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International Combustion (India) Ltd.

BSE: 505737 Sector: Engineering
NSE: N.A. ISIN Code: INE403C01014
BSE 00:00 | 03 Feb 393.10 14.25
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NSE 05:30 | 01 Jan International Combustion (India) Ltd
OPEN 380.50
PREVIOUS CLOSE 378.85
VOLUME 11051
52-Week high 424.00
52-Week low 235.70
P/E 15.29
Mkt Cap.(Rs cr) 94
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 380.50
CLOSE 378.85
VOLUME 11051
52-Week high 424.00
52-Week low 235.70
P/E 15.29
Mkt Cap.(Rs cr) 94
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

International Combustion (India) Ltd. (INTLCOMBUSTION) - Auditors Report

Company auditors report

To the Members of International Combustion (India) Limited

Report on the Audit of Financial Statements

Opinion

We have audited the accompanying Financial Statements of InternationalCombustion (India) Limited ("the Company") which comprise the Balance Sheetas at 31st March 2022 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearended on that date and a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "the Ind AS financialstatements").

In our opinion and to the best of our information and according toexplanations given to us the aforesaid Ind AS financial statements give the informationrequired by the Companies Act 2013 ("the Act")in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended (Ind AS) and other accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2022 the profit total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Ind AS financial statements in accordancewith the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Ourresponsibilities under those standards are further described in the Auditor'sResponsibilities for the Audit of the Ind AS Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the Ind AS financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion on the Ind AS financial statements.

Key Audit Matters

Key Audit Matters are those matters that in our professional judgmentwere of most significance in our audit of the Ind AS financial statements for the yearended March 31 2022. These matters were addressed in the context of our audit of the IndAS financial statements as a whole and in forming our opinion thereon we do not providea separate opinion on these matters. We have determined the matter described below to bethe Key Audit Matter to be communicated in our report. A description of how our auditaddressed the matter is provided in this context.

Sr. No. Key Audit Matters How the matter was addressed in our audit
1 Revenue recognition related to multiple element arrangements Our audit procedures included the following:
(as described in notes 3.14 of the Ind AS financial statements). • We obtained an understanding and evaluated the design and tested the operating effectiveness of key controls over revenue recognition;
The contracts with customers include multiple elements including sale of products and ancillary services like supervision of installation commissioning etc. The identification of performance obligations under the contracts with customers allocation of consideration to the performance obligations identified and determination of the timing of revenue recognition in accordance with Ind AS 115 requires exercise of judgement by the Company's management. • We assessed the appropriateness of the accounting policies applied by the Company in line with the applicable accounting standards.
We considered this to be a Key Audit Matter in view of the customer contracts being complex and nonstandard. • We tested contracts with customers on a sample basis to assess the contractual terms which impacted identification and timing of performance obligations allocation of consideration to these performance obligations based on determination of selling prices and determination of timing of recognition for each of these revenue components;
• We performed tests related to non-standard manual journal entries related to revenue.
Audit Conclusion:
Our procedures did not identify any material exceptions.

Information Other than the Ind AS Financial Statements andAuditor's Report thereon

The Company's management and Board of Directors are responsiblefor the preparation of the other information. The other information comprises theinformation included in the Company's annual report but does not include the Ind ASfinancial statements and our auditor's report thereon.

Our opinion on the 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 Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Ind AS financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.

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 Financial statements

The Company's management and Board of Directors are responsiblefor the matters stated in section 134(5) of the Act with respect to the preparation of theInd AS financial statements that give a true and fair view of the financial positionfinancial performance changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards ("Ind AS") prescribed under section 133 of the Act read with relevantrules issued thereunder. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Ind AS financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

In preparing the Ind AS financial statements management and Board ofDirectors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the FinancialStatements

Our objectives are to obtain reasonable assurance about whether the IndAS financial statements as a whole are free from material misstatement whether due tofraud or error and to issue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance but is not aguarantee that an audit conducted in accordance with SAs will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of the Ind ASfinancial statements.

