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Interglobe Aviation Ltd.

BSE: 539448 Sector: Services
NSE: INDIGO ISIN Code: INE646L01027
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OPEN 1110.00
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VOLUME 37065
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Mkt Cap.(Rs cr) 42,912
Buy Price 1112.00
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Sell Price 1116.30
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OPEN 1110.00
CLOSE 1113.85
VOLUME 37065
52-Week high 1520.00
52-Week low 697.00
P/E
Mkt Cap.(Rs cr) 42,912
Buy Price 1112.00
Buy Qty 1.00
Sell Price 1116.30
Sell Qty 50.00

Interglobe Aviation Ltd. (INDIGO) - Auditors Report

Company auditors report

To

The Members of

InterGlobe Aviation Limited

Report on the Rudit of the Standalone Ind RS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of InterGlobeAviation Limited ("the Company") which comprise the Balance Sheet as at 31March 2018 the Statement of ProAt and Loss the Statement of Changes in Cquity and theStatement of Cash Flows for the year then ended and summary of the significant accountingpolicies and other explanatory information (hereinafter referred to as "standaloneInd AS financial statements").

Management's Responsibility for the Standalone Ind RS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of the stateof affairs proAt and other comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) prescribed under Section 1 33 of theAct.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalone Ind ASfinancial 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 is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Ruditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Aules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We are also responsible to 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 entity's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in the auditor's report tothe related disclosures in the standalone Ind AS financial statements or if suchdisclosures are inadequate to modify the opinion. Our conclusions are based on the auditevidence obtained up to the date of the auditor's report. However future events orconditions may cause an entity to cease to continue as a going concern.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

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 the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31 March 2018 and its profits and other comprehensive income changes inequity and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Aeport) Order 2016 ('the Order') issued bythe Central Government of India in terms of sub-section (11) of Section 143 of the Act wegive in "Annexure A" a statement on the matters specified in paragraphs 3 and 4of 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 ProAt and Loss the Statement of Cash Flows andthe Statement of Changes in Cquity dealt with by this Aeport are in agreement with thebooks of account;

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under Section 1 33 of the Act;

e) On the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 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 of the Company and the operating effectiveness ofsuch controls refer to our separate Aeport in "Annexure B"; and

g) With respect to the other matters to be included in the Auditor's Aeport inaccordance with Aule 11 of the Companies (Audit and Auditors) Aules 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 standalone Ind AS financial statements - Aefer Note 30 to the standaloneInd 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 were no amounts which were required to be transferred to the Investoreducation and Protection Fund by the Company; and

iv. The disclosures in the standalone Ind AS financial statements regarding holdings aswell as dealings in specified bank notes during the period from 8 November 2016 to 30December 2016 have not been made since they do not pertain to the financial year ended 31March 2018. However amounts as appearing in the audited Standalone Ind AS financialstatements for the period ended 31 March 2017 have been disclosed- Aefer Note 38 to thestandalone Ind AS financial statements.

For B S A Si Co. LLP

Chartered Accountants

Firm registration number: 101 248W / W-100022

Jiten Chopra
Place: Gurugram Partner
Date: 02 May 2018 Membership number: 092894

Annexure R referred to in our Independent Auditor's Report to the members of InterGlobeAviation Limited on the standalone Ind AS financial statements for the year ended 31 March2018

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of two years exceptfor aircraft and spare engines which are verified on an annual basis. In our opinionthis periodicity of physical verification by management is reasonable having regard to thesize of the Company and the nature of its assets. In accordance with this programmecertain fixed assets were physically verified during the year As informed to us nomaterial discrepancies were noticed on such verification.

(c) According to the information and explanations given to us the Company does nothave any immovable properties. Accordingly paragraph 3(i)(c) of the Order is notapplicable.

(ii) Inventories except forgoods-in-transit and stocks lying with third parties havebeen physically verified by the management during the year. In our opinion the frequencyof such verification is reasonable. For stocks lying with third parties at the year-endwritten confirmations have been obtained. According to the information and explanationsgiven to us the procedures for physical verification of inventories followed by themanagement during the year are reasonable and adequate in relation to the size of theCompany and the nature of its business. The discrepancies noticed on verification betweenthe physical stocks and the book records were not material and have been properly adjustedin the books of account.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 201 3. Accordingly the provisions of paragraph 3 (iii) of the Order arenot applicable to the Company.

