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KJMC Financial Services Ltd.

BSE: 530235 Sector: Financials
NSE: KJMCFIN ISIN Code: INE533C01018
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NSE 05:30 | 01 Jan KJMC Financial Services Ltd
OPEN 27.50
PREVIOUS CLOSE 27.50
VOLUME 75
52-Week high 38.05
52-Week low 21.00
P/E 52.88
Mkt Cap.(Rs cr) 13
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 27.50
CLOSE 27.50
VOLUME 75
52-Week high 38.05
52-Week low 21.00
P/E 52.88
Mkt Cap.(Rs cr) 13
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

KJMC Financial Services Ltd. (KJMCFIN) - Auditors Report

Company auditors report

To the Members of KJMC Financial Services Limited.

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the standalone financial statements of KJMC FinancialServices Limited. ("the Company") which comprise the Balance Sheet as at March31 2022 and the statement of Profit and Loss (Including other comprehensive income)Statement of Changes in Equity and statement of Cash Flows for the year ended and notes tothe financial statements including a summary of significant accounting policies and otherexplanatory information.

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 Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2022 and its loss and Other Comprehensive IncomeChanges in Equity and its Cash Flows for 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 Companies Act 2013. Our responsibilitiesunder those Standards are further described in the

Auditor's Responsibilities for the audit of the Financial Statementssection 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 financial statements under theprovisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.

Emphasis of Matter Paragraph

We refer note no. 37 to the Standalone Financial Statements of theCompany wherein financial impact of COVID-19 on the lower business acquisitions of theCompany and constraints on recovery of dues has been disclosed.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion on thesematters.

No. Key Audit Matter Auditor?s Response
1 Impairment of Investments Auditor?s Response
Where impairment indicators have been identified the quantification of impairment in the carrying value of investments is considered to be a risk area due to the judgmental nature of key assumptions. The estimated recoverable amount is subjective due to the inherent uncertainty involved in forecasting and discounting future cash flows. The most significant judgements are: Tested the design and effectiveness of internal controls implemented by the management for following:
• Timely identification of diminution in the value of investments. • Identification of any diminution in the value of investments.
Proper estimation of fair market value in respect of listed and unlisted investments • Collection of relevant data to estimate the fair market value of investments at the balance sheet date.
• To ascertain the sufficiency of amount of provision in case of diminution in value of investments
• Management's judgement applied for the key assumptions used for the purpose of determination of impairment provision.
• Completeness and accuracy of the data inputs used.
• We critically assessed and tested the key underlying assumptions and significant judgements used by management.
• For investments identified by management as potentially impaired examined the same and checked the calculation of the impairment
Examined the investments which had not been identified by management as potentially impaired and formed our own judgement as to whether that was appropriate through examining available information
2 Impairment of financial assets as at the balance sheet (Expected Credit Losses) Auditors Response
Ind AS 109 requires the Company to provide for impairment of its loan receivables (designated at amortised cost and fair value through other comprehensive income) using the expected credit loss (ECL) approach. ECL involves an estimation of probability weighted loss on financial instruments over their life considering reasonable and supportable information about past events current conditions and forecasts of future economic conditions which could impact the credit quality of the Company's loans and advances. • Read and assessed the Company's accounting policies for impairment of financial assets and their compliance with Ind AS 109
In the process a significant degree of judgment has been applied by the Management for: • Read and assessed the Company's policy with respect to moratorium pursuant to the RBI circular and tested the implementation of such policy on a sample basis
• Grouping of borrowers based on homogeneity by using appropriate statistical techniques; • Evaluated the reasonableness of the Management estimates by understanding the process of ECL estimation and related assumptions and tested the controls around data extraction and validation.
• Estimation of behavioral life; • Tested the ECL model including assumptions and underlying computation.
• Determining macro-economic factors impacting credit quality of receivables; • Assessed the floor/minimum rates of provisioning applied by the Company for loan products with inadequate historical defaults.
Estimation of losses for loan products with no/ minimal historical defaults. • Tested assumptions used by the Management in determining the overlay for macroeconomic factors (including COVID-19 pandemic).
Assessed disclosures included in the standalone Ind AS financial statements in respect of expected credit losses including the specific disclosures made with regards to the impact of COVID-19 on ECL estimation.