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

• Identify and assess the risks of material misstatement of theInd AS financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate 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 controls 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 Ind AS financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease as a going concern.

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

Materiality is the magnitude of misstatements in the Ind AS financialstatements that individually or in aggregate make it probable those economic decisionsof a reasonably knowledgeable user of the Ind AS financial statements may be influenced.We consider quantitative materiality and qualitative factors in planning the scope of ouraudit work and in evaluating the results of our work; and to evaluate the effect of anyidentified misstatements in the Ind AS financial statements.

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 Ind ASFinancial Statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors' report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of Section143(11) 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 based on our report wereport that:

a) we have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

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

d) In our opinion the aforesaid Ind AS financial statements complywith Companies (Indian Accounting Standards) Rules 2015 as specified under section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014

e) On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2022 from being appointed as a director interms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in "Annexure B".

g) According to the information and explanations given to usmanagerial remuneration has been paid by the Company to its directors during the year inaccordance with the requirements of section 197(16) of the Act as amended and the rulesframed thereunder.

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 read with the Companies (Audit & Auditors) Amendment Rules 2017 in ouropinion and to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impactits financial position.

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

iii. The Company is not required to transfer any amount to the InvestorEducation and Protection Fund.

iv. (a) The management has represented that to the best of itsknowledge and belief no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the Company toor in any other person(s) or entity(ies) including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

(b) The management has represented that to the best of its knowledgeand belief other than as disclosed in the Ind AS financial statements no funds have beenreceived by the Company from any person(s) or entity(ies) including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries; and

(c) Based on such audit procedures we have considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (a) and (b) contain any materialmis-statement;

v. The Board of Directors of the Company have proposed a dividend ofrupees two per equity share for the financial year 2021-2022.

Annexure A to the Independent Auditor's Report

(The Annexure referred to in paragraph 1 under the heading "Reporton Other Legal and Regulatory Requirements" of our report of even date)

i) a) (A) The Company has generally maintained proper records showingfull particulars including quantitative details and situation of Property Plant andEquipment (PPE).

(B) The Company has generally maintained proper records showing fullparticulars of intangible assets.

b) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the PPE of the Company have beenphysically verified by management during the year which in our opinion reasonable havingregard to the size of the Company and nature of the assets. As per the information givento us by the management no material discrepancies as compared to book records was noticedin respect of the PPE physically verified during the year.

c) According to the information representation and explanations givento us and on the basis of our examination of the title deeds of all the immovableproperties disclosed in the Ind AS financial statements and as provided to us the sameappeared to be held in the name of the Company.

d) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not revalued itsProperty Plant and Equipment and Intangible Assets during the year.

e) According to the information representation and explanations givento us and on the basis of our examination of the records of the Company as provided to usthere are no proceedings initiated during the year or pending against the Company as onMarch 31 2022 for holding any benami property under the Benami Transaction (Prohibition)Act 1988 as amended and rules made thereunder.

ii) a) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Inventories have beenphysically verified during the year and certified by the management at the year end. Inour opinion the frequency of verification is reasonable and no discrepancies of 10% ormore in the aggregate of any/ each class of inventory was noticed.

b) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not obtained anyworking capital limits in excess of five crores rupees from banks or financial institutionduring the year on the basis of the security of current assets.

iii) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not made anyinvestments in or provided any guarantees or securities or granted loans and advances inthe nature of loans secured or unsecured during the year to companies firms or limitedliability partnerships and other parties.

a) Based on the audit procedures carried out by us and as per theinformation and explanations given to us the Company has not provided any loans oradvances in the nature of loans or has not provided any guarantee or security to anyother entities.

b) According to the information and explanations given to us and basedon the audit procedures conducted by us the Company has not made any Investments orprovided any guarantee or security or provided any loan or advance in the nature of loansand hence reporting under paragraph 3(iii)(b) of the Order regarding investment madeguarantee provided security given and the terms and conditions of the grant of loan andadvances being prejudicial to the interest of the Company is not applicable to theCompany.

