properties in its name.
2 Building 277.91 Clear Mipak Packaging Solutions Limited No 17 to 18 years
3 Building 17.94 Clear Mipak Packaging Solutions Limited No 26-27 years
4 Leasehold Land 7.50 Clear Mipak Packaging Solutions Limited No 26-27 years
5 Leasehold Land 265.51 Clear Mipak Packaging Solutions Limited No 10 to 15 years
6 Building 761.00 Clear Mipak Packaging Solutions Limited No 14-15 years
7 Leasehold Land 16.30 Clear Mipak Packaging Solutions Limited No 15 to 16 years
8 Building 25.03 Clear Mipak Packaging Solutions Limited No 15 to 16 years

d) According to the information and explanations given to us and based on records ofthe Company examined by us the Company has not revalued its Property Plant and Equipment(including Right of Use assets) or intangible assets or both during the year.

e) According to the information and explanations given to us and based on records ofthe Company examined by us no proceedings have been initiated or are pending against theCompany as at March 31 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (45 of 1988) and rules made thereunder.

ii) a) The Management has conducted physical verification of inventory (excludinggoods-in-transit and stocks with third parties) at reasonable intervals. In respect ofinventory lying with third parties these have substantially been confirmed by them. Inour opinion the coverage and procedure of such verification is appropriate. Nodiscrepancies were noticed on verification between the physical stocks and the bookrecords that were more than 10% in the aggregate of each class of inventory.

b) According to the information and explanations given to us and based on records ofthe Company examined by us the Company has been sanctioned working capital limits inexcess of ' five crore in aggregate during the year from banks on the basis of securityof current assets. The quarterly returns or statements filed by the Company with suchbanks or financial institutions are in agreement with the books of account of the Company.

iii) According to the information and explanations given to us and based on records ofthe Company examined by us the Company has not made any investments in provided anyguarantee or security or granted any loans or advances in the nature of loans secured orunsecured to companies firms Limited Liability Partnerships or other parties during theyear. Hence reporting under clause 3(iii) of the Order is not applicable to the Company.

iv) According to the information and explanations given to us and based on records ofthe Company examined by us the Company has not granted any loans made any investments orprovided any guarantees or security to the parties covered under Section 185 and 186 ofthe Act. Hence reporting under clause 3 (iv) of the Order is not applicable to theCompany.

v) According to the information and explanations given to us and based on records ofthe Company examined by us the Company has not accepted deposits or amounts which aredeemed to be deposits during the year. Hence the reporting under clause 3 (v) of theOrder is not applicable to the Company.

vi) According to the information and explanations given to us the maintenance of costrecords has not been prescribed by the Central Government under sub-section (1) of section148 of the Companies Act 2013 for the business activities carried out by the Company.Hence reporting under clause (vi) of the Order is not applicable to the Company.

vii) a) According to the information and explanations given to us and based on recordsof the Company examined by us the Company is generally regular in depositing undisputedstatutory dues including dues pertaining to provident fund employees' state insuranceincome-tax goods and service tax duty of customs cess and other statutory dues with theappropriate authorities wherever applicable and there are no such outstanding dues as atMarch 31 2022 for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us and the records of theCompany examined by us dues of income tax sales tax and excise duty not deposited onaccount of dispute are as follows:

Name of Statute Nature of Dues Amount (Rs in lakhs) Period to which the Amount Relates Forum where Dispute is pending
Central Excise Act 1944 Central Sales tax Act 1956 and Value Added Tax Act Excise duty disputes 43.09 FY 2015-16 Commissioner Excise/ CESTAT
Sales Tax dues for Non submission of C Forms and Mismatch in VAT Input Credit 10.83 FY 2015-16 Commissioner Appeal VAT
Sales Tax dues for Non submission of C Forms Mismatch in VAT Input Credit and Penalty on Late payment 112.11 FY 2012-13 and 2017-18 Assessing Officer
Sales Tax dues for Non submission of C Forms Mismatch in VAT Input Credit and Penalty on Late payment 9.76 FY 2016-17 CESTAT
Income Tax Act 1961 Demand based on the order of regular assessment u/s 143(3) of the Act. 444.50 AY 2011-12 to 2015-16 and AY 2017-18 Commissioner of Income Tax (Appeals)
187.62 AY 2016-17 and AY 2010-11 Income Tax Appellate Tribunal
0.30 AY 2003-04 High Court Mumbai
4.88 AY 2007-08 and AY 2018-19 Income Tax Officer

viii) According to the information and explanations given to us and based on records ofthe Company examined by us there were no transactions relating to previously unrecordedincome that have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961).

ix) a) According to the information and explanations given to us and based on recordsof the Company examined by us the Company has not defaulted in repayment of loans orother borrowings or in the payment of interest thereon to any lender. Hence reportingunder clause 3(ix)(a) of the Order is not applicable.