Information other than the Financial Statements and Auditor?sReport thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the AnnualReport but does not include the financial statements and our auditors' report thereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon. In connectionwith our audit of the financial statements our responsibility is to read the otherinformation and in doing so consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. If based on the work we have performed weconclude that there is a material misstatement of this other information we are requiredto report that fact.

We have nothing to report in this regard.

Management?s Responsibility for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance statement of changes in equity and cash flowsof the Company in accordance with the accounting principles generally accepted in Indiaincluding the accounting Standards specified under section 133 of the Act.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing these 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. Those Board of Directors are also responsible foroverseeing the Company's financial reporting process.

Auditors? Responsibilities for the Audit of the FinancialStatements

Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditors' 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 financial statements.

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

1. Identify and assess the risks of material misstatement of thefinancial 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.

2. Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

3. Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by Management.

4. Conclude on the appropriateness of Management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditors' report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditors' report. However future events or conditions may cause the Companyto cease to continue as a going concern.

5. Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditors' report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditors' Report) Order 2020 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the "Annexure A" a statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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

1. 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.

2. 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.

3. The Balance Sheet the Statement of Profit and Loss (Including othercomprehensive Income) Statement of changes in equity and the Cash Flow Statement dealtwith by this Report are in agreement with the books of accounts.

4. In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.

5. On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2022 from being appointed as a director interms of Section 164 (2) of the Act.

6. 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".

With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of Section 197(16) of the Act as amended inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the Company to its directors during the year is in accordancewith the provisions of Section 197 of the Act.

7. With respect to the other matters to be included in the Auditors'Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

• The Company has disclosed the impact of pending litigations onits financial position in its financial statements - Refer Note on contingent liabilitiesto the financial statements

• The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

• There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company.

• The Management has represented that to the best of it'sknowledge and belief as disclosed in the notes to the accounts no funds have beenadvanced or loaned or invested (either from borrowed funds or share premium or any othersources or kind of funds) by the Company to or in any other person(s) or entity(ies)including foreign entities ("Intermediaries") with the understanding whetherrecorded in writing or otherwise that the Intermediary shall directly or indirectly lendor invest in other persons or entities identified in any manner whatsoever by or on behalfof the Company ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries.

• The Management has represented that to the best of it'sknowledge and belief as disclosed in the notes to accounts no funds have been receivedby the Company from any person(s) or entity(ies) including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall directly or indirectly lend or invest in other personsor entities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries.

• Based on the audit procedures that has been consideredreasonable and appropriate in the circumstances nothing has come to our notice that hascaused us to believe that the representations under sub clause (i) and (ii) of Rule 11(e)as provided under h (iv) (a) and (b) above contain any material misstatement.

• The Company has not declared any dividend during the currentfinancial year ended March 31 2022.

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For Batliboi & Purohit
Chartered Accountants
Firm Registration Number:101048W
Raman Hangekar
Place: Mumbai Partner
Date: May 16 2022 UDIN: 22030615AJASJC8762 Membership No. 030615

The Annexure A referred to in Independent Auditor?s Report to themembers of the Company on the financial statements for the year ended March 312022 wereport that:

(i) a) The Company has maintained proper records showing full

particulars including quantitative details and situation of PropertyPlant and Equipment. The Company has maintained proper records showing full particulars ofintangible assets.

b) As explained to us the fixed assets have been physically verifiedby management at reasonable intervals under a phased programme of verification. Inaccordance with this program a portion of the fixed assets has been physically verifiedby the management during the year and no material discrepancies have been noticed on suchverification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of company and nature of its assets.

c) Based on the examination of the registered sale deed / transfer deed/ conveyance deed provided to us we report that the title deeds of all the immovableproperties (other than immovable properties where the Company is the lessee and the leaseagreements are duly executed in favour of the Company) disclosed in the financialstatements included in Investment properties are held in the name of the Company as at thebalance sheet date.

d) The Company has not revalued its Property Plant and Equipment andintangible assets during the year.

e) No proceedings have been initiated or are pending against theCompany as at 31st March 2022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

(ii) a) The Company is in the business of providing loans and does nothave any physical inventories. Accordingly the provision of clause 3(ii)(a) of the Orderis not applicable to it.

b) According to the information and explanations given to us theCompany has not been sanctioned working capital limits in excess of Rs. 5 crores inaggregate at any point of time during the year from bank on the basis of security ofcurrent assets. Accordingly the provision of the said sub clause is not applicable.

