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Kirloskar Ferrous Industries Ltd.

BSE: 500245 Sector: Metals & Mining
NSE: KIRLFER ISIN Code: INE884B01025
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NSE 00:00 | 18 Sep 85.15 -0.25
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87.00

HIGH

87.00

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OPEN 87.00
PREVIOUS CLOSE 84.85
VOLUME 10108
52-Week high 97.00
52-Week low 37.20
P/E 15.34
Mkt Cap.(Rs cr) 1,180
Buy Price 82.00
Buy Qty 9.00
Sell Price 88.00
Sell Qty 1500.00
OPEN 87.00
CLOSE 84.85
VOLUME 10108
52-Week high 97.00
52-Week low 37.20
P/E 15.34
Mkt Cap.(Rs cr) 1,180
Buy Price 82.00
Buy Qty 9.00
Sell Price 88.00
Sell Qty 1500.00

Kirloskar Ferrous Industries Ltd. (KIRLFER) - Auditors Report

Company auditors report

To The Members of

Kirloskar Ferrous Industries Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Kirloskar Ferrous IndustriesLimited ("the Company") which comprise the Balance Sheet as at March 31 2020the Statement 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 financial statements"). In our opinion and tothe best of our information and according to the explanations given to us the aforesaidfinancial statements give the information required by the Companies Act 2013 ("theAct") in the manner so required and give a true and fair view in conformity with theIndian Accounting Standards prescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended ("Ind AS") andother accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2020 the profit and total comprehensive income changes in equityand 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 (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Auditof the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial 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 of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Sr. No. Key Audit Matter How our Audit addressed the key audit matter
1. Contingent Liability Our procedures included but were not limited to the following:
 

 

The Company is involved in direct and indirect tax litigations amounting to Rs.25.30 Crores that are pending with various tax authorities. Whether a liability is recognized or disclosed as a contingent liability in the financial statements is inherently judgmental and dependent on assumptions and assessments. • Obtained an understanding from the management with respect to process and controls followed by the Company for identification and monitoring of significant developments in relation to the litigations including completeness thereof.
We placed specific focus on the judgements in respect to these demands against the Company. • Obtained the list of litigations from the management and reviewed their assessment of the likelihood of outflow of economic resources being probable possible or remote in respect of the litigations.
Determining the amount if any to be recognized or disclosed in the financial statements is inherently subjective. • Assessed management's discussions held with their legal consultants and understanding precedents in similar cases;
Therefore these litigations amount is considered to be a key audit matter. • Obtained and evaluated the confirmations from the consultants representing the Company before the various authorities and our own dedicated teams of direct tax and indirect tax. Assessed and validated the adequacy and appropriateness of the disclosures made by the management in the financial statements.
2. Property Plant & Equipment Our audit approach consisted evaluation of design and implementation of controls and testing the operating effectiveness of the internal controls over valuation of property plant and equipment and review of useful lives;
Valuation and existence of property plant and equipment including assessment of useful lives and residual values Property plant and equipment represents a significant proportion of the Company's asset base. Periodic physical verification of property plant and equipment for adequacy and appropriateness of the accounting and disclosure by the Management:
The estimates and assumptions made to determine the carrying amounts including whether and when to capitalise or expense certain costs and the determination of depreciation charges are material to the Company's financial position and performance. The charges in respect of periodic depreciation are derived after estimating an asset's expected useful life and the expected residual value. • Review of CAPEX business process flow of documents/ information and their control's effectiveness
Changes to asset's carrying amounts expected useful lives or residual value could result in a material impact on the financial statements and hence considered as key audit matter. • Substantive Tests on random sampling for all the major additions deletions to the assets by applying all the characteristicsofcapitalexpenditureproperclassification of the same with reference to the company's policy and accounting standards
• We performed substantive testing for the determination of assets' useful lives and residual values with reference to management's judgments including the appropriateness of past / existing asset lives and residual values applied in the calculation of depreciation. We also obtain certificates relating to useful lives of assets where required.
• We have reviewed the policy and the procedure of physical verification of PPE.
• After carrying out above audit procedures we did not identify any exceptions in relation to the valuation and the existence of property plant and equipment including assessment of useful lives and residual values which may affect our opinion.

