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Ind-Swift Laboratories Ltd.

BSE: 532305 Sector: Health care
NSE: INDSWFTLAB ISIN Code: INE915B01019
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OPEN 75.35
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VOLUME 25335
52-Week high 127.35
52-Week low 55.35
P/E 17.83
Mkt Cap.(Rs cr) 443
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 75.35
CLOSE 74.85
VOLUME 25335
52-Week high 127.35
52-Week low 55.35
P/E 17.83
Mkt Cap.(Rs cr) 443
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ind-Swift Laboratories Ltd. (INDSWFTLAB) - Auditors Report

Company auditors report

TO THE MEMBERS OF

IND-SWIFT LABORATORIES LIMITED

Report on the Audit of The Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying Standalone Ind AS financial statementsof IND-SWIFT LABORATORIES LIMITED ("the Company") which comprises the BalanceSheet as at March 31 2020 the Statement of Profit and Loss (including OtherComprehensive Income) the Statement for Changes in Equity and the Statement of Cash Flowsfor the year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "standalone financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Companies Act 2013 as amended ("Act") in the mannerso required and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2020its loss including other comprehensive income changes in equity and its cash flows forthe year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing ("SA"s) as specified under section143(10) of the Act. Our responsibilities under those Standards are further described inthe ‘Auditor's Responsibilities for the Audit of the Standalone Ind AS FinancialStatements' section of our report. We are independent of the Company in accordancewith the ‘Code of Ethics' issued by the Institute of Chartered Accountants ofIndia ("ICAI") together with the ethical requirements that are relevant to ouraudit 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 Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on theStandalone Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that in our professionaljudgement were of most significance in our audit of the Standalone Ind AS FinancialStatements of the current period. These matters were addressed in the context of our auditof the Standalone Ind AS Financial Statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. For each matter belowour description of how our audit addressed the matter is provided in that context. We havedetermined the matters described below to be the key audit matters to be communicated inour report.

