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ITC Ltd.

BSE: 500875 Sector: Consumer
NSE: ITC ISIN Code: INE154A01025
BSE 00:00 | 24 Sep 238.35 -4.05
(-1.67%)
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244.20

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237.70

NSE 00:00 | 24 Sep 238.45 -4.05
(-1.67%)
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244.00

HIGH

244.00

LOW

237.70

OPEN 244.20
PREVIOUS CLOSE 242.40
VOLUME 1219488
52-Week high 245.80
52-Week low 163.40
P/E 21.45
Mkt Cap.(Rs cr) 293,654
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 244.20
CLOSE 242.40
VOLUME 1219488
52-Week high 245.80
52-Week low 163.40
P/E 21.45
Mkt Cap.(Rs cr) 293,654
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

ITC Ltd. (ITC) - Auditors Report

Company auditors report

to the Members of ITC Limited

Report on the Audit of the Standalone Ind AS Financial StatementsOpinion

We have audited the accompanying standalone Ind AS financial statementsofITC Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2021 the Statement of Profit and Loss including Other

Comprehensive Income the Cash Flow Statement and the Statementof Changes in Equity for the year then ended and notes to the standalone Ind AS financialstatements including a summary of significant accounting policies and other explanatoryinformation.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Companies Act 2013 as amended ("the Act")in the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2021 its profit including other comprehensive income its cash flows and the changesin equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing

(SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the ‘Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements' sectionof our report. We are independent of the Company in accordance with the ‘Code ofEthics' issued by the

Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the standalone Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone Ind AS financial statements forthe financial year ended March 31 2021. These matters were addressed in the context ofour audit of the standalone Ind AS financial statements as a whole and in forming ouropinion thereon and we do not provide a separate opinion on these matters. For eachmatter below our description of how our audit addressed the matter is provided in thatcontext.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor's responsibilities for the audit of the standalone Ind AS financialstatements section of our report including in relation to these matters. Accordingly ouraudit included the performance of procedures designed to respond to our assessment of therisks of material misstatement of the standalone Ind AS financial statements. The resultsof our audit procedures including the procedures performed to address the matters belowprovide the basis for our audit opinion on the accompanying standalone Ind AS financialstatements.

Key audit matters Auditor's Response
Revenue recognition
Revenue from the sale of goods (hereinafter referred to as "Revenue") is recognised when the Company performs its obligation to its customers and the amount of revenue can be measured reliably and recovery of the consideration is probable. The timing of such revenue recognition in case of sale of goods is when the control over the same is transferred to the customer which is mainly upon delivery. Our audit procedures included the following: Assessed the Company's revenue recognition accounting policies in line with Ind AS 115 ("Revenue from Contracts with Customers") and tested thereof.
Evaluated the integrity of the general information and technology control environment and testing the operating effectiveness of key IT application controls over recognition of revenue.
The timing of revenue recognition is relevant to the reported performance of the Company. The management considers revenue as a key measure for evaluation of Evaluated the design implementation and operating effectiveness of Company's controls in respect of revenue recognition.
performance. There is a risk of revenue being recorded before control is transferred. Tested the effectiveness of such controls over revenue cut off at year-end.
Refer Note 1 to the Standalone Ind AS Financial Statements - Significant Accounting Policies and Note 21A / 21B. On a sample basis tested supporting documentation for sales transactions recorded during the year which included sales invoices customer contracts and shipping documents.
Performed an increased level of substantive testing in respect of sales transactions recorded during the period closer to the year end and subsequent to the year end.
Compared revenue with historical trends and where appropriate conducted further enquiries and testing.
Assessed disclosures in financial statements in respect of revenue as specified in Ind AS 115.
Litigations – Contingencies
The Company has ongoing litigations with various authorities and third parties which could have a significant impact on the results if the potential exposures were to materialise. Our audit procedures included the following:
Obtained and read the Company's accounting policies in respect of claims provisions and contingent liabilities to assess compliance with accounting standards.
The amounts involved are significant and the application of accounting standards to determine the amount if any to be provided as a liability or disclosed as a contingent liability is inherently subjective. Assessed the design and implementation of the Company's controls over the assessment of litigations and completeness of disclosures. Supporting documentation were tested for the positions taken by the management meetings conducted with in-house legal counsel and / or legal team and minutes of Board and sub-committee meetings were reviewed to test the operating effectiveness of these controls.
Claims against the Company not acknowledged as debts are disclosed in the Financial Statements by the Company after a careful evaluation of the facts and legal aspects of the matters involved. The outcome of such litigation is uncertain and the position taken by management involves significant judgment and estimation to determine the likelihood and / or timing of cash outflows and the interpretation of preliminary and pending court rulings. Involved our tax specialists to assess relevant historical and recent judgements passed by the appropriate authorities in order to challenge the basis used for the accounting treatment and resulting disclosures.
Refer Note 27(iv)(a) to the Standalone Ind AS Financial Statements. Additionally considered the effect of new information in respect of contingencies as at April 1 2020 to evaluate whether any change was required in the management's position on these contingencies as at March 31 2021.
Assessed in accordance with accounting standards the provisions in respect of litigations and assessed disclosures relating thereto including those for contingencies.

