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Kanpur Plastipack Ltd.

BSE: 507779 Sector: Industrials
NSE: KANPRPLA ISIN Code: INE694E01014
BSE 00:00 | 27 Jan 99.75 4.10
(4.29%)
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96.00

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108.75

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94.90

NSE 00:00 | 27 Jan 100.45 5.50
(5.79%)
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95.80

HIGH

108.90

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OPEN 96.00
PREVIOUS CLOSE 95.65
VOLUME 24562
52-Week high 147.95
52-Week low 84.70
P/E 16.57
Mkt Cap.(Rs cr) 214
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 96.00
CLOSE 95.65
VOLUME 24562
52-Week high 147.95
52-Week low 84.70
P/E 16.57
Mkt Cap.(Rs cr) 214
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kanpur Plastipack Ltd. (KANPRPLA) - Auditors Report

Company auditors report

To

The Members of

Kanpur Plastipack Limited

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

OPINION

We have audited the standalone financial statements of KanpurPlastipack Limited ("the Company") which comprise the Standalone Balance Sheetas at 31 March 2022 the Standalone Statement of Profit and Loss (including othercomprehensive income) Standalone Statement of Changes in Equity and Standalone Statementof Cash Flows for the year then ended and notes to the standalone financial statementsincluding a summary of significant accounting policies and other explanatory information(hereinafter referred to as "the standalone financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March 2022and profit (including other comprehensive income) changes in equity and its cash flowsfor the year ended on that date.

BASIS FOR OPINION

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the ‘Auditor?s Responsibilities for the Audit of theStandalone Financial Statements? section of our report.

We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe 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.

KEY AUDIT MATTERS

Key audit matters (‘KAM?) are those matters that in ourprofessional judgment were of most significance in our audit of the standalone financialstatements of the current period. These matters were addressed in the context of our auditof the standalone financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters.

1. Impact of the Russain-Ukraine war on the Company?s TradeReceivables from the EU region:

The sudden launch of the military operation by Russia to invadeUkraine_ on 24.02.2022 has resulted in further uncertainty with respect to globaldemand/supply economic growth global logistics etc. Since the company is primarilyengaged in exports and has substantial exports and trade receivables from the EU regionthe impact of the said armed conflict on recoverability of the trade receivables and alsofuture business outlook of the company was identified as a key audit matter and required ahigher extent of audit effort.

How our audit addressed the key audit matter

For the matter referred to above our procedures included amongothers verification and recovery pattern of all material export receivables upto the dateof completion of our audit obtaining third party confirmations other relevantdocumentation/correspondence including correspondence with Banks customerson-going/pending export orders and shipments to the various parties assessingmanagement?s conclusions etc. in view of the laid down accounting and measurementprinciples.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITOR?SREPORT THEREON

The Company?s Board of Directors are responsible for the otherinformation. The other information comprises the information included in theCompany?s Management Discussion and Analysis Board?s Report including Annexuresto the Board?s Report Business Responsibility Report Corporate Governance andShareholders? Information but does not include the Consolidated FinancialStatements standalone financial statements and other auditor?s Report thereon.

The other information included in the annual report are expected to bemade available to us after the date of this auditor?s report.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

MANAGEMENT?S RESPONSIBILITY FOR THE STANDALONE 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 standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income changes in equity and cash flows of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe 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 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 is also responsible for overseeing theCompany?s financial reporting process.

AUDITOR?S RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONEFINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and 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 standalone financial statements.

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

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls with reference to standalonefinancial statements in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management?s use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company?s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor?sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditors? report. However future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.

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 we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors? report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS (A) As requiredby the Companies (Auditors? Report) Order 2020 ("the Order") issued by theCentral Government of India in terms of Section 143(11) of the Act we give in"Annexure A"; a statement on the matters specified in paragraphs 3 and 4 of theOrder.