(iv) According to the information and explanations given to us the Company has notgiven any loan or provided any guarantee or security as specified under section 185 and186 of the Companies Act 201 3. Moreover in respect of the investments made by theCompany requirements of section 186 of the Companies Act 2013 have been complied with.

(v) As per the information and explanations given to us the Company has not acceptedany deposits as mentioned in the directives issued by the Aeserve Bank of India and theprovisions of section 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed there under. Accordingly paragraph 3(v) of the Order is notapplicable.

(vi) According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under sub-section (1) of section 148 ofthe Companies Act 201 3 for any of the services rendered or goods sold by the Company.Accordingly paragraph 3(vi) of the Order is not applicable.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income tax sales tax service tax goods and services tax duty of customsvalue added taxes cess and other statutory dues have been regularly deposited during theyear by the Company with the appropriate authorities. As explained to us the Company didnot have any dues on account of duty of excise.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income tax sales taxservice tax goods and services tax duty of customs value added taxes cess and otherstatutory dues were in arrears as at 31 March 2018for a period of more than six monthsfrom the date they became payable.

(b) According to the information and explanations given to us there are no dues ofincome tax service tax goods and services tax sales tax value added tax and duty ofcustoms which have not been deposited by the Company with the appropriate authorities onaccount of any dispute as at 31 March 2018 other than those mentioned as follows:

Nam of the Statute Nature of the dues Amount (Rs. in million) Amount paid under protest (Rs. in million) Period to which the amount relates Forum where dispute is pending
Aevision to the taxable income on account of: High Court
Income-tax Act 1961 a) Tax treatment of certain incentives received by the Company from manufacturers with the acquisition of aircraft and engine. - - Assessment year (AV) 2007-08 1 of Delhi and Commissioner of Income Tax (Appeals)
b) Disallowance of certain expenses / adjustments [CIT(A) ]
Aevision to the taxable income on account of:
Income-tax Act 1961 a) Tax treatment of certain incentives received by the Company from manufacturers with the acquisition of aircraft and engine. - - AV 2008-09 2 AV 2009-103 High Court of Delhi and Income Tax Appellate Tribunal (ITAT)
b) Disallowance of certain expenses / adjustments.
Aevision to the taxable income on account of:
Income-tax Act 1961 a) Tax treatment of certain incentives received by the Company from manufacturers with the acquisition of aircraft and engine. 8.66 1.30 AV 2010-114 ITAT and CIT(A)
b) Disallowance of certain expenses / adjustments.
Writ petition filed before High Court of Delhi challenging reopening of assessment on account of:
Income-tax Act 1961 a) Tax treatment of certain incentives received by the Company from manufacturers with the acquisition of aircraft and engine. 3921.14 - AV 2011-125 High Court of Delhi
b) Disallowance of certain expenses/ adjustment.
Revision to taxable income on account of :
Income-tax Act 1961 a) Tax treatment of certain incentives received by the Company from the manufacturers with the acquisition of aircraft and engine. 5822.44 100 AV 2012-136 AV 2013-147 AV 2014-157 ITAT
b) Disallowance of certain expenses / adjustments.
Aevision to taxable income on account of:
Income-tax Act 1961 a) Tax treatment of certain incentives received by the Company from the manufacturers with the acquisition of aircraft and engine. 2887.73 150 AV 2015-168 CIT(A)
b) Disallowance of supplementary lease rental and certain expenses / adjustments.
Income-tax Act 1961 Tax deducted at source 1.02 - AV 2007-08 Assessing officer (AO)
Income-tax Act 1961 Tax deducted at source 142.48 7.84 AV 2010-11 ITAT and CIT(A)
Income-tax Act 1961 Tax deducted at source 20.99 5.07 AV 2011-12 ITAT
Income-tax Act 1961 Tax deducted at source 22.78 11.41 AV 2012-13 CIT(A)
Income-tax Act 1961 Tax deducted at source@ 0.09 0.09 AV 2013-14 ITAT
Income-tax Act 1961 Tax deducted at source 0.73 0.73 AV 2014-15 CIT(A)
Income-tax Act 1961 Tax deducted at source 13.21 - AV 2008-09 AV 2009-10 AV 2010-11 AV 2013-14 and AV 2014- 15 ITAT and AO
Finance Act 1994 (Service tax) Service tax and penalty on excess baggage charges and services received from overseas vendors and denial of cenvat credit 111.21 - Financial Vear (FV) 2006-07 to FV 2010-11 ## Customs Cxcise and Service Tax Appellate Tribunal (C€STAT) Chandigarh
Finance Act 1994 (Service tax) Service tax and penalty on services received from overseas vendors 2.96 - FV 2005-06 to FV 2009-10 and FV 2010- 11 ## C€STAT Chandigarh
Finance Act 1994 (Service tax) Penalty for late payment of Service tax on various expenses incurred for external Commercial Borrowing 358.56 89.64 FV 2012-13 to FV 2013-14 C€STAT Chandigarh
The Customs Act 1962 Customs duty and penalty on import of aircraft engines 531.20 - FV 2011-12 and FV 2012- 13 ## C€STAT Bangalore
The Customs Act 1962 Custom duty and penalty on notional freight charges added to the value of Aviation turbine fuel 6.78 2.69 August 2012 to May 2015 ## C€STAT Chennai
The Customs Act 1962 Custom duty and penalty on notional freight charges added to the value of Aviation turbine fuel 7.18 1.07 October 2011 to March 2015## Commissioner of Customs (Appeals) Mumbai
Kerala Value Added Tax Act 2003 Value Added Tax on sale of goods in International flights@ 0.66 0.92 FV 2012-13 to FV 2013-14 Kerala Value Added Tax Appellate Tribunal
Central Sales Tax Act 1956 Sr Central Sales Tax (Bombay) Aules 1957 Central Sales Tax on sale of goods in international flights in the state of Maharashtra (Credit of As. 0.47 million adjusted against demand and As. 0.48 million was deposited as part payment by the Company) 7.85 0.48 FV 2012-13 Joint Commissioner
Maharashtra Value Added Tax 2002 Denial of Input Tax Credit 0.17 - FV 2012-13 Joint Commissioner
Maharashtra Value Added Tax 2002 Tax on sole of goods in international flights and denial of Input Tax Credit (Credit of INR 0.60 million has been adjusted against the demand) 5.28 - FV 2013-14 Joint Commissioner **
Mumbai Municipal Corporations Ret 1888 Octroi on import/inward movement of aircraft engines and aircraft engine stand@ 74.39 74.39 FV 2016-17 High court of Mumbai
Customs Tariff Ret 1975 and The Integrated Goods And Services Tax 2017 Integrated Goods and Services Tax on re-import of aircraft aircraft engines and certain aircraft parts after repair@ 1829.50 1829.50 FV 2017-18 Commissioner of Customs (Appeals) New Delhi*

## The demand does not indude interest component as it is not specified in order.

* Includes the cases wherein appeal filing is in process.

** The Company is in process of filling appeal to Joint Commissioner.

@ As on 31 March 2018 net outstanding due is Nil.

 1 ITflT has passed favorable order dated 18 July 2016 and the loss forthe year has been assessed at Rs. 2032.85 million vide appeal effect order dated 16November 2016. Income tax department filed an appeal to High Court of Delhi dated 23December 2016 for the proposed addition to taxable income amounting to Rs. 1874.63million for RV 2007-08 which will result in reduction of business loss and unabsorbeddepreciation for RV 2007-08. During the current year the High Court of Delhi vide orderdated 7 July 2017 has admitted the department's appeal on taxability of certainincentives.

In relation to certain disallowance of expenses amounting to Rs. 22.39 million appealis pending before CIT(fl) against order u/s 144/143(3)/263 of the Income Tax Ret 1961.

