Kiri Industries Limited
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of Kiri Industries Ltd("the Company") which comprise the Balance Sheet as at March 31 2021 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date and asummary of the 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 the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2021 the loss including totalcomprehensive income changes in equity and the cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SA's) 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 Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the Standalone Financial Statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Standalone Financial Statements.
Emphasis of matter
1. We draw attention to various court cases and judgments in relation to disputesbetween Kiri Industries Ltd. (the
Company / KIL) and DyStar Global Holdings (Singapore)
Pte. Ltd. (DyStar) & Senda International Capital Ltd.
In connection with minority oppression suit (SIC4) filed by KIL in June 2015against Senda DyStar and nominated directors on board of DyStar Singapore InternationalCommercial Court (SICC) has delivered its Interim judgement on December 21 2020 anddecided base valuation of DyStar of USD 1636 million subject to further adjustments to bemade by valuation experts and directed to file joint expert statement within 28 days fromthe date of interim judgement. Hearing on joint expert statement took place on March 162021. The SICC has issued their oral judgement on March 17 2021 declining KIL's requestfor interest on buyout proceeds. The Company has filed appeals with court of appeal inSingapore against SICC interim Judgement dated December 21 2020 and oral judgment datedMarch 17 2021. The SICC has delivered judgement on June 21 2021 for final valuation ofUSD 481.60 million of Company's 37.57% stake in DyStar.
Under DyStar case (SIC3) the court has delivered its judgement on October 192020 against appeal of SICC judgment dated March 03 2020 for payment of total damages ofUSD 678480.50 and cost of SGD 245877.52 to DyStar. The company has significantlysucceeded in appeal and amount of damages reduced to USD 268720.52.
Suit filed by DyStar against KIL and Mr. Manish Kiri on December 292019 foralleged violation of Share Subscription and Shareholders Agreement ("SSSA" datedJanuary 31 2010) was later on transferred to Singapore International Commercial Court(SICC) as suit No. 7/2020. The Company has filed counterclaim against DyStar for notconsidering the company as preferred supplier in term of SSSA. Before trial of witness ofboth KIL and DyStar parties to the suit settled DyStar's claim and KIL has paid USD100000 to DyStar on April 16 2021. The witnesses trial for counterclaim of the Companywas completed on April 9 2021 and both parties filed their closing submissions on May 152021. The Judgement of SICC is awaited.
The Company on September 22 2020 has withdrawn civil suit filed against DyStarin City Civil Court
Ahmedabad for claiming damages for not treating the company as preferred supplier byDyStar. The defamation suit filed against DyStar Senda & MLS India & theirrespective directors/officer is pending with city civil court Ahmedabad.
2. We draw your attention to Note No. 47 to the Financial statements which describesmanagement's assessment of the financial impact due to Covid - 19 lock-down and otherrestrictions. The assessment is highly dependent upon ci rcumstances as they evolve i nsubsequent periods.
Our opinion is not modified in respect of the above matters.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial Statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. Against Key audit matter our description of how ouraudit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the standalone financial statements section ofour report including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the Standalone Financial Statements. The results of our audit proceduresincluding the procedures performed to address the matter below provide the basis of ouraudit opinion on the accompanying financial statement.
