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IFGL Refractories Ltd.

BSE: 540774 Sector: Engineering
NSE: IFGLEXPOR ISIN Code: INE133Y01011
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OPEN 305.15
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VOLUME 8569
52-Week high 434.00
52-Week low 170.00
P/E 24.38
Mkt Cap.(Rs cr) 1,068
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 305.15
CLOSE 305.15
VOLUME 8569
52-Week high 434.00
52-Week low 170.00
P/E 24.38
Mkt Cap.(Rs cr) 1,068
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

IFGL Refractories Ltd. (IFGLEXPOR) - Auditors Report

Company auditors report

TO THE MEMBERS OF IFGL REFRACTORIES LIMITED

Report on the Audit of the Standalone Ind AS Financial Statements Opinion

We have audited the accompanying Standalone Ind AS Financial Statements of IFGLRefractories Limited ("the Company") which comprise the Balance sheet as at31st March 2021 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 Standalone Ind AS Financial Statements including asummary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS Financial Statements give theinformation required by the Companies Act 2013 as amended ("the Act") in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2021 its profit including Other Comprehensive Income its Cash Flows and theChanges in Equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Ind AS Financial Statements in accordance withthe Standards 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 Standalone Ind AS Financial Statements' Sectionof 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 theethical requirements 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 audit opinion on the Standalone Ind AS Financial Statements.

Emphasis of Matter a. We draw attention to Note 38 of the Standalone Ind ASFinancial Statements relating to amalgamation of the erstwhile IFGL Refractories Limitedwith the Company (the amalgamated entity was thereafter renamed as IFGL RefractoriesLimited) with effect from 1st April 2016 following Scheme of Amalgamation approved by theHon'ble National Company Law Tribunal Kolkata Bench vide its Order dated 3rd August2017 under the provisions of Sections 230 and 232 of the Companies Act 2013 (the"Scheme"). Pursuant to the Scheme the aforesaid business combination wasrecognized under the ‘Purchase Method' as defined under Accounting Standard (AS 14)Accounting for Amalgamations and Goodwill arising on such amalgamation aggregating `26699.46 lacs had been recognized. Based on Management's assessment such Goodwill isbeing amortised over a period of ten years with a charge of

` 2669.95 lacs per year. As per Indian Accounting Standard (Ind AS) 103 -‘Business Combinations' the aforesaid amalgamation had to be recognized under‘Pooling of Interest Method' since these were entities under common control. b. Wedraw attention to Note 33 to the Standalone Ind AS Financial Statements regardingCompany's position with respect to determination of tax payable after the introduction ofthe ‘Explanation' to Section 10AA(1) of the Income Tax Act 1961 inserted on and fromAssessment Year beginning 1st April 2018 for which the Company has filed a writ which hasbeen admitted by the Hon'ble High Court at Calcutta. Pending decision by the Hon'ble HighCourt uncertainty exists as regards realisability of resultant recognized Deferred TaxAssets of ` 1203.59 lacs.

Our opinion is not modified in respect of the above matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the Standalone Ind AS Financial Statements for theFinancial Year ended 31st March 2021. These matters were addressed in the context of ouraudit of the Standalone Ind AS Financial Statements as a whole and in forming ouropinion thereon and we do not provide a separate opinion on these matters. For each matterbelow our description of how our audit addressed the matter is provided in that context.We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the Standalone Ind AS Financial Statementssection of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the Standalone Ind AS Financial Statements. The results of ouraudit procedures including the procedures performed to address the matters below providethe basis for our audit opinion on the accompanying Standalone Ind AS FinancialStatements.