(iii) a) The Company's principal business is to give loans.

Accordingly the provision of clause 3(iii)(a) of the Order is notapplicable to it

b) The Company being a Non-Banking Financial Company ('NBFC') isregistered under provisions of RBI Act 1934. In our opinion and according to theinformation and explanations given to us the investments made guarantees providedsecurity given and the terms and conditions of the grant of all loans and advances in thenature of loans and guarantees provided during the year are prima facie not prejudicialto the Company's interest.

c) The Company being a Non-Banking Financial Company ('NBFC')registered under provisions of RBI Act 1934 and rules made thereunder in pursuance ofits compliance with provisions of the said Act/Rules particularly the Income

Recognition Asset Classification and Provisioning Norms monitorsrepayments of principal and payment of interest by its customers as stipulated. In ouropinion and according to the information and explanations given to us in respect of loansand advances in the nature of loans the schedule of repayment of principal and payment ofinterest has been stipulated and in cases where repayment of principal and payment ofinterest is not received as stipulated the cognizance thereof is taken by the Company incourse of its periodic regulatory reporting. According to the information and explanationmade available to us reasonable steps are taken by the Company for recovery thereof.

d) The Company being a NBFC registered under provisions of RBI Act1934 and rules made thereunder in pursuance of its compliance with provisions of the saidAct/Rules particularly the Income Recognition Asset Classification and ProvisioningNorms monitors and report total amount overdue including principal and/or payment ofinterest by its customers for more than 90 days. In cases where repayment of principal andpayment of interest is not received as stipulated the cognizance thereof is taken by theCompany in course of its periodic regulatory reporting. Refer note no 34 to the StandaloneFinancial Statements for summarised details of such loans/advances which are not repaid byborrowers as per stipulations. According to the information and explanation made availableto us reasonable steps are taken by the Company for recovery thereof.

e) Since the Company's principal business is to give loans.Accordingly the provision of clause 3(iii)(e) of the Order is not applicable to it.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has granted loans to party covered under Section 185 of the Act.The provision of section 185 and 186 of the Companies Act 2013 have been complied with.

(v) The Company has not accepted any deposits from the public withinthe meaning of Section 73 to 76 of the Act and Rules framed there under to extentnotified.

(vi) The Central Government has not prescribed the maintenance of costrecords under sub-section (1) section 148 of the Act for the business activities carriedout by the Company. Accordingly the provision of clause 3(vi) of the Order is notapplicable to the Company

(vii) According to the information and explanations given to us and therecords of the Company examined by us in our opinion

a) the Company is generally regular in depositing the undisputedstatutory dues including provident fund employee state insurance income tax sales taxservice tax GST duty of customs duty of excise value added tax cess and any othermaterial statutory dues as applicable with the appropriate authorities.

Further no undisputed amounts payable in respect of provident fundemployee state insurance income tax sales tax Goods and Service tax duty of customsduty of excise value added tax cess and any other material statutory dues were inarrears as at March 31 2022 for a period of more than six months from the date they becamepayable.

b) According to the information and explanations given to us and therecords of the company examined by us the dues in respect of sales tax income-tax dutyof customs Goods and Service tax entry tax value added tax central sales tax duty ofexcise there are no amounts which have not been deposited with the appropriate authorityon account of any dispute.

(viii) In our opinion and according to the information and explanationsgiven to us and on the basis of our examination of the records of the Company we confirmthat we have not come across any transactions not recorded in the books of account whichhave been surrendered or disclosed as income during the year in the tax assessments underthe Income Tax Act 1961.