(B) As required by Section 143(3) of the Act based on or audit wereport that:

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

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

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

d) In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act.

e) On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directors noneof the directors is disqualified as on 31st March 2022 from being appointed asa director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company?sinternal financial controls over financial reporting.

g) With respect to the other matters to be included in theAuditors? Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations as at 31March 2022 on its financial position in its standalone financial statements.

ii. The Company does not have any long term contracts requiring aprovision for material foreseeable losses.

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

iv. (a) The Management has represented that to the best of itsknowledge and belief no funds (which are material either individually or in theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries;

(b) The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;

(c) Based on the audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material misstatement.

v. As stated in Note 30 to the standalone financial statements:

a. The final dividend proposed in the previous year declared and paidby the Company during the year is in accordance with Section 123 of the Act asapplicable.

b. The interim dividend declared and paid by the Company during theyear and until the date of this report is in compliance with Section 123 of the Act.

c. The Board of Directors of the Company have proposed final dividendfor the year which is subject to the approval of the members at the ensuing Annual GeneralMeeting. The amount of dividend proposed is in accordance with section 123 of the Act asapplicable.

(C) With respect to the matter to be included in the Auditors?Report under section 197(16):

In our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of Section 197 read with Schedule V of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) whichare required to be commented upon by us.

For RAJIV MEHROTRA & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REG.NO.002253C
RAJIV MEHROTRA
(PARTNER)
M.No.071428
Kanpur 23rd May 2022

Annexure "A"

To The Independent Auditors? Report

(Referred to in Para 1 under ‘Report on Other legal and RegulatoryRequirements? section of our report of even date)

Re: Kanpur Plastipack Limited we report that:

(i) a. (A) The company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets.

(B) The company is maintaining proper records showing full particularsof intangible assets.

b. The company has a regular programme for physical verification of allassets over a period of three years. In accordance with this programme certain fixedassets were verified during the year and no material discrepancies were noticed on suchverification. In our opinion it is reasonable having regard to the size of the companyand the nature of its assets.

c. According to the information and explanations given to us and therecords examined by us and based on copies of the registered sale deeds/transfer deedsetc. evidencing title in immovable properties which are freehold we report that theimmovable properties capitalized in the books of account of the company are held in itsname. The Original title deeds being pledged against loans secured from the bank werenot in possession of the company and therefore could not be verified. However certifiedcopies of the title deeds were verified.

d. The company has not revalued any of its property plant andequipment (including right-to-use assets) and intangible assets during the year.

e. No proceedings have been initiated during the year or are pendingagainst the company as at March 31st 2022 for holding any benami property underthe Benami Transactions (Prohibition) Act 1988 (45 of 1988) and the Rules madethereunder.

(ii) a. As explained to us the inventory has been physically taken bythe management during the year at all the factory and accompanying warehouses of thecompany. In our opinion the coverage and procedures of such verification by themanagement are appropriate. On the basis of the report of physical stock verificationconducted by the Management of the company we report that no discrepancy of 10% or morewere noticed and the minor discrepancies noticed on such verification were properly dealtwith in the books of account.

b. The company has been sanctioned working capital limits in excess ofrupees five crores in aggregate from banks and financial institutions on the basis ofsecurity of current assets. On verification of the monthly stock and book debt statementssubmitted by the Company to such banks/financial institutions we are of the opinion thatthe same are in agreement with the books of account of the Company.

(iii) The Company has made investments in subsidiary companies duringthe year.

(a) The Company has not provided any loans or advances in the nature ofloans or stood guarantee or provided security to any companies firms Limited LiabilityPartnerships or other entity during the year and hence reporting under clause 3(iii)(a)parts (A) and (B) of the Order are not applicable.

(b) In our opinion the investments made during the year are primafacie not prejudicial to the Company?s interest.

(c) The Company has not provided any loans or advances in the nature ofloans or stood guarantee or provided security to any companies firms Limited LiabilityPartnerships or other entity during the year and hence reporting under clause 3(iii)(c)(d) (e) and (f) of the Order are not applicable.