Key Audit Matters How our audit assessed Key audit matters
Revenue Recognition
For the year ended March 31 2020 the Company has recognized revenue from contracts with customers amounting to 751.84 Crores. Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company has generally concluded that as principal it typically controls the goods or services before transferring them to the customer. The variety of terms that define when control is transferred to the customer as well as the high value of the transactions give rise to the risk that revenue is not recognized in the correct period. Revenue is measured net of net of returns and allowances cash discounts trade discounts and volume rebates (collectively ‘discount and rebates'). There is a risk that these discount and rebates are incorrectly recorded as it also requires a certain degree of estimation resulting in understatement of the associated expenses and accrual. Revenue is also an important element of how the Company measures its performance. The Our audit procedures included the following:
Company focuses on revenue as a key performance measure which could create an incentive for revenue to be recognized before the risk and rewards have been transferred. Accordingly due to the significant risk associated with revenue recognition in accordance with terms of Ind AS 115 ‘Revenue from contracts with customers' it was determined to be a key audit matter in our audit of the Ind AS financial statements. (Refer Notes on account no. XVIII Of notes on accounts) • Assessed the Company's revenue recognition policy prepared as per Ind AS 115 'Revenue from contracts with customers'.
• Assessed the design and tested the operating effectiveness of internal controls related to revenue recognition discounts and rebates.
• Performed sample tests of individual sales transaction and traced to sales invoices sales orders and other related documents. Further in respect of the samples checked that the revenue has been recognized as per the shipping terms.
• To test cut off selected sample of sales transactions made pre- and post-year end agreeing the period of revenue recognition to third party support such as transporter invoice and customer confirmation of receipt of goods.
• Tested the provision calculations related to management incentives discounts and rebates by agreeing a sample of amounts recognized to underlying arrangements with customers and other supporting documents.
• Obtained confirmations from customers on sample basis to support existence assertion of trade receivables and assessed the relevant disclosures made in the financial statements; to ensure revenue from contracts with customers are in accordance with the requirements of relevant accounting standards
Change in Accounting Policy
Inventories were having carrying value of RS. 342.81 crores as on reporting period. During the year company has changed its accounting policy for valuation of inventories from FIFO to Weighted Average basis. Management is of the opinion that such change in valuation methodology will present fairer picture of profitability and weighted average method is a standard method being generally adopted by pharmaceutical industry. • We have assessed the management controls over the change in Policy with respect to valuation of Inventories to determine whether any change in Policy was required.
Accordingly such change has impacted the results of the company and hence we have treated as a Key Audit Matter. • We assessed the Company's valuation methodology applied while brining such change of policy.
Refer Notes on account no. XLIII & accounting Policy no.2.4 to the Financial statements. • Performed sensitivity analysis around the key assumptions used by management in change in Policy.
• We have verified the application of new policy and also checked the cost of raw material with corresponding purchase invoices/register on sampling basis.
• We have test checked the cost of the finished products by tracing the components of costing of finished goods from its sources of origin.
• Our testing of the net realizable value covered raw materials WIP and finished products. We compared raw materials and WIP to relevant market prices where such exist. Where no readily available market price could be found we performed a compound level comparison to the respective compound's repurchase price or the average purchase price based on the latest purchases. We have as part of our procedures ensured that the principle of valuing inventory at the lower of cost or net realisable value has been applied in the valuation of inventory.
• Assessed the disclosures included in the financial statements in note XLIII to the Ind AS financial statements.
Evaluation of Uncertain tax Positions
The company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. • Obtained the details of completed tax assessments and demands as on 31/03/2020 from Management.
Refer Notes to accounts No. XXVI to the Financial statements • We involved our expertise to challenge the management's underlying assumptions in estimating tax provision and the possible outcome of the disputes.
• We have also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions.
Adoption of Ind AS 116 Leases
The Company has adopted Ind AS 116 Leases in the current year. The application and transition to this accounting standard is complex and is an area of focus in our audit. Ind AS 116 introduces a new lease accounting model wherein lessees are required to recognise a right-of-use (ROU) asset and a lease liability arising from a lease agreement on the balance sheet date. The lease liabilities are initially measured by discounting future lease payments during the lease term as per the contract/ arrangement. Our audit procedures on adoption of Ind AS 116 include:
Adoption of the standard involves significant judgements and estimates including determination of the discount rates and the lease term. • Assessed and tested new processes and controls in respect of the lease accounting standard (Ind AS 116);
Refer Note XLII & accounting Policy no.2.2.5 to the standalone financial statements. • Assessed the Company's evaluation on the identification of leases based on the contractual agreements and our knowledge of the business;
• Involved our specialists to evaluate the reasonableness of the discount rates applied in determining the lease liabilities;
• Upon transition as at 1 April 2019:
• Evaluated the method of transition and related adjustments;
• Tested completeness of the lease data by reconciling the Company's operating lease commitments to data used in computing ROU asset and the lease liabilities.
• On a statistical sample we performed the following procedures:
• assessed the key terms and conditions of each lease with the underlying lease contracts; and
• Evaluated computation of lease liabilities and challenged the key estimates such as discount rates and the lease term.
• Assessed and tested the presentation and disclosures relating to Ind AS 116 including.

Emphasis of Matters

c) The Company during the year has changed its accounting policy ofRevenue Recognition of exports incentives from Without qualifying our opinion we drawattention to the following receipt basis to accrual basis. The impact of the same hasmatters in the Notes to the financial statements: been disclosed at Note no.XLIV &Accounting Policy 2.5.4.

a) The Fixed Deposit Scheme was restructured vide order No. C.P27/01/2013 dated 30.09.2013 by Company Law Board.

The Information Other than the Financial Statements company hasbeen granted extension of time of repayment of and Auditor's Report Thereon thosedeposits. Further the company has made the payment The Company's Board of Directorsis responsible for the other of RS. 10.50 Crores during the year. (Refer Note No. XIV (d)of information. The other information comprises the information Financial Statements).included in the Annual report 2019-20 but does not include the Standalone Ind AS financialstatements and our auditor's report

b) We draw attention to Note No. XLI of the accompanying thereon.standalone financial results which describes the management's evaluation ofuncertainties related to COVID Our opinion on the Standalone Ind AS Financial statementsdoes 19 and its consequential effects on the operations of the not cover the otherinformation and we do not express any form Company. of assurance conclusion thereon.

In connection with our audit of the Standalone Ind AS financialstatements our responsibility is to read the other information and in doing so considerwhether such other information is materially inconsistent with the Standalone Ind ASfinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone Ind AS FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these StandaloneInd AS Financial Statements that give a true and fair view of the financial positionfinancial performance total comprehensive income changes in equity and cash flows of theCompany in accordance with Ind AS and other accounting principles generally accepted inIndia. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments 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 Financial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Standalone Ind AS Financial Statements management isresponsible 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.