(ix) a) According to the records of the company examined by us and theinformation and explanation given to us the company has not defaulted in repayment ofloans or borrowings to any financial institution bank or Government as at the Balancesheet date.

b) The company is not declared as a wilful defaulter by any bank orfinancial institution or other lenders.

c) Company has vehicle loan from Banks. The said loan has been appliedfor the purpose for which it was obtained.

d) According to the records of the company examined by us and theinformation and explanation given to us the funds raised on short term basis have notbeen utilised for long term purposes.

e) As per the records of the company examined by us and the informationand explanation given to us no funds are taken from any entity to meet the obligations ofthe subsidiary or associate companies.

f) As per the records of the company examined by us and the informationand explanation given to us the company has raised no loans during the year on pledge ofsecurities held in its subsidiaries.

(x) The Company did not raise any moneys by way of initial public offeror further public offer including debt instruments) nor has made any preferentialallotment of shares during the year hence paragraph 3 (x) of the order is not applicableto the Company.

(xi) a) During the course of our examination of the books and recordsof the Company carried out in accordance with the generally accepted auditing practicesin India and according to the information and explanation given to us we have neithercome across any instances of material fraud by the Company or on the Company by itsofficers or employees noticed or reported during the year nor have we been informed of anysuch case by the management.

b) As there are no frauds hence sub para (b) of clause (xi) of theorder is not applicable to the company.

c) Whistle blower complaints if any received during the year wereconsidered by us.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredunder Ind AS and Companies Act 2013.

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

(b) We have considered the internal audit reports issued to theCompany during the year and covering the period upto 31st March 2022.

(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intoany non-cash transactions with directors or persons connected with him. Accordinglyparagraph 3(xv) of the Order is not applicable to the Company.

(xvi) a) The Company is required to be registered under Section 45-

A of the Reserve Bank of India Act 1934 and the Company has obtainedthe required registration.

b) According to the information and explanations given to us theCompany has not conducted any Non-Banking Financial activities without obtaining a validCoR from the Reserve Bank of India as per the Reserve Bank of India Act 1934.

c) According to the information and explanations given to us theCompany is not a Core Investment Company ('CIC') as defined under the Regulations by theReserve Bank of India.

d) As per information provided in course of our audit the Group towhich the Company belongs has no CIC's as defined in the Core Investment Companies(Reserve Bank) Directions 2016.

(xvii) The Company has not incurred any cash loss during the currentfinancial year as well as immediately preceding financial year.

(xviii) There is no resignation of the Statutory auditor during thecurrent financial year.

(xix) According to the information and explanation given to usincluding the financial ratios ageing and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the financialstatements and on the basis of Board of Directors and management plans nothing has cometo our attention which causes us to believe that material uncertainty exists as on thedate of the audit report indicating that the company is not capable of meeting itsliabilities existing at the date of balance sheet as and when they fall due within aperiod of one year from the balance sheet date. We however state that this is not anassurance as to the future viability of the Company. We further state that our reportingis based on the facts up to the date of the audit report and we neither give any guaranteenor any assurance that all liabilities falling due within a period of one year from thebalance sheet date will get discharged by the Company as and when they fall due.

(xx) According to the explanation given to us and based on our scrutinyof the books of accounts Section 135 of the Companies Act 2013 is not applicable for thefinancial year 2021-22 and hence the said clause of the order is not applicable to theCompany.

For Batliboi & Purohit
Chartered Accountants
Firm Registration Number:101048W
Raman Hangekar
Place: Mumbai Partner
Date: May 16 2022 Membership No. 030615
UDIN: 22030615AJASJC8762

Annexure - B to the Auditor?s Report

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

We have audited the internal financial controls over financialreporting of KJMC Financial Services Limited. ("the Company") as of 31 March2022 in conjunction with our audit of the financial statements of the Company for the yearended on that date.

Management?s Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India('ICAI').These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding 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 Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles.

A company's internal financial control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat 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 authorizations ofManagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper Managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

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

For Batliboi & Purohit
Chartered Accountants
Firm Registration Number:101048W
Raman Hangekar
Place: Mumbai Partner
Date: May 16 2022 UDIN: 22030615AJASJC8762 Membership No. 030615

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