 2 ITflT has passed favorable order dated 18 November 2016 and the lossfor the year has been assessed at Rs. 31 71.43 million vide appeal effect order dated 6March 2017. During the current year. Income tax department filed an appeal to High Courtof Delhi dated 1 May 2017 for the proposed addition to taxable income amounting to Rs.4714.97 million for RV 2008-09. During the current year the High Court of Delhi videorder dated 31 October 2017 has admitted the department's appeal on taxability of certainincentives.

The Company has also filed a miscellaneous application before ITflT to adjudicate ondisallowances of certain expenses amounting to Rs. 118.50 million.

 3 ITflT has passed favorable order dated 18 November 2016 and the lossfor the year has been assessed at Rs. 2121.80 million vide appeal effect order dated 21February 2017. During the current year. Income tax department has filed an appeal to HighCourt of Delhi dated 1 May 2017 for the proposed addition to taxable income amounting toRs. 4164.13 million for RV 2009-10. During the current year the High Court of Delhi videorder dated 31 October 2017 has admitted the department's appeal on taxability of certainincentives.

The Company has also filed a miscellaneous application before ITflT to adjudicate ondisallowances of certain expenses amounting to Rs. 619.46 million.

 4 The additional taxable income amounting to Rs.3569.11 million forRV 2010-11 was proposed vide order dated 1 5 March 201 3 by assessing officer . During theyear ended 31 March 2016 CIT(fl) has passed an order dated 20 January 2016 proposingadditions amounting to Rs. 726.60 million. The Company has filed an appeal to ITflT forproposed additions to taxable income.

Further addition of Rs. 50.97 million was proposed by assessing officer under section147 of the Income tax Ret 1961 vide re-assessment order dated 27 January 2016 andaccordingly above mentioned demand has arisen. The Company has filed an appeal to CIT(fl)against order under section 147 of the Income tax Ret 1961.

 5 The RO has issued a notice u/s 148 of the Income Tax Ret 1961 forre-opening of assessment pertaining to RV 2011 -1 2. The Company has filed a writpetition before High Court of Delhi challenging the re-opening of reassessment by RO. TheHigh Court has directed to pass the assessment order stating such order shall not be giveneffect till further orders. The assessing officer passed an assessment order proposing theadditional taxable income amounting to Rs.5823.48 million vide order dated 29 December2017 and accordingly demand amounting to Rs. 3921.14 million has arisen. The High Courtof Delhi has granted stay vide order dated 18 April 2018 till disposal of writ petition byHigh Court of Delhi.

 6 The additional taxable income amounting to Rs. 6070.11 million forRV 2012-13 was proposed vide assessment order dated 25 March 201 5 by assessing officer.CIT(fl) has passed an order dated 22 March 2017 which further proposed additional taxableincome amounting of Rs. 4904.78 million. The assessing officer passed rectification orderdated 03 October 2017 and accordingly demand of Rs. 11 54.63 million has arisen. TheCompany has filed an appeal before ITRT for proposed additions to taxable income. Furtherthe Company has obtained stay of demand from ITRT for the above mentioned demand.

 7 The additional taxable income amounting to Rs.14218.26 million andRs.12538.26 million for RV 2013-14 and RV 2014-1 5 respectively was proposed by assessingofficer vide order dated 6 December 2016. The Company has filed an appeal to CIT(fl) andit has passed an order dated 10 October 2017 giving partial relief amounting to Rs.3500.35 million and Rs. 2228.75 million respectively. The assessing officer passedappeal effect order dated 12 February 2018 and accordingly demand amounting to Rs.3381.40 million and Rs. 1286.41 million respectively has arisen. The Company has filedan appeal before ITRT for proposed additions to taxable income.

The Company has obtained stay of demand from ITRT for a period of six months ordisposals of the appeals whichever expire earlier for RV 2013-14 and RV 2014-15. The stayfor RV 2013-14 is subject to the condition of paying Rs. 100 million. Subsequently theCompany has paid Rs. 100 million under protest.

 8 The additional taxable income amounting Rs. 1151 2.08 million forRV 201 5-16 was proposed by assessing officer vide order dated 28 December 2017. TheCompany has filed an appeal before CIT(fl) for proposed additions to taxable income.