b) According to the information and explanations given to us the Company has not beendeclared wilful defaulter by any bank or financial institution or other lender.

c) According to the information and explanations given to us and based on records ofthe Company examined by us the Company has taken term loans during the year and the samewere applied for the purpose for which the loan were obtained.

d) According to the information and explanations given to us and based on records ofthe Company examined by us on an overall examination of the financial statements of theCompany funds raised on short-term basis have prima facie not been utilised during theyear for long-term purposes by the Company.

e) The Company does not have any subsidiary associate or joint venture and hencereporting under clause 3 (ix) (e) of the Order is not applicable.

f) The Company does not have any subsidiary associate or joint venture and hencereporting under clause 3 (ix) (f) of the Order is not applicable.

x) a) According to the information and explanations given to us and based on records ofthe Company examined by us the Company has not raised moneys by way of initial publicoffer or further public offer (including debt instruments) during the year and hencereporting under clause 3(x)(a) of the Order is not applicable.

b) According to the information and explanations given to us and based on records ofthe Company examined by us the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) during theyear and hence reporting under clause 3(x)(b) of the Order is not applicable.

xi) a) Based upon the audit procedures performed by us to the best of our knowledgeand belief and according to the information and explanations given to us by theManagement no fraud by the Company and no fraud on the Company has been noticed orreported during the year.

b) In view of what is reported above in clause xi(a) the reporting under clause xi(b)of the Order is not applicable.

c) According to the information and explanations given to us and as represented to usby the Management there are no whistle blower complaints received by the Company duringthe year.

xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Hence reporting under clause 3(xii) of the Order is notapplicable.

xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv) (a) In our opinion the Company has an adequate internal audit system commensuratewith the size and the nature of its business.

(b) We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date in determining the nature timing and extent ofour audit procedures.

xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with its directors or persons connected with him. Accordingly reportingunder clause 3(xv) of the Order is not applicable.

xvi) a) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 and hence reporting under clause 3(xvi)(a) of the Order is notapplicable.

b) The Company is not required to be registered under section 45-IA of the Reserve Bankof India Act 1934 and hence reporting under clause 3(xvi)(b) of the Order is notapplicable.

c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India and hence reporting under clause 3 (xvi)(c) of the Orderis not applicable.

d) According to the information and explanations given to us the Group does not havemore than one Core Investment Company (CIC). Hence reporting under clause 3 (xvi)(d) ofthe Order is not applicable to the Company.

xvii) The Company has not incurred cash losses during the financial year covered by ouraudit and immediately preceding financial year.

xviii) There is no resignation of statutory auditor of the Company during the year andhence reporting under clause 3 (xviii) of the Order is not applicable.

xix) According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realisation of financial assets and paymentof financial liabilities other information accompanying the financial statements and ourknowledge of the Board of Directors and Management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit reportindicating that Company is not capable of meeting its liabilities existing at the date ofbalance sheet as and when they fall due within a period of one year from the balance sheetdate. We however state that this is not an assurance as to the future viability of theCompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.

xx) a) There are no unspent amounts towards Corporate Social Responsibility (CSR) otherthan ongoing projects requiring a transfer to a Fund specified in Schedule VII to theCompanies Act in compliance with second proviso to sub-section (5) of Section 135 of thesaid Act. Accordingly reporting under clause 3(xx)(a) of the Order is not applicable forthe year.

b) There are no unspent amounts towards Corporate Social Responsibility (CSR) undersection (5) of section 135 of the Act pursuant to any ongoing projects requiring atransfer to special account in compliance with the provision of section 135(6) of the Act.

xxi) The Company is not required to prepare consolidated financial statements and hencereporting under clause 3 (xxi) of the Order is not applicable.

Annexure B to the independent Auditor's Report

Referred to in paragraph 2 (f) under ‘Report on Other Legal and RegulatoryRequirements' Section of our Independent Auditor's Report to the members of the Company onthe financial statements for the year ended March 312022.

Report on the Internal Financial Controls with reference to Financial Statements underClause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls with reference to the financialstatements of Hitech Corporation Limited ("the Company") as of March 312022 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 financial controls with reference to financialstatements criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

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 issuedby ICAI and deemed to be prescribed under section 143(10) of the Act to the extentapplicable to an audit of Internal Financial Controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 with reference to financial statements wereestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financial controls withreference to financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto 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 with reference to Financial Statements

A Company's internal financial control 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 control withreference to financial statements 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 with reference to FinancialStatements

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

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlswith reference to financial statements and such internal financial controls were operatingeffectively as at March 312022 based on the criteria for internal financial control overfinancial reporting established by the Company considering the essential components ofinternal control stated in the Guidance Note.

For KALYANIWALLA & MISTRY LLP

Chartered Accountants

Firm Registration No. 104607W /W100166

Roshni R. Marfatia

Partner

M. No.: 106548

UDIN: 22106548AIZGKE6450

Mumbai. May 14 2022.

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