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J D Orgochem Ltd.

BSE: 524592 Sector: Industrials
NSE: JDORGOCHEM ISIN Code: INE263B01022
BSE 14:16 | 01 Feb 6.96 0.32
(4.82%)
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6.97

HIGH

6.97

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6.96

NSE 05:30 | 01 Jan J D Orgochem Ltd
OPEN 6.97
PREVIOUS CLOSE 6.64
VOLUME 1003
52-Week high 10.17
52-Week low 4.11
P/E
Mkt Cap.(Rs cr) 9
Buy Price 6.32
Buy Qty 150.00
Sell Price 6.96
Sell Qty 2948.00
OPEN 6.97
CLOSE 6.64
VOLUME 1003
52-Week high 10.17
52-Week low 4.11
P/E
Mkt Cap.(Rs cr) 9
Buy Price 6.32
Buy Qty 150.00
Sell Price 6.96
Sell Qty 2948.00

J D Orgochem Ltd. (JDORGOCHEM) - Auditors Report

Company auditors report

To

The Members

JD Orgochem Limited

Opinion

We have audited the accompanying financial statements of JD Orgochem Limited ("theCompany") which comprises of the Balance Sheet as at 31st March 2022the Statement of Profit and Loss (including other comprehensive income) the Statement ofChanges in Equity and the Cash Flow Statement for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs (financial position) of the Company as at 31st March2022 and its profit (financial performance including other comprehensive income) thechanges in equity and its cash flows for the year ended on that date.

Basis for opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules there under and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics.

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

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements for the current period. Thesematters were addressed in the context of our audit of the financial statements as a wholeand in forming our opinion thereon and we do not provide a separate opinion on thesematters.

Key Audit Matters How the matter was addressed in our audit
1) The Company had issued 1604000 Zero Coupon Non- Convertible Debentures (ZCD) of ' 100/- each totaling to Rs 1604 lakhs. i) Read and analysed the correspondence with Debenture holder and Debenture trustees including the letter of approval given by Debenture holder and Board Resolution passed by the Company in respect of revision of terms of repayment of ZCD.
As per the terms of repayment they were redeemable at a premium of 50% in ten equal quarterly installment commencing from 30th June 2023 and ending on 30th September 2025. ii) Review of Disclosures made by the Company in the financial statements in this regard.
In June 2021 due to non availability of funds the Company negotiated with the holder of ZCD and revised the terms of repayment in ten equal quarterly installment commencing from 30th June 2023 and ending on 30th September 2025. iii) Obtained Representation letter from the management in this matter.

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statementswithout qualifying our opinion-

Note 1 (II) in the financial statements indicates that the financial statements of theCompany have been prepared on a going concern basis. However the Company has accumulatedlosses and its net worth has been fully eroded the Company has incurred a net loss / netcash loss during earlier previous year(s) and the Company's current liabilities exceededits current assets as at the balance sheet date. These conditions along with othermatters set forth in notes indicate the existence of material uncertainty that may castsignificant doubt about the Company's ability to continue as a going concern.

Information other than the Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Report Board's Report including Annexures to the Board ReportCorporate Governance Report and Shareholder's information but does not include thefinancial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. If based on the workwe 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.

Responsibilities of the Management and those Charged with Governance for the FinancialStatements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance including OtherComprehensive Income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India including theaccounting standards 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 wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements the management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibility for the audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted 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 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 financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal controls 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 system in place and the operating effectiveness ofsuch controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. Pursuant to the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the Annexure "A" a statement on the matters specified inparagraphs 3 and 4 of the Order.