(iv) In Our opinion and according to the information and explanationsgiven us the company has complied with the provisions of section 185 and 186 of theCompanies Act 2013 in respect of grant of loans making investments and providingguarantees and securities.

(v) In our opinion and according to the information and explanationsgiven to us the company has not accepted any public deposits. As per the information andexplanations given to us no order has been passed by the Company Law Board or theNational Company Law Tribunal or the Reserve Bank of India or any Court or Tribunal.

(vi) In our opinion and according to the information and explanationsgiven to us the company is liable for maintenance of cost records u/s 148 of theCompanies Act 2013 and on the basis of a broad review of the books of account maintainedby the Company we are of the opinion that the company is prima facie maintaining suchrecords on a regular basis as specified under the Companies (Cost Records & Audit)Rules 2014.

(vii) (a) The company is regular in depositing with appropriateauthorities undisputed statutory dues including investor education protection fund incometax sales tax wealth tax service tax & customs duty and other material statutorydues applicable to it. According to the information and explanations given to us noundisputed amounts payable in respect of provident fund income tax sales tax wealthtax customs duty VAT cess and other material statutory dues were in arrears as at 31stMarch 2022 for a period of more than six months from the date they became payable.

(b) As per the information and explanations given to us and on thebasis of the verification of the records of the company the details of statutory dueswhich have not been deposited on account of disputes are as under:

Name of the Statute Nature of dues Pending Amount J ( in Lakhs) Period to which amount relates Forum where dispute is pending Remarks
Central Sales Tax Act 1956 Central Sales Tax 0.53 FY 2009-10 Allahabad High Court The total demand raised was C 3.52 Lakhs. An amount of C 2.99 Lakhs stands deposited under protest.
Central Sales Tax Act 1956 Central Sales Tax 0.23 FY 2010-11 Jt.Commissioner Corporate Circle-1 Kanpur The total demand raised was C 2.69 Lakhs. An amount of C 2.45 Lakhs stands deposited under protest. The matter has been decided in the company?s favour and remanded to the Assessing Authority for consideration by the Commissioner (Appeals)
Income Tax Return processed u/s 143(1) of the Act 166.79 AY 2018-19 Central Processing Centre The company has moved an application u/s 154 of the Act against the said demand.

(viii) There were no transactions relating to previously unrecordedincome that have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961).

(ix) (a) In our opinion and according to the information andexplanations given to us the company has not defaulted in repayment of any loans or otherborrowings or in the payment of interest thereon to any lender.

(b) According to the information and explanations given to us thecompany has not been declared a wilful defaulter by any bank or financial institution orother lender.

(c) In our opinion and according to the information and explanationsgiven to us the company has applied term loans for the purposes for which the same wereavailed.

(d) On an overall examination of the financial statements of theCompany funds raised on short- term basis have prima facie not been used during theyear for long-term purposes by the Company.

(e) On an overall examination of the financial statements of theCompany the Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries.

(f) According to the information and explanations given to us thecompany has not raised loans during the year on pledge of securities held in itssiubsidiaries.

(x) (a) The company did not raise any money by way of initial publicoffer or further public offer (including debt instruments) during the year. The companyhas only issued bonus shares to its existing shareholders.

(b) During the year the Company has not made any preferentialallotment or private placement of shares or convertible debentures (fully or partly oroptionally) and hence reporting under clause 3(x)(b) of the Order is not applicable.

(xi) (a) No fraud by the Company and no material fraud on the Companyhas been noticed or reported during the year.

(b) No report under sub-section (12) of section 143 of the CompaniesAct has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government during the year and upto the date ofthis report.