The Board of Directors is responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Ind ASFinancial Statements

Our objectives are to obtain reasonable assurance about whether theStandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that anaudit conducted in accordance with SAs will always detect a material misstatement when itexists. 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 Standalone Ind AS financialstatements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of theStandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal Control.

• Obtain an understanding of internal financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theStandalone Ind AS financial statements including the disclosures and whether theStandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone Ind ASfinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the Standalone IndAS financial statements for the financial year ended March 31 2020 and are therefore thekey audit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits 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 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books andproper returns adequate for the purpose of our audit;

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

(d) In our opinion the aforesaid Financial Statements comply with theIndian Accounting Standards specified under section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2015 as amended;

(e) On the basis of written representations received from the directorsas on March 31 2020 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2020 from being appointed as a director in terms of section164 (2) of the Act;

(f ) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure -B". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company'sinternal financial controls over financial reporting;

(g) With respect to the other matters to be included in theauditor's report in accordance with the requirements of section 197(16) of the actas amended.

In our opinion and to the best of our information and according to theexplanations given to us the managerial remuneration for the year ended March 31 2020has been paid / provided by the Company to its directors in accordance with the provisionsof section 197(16) read with Schedule V to the Act (refer Notes to accounts No. XXII offinancial statements);

(h) With respect to the other matters to be included in theAuditor's Report in accordance 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 tothe explanations given to us:

a) The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind AS financial statements – Refer Note XXVI tothe Financial Statements;

b) The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

c) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

"ANNEXURE-A"

Referred to in paragraphs under the heading "Report on other Legaland regulatory requirements "of our Report of even date

Re: M/s Ind-Swift Laboratories Limited (‘the Company')

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) According to information and explanations given by the managementthe company has a system of physical verification of all its fixed assets over a period offour years. In accordance with this programme certain fixed assets were verified duringthe year and no material discrepancies were noticed on such verification. In our opinionthis periodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

(c) According to information and explanations given by the managementthe title deeds of immovable properties included in fixed assets are held in the name ofthe Company. Except in case of the following immovable properties where the title deedsare not in the name of the company:

No. of cases Freehold/ Office Building Gross Block as at 31st March 2020 Net Block as at 31st March 2020 Remarks
1 Freehold Rs. 9.75 Crores Rs. 9.75 Crores The cost of land amounting to RS. 9.75 Crores includes the land measuring 29 kanals & 3 Marlas which was purchased on Power of Attorney from Fortune (India) constructions Ltd.
2 Flats (Investment Property) 14.58 Crores 12.23 Crores Flats Located held as investment. .[Refer Note no .I (iii)]

(ii) As explained to us the inventories excluding stocks with some ofthe third parties were physically verified during the year by the management atreasonable intervals and no material discrepancies were noticed on physical verification.In respect of inventories lying with third parties these have substantially beenconfirmed by them.

(iii) According to the information and explanation given to us theCompany has not granted loans secured or unsecured to Companies firms or other partiescovered in the register maintained u/s 189 of the Companies Act 2013 and hence reportingunder Accordingly paragraph 3 (iii) of the Order is not applicable.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct in respect of loans investments guarantees and securities as applicable. (v) Inour opinion and according to the information and explanations given to us the Company hascomplied with the provisions of sections 73 to 76 of the Companies Act 2013 and the rulesframed thereunder and the directives issued by The Reserve Bank of India with regards tothe deposits accepted from the public .

(vi) The maintenance of cost records has been specified by the CentralGovernment Under sub section (1) of section 148 of the act. We have broadly reviewed thecost records maintained by the Company pursuant to the companies( Cost records and audit)Rules 2014 as amended prescribed by the Central Government under sub-section (1) ofsection 148 of the act and are of the opinion that prima facie the prescribed costrecords have been made and maintained. We have however not made a detailed examination ofthe cost records with a view to determine whether they are accurate or not.

(vii) According to information and explanations given to us in respectof Statutory Dues; (a) The Company is regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax customs duty excise duty value added tax cess andother material statutory dues applicable to it though there have been slight delays in fewcases.