Acquisition of Sunrise Foods Private Limited and its two wholly owned subsidiaries

The Company acquired 100% of the equity share capital of Sunrise Foods Private Limited (‘SFPL') and its two wholly owned subsidiaries Hobbits International Foods Private Limited and Sunrise Sheetgrah Private Limited on July 27 2020 for a purchase consideration of Rs. 2340 Crores. Subsequently SFPL merged with the Company during the year w.e.f. July 27 2020. The purchase consideration was allocated to the fair value of identifiable assets acquired and liabilities assumed resulting in the recognition of goodwill of Rs. 577 Crores as on the date of acquisition. Our audit procedures included the following:
Read the share purchase agreement the scheme approved by the National Company Law Tribunal and other related documents to obtain an understanding of the transactions and the key terms and conditions.
Assessed whether the accounting treatment is in accordance with Ind AS 103.
Considering the involvement of significant judgements and assumptions in fair value measurements and purchase price allocations including the magnitude of the acquisition made this is considered as a key audit matter. Obtained and read the valuation reports for Purchase price allocation from independent valuer. Engaged our specialist and evaluated the appropriateness of methodology key assumptions such as discount and long-term growth rate risk free rate of return and weighted average cost of capital considered in determining the valuation of intangible assets including resultant Goodwill.
Refer Note 27(ix) to the Standalone Ind AS Financial Statements. Tested the valuation for arithmetical accuracy.
Assessed the competence capabilities and relevant experience of the experts engaged by the management to determine fair valuation of assets and liabilities acquired.
Assessed disclosures in financial statements in respect to acquisition in accordance with the accounting standards.

We have determined that there are no other key audit matters tocommunicate in our report.

Information Other than the Financial Statements and

Auditor's Report Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the AnnualReport but does not include the standalone Ind AS financial statements and ourauditor's report thereon. Our opinion on the standalone Ind AS financial statementsdoes not cover the other information and we do not express any form of assuranceconclusion thereon. In connection with our audit of the standalone Ind AS financialstatements our responsibility is to read the other information and in doing so considerwhether such other information is materially inconsistent with the financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Responsibilities of Management for the Standalone Ind AS FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standaloneInd AS financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the

Indian Accounting Standards (Ind AS) specified under section 133 of theAct read with the Companies

(Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone Ind AS financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. The Board of Directors are alsoresponsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the

Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that anaudit conducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone Ind AS financialstatements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also: Identify andassess the risks of material misstatement of the standalone Ind AS financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control. Obtain anunderstanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances. Under section 143(3)(i) ofthe 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 accountingpolicies used and the reasonableness of accounting estimates and related disclosures madeby management. Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause theCompany to cease to continue as a going concern. Evaluate the overall presentationstructure and content of the standalone Ind AS financial statements including thedisclosures and whether the standalone

Ind AS financial statements represent the underlying transactions andevents in a manner that achieves fair presentation.

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 withgovernance we determine those matters that were of most significance in the audit of thestandalone

Ind AS financial statements for the financial year ended March 31 2021and are therefore the key audit matters. We describe these matters in our auditor'sreport unless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicatedin our report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the "Annexure 1" a statement on thematters specified in paragraphs 3 and 4 of the Order. 2. As required by Section 143(3) ofthe Act we report that: (a) We have sought and obtained all the information andexplanations which to the best of our knowledge and belief were necessary for the purposesof our audit; (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) TheBalance Sheet the Statement of Profit including the Statement of Other Comprehensive