|Sr. Key Audit Matter No. ||Auditor's Response |
|Inventory of Raw Material and Finished Goods || |
|1 We refer to Significant accounting policies on inventory and Note. No. 1.11 on inventory. ||To address the matter our audit procedure included amongst others: |
|Inventories are considered as Key Audit Matter due to nature of business technical indicators governing inventory valuation size of Balance Sheet and because inventory valuation involves management judgement. || Assessing the compliance of accounting policies over inventory with applicable accounting standards. |
|According to accounting policy followed by the company inventories are valued at lower of cost or market value. Cost comprise in addition to other things overheads related to material labour and other overheads. The company has specific procedures to identify risk for obsolescence and valuation of inventories. || Assessing the inventory valuation process and practices. |
| || Assessing the analysis and assessment made by management with respect to slow moving or obsolete stock. |
| || Discussion with those charged with responsibility of overlooking inventory management process. |
| || Expert opinion obtained by the company on the technicalities of matter. |
| || Justification of management estimates and Judgments. |
| || Assessing the effectiveness of perpetual and physical inventory verification process. |
Assessment of trade receivables
|2 We refer to significant accounting policies on trade receivables and Note. No.1.12 ||To address the matter our audit procedure included amongst others: |
|Trade receivables amounting to INR 14464.84 Lakhs are considered as Key Audit Matter as they represent approx 51% of the current assets of the company. Significant management judgement is required to assess the recoverability of trade receivables. || Obtaining an understanding of and evaluating the company's process and control over the collection and the assessment of the recoverability of trade receivables. |
|Management performed a detailed analysis considering customer's ageing profile existence of disputes credit history increase in competition historical payment pattern forward-looking information for the estimation of expected credit losses on its trade receivables and any other available information concerning the creditworthiness of counterparties. Management uses this information to determine whether a provision for impairment is required either for a specific transaction or for a customer's balance overall. The accounting policies accounting judgements and estimates and disclosures of trade receivables are included in notes 9 and 46 - to the financial statements. || We evaluated the management's assessment on the expected credit loss of trade receivables with reference to the historical payment records credit history of the company's customers and the correspondence with customers. |
| || We tested the ageing of trade receivables at the end of the reporting period on a sampling basis. |
| || We assessed the ageing of trade receivables and advances the customer's historical payment patterns and whether any post year-end payments has been received up to the date of completing our audit procedures. |
| || We also obtained evidence of any disputes between the parties involved attempts by management to recover the amounts outstanding and on the credit status of significant counterparties wherever available. |
| || We also tested the subsequent settlements and the latest amounts of revenue certified by customers on a sampling basis. |
The risk for revenue being recognised in an incorrect period
|3 We refer to significant accounting policies on Revenue recognition and Note. No. 1.3 ||To address the matter our audit procedure included amongst others: |
|Net sales comprises revenue from the sale of products / goods adjusted by indirect taxes and sales adjustments which primarily comprise discounts and sales returns. Revenue from sale of goods is recognised when significant risks and rewards of ownership have been transferred to the buyer. || Evaluation of internal control activities over revenue recognition and testing of key controls. |
| || Analysis of significant sales contracts to verify correct Ind AS accounting treatment. |
|This normally means when a product has been delivered to the customer in accordance with agreed delivery terms. The risk for revenue being recognised in an incorrect period presents a key audit matter due to the financial significance and nature of sales in the financial statements. The accounting policies accounting judgements and estimates and disclosures of revenue recognition are included in notes to the financial statements. || Testing timeliness of revenue recognition by comparing sample sales transactions to delivery documents and by checking significant credit notes issued after year end. |
| ||Testing of accounts receivables by requesting confirmations from the customers and by reconciling payments received after the year end against the accounts receivable balances at the year end. |
We have determined that there are no other Key Audit Matters to communicate in ourreport.
Information other than the Standalone Financial Statements and Auditor's Report thereon
The Company's Management and Board of Directors are
responsible for the preparation of the other information. The other informationcomprises the information included in the Management Discussion and Analysis Board'sReport including Annexures to Board's Report Business Responsibility Report CorporateGovernance and Shareholder's Information but does not include the Standalone FinancialStatements and our auditor's report thereon.
Our opinion on the Standalone Financial Statements does not cover the other informationand we do not express any form of assurance/conclusion thereon.
In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone Financial Statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information we are required to report that fact. We have nothing to reportin this regard.
Responsibilities of the management for the Standalone Financial Statements
The Company's Management and Board of Directors are responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these Standalone FinancialStatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind-AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing 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 is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company's financial reportingprocess.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor
error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.
As part of an audit in accordance with Standards on Audit (SAs) we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by Central Government in terms of sub-section (11) of Section 143 of the Act wegive in "Annexure-1" a statement on the matters specified in paragraphs3 and 4 of the Order to the extent applicable.