(c) According to the information and explanations given to us nowhistle blower complaints were received by the Company during the year (and upto the dateof this report) and hence reporting under clause 3(xi)(c) of the Order is not applicable

(xii) The Company is not a Nidhi Company and hence reporting underclause (xii) of the Order is not applicable

(xiii) In our opinion and according to the information and explanationsgiven to us the company has complied with Sections 177 and Section 188 of the CompaniesAct 2013 where applicable for all transactions with related parties and the details ofrelated party transactions have been disclosed in the financial statements etc. asrequired by the applicable accounting standards.

(xiv) (a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports for the year underaudit issued to the Company during the year and till date in determining the naturetiming and extent of our audit procedures.

(xv) In our opinion during the year the Company has not entered intoany non-cash transactions with its Directors or persons connected with its directors. andhence provisions of section 192 of the Companies Act 2013 are not applicable to theCompany.

(xvi) (a) In our opinion the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause3(xvi)(a) (b) and (c) of the Order is not applicable.

(b) In our opinion there is no core investment company within theGroup (as defined in the Core Investment Companies (Reserve Bank) Directions 2016) andaccordingly reporting under clause 3(xvi)(d) of the Order is not applicable.

(xvii) The Company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors of theCompany during the year.

(xix) On the basis of the financial ratios ageing and expected datesof realisation of financial assets and payment of financial liabilities other informationaccompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examination of the evidence supporting the assumptionsnothing has come to our attention which causes us to believe that any materialuncertainty exists as on the date of the audit report indicating that Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the Company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the Company as and when they falldue.

(xx) (a) There are no unspent amounts towards Corporate SocialResponsibility (CSR) on other than ongoing projects requiring a transfer to a Fundspecified in Schedule VII to the Companies Act in compliance with second proviso tosub-section (5) of Section 135 of the said Act. Accordingly reporting under clause3(xx)(a) of the Order is not applicable for the year.

(b) As per the information and explanations given to us there are noongoing CSR projects as at 31.03.2022 in respect of which there is any remaining unspentamount under sub- section (5) of section 135 of the Companies Act 2013. Accordinglyreporting under clause 3(xx)(b) of the Order is not applicable for the year.

For RAJIV MEHROTRA & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REG.NO.002253C
RAJIV MEHROTRA
(PARTNER)
Kanpur 23rd May 2022 M.No.071428

Annexure "B"

To The Independent Auditors? Report

(Referred to in Para 2(f) under ‘Report on Other legal andRegulatory Requirements? section of our report of even date)

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER SECTION 143(3)(I) OFTHE COMPANIES ACT 2013 ("THE ACT")

We have audited the internal financial controls with reference tofinancial statements of Kanpur Plastipack Limited ("the Company") as of March31 2022 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the company has in all material aspects an adequate internalfinancial controls with reference to Financial Statements and such internal financialcontrols over financial reporting were operating effectively as at March 31st2022 based on the internal control over financial reporting criteria established by thecompany considering the essential components of internal control stated in Guidance Noteof Audit of International Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

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. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company?s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors? Responsibility

Our responsibility is to express an opinion on the Company?sinternal financial controls with reference to Financial Statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls over Financial Reporting (the "Guidance Note") and the Standards onAuditing to the extent applicable to an audit of internal financial controls both issuedby the Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference toFinancial Statements were established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to Financial Statements andtheir operating effectiveness.Ourauditofinternalfinancialcontrolswithreference toFinancial Statements included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal controls based on theassessed risk. The procedures selected depend on the auditor?s judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company?s internalfinancial controls with reference to Financial Statements.

Meaning of Internal Financial Controls With Reference to StandaloneFinancial Statements

A company?s internal financial controls with reference toFinancial Statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. Acompany?s internal financial controls with reference to Financial Statements includesthose policies and procedures that (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company?s assets that could havea 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 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 Financial Statements to future periods are subject to the riskthat the internal financial controls with reference to Financial Statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

For RAJIV MEHROTRA & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REG.NO.002253C
RAJIV MEHROTRA
(PARTNER)
M.No.071428
Kanpur 23rd May 2022

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