Income the Cash Flow Statement and Statement of Changes in Equitydealt with by this Report are in agreement with the books of account; (d) In our opinionthe aforesaid standalone Ind AS financial statements comply with the Accounting Standardsspecified under Section 133 of the

Act read with Companies (Indian Accounting

Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164 (2) of the Act; (f) With respect to the adequacy of the internal financialcontrols with reference to these standalone Ind AS financial statements and the operatingeffectiveness of such controls refer to our separate Report in "Annexure 2" tothis report; (g) In our opinion the managerial remuneration for the year ended March 312021 has been paid / provided by the Company to its directors in accordance withthe provisions of section 197 read with Schedule V to the Act;

(h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and accordingto the explanations given to us: i. The Company has disclosed the impact of pendinglitigations on its financial position in its standalone Ind AS financial statements andLoss Refer Note 27 (iv)(a) to the standalone Ind AS financial statements; ii. The Companydid not have any long-term contracts including derivative contracts for which there wereany material foreseeable losses; iii. There has been no delay in transferring amountsrequired to be transferred to the Investor Education and Protection Fund by the Company.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Sudhir Soni
Partner
Place of Signature: Mumbai Membership Number: 41870
Date: June 01 2021 UDIN: 21041870AAAAAY6504

Annexure 1 referred to in paragraph 1 under the heading "Report onOther legal and Regulatory Requirements" of our report of even date

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of property plant andequipment. (b) The property plant and equipment were physically verified during the yearby the management in accordance with a regular programme of verification which in ouropinion provides for physical verification of all the property plant and equipment atreasonable intervals. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification.

(c) According to the information and explanations given by themanagement and audit procedures performed by us the title deeds of immovable propertiesincluded in property plant and equipment are held in the name of the Company.

(ii) The management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies were noticed on suchphysical verification. Inventories lying with third parties have substantially beenconfirmed by them as at year end and no material discrepancies were noticed in respect ofsuch confirmations.

(iii) According to the information and explanations given to us andaudit procedures performed by us the Company has not granted any loans secured orunsecured to companies firms covered in the register maintained under section 189 of theCompanies Act 2013. Accordingly the provisions of clause 3(iii)(a) (b) and (c)of the Order are not applicable to the Company and hence not commented upon. (iv) In ouropinion and according to the information and explanations given to us provisions ofsection 185 and 186 of the Companies Act 2013 in respect of loans to directors includingentities in which they are interested and in respect of loans and advances giveninvestments made and guarantees and securities given have been complied with by theCompany. (v) According to the information and explanations given to us the Company hasnot accepted any deposit during the year within the meaning of Sections 73 and 76 of theCompanies Act 2013. In respect of unclaimed deposits the Company has complied with theprovisions of Sections 74 and 75 or any other relevant provisions of the Companies Act2013. We are informed by the management that no order has been passed by the Company LawBoard National Company Law Tribunal or Reserve Bank of India or any Court or any otherTribunal.

(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148(1) of the Companies Act 2013 related to the manufacture ofspecified products of the Company and are of the opinion that prima facie the specifiedaccounts and records have been made and maintained. We have not however made a detailedexamination of the same. (vii) (a) The Company is regular in depositing with appropriateauthorities undisputed statutory dues including provident fund employees' stateinsurance income-tax duty of custom duty of excise goods and services tax cess andother statutory dues applicable to it. The Goods and Services Tax of Rs. 550.22 crorespayable for the month of April 2020 has been paid subsequent to due date withoutany interest in accordance with Notification Nos. 31/ 2020 and 32 / 2020 dated 03.04.2020issued by the Government of India Ministry of Revenue (Department of Revenue) CentralBoard of Indirect Taxes and Customs.

(b) According to the information and explanations given to us and auditprocedures performed by us no undisputed amounts payable in respect of provident fundemployees' state insurance income-tax duty of custom duty of excise goods andservices tax cess and other statutory dues were outstanding at the year end for aperiod of more than six months from the date they became payable. (c) According to therecords of the Company the dues of income-tax sales-tax service tax duty of customduty of excise value added tax and cess on account of any dispute are as follows:

Name of the statute Nature of dues Amount (Rs in crores)* Period to which the amount relates (Financial Year) Forum where dispute is pending
Sales Tax and Value Sales tax 64.22 1987-2019 Appellate Authority
& VAT upto Commissioners'/
Added Tax Revisional authorities level
Laws
19.81 1994-2017 Appellate Authority
Tribunal level
190.69 1997-2016 High Court
Customs Customs 0.70 2011-2016 Appellate Authority
Act 1962 Duty upto Commissioners'/
Revisional authorities level
47.88 2005-2019 Appellate Authority
Tribunal level
Central Excise duty 0.47 1996-2017 Appellate Authority
Excise upto Commissioners'/
Act 1944 Revisional authorities level
95.89 1973-2017 Appellate Authority
Tribunal level
8.88 2005-2009 High Court
Finance Service tax 10.60 2006-2017 Appellate Authority
Act1994 upto Commissioners'/
Revisional authorities level
67.87 2003-2016 Appellate Authority
Tribunal level

Out of the total disputed dues aggregating Rs 507.01 Crores as aboveRs 390.06 Crores pertain to matters which have been stayed for recovery by the relevantauthorities.

* Net of amount paid under protest

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

(ix) According to the information and explanations given by themanagement and audit procedures performed by us the Company has not raised any money byway of initial public offer / further public offer / debt instruments and term loans.Therefore reporting under clause (ix) is not applicable to the Company and hence notcommented upon. (x) Based upon the audit procedures performed for the purpose of reportingthe true and fair view of the financial statements and according to the information andexplanations given by the management we report that no fraud by the Company or nomaterial fraud on the Company by the officers and employees of the Company has beennoticed or reported during the year.

(xi) According to the information and explanations given by themanagement and audit procedures performed by us the managerial remuneration has been paid/ provided in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Companies Act 2013. (xii) In our opinion theCompany is not a nidhi company. Therefore the provisions of clause 3(xii) of the orderare not applicable to the Company and hence not commented upon. (xiii) According to theinformation and explanations given by the management and audit procedures performed by ustransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards. (xiv)According to the information and explanations given to us and on an overall examination ofthe balance sheet the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year under reviewand hence reporting requirements under clause 3(xiv) are not applicable to the Companyand not commented upon. (xv) According to the information and explanations given by themanagement and audit procedures performed by us the Company has not entered into anynon-cash transactions with directors or persons connected with him as referred to insection 192 of Companies Act 2013. (xvi) According to the information and explanationsgiven to us the provisions of section 45-IA of the Reserve Bank of India Act 1934 arenot applicable to the Company.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Sudhir Soni
Partner
Place of Signature: Mumbai Membership Number: 41870
Date: June 01 2021 UDIN: 21041870AAAAAY6504

Annexure 2 to the Independent Auditor's Report of even date on theStandalone Financial Statements of ITC Limited

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

We have audited the internal financial controls with reference tostandalone financial statements of ITC Limited ("the Company") as ofMarch 31 2021 in conjunction with our audit of the standalone 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 to theCompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to these standalone financial statements basedon our audit. We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting (the "Guidance Note") andthe Standards on Auditing as specified under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both issued by ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assuranceaboutwhetheradequateinternalfinancialcontrols with reference to these standalone financialstatements was established and maintained and if such controls operated effectively in allmaterial respects. Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to these standalonefinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to standalone financial statements included obtaining anunderstanding of internal financial controls with reference to these standalone financialstatements 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 financial statements whether due to fraud orerror. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Company'sinternalfinancial . controlswithreferencetothese standalone financialstatements

Meaning of Internal Financial Controls With Reference to theseStandalone Financial Statements

A company's internal financial controls with reference tostandalone financial statements is a process designed to provide reasonable assuranceregarding thereliabilityoffinancialreportingandthepreparationoffinancialstatements forexternal purposes in accordance with generally accepted accounting principles. Acompany's internal financial controls with reference to standalone financialstatements includes those policies and procedures that (1) pertain to the maintenance ofrecords that 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 Limitations of Internal Financial Controls With Reference toStandalone Financial Statements

Because of the inherent limitations of internal financial controls withreference to standalone 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 anyevaluationoftheinternalfinancialcontrols with reference to standalone financial statementsto future periods are subject to theriskthattheinternalfinancialcontrol with reference tostandalone financial statements may become inadequate because of changes in conditions orthat the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls with reference to standalone financialstatementsandsuchinternalfinancialcontrols with reference to standalone financial statements wereoperating effectively as at March 31 2021 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note issued by the ICAI.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Sudhir Soni
Partner
Place of Signature: Mumbai Membership Number: 41870
Date: June 01 2021 UDIN: 21041870AAAAAY6504

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