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Ion Exchange (India) Ltd.

BSE: 500214 Sector: Engineering
NSE: IONEXCHANG ISIN Code: INE570A01014
BSE 00:00 | 21 Sep 2360.55 6.80
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NSE 05:30 | 01 Jan Ion Exchange (India) Ltd
OPEN 2306.60
PREVIOUS CLOSE 2353.75
VOLUME 11618
52-Week high 2947.00
52-Week low 656.00
P/E 22.75
Mkt Cap.(Rs cr) 3,463
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2306.60
CLOSE 2353.75
VOLUME 11618
52-Week high 2947.00
52-Week low 656.00
P/E 22.75
Mkt Cap.(Rs cr) 3,463
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ion Exchange (India) Ltd. (IONEXCHANG) - Auditors Report

Company auditors report

To the Board of Directors of Ion Exchange (India) Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Ion Exchange (India) Limited("the Company") which comprise the standalone balance sheet as at 31 March2021 and the standalone statement of profit and loss (including other comprehensiveincome) standalone statement of changes in equity and standalone statement of cash flowsfor the year then ended and notes to the standalone financial statements including asummary of the significant accounting policies and other explanatory information in whichare included the Returns for the year ended on that date audited by the branch auditors ofthe Company's branch at Bengaluru and IEI Shareholding (Staff Welfare) Trusts - Sixtytrusts ("trusts") and HMIL Shareholding Trust's (seventeen trusts) audited byrespective auditor of the Trusts (hereinafter referred to as 'Standalone financialstatements').

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2021 and profit and other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion on the Standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

Key audit matters How our audit addressed the key audit matter
Revenue Recognition (Refer note 1.17 and note 39 to the standalone financial statements)
The arrangement for EPC business contracts includes fixed price contracts. Revenue for such contracts usually extends beyond a reporting period. Contract revenue is measured based on the proportion of contract costs incurred for work performed to date relative to estimated total contract costs. It is computed as per the input method. The estimate is formed by the Company considering the following: Our audit procedures over estimation of total contract costs and revenue recognition for EPC business included the following:
• Application of the revenue recognition accounting standard is complex. One of the key estimate is total cost-to-completion of these contracts. It is used to determine the percentage of completion of the relevant performance obligation. • Testing the design implementation and operating effectiveness of key internal financial controls and processes. This includes estimation of total project cost-to-completion related revenue and control over accounting of measurement of ECL on trade receivables;
• This method requires the Company to perform an initial assessment of total estimated cost and further reassess these estimates on a periodic basis including end of each reporting period. • For selected sample of contracts we inspected key contractual terms with signed contracts and assessed revenue recognized in accordance with Ind AS by:
Trade receivable balances represent significant portion of the Company's assets. Expected Credit Loss (ECL) allowances on trade receivables for delays and defaults in recovery involves significant judgments and estimates. • Observing the approval of percentage of completion workings.
Considering the significant estimate involved in measurement of revenue and receivables in EPC business we have considered measurement of revenue and ECL as a key audit matter. • Challenging the Company's forecasted cost to completion through comparison of costs incurred with project budgets and executed purchase orders and agreements. Identifying significant variations and testing variations resulting into re-estimating the remaining costs to complete the contract
• Comparing on a sample basis revenue transactions recorded during the year with the underlying contracts progress reports invoices raised on customers and collections in bank accounts.
Also checked the related revenue contract costs evaluation for onerous contracts contract assets and unearned revenue had been recognised in accordance with the Company's revenue recognition policies.
• Performing analytical procedures on incurred and estimated contract costs or efforts. It includes assessment of contracts with unusual or negative margins little or no movement in efforts from previous periods.
• Evaluated the status of trade receivables on sample basis which are past due as at year end the Company's on-going business relationship with customer and past payment history of the customers through discussion with management.
• Challenging the ECL estimates by examining the information used to form such estimates such as application of future economic conditions credit risk of customers etc.