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 purpose of our audit;
b. In our opinion proper books of accounts as required by law have been kept by theCompany so far as it appears from our examination of those books;
c. The Balance Sheet Statement of Profit and Loss including Statement of OtherComprehensive Income Cash Flow Statement and the Statement of
Changes in Equity dealt with by this Report are in agreement with the books ofaccounts;
d. In our opinion the aforesaid Standalone Financial Statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;
e. On the basis of written representations received from the directors as on March 312021 and taken on record by the Board of Directors none of the directors aredisqualified as on March 31 2021 from being appointed as a director in terms of Section164(2) of the Act.
f. With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these Standalone Financial Statements and theoperating effectiveness of such controls refer to our separate report in "Annexure-2"to this report.
g. In our opinion the managerial remuneration for the year ended March 31 2021 hasbeen paid/ provided by the company to its directors in accordance with the provisions ofSection 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 on its financialposition in its Standalone Financial Statements.
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses on long-term contracts.
iii. There has been no delay in transferring amounts required to be transferred to theInvestors Education and Protection Fund by the company.
| ||For Pramodkumar Dad & Associates |
| ||Chartered Accountants |
| ||CA Pramod Dad |
| ||Partner |
|Place: Ahmedabad ||MRN: 038261 |
|Date: June 28 2021 ||FRN: 115869W |
| ||UDIN: 21038261AAAAAF3296 |
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
Annexure - 1 to the Independent Auditors' Report to members of Kiri Industries Ltd forthe year ended March 31 2021
(Referred to in Paragraph 1 under "Report on other legal and regulatoryrequirements" section of our report of even date on the standalone financialstatements of the company for the year ended March 31 2021)
On the basis of such checks as we considered appropriate according to the informationand explanation given to us by the management and on the basis of examination of books ofaccounts during the course of our audit we report that:
1. a) The company has maintained proper records
showing full particulars including quantitative details and situation of its fixedassets.
b) The company is in the process of conducting physical verification of fixed assetsfor the year.
c) All the title deeds of freehold land are held in the name of the company except aplot of an Agricultural Land intended for Industrial purpose held in the name of theChairman of the company in his fiduciary capacity as per Section 88 of the Indian Trustact 1882 pending necessary approval for conversion of agricultural land intonon-agricultural land.
2. a) Inventories have been physically verified during the
year by the management at reasonable intervals. Inventory verification at the year-endcannot be conducted due to Covid - 19 outbreak. However alternate audit procedures wereapplied for verifying physical verification of inventories.
b) No material discrepancy was noticed on physical verification of stocks by themanagement.
3. The company has not granted any loans secured or unsecured to companies firms orother parties listed in the register maintained under Section 189 of the Companies Act2013. Consequently the provisions of clauses 3(a) 3(b) and 3(c) of the order are notapplicable to the Company.
4. The company has complied with the provisions of Section 185 and 186 of the CompaniesAct 2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable.
5. The company has not accepted any deposits during the concerned financial year underSection 73 to 76 or any other relevant provision of the Companies Act 2013 during theconcerned financial year.
6. We have been informed that maintenance of cost records under sub-section 1 ofSection 148 of the Companies Act 2013 is mandatory for the company and such records aremaintained by the company. However we have not made the detailed examination of the costrecords with a view to determine whether they are accurate or complete.
7. a) According to the records of the company undisputed
statutory dues including Provident Fund Investor Education and Protection FundEmployees' State Insurance Income-tax Sales-tax Wealth Tax Service Tax Custom DutyExcise Duty cess to the extent applicable and any other statutory dues have generallybeen regularly deposited with the appropriate authorities. According to the informationand explanations given to us there is no outstanding undisputed statutory dues as on March31 2021 for a period of more than six months from the date they became payable.
b) According to the information and explanation given to us there are no duesoutstanding with respect to income tax sales tax service tax value added tax customsduty excise duty on account of any dispute except for the following:.