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

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The balance sheet the statement of profit and loss (including other comprehensiveincome) the statement of changes in equity and the statement of cash flows dealt with bythis Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder section 133 of the Act.

e) On the basis of the written representations received from the Directors as on 31stMarch 2022 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2022 from being appointed as a Director in termsof Section 164(2) of the Act.

f) 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".

g) In our opinion the managerial remuneration for the year ended 31stMarch 2022 has been paid/provided by the Company to its Directors in accordance with theprovisions of section 197 read with Schedule V to the Act;

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations as at 31stMarch 2022 on its financial position in its financial statements- Refer Notes to thefinancial statements;

ii. The Company has made provisions as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivatives contracts;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended 31st March2022;

iv. a) The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentity ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other 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 knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries.

c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representation under sub clause (i) and (ii) of Rule 11(e) of The Companies (Audit andAuditors) Rules 2014 as provided under (a) and (b) above contains any materialmisstatement.

v. No dividend was proposed or paid by the Company and hence section 123 of the Act isnot applicable to the Company.

For A H J & Associates

Chartered Accountants

Firm Registration No: 151685W

Jay D. Shah

Partner

Membership No. 108928

UDIN - 22108928AJWAFM8541

Date- 30th May 2022 Place-Mumbai

ANNEXURE "A" REFERRED TO IN "REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS" SECTION

OF OUR REPORT TO THE MEMBERS OF JD ORGOCHEM LIMITED OF EVEN DATE:

i. a. In respect of Company's Property Plant and Equipment and Intangible Assets:

A. The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant & equipment and relevant detailsof right-to-use assets.

B. The Company has maintained proper records of intangible assets.

b. As explained to us the Company has a phased program for physical verification ofthe property plant & equipment for all locations. In our opinion the frequency ofverification is reasonable considering the size of the Company and nature of itsproperty plant and equipment. Pursuant to the program of the physical verification ofproperty plant and equipment physical verification of the assets has been carried outduring the year and no material discrepancies were noticed on such verification.

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable propertiesdisclosed in the financial statements included under property plant and equipment otherthan properties where the company is lessee and lease agreements are duly executed infavour of the Company are held in the name of the Company.

d. The Company has not revalued any of its Property Plant and equipment and intangibleassets during the year. Accordingly the provisions of clause 3(i)(d) of the Order are notapplicable to the Company.

e. In our opinion and according to the information and explanations given to us noproceedings have been initiated during the year or are pending as at 31stMarch 2022 for holding any benami property under the Benami Transactions (Prohibition)Act 1988 as amended and rules made thereunder. Accordingly the provisions of clause3(i)(e) of the Order are not applicable to the Company.

ii. (a) There is no inventory at the year end. As informed to us the inventories havebeen physically verified by the management at reasonable intervals during the year exceptfor goods in transit and those lying with third parties. The procedures of physicalverification of the inventories followed by the management are reasonable and adequate inrelation to the size of the Company and nature of it's business. As per the informationand explanations given to us no discrepancies of 10% or more in the aggregate for eachclass of inventory were noticed on physical verification of inventories as compared tobook records.

(b) During the year the Company has not been sanctioned working capital limits inexcess of ' 5 crores in aggregate from banks and financial institutions [on the basis ofsecurity of current assets] and accordingly the question of our commenting on whether thequarterly returns or statements are in agreement with the unaudited books of account ofthe Company does not arise.

iii. a) On the basis of information and explanation given to us the company has notmade any investments in provided any guarantee or security or granted any loans oradvances in the nature of loans secured or unsecured to companies firms limitedliability partnership or any other parties other than loan given to Related Parties asreported in clause (d) during the year.

b) However the company has granted unsecured loans to another associate companyJaysynth Polychem Private Limited in earlier year and the balance outstanding at thebalance sheet date is ' 112.35 lakhs.

c) Further in respect of said outstanding loan of ' 112.35 lakhs.

i) The entire said outstanding loan is considered doubtful of recovery in earlier yearand provision for doubtful debt has already been made in the earlier year.

ii) The terms and conditions of the grant of said loan is prejudicial to the interestof the company.

iii) The Schedule of repayment of principal amount and payment of interest has beenstipulated but repayments are not regular.

iv) The entire amount of loan is overdue for recovery for more than 90 days and thecompany is taking reasonable steps for the recovery of the same.

d) Following loans/advances in nature of loans were granted during the year includingto promoters/related parties under Section 2(76) which are repayable on demand or whereno schedule for repayment of principal and payment of interest has been stipulated by theCompany.