(b) There were no undisputed amounts payable in respect of providentfund employees' state insurance income-tax service tax sales-tax duty of customduty of excise value added tax cess and other material statutory dues were outstandingat the year end for a period of more than six months from the date they became payable.

(c) The dues outstanding of income-tax sales-tax service tax duty ofcustom duty of excise value added tax and cess on account of any dispute are asfollows:

Name of the Statute Nature of Dues Amount (Rs. In Lakhs ) Period to which the amount relates Forum where dispute is pending
The Punjab Vat Act2005 Sale tax Penalty & Interest 31.94 2006-07 DETC (Appeal)
The Punjab Vat Act2005 Sale tax Penalty & Interest 238.35 2010-11 DETC (Appeal)
The Custom Act 1962 Differential Duty 23.06 2012-2013 CESTAT CHANDIGARH
Service Tax Finance Act 1994 Service Tax 82.19 2012-2013 CESTAT CHANDIGARH
Service Tax Finance Act 1994 Service Tax 29.03 2013-2014 CESTAT CHANDIGARH
Service Tax Finance Act 1994 Service Tax 69.89 2014-2015 CESTAT CHANDIGARH
The Central Excise Act 1944 Excise Duty 113.42 2009-10 & 2010-2011 COMMISSIONER APPEAL LUDHIANA

(viii) In our opinion and according to the information and explanationsgiven by the management the Company has not defaulted in repayment of loans or borrowingsto a financial institution bank or Government and dues to the debenture holders.

(ix) The Company has not raised moneys by way of initial public offeror further public offer (including debt instruments) or term loans and hence reportingunder clause 3(ix) of the Order is not applicable to the Company.

(x) According to the information and explanations given by themanagement we report that no fraud by the Company or no fraud on the Company by theofficers and employees of the Company has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanationsgiven to us by the management the managerial remuneration for the year ended March 312020 has been paid / provided by the Company to its directors in accordance with theprovisions of section 197 read with Schedule V to the Act (Refer Notes to accounts No.XXII of financial statements);

(xii) In our opinion the Company is not a Nidhi company. Thereforethe provisions of clause 3(xii) of the order are not applicable to the Company and hencenot commented upon.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the Standalone Ind AS financialstatements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and onan overall examination of the balance sheet the Company during the year has madepreferential allotment of equity shares to the optionally Convertible debenture holdersand has complied with the provisions of the Act with respect to shares issued underpreferential allotment during the year. (Refer Notes to accounts No.XI of financialstatements)

(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not enterednon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company.

"ANNEXURE-B" TO THE INDEPENDENT AUDITOR'S REPORT of evendate on the Financial Statements of Ind-Swift Laboratories Limited

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act") To theMembers of Ind-Swift Laboratories Limited

We have audited the internal financial controls over financialreporting of Ind-Swift Laboratories Limited ("the Company") as of March 31 2020in conjunction with our audit of the Ind AS financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting 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 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 offrauds and 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 internalfinancial controls over financial reporting with reference to these standalone FinancialStatements based on our audit. We conducted our audit in accordance with the Guidance Noteon Audit of Internal Financial Controls Over Financial Reporting (the "GuidanceNote") and the Standards on Auditing as specified under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting with reference to these standalone Financial Statementswas established and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting withreference to these standalone Financial Statements and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting with reference tothese standalone Financial Statements assessing the risk that a material weakness existsand testing and evaluating the design and operating effectiveness of internal controlbased on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlssystem over financial reporting with reference to these standalone Financial Statements.

Meaning of Internal Financial Controls Over Financial Reporting withreference to these standalone Financial Statements

A company's internal financial control over financial reporting withreference to these standalone Financial Statements is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingwith reference to these standalone 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 asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting with reference to these standalone Financial Statements

Because of the inherent limitations of internal financial controls overfinancial reporting with reference to these standalone Financial Statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these standalone Financial Statements to future periods are subject to the risk thatthe internal financial control over financial reporting with reference to these 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 an adequateinternal financial controls system over financial reporting . with reference to thesestandalone Financial Statements and such internal financial controls over financialreporting with reference to these standalone Financial Statements were operatingeffectively as at March 31 2020 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India.

For Avishkar Singhal & Associates
Chartered Accountants
(Regd No.:017362N)
Avishkar Singhal
Partner
Place : Chandigarh Membership No.: 098689
Date: 20.06.2020 UDIN: 20098689AAAAAZ5059

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