Recovery of carrying value of investment and receivables from group Companies.

(Refer Note 1.13 and 42 to the Standalone Financial Statements)

The Company has investments in subsidiaries and associates. Our audit procedures included the following:
These investments are accounted for at cost less any provision for impairment. The Company evaluates the indicators of impairment of the said investments regularly by reference to the requirements under Ind AS 36 Impairment of Assets. • Assessed the indications of impairment of investments in subsidiaries and associates. We have also examined the basis of estimates of the recoverable amounts of these investments the assumptions used in making such estimates and the allowance for impairment.
The Company carries out impairment assessment for each investment by:
• Comparing the carrying value of each investment with the net asset values of each company • Comparison of the carrying values of the Company's investment in subsidiaries and associates with their respective net asset values / recoverable values and the consequent allowance for impairment if any
• Comparing the performance of the investee companies with projections used for valuations and approved business plans • Evaluated key assumptions in the Company's valuation models used to determine recoverable amount including assumptions of projected adjusted EBITDA growth rate rate used for discounting cash flows etc. We also evaluated the forecasts based on historical performance.
The recoverable amounts of the above investments are estimated in order to determine the extent of the impairment loss. As impairment assessment involves significant assumptions and judgment we regard this as a key audit matter.
Refer to note 5 - "Investments" of the standalone financial statements • Assessment for indications of impairment of such investments. In cases where such indicators existed we have assessed for the estimation made by the Company for the recoverable amounts
• Tested the arithmetical accuracy of the computation of recoverable amounts of cash generating units
• Involved internal valuation expert to assist in evaluating the key assumptions of the valuations
We tested the related disclosures in Note 5 of the financial statements

Other Information

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditors' reportthereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Management's and Board of Directors' Responsibility for the Standalone FinancialStatements

The Company's Management and Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the state of affairs profit/loss and othercomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring accuracy and completeness of the

accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements the Management and Board of Directorsare responsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

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

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

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

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

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures in the standalone financial statementsmade by the Management and Board of Directors.

• Conclude on the appropriateness of the Management and Board of Directors use ofthe going 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's report tothe related disclosures in the standalone 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 conditions maycause the Company to cease to continue as a going concern.

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

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors' report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Other Matter

We did not audit the standalone financial statements / financial information of abranch and trusts included in the standalone financial statements of the Company whosefinancial statements/ financial information reflect total assets of Rs. 8503 lacs as at31 March 2021 total revenue of Rs 10488 lacs total net profit after tax of Rs. 686 lacsand net cash outflows of Rs 196 lacs for the year ended on that date as considered in thestandalone financial statements. The branch and trusts have been audited by theirrespective independent auditors whose reports have been furnished to us by the managementand our opinion on the standalone financial statements in so far as it relates to theamounts and disclosures included in respect of the branch and trusts is based solely onthe report of such branch and other auditors.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government in terms of section 143 (11) of the Act we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

2. (A) 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 reports on the accounts of the branch offices of the Company audited underSection 143(8) of the Act by branch auditors and report on accounts of the trusts havebeen sent to us and have been properly dealt with by us in preparing this report.

d) The standalone balance sheet the standalone statement of profit and loss (includingother comprehensive income) the standalone statement of changes in equity and thestandalone statement of cash flows dealt with by this Report are in agreement with thebooks of account.

e) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under section 133 of the Act.

f) On the basis of the written representations received from the directors as on 31March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 from being appointed as a director in terms of Section164(2) of the Act.

g) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

(B) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations as at 31 March 2021 onits financial position in its standalone financial statements - Refer Note 47 to thestandalone financial statements;

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

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

iv. The disclosures in the standalone financial statements regarding holdings as wellas dealings in specified bank notes during the period from 8 November 2016 to 30 December2016 have not been made in these financial statements since they do not pertain to thefinancial year ended 31 March 2021.

