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Knowledge Marine & Engineering Works Ltd.

BSE: 543273 Sector: Others
NSE: N.A. ISIN Code: INE0CJD01011
BSE 00:00 | 25 Jan 1181.65 -21.20
(-1.76%)
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NSE 05:30 | 01 Jan Knowledge Marine & Engineering Works Ltd
OPEN 1190.00
PREVIOUS CLOSE 1202.85
VOLUME 12750
52-Week high 1450.00
52-Week low 134.55
P/E 65.50
Mkt Cap.(Rs cr) 1,276
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1190.00
CLOSE 1202.85
VOLUME 12750
52-Week high 1450.00
52-Week low 134.55
P/E 65.50
Mkt Cap.(Rs cr) 1,276
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Knowledge Marine & Engineering Works Ltd. (KNOWLEDGEMARINE) - Auditors Report

Company auditors report

To the Members of

M/s Knowledge Marine & Engineering Works Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying financial statements of M/s Knowledge Marine &Engineering Works Limited ("the Company") which comprise the Balance Sheet asat March 312022 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and notes to the Financial Statements including a summary of the significantaccounting 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 financial statements give the information required by theCompanies Act 2013 ('Act') as amended in the manner so required and give a true and fairview in conformity with the Indian Accounting Standards prescribed under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended andother accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2022 the profit / loss account and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) as specifiedunder Section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementsection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion on the financial statements.

Key Audit Matters

Key Audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the standalone financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined that there are no key audit matters to communicate inour report.

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

Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion & Analysis Board's Report including Annexure to Board's Report CorporateGovernance Report but does not include the Standalone Financial Statements and ourauditor's report thereon.

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

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

If based on the 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 and Board of Directors' Responsibility for the Standalone FinancialStatements

Company's Management and Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these standalone financial statements in term of therequirements of the Act that give a true and fair view of the financial position profitand loss (financial performance) and cash flows of the Company in accordance with theaccounting principles generally accepted in India and as per Indian GAAP as specifiedunder Section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error which have been used for the purposeof preparation of the financial statements by the Management and Directors of the Companyas aforesaid.

In preparing the financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management / Board of Directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting 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 auditors' 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)?of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company 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.

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 for theyear ended 31st March 2022 and are therefore the key audit matters. We describe thesematters in our auditor's report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of Section 143 (11) of the Act and onthe basis of such checks of the books and records of the Company as we consideredappropriate and according to the information and explanation given to us we give in Annexure"A" a statement on the matters specified in the said order to the extendapplicable.

2) Further as required by Section 143 (3) of the Act based on our audit report wereport to the extent applicable to 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 of the aforesaidfinancial statements;

b) In our opinion proper books of account as required by law relating to preparationof the aforesaid standalone financial statements have been kept by the Company so far asit appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the relevant books of account maintainedfor the purpose of preparation of the standalone financial statements;

d) In our opinion the aforesaid Financial Statements comply with the AccountingStandards specified under Section 133 of the Act read with Companies (Indian AccountingStandards) Rules 2014 as amended;

e) On the basis of written representations received from the Directors as on 31stMarch 2022 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2022 from being appointed as a director in terms of Section164(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 B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's Internal FinancialControls over financial Reporting.

g) In our opinion the managerial remuneration for the year ended 31st March 2022 hasbeen paid/provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act; and.

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

(i) Company does not have any pending litigations which would impact its financialposition.

(ii) Company does not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses and

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

i)a) The management has represented that to the best of its knowledge and beliefother than as disclosed in the notes to accounts to the standalone financial statementsno funds have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entities ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries; [Refer note11 (h) of the Additional note to financial statements.]

b) The management has represented that to the best of its knowledge and belief nofunds have been received by the Company from any person or entity including foreignentities ("Funding Parties") with the understanding whether recorded inwriting or otherwise that the Company shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Party ("Ultimate Beneficiaries") or provide any guarantee securityor the like on behalf of the Ultimate Beneficiaries; and [Refer note 11 (h) of theAdditional note to financial statements.]

c) Based on such audit procedures performed that have been considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (a) and (b) contain any materialmisstatement.;

j) The Company has not declared or paid any dividend during the year

For R V Luharuka & Co LLP
Chartered Accountants
FRN: 105662W/W100174
Ramesh Luharuka
Partner
Place: Mumbai MRN: 031765
Date - 6th May 2022 UDIN - 22031765AINDCN4116

Annexure A to the Independent Auditor's Report

Annexure A to the Independent Auditor's Report of even date to the members of M/sKnowledge Marine & Engineering Works Limited on the financial statements for thetwelve months period ended 31st March 2022.

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

i. In respect of the Company's fixed assets

a. [A] Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment.