|Sr. Name of the No. Statute ||Section under which dispute is pending ||Period to which amount relates (FY) ||Amount (INR in Lakhs) ||Forum where the dispute is pending |
|1 The Income Tax ||143 (3) ||2002-03 ||36.99 ||Income Tax Appellate Tribunal |
|Act 1961 ||271(1)(c) ||2005-06 ||53.69 ||Commissioner of Income Tax (Appeal) |
| ||143 (3) rws 147 ||2007-08 ||4.78 ||Income Tax Appellate Tribunal |
| ||143 (3) ||2009-10 ||19.89 ||Income Tax Appellate Tribunal |
| ||271(1)(c) ||2009-10 ||0.88 ||Income Tax Appellate Tribunal |
| ||143 (3) ||2010-11 ||316.06 ||Income Tax Appellate Tribunal |
|2 The Central ||CENVAT Refund ||2009-10 ||341.08 ||Gujarat High court |
|Excise Act 1944 || ||2010-11 ||116.76 ||Gujarat High Court |
| ||Similar Goods ||2010-11 2010-11 ||153.73 344.00 ||Gujarat High Court Central Excise Commissioner |
| || ||2011-12 ||4.09 ||Central Excise Commissioner |
| ||Outward Transportation of Finished Goods ||2013-14 ||2.17 ||Central Excise Commissioner |
|3 The Gujarat VAT ||VAT Liabilities ||2007-08 ||62.39 ||Gujarat Value Added Tax Tribunal |
|Act 2003 || || || || |
8. The Company has not defaulted in repayment of dues to any financial institution orbank. The company has not borrowed from any financial institution government or debentureholder during the year.
9. The Company has not raised money through initial public offer nor taken any termloan during the year. Hence the requirement of application of funds for the purpose forwhich these were borrowed does not arise.
10. No material fraud on or by the Company has been noticed or reported during theyear nor have we been informed of such case by the management.
11. During the year under review the company has paid managerial remuneration inaccordance with the requisite approvals mandated by the provisions of the Section 197 readwith schedule V to the companies act.
12. The company is not Nidhi Company therefore provisions of clause 3 (xii) of theorder are not applicable.
13. The transactions with related party are in compliance with Sections 177 and 188 ofthe Companies Act 2013.
14. The Company has not made preferential allotment of equity shares or covertiblesecurities to promoter or promoters group.
15. The Company has not entered into non-cash transaction with directors or personconnected with them during the year.
16. The Company is not required to be registered under Section 45-IA of Reserve Bank ofIndia Act 1934.
| ||For Pramodkumar Dad & Associates |
| ||Chartered Accountants |
| ||CA Pramod Dad |
| ||Partner |
| ||MRN: 038261 |
|Place: Ahmedabad ||FRN: 115869W |
|Date : June 28 2021 ||UDIN: 21038261AAAAAF3296 |
Annexure - 2 to the Independent Auditors' Report to members of Kiri Industries Ltd. forthe year ended March 31 2021
(Referred to in Paragraph 2(f) under "Report on other legal and regulatoryrequirements" section of our report of even date on the standalone financialstatements of the company for the year ended March 31 2021)
Report on the Internal Financial Controls under Clause (I) of sub-section 3 of Section143 of the Companies Act 2013 ("The Act")
We have audited the internal financial controls over financial reporting of KiriIndustries Ltd. ("the Company") as of March 31 2021 in conjunction with ouraudit of the Standalone Financial Statements of the Company for the year ended on thatdate.
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 Companies Act 2013.
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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofinternal financial controls and both issued by the Institute of Chartered Accountants ofIndia. These Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively 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 operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.
During the year review of internal financial control by an Independent IFC Auditor isunder process.
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.
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 the 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
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.
In our opinion the company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For Pramodkumar Dad & Associates |
| ||Chartered Accountants |
| ||CA Pramod Dad |
| ||Partner |
| ||MRN: 038261 |
|Place: Ahmedabad ||FRN: 115869W |
|Date : June 28 2021 ||UDIN: 21038261AAAAAF3296 |