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 Board's Report including Annexures to Board's Report CorporateGovernance and Shareholder's Information but does not include the financial statementsand 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 thefinancial statements our responsibility is to read the other information and in doingso consider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained during the course of our audit or otherwise appearsto be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Financial Statements

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 total comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind AS andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements 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 theCompany's financial reporting process.

Auditor's Responsibilities 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 highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis 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 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 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.

Materiality is the magnitude of misstatements in the financial statements thatindividually 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 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.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit 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 Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 from being appointed as a director in terms of Section 164 (2)of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

2. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.

3. 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 financial statements.

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

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

4. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in "AnnexureB" a statement on the matters specified in paragraphs 3 and 4 of the Order.

For Kirtane & Pandit LLP
Chartered Accountants
Firm Registration No. 105215W / W100057
Suhas Deshpande
Partner
Membership No.: 031787
Pune : June 09 2020 UDIN: 20031787AAAAAS3032

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of KIRLOSKAR FERROUS INDUSTRIESLIMITED 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").

Opinion

We have audited the internal financial controls over financial reporting of KIRLOSKARFERROUS INDUSTRIES LIMITED ("the Company") as of March 31 2020 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2020 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

Management's Responsibility for Internal Financial Controls

The Company's management and Board of Directors are 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 respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 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 internal financial controls system overfinancial reporting of the Company.

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. Acompany'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 unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls 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.

For Kirtane & Pandit LLP
Chartered Accountants
Firm Registration No. 105215W/W100057
Suhas Deshpande
Partner
Membership No. 031787
Pune : June 09 2020 UDIN: 20031787AAAAAS3032

Annexure "B" to the Independent Auditor's Report

(Referred to in paragraph 4 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of KIRLOSKAR FERROUS INDUSTRIES LIMITEDof even date)

i. In respect of the Company's fixed assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a program of verification to cover all the items of fixed assets ina phased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets.

Pursuant to the program fixed assets were physically verified by the management duringthe year. According to the information and explanations given to us no materialdiscrepancies 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 properties areheld in the name of the Company.

ii. As informed to us the physical verification of inventory has been conducted by themanagement at reasonable intervals and the discrepancies noticed during such physicalverification were not material. Stocks lying with third parties at the year-end have beenconfirmed.

The discrepancies noticed on physical verification of Inventory as compared to the bookrecords have been properly dealt with the Books of Account.

iii. The Company has not granted any loans secured or unsecured to Companies FirmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Companies Act. Accordingly paragraph 3(iii) of the Order is notapplicable.

iv. In our opinion and according to the information and explanations given to us theCompany has not given loans made investments given guarantees and provided securitieswhich are covered by the provisions of Section 185 and 186 of the Act. Accordinglyparagraph 3(iv) of the Order is not applicable.

v. The Company has not accepted deposits during the year and does not have anyunclaimed deposits as at March 31 2020 and therefore the provisions of the clause 3 (v)of the Order are not applicable to the Company. No order has been passed by Company LawBoard or National Company Law Tribunal or Reserve Bank of India or any Court or any otherTribunal for contravention of these sections or any other relevant provision(s) of the Actand the relevant rules.

vi. The Central Government has specified maintenance of cost records under Sub-Section(1) of Section 148 of the Act and we are of the opinion that prima facie such accounts andrecords are made and maintained. We have not however made a detailed examination of therecords with a view to determine whether they are accurate or complete.

vii. According to the information and explanations given to us in respect of statutorydues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Goods and Service TaxCustoms Duty Cess and other material statutory dues applicable to it with the appropriateauthorities.

(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income Tax Goods and Service Tax Customs Duty Cess and other materialstatutory dues in arrears as at March 31 2020 for a period of more than six months fromthe date they became payable.

(c) Details of dues of Income Tax Sales Tax Service Tax Excise Duty and Value AddedTax which have not been deposited as at March 31 2020 on account of dispute are givenbelow:

Name of the statute Nature of the dues Amount under dispute (Rs.)