[B] The Company has no intangible assets hence not applicable.

b. The major Property Plant and Equipment of the company have been physically verifiedby the management at reasonable intervals during the year and no material discrepancieswere noticed on such verification.

c. According to the information and explanation given to us the title deeds of theimmovable properties (other than properties where the company is the lessee and the leaseagreements are duly executed in favour of the lessee) are held in the name of the company.

d. According to the information and explanation given to us the Company has notrevalued its Property Plant and Equipment (including Right of Use assets) or intangibleassets or both during the year.

e. According to the information and explanation given to us no proceedings have beeninitiated or are pending against the company for holding any benami property under theBenami Transactions (Prohibition) Act 1988 (45 of 1988) and rules made thereunder duringthe year.

ii. In respect of the Company's Inventory

a. As explained to us the inventories have been physically verified during the year bythe management. In our opinion having regard to the nature and location of stocks thefrequency of the physical verification is reasonable. As informed to us any discrepanciesof 10% or more in the aggregate for each class of inventory were not noticed on suchverification.

b. Company is in the business of providing services related to Shipping and does nothave any physical inventories. Accordingly reporting under clause 3(ii) is not applicableto the Company. However during the course of services there are some consumables usedwhich are purchased as per the requirement.

c. As disclosed in note C to the financial statements the Company has been sanctionedworking capital limits in excess of Rupees five crores in aggregate from Banks during theyear on the basis of security of current assets of the Company. The monthly statementsfiled by the Company with such banks and financial institutions are in agreement with thebooks of accounts of the Company.

iii. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has made investments and grantedCorporate Guarantees to its subsidiaries/associates/Joint Ventures during the yeardetails of such investments and guarantees are stated in sub-clause (a) below.

a. I. To Subsidiaries Joint Ventures Associates - Investments

(Rs. In lakhs)
S. No. Name of the Subsidiaries Aggregate amount during the year Balance outstanding as on 31.03.2022
1 M/s KMEW Offshore Private Limited 75.00 75.00
2 M/s Indian Ports Dredging Private Limited 0.70 0.70
3 M/s Knowledge Infra Ports Private Limited 0.74 0.74

II. To Subsidiaries Joint Ventures Associates - Corporate Guarantees

(Rs. In lakhs)
S. No. Name of the Subsidiaries Aggregate amount during the year Balance outstanding as on 31.03.2022
1 M/s KMEW Offshore Private Limited 200.00 200.00
2 M/s Indian Ports Dredging Private Limited 70.00 70.00

Based on the audit procedures carried on by us and as per the information andexplanations given to us the Company has not provided any loans to parties other thansubsidiaries Joint Ventures and Associates.

b. According to the information and explanations given to us and based on the auditprocedures conducted by us we are of the opinion that the terms and conditions of theinvestments and corporate guarantees given are prima facie not prejudicial to theinterest of the Company.

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company since no loans have been provided soaccordingly the provisions of Clause 3(iii) c d e and f of the Order are not applicableto the Company.

iv. In our opinion and according to the information and explanations given to usprovisions of section 186 of the Act in respect of investments made have been compliedwith by the Company. Further in our opinion and according to the information andexplanations given to us there are no loans guarantees and securities given in respectof which provisions of section 185 and 186 of the Act are applicable. Accordingly therequirement to report on clause 3 (iv) of the order is not applicable to that extent tothe company.

v. According to the information and explanation given to us the company has notaccepted any deposits whether the directives issued by the Reserve Bank of India and theprovisions of sections 73 to 76 or any other relevant provisions of the Companies Act2013. Hence the provisions of clause (v) of Paragraph 3 are not applicable to the Company.

vi. To the best of our knowledge and belief the Central Government has not specifiedmaintenance of cost records under sub-section (1) of Section 148 of the Act in respect ofCompany's products/ services. Accordingly the provisions of clause 3(vi) of the Order arenot applicable.

vii. a. According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Goods and Services Tax ('GST')Provident fund Employees' State Insurance Income-tax Duty of Customs Cess and othermaterial statutory dues have generally been regularly deposited with the appropriateauthorities. Further no undisputed amounts payable in respect thereof were outstanding atthe year-end for a period of more than six months from the date they became payable.

b. According to the information and explanations given to us there are no dues of GSTProvident fund Employees' State Insurance Income-tax Sales tax Duty of Customs Valueadded tax Cess or other statutory dues which have not been deposited by the Company onaccount of dispute.

viii. According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has not surrendered ordisclosed any transactions previously unrecorded as income in the books of account inthe tax assessments under the Income-tax Act 1961 as income during the year.

ix. a. In our opinion the Company has not defaulted in repayment of loans or otherborrowings or in the payment of interest thereon to any lender during the year;

b. Company is not declared wilful defaulter by any bank or financial institution orother lender;

c. According to the information and explanation given to us term loans were raisedduring the year. On an overall examination of the financial statements of the Company anamount of Rs. 12.75 crores were raised by the Company as Term loan for acquiring andmodification of the vessel River Pearl 8 (Ex Cauvery) during the current financial year.

d. According to the information and explanation given to us the funds raised forshort term basis have not been utilized for long term purposes by the company.

e. According to the information and explanation given to us the company has nottaken any funds from any entity or person on account of or to meet the obligations of itssubsidiaries associates or joint ventures;

f. According to the information and explanation given to us the company has notraised loans during the year on the pledge of securities held in its subsidiaries jointventures or associate companies.

x. a. The Company has raised moneys by way of initial public offer or furtherpublic offer (including debt instruments)

in March 2021 and the proceeds of the IPO is also used in the Financial Year 21-22 asfollows:-