Key Audit Matters How our Audit addressed the Key Audit Matter
Revenue recognition (as described in Note 2.12 and 24 to the Standalone Ind AS Financial Statements) Revenue is recognized when the Company satisfies performance obligation by transferring promised goods and services to the customer. Our audit procedures included the following :
Performance obligations are satisfied at a point of time or over a period of time. For the year ended 31st March 2021 the Company's Statement of Profit and Loss included Revenues from Operations of ` 64907.47 lacs. The variety of contractual terms including the timing of control transfer and delivery specifications create complexity and judgement in determining timing of revenue recognition. a. Evaluated the Company's revenue recognition policy to ensure compliance with the requirements of Ind AS 115 ‘Revenue from contracts with customers'.
We have considered this as a key audit matter on account of judgement involved in determining the timing of revenue of recognition. b. Obtained an understanding of the revenue process and assessed the design and tested the operating e_ectiveness of internal controls related to timing of revenue recognition.
c. Tested on sample basis the sales transactions including adjustments to sales price made pre and post-year end and tested their underlying documents to assess that revenue is recognized in the proper period and in accordance with the Company's revenue recognition policy.
d. Assessed the adequacy of relevant disclosures made in respect of revenue in the Standalone Ind AS Financial Statements.
Recognition and measurement of Income Tax and Deferred Tax on Goodwill arising on Amalgamation (as described in Note 2.16 and 39 to the Standalone Ind AS Financial Statements) As at 31st March 2021 the Company has recognised Deferred Tax Liability of ` 4665.02 lacs (including ` 2019.01 lacs for the year) on written down value of Goodwill which arose pursuant to an amalgamation in prior year. The provisions of the Finance Act 2021 provide that depreciation of Goodwill on amalgamation will not be deductible for Income Tax purposes with effect from the current Financial Year. Our audit procedures included the following :
The recognition and measurement of Income Tax and Deferred Tax expense related to Goodwill arising on amalgamation in view of the Finance Act 2021 require significant Management judgement and estimate including interpretation of relevant provisions of Income Tax Act 1961 and related Rules and requirements of relevant accounting standard. Consequently the same is considered as a key audit matter. a. We obtained Management's assessment and evaluation of the tax impact as regards depreciation of Goodwill arising from the provisions of the Finance Act 2021.
b. We involved our Tax Specialists to assess interpretation of relevant tax provisions estimates and judgements considered by the Management for their assessment of the impact.
c. We assessed the appropriateness of recognition of Deferred Tax Liability on written down value of Goodwill as per books of account with reference to the requirements of relevant accounting standard.
d. Obtained from Management and verified computation of the Deferred Tax Liability on Goodwill. e. Assessed the adequacy of disclosures as per Ind AS 22.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Directors' cum Management Discussionand Analysis Report but does not include the Standalone Ind AS Financial Statements andour Auditor's Report thereon.

Our opinion on the Standalone Ind AS Financial Statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Ind AS Financial Statements ourresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the Financial Statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management for the Standalone 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 Standalone Ind AS FinancialStatements that give a true and fair view of the financial position financial performanceincluding Other Comprehensive Income Cash Flows and Changes in Equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent and the designimplementation and maintenance of adequate Internal Financial Controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone Ind AS FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error. In preparing the Standalone Ind AS Financial Statements managementis responsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

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

Auditor's Responsibilities for the Audit of the Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone Ind ASFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an Auditor's Report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Ind AS Financial Statements. As part of an audit inaccordance with SAs we exercise professional judgment and maintain professionalskepticism throughout the audit. We also :

Identify and assess the risks of material misstatement of the Standalone Ind ASFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

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 Financial Statements in place andthe operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the Company's abilityto continue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw attention in our Auditor's Report to the related disclosures in theFinancial Statements or if such disclosures are inadequate to modify our opinion. Ourconclusions 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 Standalone Ind ASFinancial Statements including the disclosures and whether the Standalone Ind ASFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation. We communicate with those charged with governance regardingamong other matters the planned scope and timing of the audit and significant auditfindings including any significant de_ciencies in internal control that we identifyduring 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 them allrelationships and other matters that may reasonably be thought to bear on our independenceand 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 Standalone Ind AS FinancialStatements for the financial year ended 31st March 2021 and are therefore the key auditmatters. We describe these matters in our Auditor's Report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure 1" a statement on the matters specifiedin paragraphs 3 and 4 of the Order.