c) In our opinion and according to the information and explanationsgiven to us and on the basis of our examination of the records of the Company the Companyhas not provided any loans or advances in the nature of loans and hence reporting underparagraph 3(iii)(c) of the Order regarding regularity of the schedule of repayment ofprincipal and payment of interest is not applicable to the Company.

d) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not provided anyloans or advances in the nature of loans or advance in the nature of loans and hencereporting under paragraph 3(iii)

(d) of the Order regarding overdue amount for more than ninety days andreasonable steps for recovery of the principal and interest is not applicable to theCompany.

e) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not renewed orextended any loan or advance in the nature of loan or granted fresh loans to settle theoverdues of existing loans given to the same parties during the year and hence reportingunder paragraph 3(iii)(e) of the Order is not applicable to the Company.

f) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not granted anyloans or advances in the nature of loans either repayable on demand or without specifyingany terms or period of repayment and hence reporting under paragraph 3(iii)(e) of theOrder is not applicable to the Company.

iv) According to the information and explanations given to us thereare no loans investment guarantee and security as per the provisions of Sections 185 and186 of the Companies Act 2013. Hence this clause is not applicable to the Company.

v) According to the information and explanations given to us theCompany has not accepted any deposit in terms of the directives issued by the ReserveBank of India and the provisions of Sections 73 to 76 or any other relevant provisions ofthe Companies Act and the rules framed there under.

vi) The maintenance of cost records has been specified by the CentralGovernment under Section 148(1) of the Companies Act 2013. We have been given tounderstand that cost records have been maintained by the Company.

vii) a) According to the information and explanations given to us andon the basis of our examination of books of accounts the Company has generally beenregular in depositing the undisputed statutory dues including Goods and Services Taxincome tax sales-tax service tax duty of customs duty of excise value added tax cessand any other material statutory dues with the appropriate authorities.

According to the information and explanations given to us noundisputed amounts payable in respect of Goods and Services Tax income tax sales-taxservice tax duty of customs duty of excise value added tax cess and any other materialstatutory dues were in arrears as at March 31 2022 for a period of more than six monthsfrom the date they became payable.

b) According to the information and explanations given to us there areno dues of Income Tax Sales Tax / Value Added Tax Service Tax Custom Duty Excise DutyGoods and Service Tax which have not been deposited as at 31st March 2022 on account ofany dispute.

viii) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has notsurrendered or disclosed any transactions previously unrecorded as income in the books ofaccount in the tax assessments under the Income Tax Act 1961 as income during the year.

ix) a) According to the records of the Company examined by us and asper the information and explanation given to us the Company has not defaulted inrepayment of loans or other borrowings or in the payment of interest thereon to anylender.

b) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not been declareda wilful defaulter by any bank or financial institution or other lender.

c) According to the information and explanations given to us and on thebasis of our examination of the records of the Company a term loan of Rs. 95.50 lakh wasavailed of by the Company from Axis bank under the "Emergency credit line Guaranteescheme" which as explained was applied for the purpose for which the loan wasobtained.

d) According to the information representation and explanations givento us and on the basis of our examination of the records of the Company no funds raisedon short-term basis have been used for long-term purposes by the Company.

e) The Company has no subsidiaries associates and joint ventures andhence reporting under paragraph 3(ix)(e) of the Order is not applicable to the Company.

f) The Company has no subsidiaries associates and joint ventures andhence reporting under paragraph 3(ix)(f) of the Order is not applicable to the Company.

x) a) According to the information representation and explanationsgiven to us the Company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments) and hence reporting under paragraph 3(x)(a) ofthe Order is not applicable to the Company.

b) During the year the Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures and hencereporting under paragraph 3(x)(b) of the Order is not applicable to the Company.