Period(s) to which the amount relate

Forum where such dispute is pending
Central Excise Act 1944 Interest on refund 341496/- FY 2003-04 Assistant Commissioner of Central Excise Bellary
Central Excise Act 1944 Cenvat Credit issues (1) 1428937/- FY 2006-07 to FY 2015-16 Assistant Commissioner of Central Excise Bellary
Central Excise Act 1944 Cenvat Credit availed on Steel 94084/- FY 2010-11 Joint Commissioner of Central Tax and Central Excise Belgaum
Central Excise Act 1944 Iron Ore supplied by Export Oriented Unit Supplier 7116956/- FY 2015-16 to FY 2017-18 (Upto Jun-17) Additional Commissioner of Central Excise Belgaum
Central Excise Act 1944 Tax on sale of Black Waste Sand Plastic Waste & Wooden Waste 248421/- FY 2013-14 and FY 2014-15 Assistant Commissioner of Central Tax & Central Excise Hospet
Finance Act 1994 Cenvat Credit utilised for Service Tax payment 7585734/- FY 2006-07 Commissioner of Central Excise Belgaum
Finance Act 1994 Cenvat Credit issues (1) 772188/- FY 2009-10 to FY 2011-12 Assistant Commissioner of Central Excise Bellary
Finance Act 1994 Cenvat Credit issues 2716155/- FY 2011-12 and FY 2015-16 Assistant Commissioner of Central Excise Bellary
Finance Act 1994 Service Tax demand on Interest on Letter of Credit 11496454/- FY 2008-09 to FY 2011-12 CESTAT Bangalore
Finance Act 1994 Service Tax Cenvat Credit availed on Input Services 5340086/- FY 2011-12 to FY 2014-15 CESTAT Bangalore
Finance Act 1994 Refund Claim filed in respect of Service Tax and KKC Cenvat Credit pertaining to Railway Siding Project 4115498/-

FY 2016-17 and FY 2017-18

Commissioner of Central Tax (Appeals) Belgaum
Finance Act 1994 Service tax on Job work charges (1) 101434/- FY 2014-15 to FY 207-18 Assistant Commissioner of Central Tax & Central Excise Hospet
Finance Act 1994 Service Tax paid on Royalty charges towards the purchase of Iron ore through e-auction 3410620/- FY 2016-17 Commissioner of Central Tax (Appeals) Belgaum
Income Tax Act 1961 Minimum Alternate Tax (2) 82151567/- FY 2004-05 and FY 2006-07 Hon'ble High Court Mumbai
Income Tax Act 1961 Depreciation allowance - TG-3 Assessment Demand (3) 93713150/- FY 2010-11 and FY 2011-12 Income Tax Appellate Tribunal Pune
Karnataka VAT Act 2003 Disallowed Input Tax Credit 8276255/- FY 2007-08 Hon'ble High Court of Karnataka Dharwad Bench
Karnataka VAT Act 2003 Rejected Input Tax Credit (3) 3779903/- FY 2008-09 Assistant Commissioner of Commercial Tax Davanagere
Provident Fund and Miscellaneous Provisions Act 1952 Interest and damages for belated remittance 6719589/- FY 2001-02 to FY 2004-05 EPF Appellate Tribunal New Delhi
Provident Fund and Miscellaneous Provisions Act 1952 Demand for differential PF dues 11813110/- FY 2012-13 to FY 2015-16 EPFO Bellary

(1) The Company has Opted for resolution under "Sabka Vishwas (LegacyDispute Resolution) Scheme 2019" and 30% of the duty demand paid.

(2) Out of the total amount under dispute Rs. 15628182/- is paid underprotest.

(3) Total amount under dispute is paid under protest.

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans or borrowings to financialinstitutions banks and government and dues to debenture holders.

ix. In our opinion and according to the information and explanations given to us theterm loans taken by the Company have been applied for the purpose for which they wereraised. The Company had not raised money by way of initial public offer or further publicoffer (including debt instruments) during the current financial year.

x. According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during theyear.

xi. In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theOrder is not applicable to the Company.

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements as required by the applicableIndian accounting standards.

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures and hence reportingunder clause 3 (xiv) of the Order is not applicable to the Company.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its directors and hence provisions of section 192 of theCompanies Act 2013 are not applicable to the Company.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Kirtane & Pandit LLP
Chartered Accountants
Firm Registration No. 105215W/W100057
Suhas Deshpande
Partner
Membership No. 031787
Pune : June 09 2020 UDIN: 20031787AAAAAS3032