The Company has obtained stay of demand against such order till 31 August 2018 ordisposal of appeal by CIT(fl) whichever is earlier on payment of Rs. 1 50 million. TheCompany has paid Rs. 1 50 million under protest.

(viii) In our opinion and according to the information and explanations given to us andon the basis of our examination of the records of the Company the Company has notdefaulted in repayment of loans or borrowings to banks or financial institutions. Furtherno loans or borrowings were taken from government and there were no debentures issuedduring the year or outstanding as at 31 March 2018.

(ix) In our opinion and according to the information and explanations given to us andon the basis of our examination of the records of the Company the Company has utilisedthe money raised by way of institutional placement programme ("IPP") for thepurpose for which they were raised. The unutilised funds have been temporarily invested/deposited in cash and cash equivalents including bank deposits and/or mutual funds.Moreover the term loans taken by the Company have been applied for the purposes for whichthey were raised.

(x) Recording to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) Recording to information and explanations given to us and on the basis of ourexamination of the records of the Company the managerial remuneration has been providedand paid by the Company in accordance with the provisions of section 197 read withSchedule V to the Companies Ret 201 3.

(xii) Recording to the information and explanations given to us the Company is not anidhi company. Accordingly paragraph 3(xii) of the Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us andon the basis of our examination of the records of the Company the transactions with therelated parties are in compliance with sections 177 and 188 of the Companies Ret 201 3where applicable and the details have been disclosed in the standalone Ind RS financialstatements as required by the accounting standards.

(xiv) Recording to the information and explanation given to us and on the basis of ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe current year. Accordingly paragraph 3(xiv) of the Order is not applicable.

(xv) According to information and explanations given to us the Company has not enteredinto any non-cash transactions with directors or persons connected with them. Accordinglyparagraph 3(xv) of the Order is not applicable.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-1A of the Aeserve Bank of India Act 1934.

For B S A Si Co. LLP

Chartered Accountants

Firm registration number: 101 248W / W-100022

Jiten Chopra

Partner

Membership number: 092894

Place: Gurugram

Date: 02 May 2018

Annexure 6 to the Independent Audi tor's Report of even dote on the standalone Ind ASfinonciol statements of InterGlobe Aviation Limited

Report on the Internal Finonciol Controls under Clouse (i) of Sub-section 3 of Section143 of the Companies Ret 2013 ("the Ret")

W have audited the internal financial controls with reference to the Standalone IndAS financial statements of InterGlobe Aviation Limited ("the Company") as of 31March 2018 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 Finonciol Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialAeporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India ("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Ruditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to the standalone Ind AS financial statements based on our audit.We conducted our audit in accordance with the Guidance Note and the Standards on Auditingissued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls both applicableto an audit of Internal Financial Controls and both issued by the ICAI.

Those Standards and the Guidance Note require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls with reference to the standalone Ind AS financial statementswas established 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 system with reference to the standalone Ind AS financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to the standalone Ind AS financial statements included obtaining anunderstanding of internal financial controls with reference to the 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 standalone Ind AS financialstatements whether due to 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 systemwith reference to the standalone Ind AS financial statements.

Meaning of Internal Finonciol Controls with reference to the Standalone Ind RSFinancial Statements

A company's internal financial control with reference to the standalone Ind ASfinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sinternal financial control with reference to the standalone Ind AS financial statementsincludes those policies and procedures that (1) pertain to the maintenance of recordsthat in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitotions of Internol Finonciol Controls with reference to the StondoloneInd AS Finonciol Stotements

Because of the inherent limitations of internal financial controls with reference tothe standalone Ind AS financial statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols with reference to the standalone Ind AS financial statements to future periodsare subject to the risk that the internal financial control with reference to thestandalone Ind AS financial statements may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to the standalone Ind AS financial statements andsuch internal financial controls with reference to the standalone Ind AS financialstatements were operating effectively as at 31 March 2018 based on the internal controlwith reference to the standalone Ind AS financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Aeporting issued by theInstitute of Chartered Accountants of India.

For B S A Si Co. LLP

Chartered Accountants

Firm registration number: 101 248W / W-100022

Jiten Chopra

Partner

Membership number: 092894

Place: Gurugram

Date: 02 May 2018