(Rs. In Lakhs)
Object of an Issue Allocation of funds Funds Utilised in the FY 2020-2021 Funds Utilised in the FY 2021-2022 Balance
Issue Expenses 105.11 75.16 0.00 0.00
Working Capital Requirement 760.00 0.00 760.00 0.00
General Corporate Purpose 147.21 0.00 177.16 0.00
Total 1012.32 75.16 937.16 0.00

According to the information and explanation given to us the surplus amount of issueexpenses i.e. Allocation minus utilized in the FY 2020-2021 is utilized towards GeneralCorporate Purpose as was mentioned by the Company in the Objects of an issue of Prospectusdated 2nd March 2021.

b. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has no preferential allotment ofoptionally convertible debentures and hence not applicable.

xi. a. During the course of our examination of the books of account carried inaccordance with the generally accepted auditing standards in India we have neither comeacross any instance of fraud on or by the Company either noticed or reported during theyear nor have we been informed of such case by the Management.

b. According to the information and explanations given to us no report undersub-section (12) of Section 143 of the Companies Act 2013 has been filed by the auditorsin Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government.

c. As represented to us by the management there are no whistle blower complaintsreceived by the Company during the year. Therefore clause xi(c) of paragraph 3 is notapplicable.

xii. Company is not Nidhi Company and hence Clause (xii) of the Companies(Auditor's) Report Order 2020 is not applicable.

xiii. In our opinion and according to the information and explanations given to usthe transactions with related parties are in compliance with Sections 177 and 188 of theCompanies Act 2013 where applicable and the details of the related party transactionshave been disclosed in the standalone financial statements as required by the applicableStandards.

xiv. a. The Company has an internal audit system commensurate with the size andnature of its business.

b. The internal audit reports of the Company issued till the date of the auditreport for the period under audit have been considered by us.

xv. In our opinion and according to the information and explanations given to usthe Company has not entered into any non-cash transactions with its directors or personsconnected to its directors and hence provisions of Section 192 of the Companies Act 2013are not applicable to the Company.

xvi. According to the information and explanations given to us we are of theopinion that the company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934 and the company is not a Core Investment Company (CIC) asdefined in the regulations made by the Reserve Bank of India accordingly the provisionsof clause 3(xvi) of the Order are not applicable.

xvii. According to the information and explanations given to us and based on theaudit procedures conducted we are of opinion that the company has not incurred any cashlosses in the financial year and the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors during the year.Accordingly clause (xviii) of Paragraph 3 of the Order is not applicable.

xix. On the basis of the financial ratios ageing and expected dates of realizationof financial assets and payment of financial liabilities other information accompanyingthe financial statements our knowledge of the Board of Directors and management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that company is incapable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the company as and when they fall due. [Refer note no1.13 of the significant policies and notes to standalone accounts.

xx. a. In our opinion and according to the information and explanations given tous there is no unspent amount under sub-section (5) of Section 135 of the Companies Act2013 in respect of other than ongoing project. Accordingly clauses (xx)(a) of Paragraphof the Order are not applicable. b. In our opinion and according to the informationand explanations given to us there are no ongoing project as per section 135 of theCompanies Act. Accordingly clauses (xx)(b) of Paragraph 3 of the Order are notapplicable.

xxi. Clause xxi of the CARO 2020 is not applicable in the report on the standalonefinancials of the Company.

For R V Luharuka & Co LLP
Chartered Accountants
FRN: 105662W/W100174
Ramesh Luharuka
Partner
Place: Mumbai MRN: 031765
Date - 6th May 2022 UDIN - 22031765AINDCN4116

Annexure B to the Independent Auditor's Report

Annexure B to the Independent Auditor's Report of even date to the members of KnowledgeMarine and Engineering Works Limited on the financial statements for year ended on 31stMarch 2022.

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 KnowledgeMarine & Engineering Works Limited ("the Company") as of 31stMarch 2022 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting with reference to these StandaloneFinancial Statements and such internal financial controls over financial reporting wereoperating effectively as at 31st March 2022 based on the internal control overfinancial 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

Company's management is responsible for establishing and maintaining internal financialcontrols based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India ('ICAI'). 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.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these Financial Statements based onour audit. We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting (the "Guidance Note") andthe Standards on Auditing as specified under Section 143(10) of the Act 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. 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 with reference to theseFinancial Statements was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting with reference to theseFinancial Statements and their operating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining an understanding of internalfinancial controls over financial reporting assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements 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 over financialreporting with reference to these Financial Statements.

Meaning of Internal Financial Controls over Financial Reporting with reference to theseFinancial Statements

Company's internal financial control over financial reporting is a process designed toprovide 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 with reference to these Financial Statements includes those policies andprocedures 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 authorizations 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 with reference to these Financial Statements including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting to future periods are subject to therisk that the internal financial control over financial reporting may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

For R V Luharuka & Co LLP
Chartered Accountants
FRN: 105662W/W100174
Ramesh Luharuka
Partner
Place: Mumbai MRN: 031765
Date - 6th May 2022 UDIN - 22031765AINDCN4116

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