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

a) We have sought and obtained all the information and 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 the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;

d) In our opinion the aforesaid Standalone Ind AS 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 on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms of Section164(2) of the Act;

f) With respect to the adequacy of the Internal Financial Controls with reference toStandalone Ind AS Financial Statements and the operating effectiveness of such controlsrefer to our separate Report in "Annexure 2" to this report;

g) In our opinion the managerial remuneration for the year ended 31st March 2021 hasbeen paid/provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act; h) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 as amended in our opinion and to the best of our information andaccording to the explanations given to us :

i. The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Ind AS Financial Statements – Refer Note 33 to theStandalone Ind AS Financial Statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

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

"ANNEXURE 1" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE IND AS FINANCIAL STATEMENTS OF IFGL REFRACTORIES LIMITED

Report on Companies (Auditor's Report) Order 2016 ("the Order") issued bythe Central Government of India in terms of subsection (11) of Section 143 of theCompanies Act 2013 ("the Act")

i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment.

b) The Company has a program of verification of Property Plant and Equipment to coverall the items in a phased manner over a period of three years which in our opinion 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. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification.

c) According to the information and explanations given by the management the titledeeds of immovable properties included in Property Plant and Equipment are held in thename of the Company.

ii) The Management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification. Inventories lying with third parties have been confirmed by them as at 31stMarch 2021 and no material discrepancies were noticed in respect of such confirmations.

iii) According to the information and explanations given to us and audit proceduresperformed by us the Company has not granted any loans secured or unsecured to CompaniesFirms Limited Liability Partnerships or other parties covered in the Register maintainedunder Section 189 of the Companies Act 2013. Accordingly the provisions of clause 3(iii)(a) (b) and (c) of the Order are not applicable to the Company and hence notcommented upon.

iv) In our opinion and according to the information and explanations given to us thereare no loans guarantees or security given in respect of which provisions of Section 185of the Companies Act 2013 are applicable and hence not commented upon. In our opinion andaccording to the information and explanations given to us provisions of Section 186 ofthe Companies Act 2013 in respect of Investments made have been complied with by theCompany. According to the information and explanations given to us there are no loansguarantees and securities given in respect of which provisions of Section 186 of theCompanies Act 2013 are applicable and hence 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 Companies Act 2013 related to manufacture of goods and are of the opinionthat prima facie the specified accounts and records have been made and maintained. Wehave not however made a detailed examination of the same.

vii) a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Employees' State Insurance Income Tax Duty ofCustoms Goods and Service Tax Cess and other statutory dues applicable to it.

b) According to the information and explanations given to us and audit proceduresperformed by us no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income Tax Duty of Customs Goods and Service Tax Cess and otherstatutory dues were outstanding at the year end for a period of more than six monthsfrom the date they became payable.

c) According to the records of the Company the dues of Income Tax Sales Tax andService Tax on account of any dispute are as follows :

Name of Statute Nature of Dues Amount in ` in Lacs* Period to which it relates Forum where the dispute is pending
1.14 1995-96 Sales Tax Tribunal
0.47 1997-98 Additional Commissioner of Sales Tax
Central Sales Tax1956 Sales Tax 0.25 2003-04 Additional Commissioner of Sales Tax
0.85 2014-15 2015-16 to Additional Commissioner of Sales Tax
139.81 2017-18 Joint Commissioner of Sales Tax (Appeals)
Orissa Sales Tax Act 1947 The Central Goods and Service Tax Sales Tax 0.11 1999-00 Hon'ble High Court Odisha
Act 2017 and The State Goods and Goods and 0.52 2018-19 Commissioner (Appeals)
Service Tax Act 2017 and Service Tax
Finance Act 1994 Service Tax 1.54 2006-07 Joint Commissioner Central Excise Customs & Service Tax
Finance Act 1994 Service Tax 35.57 2008-09 to 2010-11 Additional Commissioner Bhubaneswar
Income Tax Act 1961 Income Tax 0.04 2012-13 CIT (Appeals)
Income Tax Act 1961 Income Tax 1.49 2015-16 CIT (Appeals)

* net of amount paid under protest

According to the information and explanations given to us there are no dues of CustomsDuty Excise Duty Value Added Tax and Cess which have not been deposited on account ofany dispute.