(C) With respect to the matter to be included in the Auditors' Report under section197(16) of the Act:

In our opinion and according to the information and explanations given to us theremuneration paid by the company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) of the Act whichare required to be commented upon by us.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Rajiv Shah
Partner
Mumbai Membership No: 112878
8 June 2021 UDIN: 21112878AAAAAT6673

Annexure A to the Independent Auditors' Report - 31 March 2021

(Referred to in our report of even date)

(i) (a) The Company has maintained proper records

showing full particulars including quantitative 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 three years. Inaccordance with this programme certain fixed assets were physically verified by themanagement during the year and the discrepancies reported on such verification were notmaterial and have been properly dealt with in the books of account. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and nature of its assets.

(c) According to the information and explanations given to us the title deeds ofimmovable properties as disclosed in Note 2 to the standalone financial statements areheld in the name of the Company except the following:

Particular Freehold Land Building
(Rs. in Lac) (Rs. in Lac)
Gross block as at 31 March 2021 18.44 Nil
Net block as at 31 March 2021 18.44 Nil

(ii) The inventory except goods-in-transit and stock lying with third parties hasbeen physically verified by the management at reasonable intervals during the year. In ouropinion the frequency of such verification is reasonable. In respect of inventory lyingwith third parties these have been substantially confirmed by them. The discrepanciesnoticed on verification between the physical stocks and the book records were notmaterial.

(iii) According to the information and explanations given to us the Company hasgranted unsecured loans to eleven companies covered in the register maintained underSection 189 of the Companies Act 2013 (the Act) in respect of which:

(a) The terms and conditions of the grant of such loans are in our opinion primafacie not prejudicial to the interest of the Company.

(b) The loans granted are repayable on demand and as per terms of the agreement. We areinformed that the Company has not demanded repayment of such loan from six such companiesduring the year and other companies has paid the loan as per demand and thus there hasbeen no default on the part of the companies covered in the register maintained undersection 189 of the Act.

(c) There are no overdue amounts in respect of the loan granted to the companies listedin the register maintained under section 189 of the Act.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act in respect ofinvestments made loans given guarantees and securities given.

(v) In our opinion and according to the information and explanations given to usduring the year the Company has not accepted any new deposits. The Company has compliedwith the provisions of Section 73 to 76 of the Act or other relevant provisions of the Actand the rules framed thereunder/the directives issued by the Reserve Bank of India (asapplicable) with regard to deposits accepted from the public. No order has been passed bythe Company Law Board or National Company Law Tribunal (as applicable) or Reserve Bank ofIndia or any Court or any other Tribunal.

(vi) We have broadly reviewed the records maintained by the Company pursuant to therules prescribed by the Central Government for maintenance of cost records under subsection (1) of Section 148 of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the records with a view to determine whether they are accurate orcomplete.

(vii) According to the information and explanations given to us and records of theCompany examined by us in our opinion the Company is generally regular in depositing theundisputed statutory dues including provident fund employees' state insuranceincome-tax duties of customs goods and service tax cess professional tax and othermaterial statutory dues as applicable with the appropriate authorities.

(a) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax duty ofcustoms goods and service tax cess professional tax and other material statutory dueswere in arrears as at 31 March 2021 for a period of more than six months from the datethey became payable.

(b) According to the information and explanations given to us there are no dues ofincome-tax sales tax service tax duty of customs duty of excise value added tax andgoods and service tax which have not been deposited with the appropriate authorities onaccount of any dispute other than those mentioned in the Annexure I to this report.

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowings to financial institutions or banks. TheCompany does not have any loans or borrowings from Government nor has it issued anydebentures.

(ix) According to the information and explanations given to us and based on ourexamination of the records the Company has not raised any money by way of initial publicoffer or further public offer (including debt instruments) during the year. In our opinionand according to the information and explanations given to us the terms loans taken bythe Company have been applied for the purpose for which they are raised.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by themanagement.

(xi) According to the information and explanations given to us and based on ourexamination of the records the Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Section 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the standalone financial statements asrequired by the applicable accounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into any non-cash transactionswith directors or persons connected with him. Accordingly paragraph 3(xv) of the Order isnot applicable to the Company.