All Parties Promoters Related Parties
Aggregate of loans/advances in nature of loan
- Repayable on demand
- Agreement does not specify any terms or period of repayment - - 0.60
Percentage of loans/advances in nature of loan to the total loans - - 100

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 to the extentapplicable.

v. In our opinion and according to the information and explanations given to us nodeposits or amounts which are deemed to be deposits have been accepted by the Companywithin the meaning of Section 73 to 76 or any other relevant provisions of the Act and theCompanies (Acceptance of Deposits) Rules 2014 (as amended). Accordingly the provisionsof clause 3(v) of the Order is not applicable to the Company.

vi. The Central Government of India has not specified the maintenance of cost recordsunder sub-section (1) of Section 148 of the Act for any of the products of the Company.

vii. (a) According to the information and explanations given to us and on the basis ofour examination of the records the Company is generally regular in depositing undisputedstatutory dues including Goods and Services tax provident fund employees' stateinsurance income tax sales tax custom duty duty of excise value added tax cess andother statutory dues during the year with the appropriate authorities. No undisputedamounts payable in respect of the aforesaid statutory dues were outstanding as at the lastday of the financial year for a period of more than six months from the date they becamepayable.

(b) According to the information and explanations given to us there are no statutorydues mentioned in clause (vii) (a) which have been not deposited on account of any disputeexcept the following:

Name of the statute Nature of dues Amount (Rs in Lakhs) Forum where dispute is pending
Gram Panchayat Tax Gram Panchayat Tax (Shown as an Contingent liability) 100.34 Gram Panchayat Vadgaon Taluka Khalapur Dist. Raigad
Gram Panchayat Tax Gram Panchayat Tax (01.04.2000 to 31.03.2011) 105.76 Gram Panchayat Vadgaon Taluka Khalapur Dist. Raigad

viii. According to the information and explanations given to us there were notransactions not recorded in the books of accounts have been surrendered or disclosed asincome during the year in the tax assessments under the Income Tax Act 1961 (43 of 1961).

Accordingly the provisions of clause 3(viii) of the order is not applicable to theCompany.

ix. (a) The company has not defaulted in repayment of loans or other borrowings or inthe payment of interest thereon to any lender.

However in respect of zero coupon non convertible debentures (ZCD) amounting to ' 1604lakhs issued in earlier year due to non availability of funds the company negotiated withthe holders of zero coupon bonds and had revised the terms of repayment in 10 equalquarterly installments commencing from 30th June 2023 and ending 30thSeptember 2025.

(b) On the basis of information and explanations given to us the Company has not beendeclared as willful defaulter by any bank or financial institution or other lender subjectto (ix)(a).

(c) In our opinion and according to the information and explanations given to us theCompany has not taken any term loan during the year. Accordingly the provisions of clause3(ix)(c) of the Order is not applicable to the Company.

(d) According to the information and explanations given to us and the proceduresperformed by us and on an overall examination of the financial statements of the Companythe Company has not raised funds on short term basis.

(e) Based on our audit procedures and on the basis of information and explanationsgiven to us the Company has not taken any funds from any entity or person on account ofor to meet the obligations of its subsidiaries associates or joint venture subject to(ix)(a). Accordingly the provisions of clause 3(ix)(e) of the Order is not applicable tothe Company.

(f) Based on our audit procedures and on the basis of information and explanationsgiven to us during the year the Company has not raised any funds on the pledge ofsecurities held in its subsidiaries joint venture and associates. Accordingly theprovisions of clause 3(ix)(f) of the Order is not applicable to the Company.

x. (a) In our opinion and according to the information and explanations given to usthe Company has not raised any money by way of Initial public offer or further publicoffer (including debt instrument) during the year. Accordingly the provisions of clause3(x)(a) of the Order is not applicable to the Company.