xi) a) To the best of our knowledge and according to the informationrepresentation and explanations given to us no fraud by the Company or no material fraudon the Company has been noticed or reported during the year.

b) According to the information and explanations given to us no reportunder sub- section (12) of Section 143 of the Act has been filed by us in Form ADT-4 asprescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 with the CentralGovernment.

c) According to the information and explanations given to us nocomplaints against whistle blower policy has been received by the Company during the yearand hence reporting under paragraph 3(xi) (c) of the order is not applicable to theCompany.

xii) According to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly clause 3(xii) of the Order is not applicable.

xiii) On the basis of our examination of the books of account of theCompany and according to the information and explanations given to us the transactionsentered into with the related parties are in compliance with section 177 and 188 of theAct and the same has been disclosed in the Notes to the Ind AS financial statements asrequired by the applicable Accounting Standards (Ind AS).

xiv) a) Based on information and explanations provided to us and basedon our audit procedures it appears that the Company has an internal audit systemcommensurate with the size and nature of its business.

b) We have been provided and have considered the internal audit reportsof the Company for the year 2021-22.

xv) According to the information and explanations given to us theCompany has not entered into any non- cash transactions during the year with its Directorsor persons connected to its Directors and hence the provisions of Section 192 of theCompanies Act 2013 is not applicable to the Company.

xvi) a) The Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934. Therefore clause (xvi) (a) of paragraph 3of the Order is not applicable to the Company.

b) The Company has not conducted any Non Banking Financial or HousingFinance activities. Therefore clause (xvi) (b) of paragraph 3 of the Order is notapplicable to the Company.

c) The Company is not a Core Investment Company (CIC) as defined in theregulations made by the Reserve Bank of India. Therefore clause (xvi) (c) and (d) ofparagraph 3 of the Order is not applicable to the Company.

xvii) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not incurredcash losses in the financial year but in the immediately preceding financial year theCompany has incurred cash loss of Rs.11.14 Lakh.

xviii) There has been no resignation of the statutory auditors duringthe year. Accordingly clause 3(xviii) of the Order is not applicable.

xix) According to the information representation and explanationsgiven to us and on the basis of the financial ratios ageing and expected dates ofrealisation of financial assets and payment of financial liabilities other informationaccompanying the Ind AS financial statements our knowledge of the Board of Directors andmanagement plans and based on our examination of the relevant evidence nothing has cometo our attention which causes us to believe that any material uncertainty exists as onthe date of the audit report that the Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

xx) a) According to the information and explanations given to us and onthe basis of our examination of the records of the Company Section 135 of the CompaniesAct 2013 is not applicable to the Company for the financial year and hence reportingunder paragraph 3(xx)(a) of the Order regarding the unspent amounts towards CorporateSocial Responsibility (CSR) on other than ongoing projects is not applicable to thisCompany.

b) According to the information and explanations given to us and on thebasis of our examination of the records of the Company Section 135 of the Companies Act2013 is not applicable to the Company for the financial year and hence reporting underparagraph 3(xx)(b) of the Order regarding ongoing projects under CSR is not applicable tothe Company.

"Annexure B" to Independent Auditor's Report ofInternational Combustion (India) Limited

(Report on the Internal Financial Control under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act"))

We have audited the internal financial controls over financialreporting of International Combustion (India) Limited ("the Company") as of 31stMarch 2022 in conjunction with our audit of the Ind AS financial statements of theCompany for the year 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 tocompany'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 Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the Ind AS financial statements whether due tofraud 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 internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of the IND AS financial statements for external purposes inaccordance with generally accepted accounting principles including the Indian AccountingStandards (Ind AS). A company's internal financial control over financial reportingincludes 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 the Ind AS financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 IND AS financialstatements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and to the best of our information and according to theexplanation given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

For Ray & Ray
Chartered Accountants Firm's
Registration No. 301072E
K. K. Ghosh
Partner
Place: Kolkata Membership No. 059781
Date: 27th May 2022 UDIN: 22059781AMYBHZ8213

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