(xvi) In our opinion and according to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly paragraph 3(xvi) of the Order is not applicable to the Company.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Rajiv Shah
Partner
Mumbai Membership No: 112878
8 June 2021 UDIN: 21112878AAAAAT6673

Annexure I

Name of the Statute Nature of dues Amount in (Rs.) (net of deposit paid under protest) Period to which amount relates Forum where dispute is pending
Central Sales tax Act and Local Sales

Sales tax (including interest and penalty if applicable) -Disallowance on account of nonsubmission of required forms

11619875 1993-94 1995-96 2004-05 2006-07 2007-08 2009-10 Joint Commissioner Appeals
tax Act 34560055 2006-07 2007-08 2009-10 2013-14 2015-16 2017-18 Assistant Commissioner Appeals
6248241 2010-11 Commercial tax appeals
16948760 2008-09 2010-112011-12 2013-14 2014-15 Deputy Commissioner Appeals
7841209 2016-17 Assistant Commissioner of Commercial Tax
16619413 2010-11 Objection Hearing Authority
920825 2015-16 2016-17 2017-18 Assessment Authority
The Central Excise Act

Excise duty (including interest and penalty if applicable)

1678600 2004-05 Commercials of Central Excise
1332857 2006-07 Tribunal Appeals Ahmedabad
Finance Act 1994-Service

Disallowance of service tax taken on input services

340976 2006-2012 Additional Commissioner of Central Excise
Tax 25005759 2012 to 2017 CESTAT Appeals
Income tax Act 1961 Income tax demand 21742929 2008-2009 and 2010-2011 Income Tax Appellate Tribunal
30411507 2009-10 to 2014-2015 Commissioner of Income Tax (Appeal)
18435510 2015-2016 to 2016-2017 Deputy Commissioner of Income Tax

Annexure B to the Independent Auditors' report on the standalone financial statements

Report on the internal financial controls with reference to the aforesaid standalonefinancial statements under Clause (i) of Sub-section 3 of Section 143 of the CompaniesAct 2013

(Referred to in paragraph 2 (A) (g) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Opinion

We have audited the internal financial controls with reference to standalone financialstatements of Ion Exchange (India) Limited ("the Company") as of 31 March 2021in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to standalone financial statements and such internal financialcontrols were operating effectively as at 31 March 2021 based on the internal financialcontrols with reference to standalone 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 Reporting issued by theInstitute of Chartered Accountants of India (the "Guidance Note").

Management's Responsibility for Internal Financial Controls

The Company's Management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal financial controls withreference to standalone financial statements criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013 (hereinafterreferred to as "the Act").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to standalone financial statements. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to standalone financial statements were established andmaintained and whether such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to standalone financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tostandalone financial statements included obtaining an understanding of such internalfinancial controls 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 financial statementswhether 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 withreference to standalone financial statements.

Meaning of Internal Financial controls with Reference to Standalone FinancialStatements

A company's internal financial controls with reference to standalone financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of standalone financial statements for externalpurposes in accordance with generally accepted accounting principles. A company's internalfinancial controls with reference to standalone financial statements include thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of standalone financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the standalone financial statements.

Inherent Limitations of Internal Financial controls with Reference to StandaloneFinancial Statements

Because of the inherent limitations of internal financial controls with reference tostandalone financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial controls with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Other Matter

We did not audit the internal financial controls with reference to financial statementsof a branch of the Company. The internal financial controls with reference to financialstatements of a branch have been audited by the branch auditor whose reports have beenfurnished to us and our opinion in so far as it relates to the internal financialcontrols with reference to financial statements included in respect of these branch isbased solely on the report of such branch auditors.

Our opinion is not modified in respect of this matter.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Rajiv Shah
Partner
Mumbai 8 June 2021 Membership No: 112878 UDIN: 21112878AAAAAT6673

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