(b) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year or in the recent past. Therefore the provisions of clause 3(x)(b) of the Orderare not applicable to the Company.

xi. (a) 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 noticed or reported duringthe year nor have we been informed of any such case by the Management.

(b) 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 a report under Section 143(12)of the Act in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)Rules 2014 was not required to be filed with the Central Government. Accordingly thereporting under clause 3(xi)(b) of the Order is not applicable to the Company.

(c) Based on our audit procedure performed and according to the information andexplanation given to us no whistle blower complaints received during the year by theCompany. Accordingly the provisions of clause 3(xi)(c) of the Order is not applicable tothe Company.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly the provisions of clause 3(xii) of the Orderis not applicable to the Company.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company all the transactions with related parties arein compliance with section 177 and 188 of the Act and all the details have been disclosedin the financial statements as required by the applicable Accounting Standard.

xiv. (a) In our opinion and according to the information and explanations given to usthe Company has an adequate internal audit system commensurate with the size and nature ofits business.

(b) We have considered the internal audit reports for the year under audit issued tothe Company and presented to the Audit Committee during the year and till date indetermining nature timing and extent of our audit procedure.

xv. According to the information and explanations given to us the Company has notentered into any non-cash transactions prescribed under Section 192 of the Act withdirectors or persons connected with them during the year.

xvi. (a) The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934. Accordingly the

provisions of clause 3(xvi) (a) (b) and (c) of the Order is not applicable to theCompany.

(b) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly the reporting under clause 3(xvi)(d) ofthe Order is not applicable to the Company.

xvii. The Company has incurred cash losses during the financial year covered by ouraudit and immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors during the year.However earlier auditor retired on completion of their terms of appointment and we havetaken into consideration the issues objections or concerns raised by the outgoingauditor.

xix. Note 1 (II) in the financial statements indicates that the financial statements ofthe Company have been prepared on a going concern basis. However the Company hasaccumulated losses and its net worth has been fully eroded the Company has incurred a netloss / net cash loss during earlier previous year and the Company's current liabilitiesexceeded its current assets as at the balance sheet date. These conditions along withother matters set forth in notes indicate the existence of material uncertainty that maycast significant doubt about the Company's ability to continue as a going concern. On thebasis of the financial ratios ageing and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the financialstatements our knowledge of the Board of Directors and management plans in our opinionand according to the information and explanations given to us a material uncertaintyexists as on the date of the audit report that the Company is capable of meeting itsliabilities existing at the date of balance sheet as and when they fall due within aperiod of one year from the balance sheet date.

xx. The provisions relating to Corporate Social Responsibility under Section 135 of theAct are not applicable to the Company. Accordingly reporting under clause 3(xx) of theOrder is not applicable to the Company.

The reporting under clause 3(xxi) of the Order is not applicable in respect of audit ofFinancial Statements. Accordingly no comment in respect of the said clause has beenincluded in this report

For A H J & Associates

Chartered Accountants

Firm Registration No: 151685W

Jay D. Shah

Partner

Membership No. 108928

UDIN - 22108928AJWAFM8541

Date- 30th May 2022 Place-Mumbai

ANNEXURE "B" REFERRED TO IN "REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS" SECTION

OF OUR REPORT TO THE MEMBERS OF JD ORGOCHEM LIMITED OF EVEN DATE:

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

We have audited the internal financial controls over financial reporting of JD OrgochemLimited ("the Company") as of 31st March 2022 in conjunction withour audit of the Financial Statements of the Company for the year ended on that date.

1. Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.

2. Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by Institute of Chartered accountants of India andthe Standards on Auditing prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

3. Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding their reliability of financial reporting and thepreparation of Financial Statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting 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 unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

4. Inherent limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

5. Opinion

In our opinion the best of our information and according to the explanations given tous the Company has broadly in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2022 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential Component of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For A H J & Associates

Chartered Accountants

Firm Registration No: 151685W

Jay D. Shah

Partner

Membership No. 108928

UDIN - 22108928AJWAFM8541

Date- 30th May 2022

Place-Mumbai

.