viii) In our opinion and according to the information and explanations given by themanagement and audit procedures performed by us the Company has not defaulted inrepayment of loans or borrowing to banks. Based on our audit procedures and as per theinformation and explanations given by the management the Company did not have anyoutstanding dues to a Financial Institution or Government or due to debentures holders.

ix) According to the information and explanations given by the management and auditprocedures performed by us the Company has not raised any money by way of Initial PublicOffer/Further Public Offer/Debt Instruments and term loans hence reporting under clause 3(ix) is not applicable to the Company and hence not commented upon.

x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the Standalone Ind AS Financial Statements and according to the informationand explanations given by the management we report that no fraud by the Company or nomaterial 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 by the management themanagerial remuneration has been paid/provided in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V to the Companies Act 2013.

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 commentedupon.

xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with Sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe Standalone Ind AS Financial Statements as required by the applicable accountingstandards.

xiv) According to the information and explanations given to us and on an overallexamination of the Balance Sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and consequently reporting requirements under clause 3(xiv) are notapplicable to the Company and hence not commented upon.

xv) According to the information and explanations given by the management and auditprocedures performed by us the Company has not entered into any non-cash transactionswith directors or persons connected with him as referred to in Section 192 of CompaniesAct 2013.

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

"ANNEXURE 2"TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE IND AS FINANCIAL STATEMENTS OF IFGL REFRACTORIES LIMTED Report on the InternalFinancial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act")

We have audited the Internal Financial Controls with reference to Standalone Ind ASFinancial Statements of IFGL Refractories Limited ("the Company") as of 31stMarch 2021 in conjunction with our audit of the Standalone Ind AS Financial Statements ofthe Company for the year ended 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 Control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate InternalFinancial Controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable FinancialInformation as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's Internal FinancialControls with reference to these Standalone Ind AS Financial Statements based on ouraudit. We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing as specified under Section 143(10) of the Act to the extentapplicable to an audit of Internal Financial Controls both issued by ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate InternalFinancial Controls with reference to these Standalone Ind AS Financial Statements wasestablished 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 these Standalone Ind AS FinancialStatements and their operating effectiveness. Our audit of Internal Financial Controlswith reference to Standalone Ind AS Financial Statements included obtaining anunderstanding of Internal Financial Controls with reference to these Standalone Ind ASFinancial Statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement 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 andappropriate to provide a basis for our audit opinion on the Company's Internal FinancialControls with reference to these Standalone Ind AS Financial Statements.

Meaning of Internal Financial Controls With Reference to these Standalone Ind AS FinancialStatements

A company's Internal Financial Controls with reference to Standalone Ind AS FinancialStatements is a process designed to provide reasonable assurance regarding the reliabilityof Financial Reporting and the preparation of Financial Statements for external purposesin accordance with Generally Accepted Accounting Principles. A Company's InternalFinancial Controls with reference to Standalone Ind AS Financial Statements includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the Assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of Financial Statements in accordance with Generally AcceptedAccounting Principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of Management and Directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the Company's Assets that could have a material effecton the Financial Statements.

Inherent Limitations of Internal Financial Controls with Reference to Standalone Ind ASFinancial Statements

Because of the inherent limitations of Internal Financial Controls with reference toStandalone Ind AS Financial Statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the Internal FinancialControls with reference to Standalone Ind AS Financial Statements to future periods aresubject to the risk that the Internal Financial Control with reference to StandaloneFinancial Statements may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate Internal FinancialControls with reference to Standalone Ind AS Financial Statements and such InternalFinancial Controls with reference to Standalone Ind AS Financial Statements were operatingeffectively as at 31st March 2021 based on the internal control over financial reportingcriteria established by the Company considering the essential components of InternalControl stated in the Guidance Note issued by the ICAI.

For S.R. Batliboi & Co. LLP

Chartered Accountants

ICAI Firm Registration Number : 301003E/E300005

per Bhaswar Sarkar

Partner

Membership Number : 055596

UDIN : 21055596AAAABW6476

Kolkata

5th June 2021

.