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Kothari Fermentation & Biochem Ltd.

BSE: 507474 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE991B01010
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NSE 05:30 | 01 Jan Kothari Fermentation & Biochem Ltd
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OPEN 54.80
CLOSE 54.85
VOLUME 3272
52-Week high 94.35
52-Week low 47.05
P/E
Mkt Cap.(Rs cr) 81
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kothari Fermentation & Biochem Ltd. (KOTHARIFERMENT) - Auditors Report

Company auditors report

To

The Members of

Kothari Fermentation & Biochem Limited Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Kothari Fermentation& Biochem Limited ('the Company’) which comprise the balance sheet as at 31stMarch 2022 the statement of profit and loss including the statement of othercomprehensive income the cash flow statement and the Statement of changes in equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS Financial statements give the information required bythe Companies Act2013 ("the Act") in the manner so required and give a true andfair View in conformity with the Indian Accounting Standard prescribed under section 133of the Act read with the Companies (Indian Accounting Standard) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of Affairs of the Company as at March 312022 the profit and total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the 'Auditor’sResponsibilities for the Auditof the Ind AS Financial Statements’ section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the Ind AS financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI’s Code ofEthics. We believe that the auditevidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key Audit Matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements for the financial year endedMarch 312022. These matters were addressed in the context of our audit of the Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

For each matter below our description of how our audit addressed the matter isprovidedin that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor’s responsibilities for the audit of the Ind AS financial statements sectionof our report including in relation to these matters.

Accordingly our audit included the performance of procedures designed to respond toour assessment of the risks of material misstatement of the Ind AS financial statements.

The resultsof our audit procedures including the procedures performed to address thematters below provide the basis for our audit opinion on the accompanying Ind ASfinancial statements.

S. No. Key Audit Matter Auditor’s Response
1 Existence of Inventories We have performed the following principal audit procedures in relation to validating the existence and condition of inventories which include a combination of testing internal controls and substantive testing as under:
As at March 31 2022 the Company inventories aggregating Rs. 1820.22 lakhscomprising 14% of the total assets of the Company as on that date which inventories are geographically spread across multiple locations such as factory/ depots.These inventories are physically verified by the Management in accordance with a physical verification plan. • Understood Management’s control over physical inventory counts.
For the aforementioned reason and also since the inventory balance is material the existence and condition thereof has been considered as a key audit matter. • Evaluation of the design and testing the operating effectiveness of the internal controls relating to physical inventory counts.
• Performed alternate procedures including inspection of documentation of the subsequent sale of inventories to audit the existence and condition of inventory as per guidance providedin SA 501 "Audit Evidence - Specific Considerations for Selected Items" and have obtained sufficient appropriate audit evidence.
• We have also performed roll-forward procedures for establishing the existence of inventory as at year-end by validating purchases sales stock movement of inventory during the inter vening period i.e. from the date physical verification was done till the year end date.
• Verification of documentary evidences of damaged and expired stock and the adequacy of recorded allowance in respect of Inventories.
2 Evaluation of uncertain tax positions We have obtained details of complete tax assessments and demand as at March 312022 from management.
Refer Notes 29 to the Financial Statements. The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. We considered management’s assessment of the validity and adequacy of provisions for uncertain tax positions evaluating the basis of assessment and reviewing relevant correspondence and legal advice where available including any information regarding similar cases with the relevant tax authorities.
We assessed validity and adequacy of provisions for uncertain tax positions in respect of Income tax demandand have discussed the probable outcome of the case with the key management and considered their views on the same.We have found the appropriateness of management’s assumptions and estimates reasonable.

Other Information

The Company’s Board of Directors is responsible for the other information. Theother information comprises the Director’s Report Secretarial Audit ReportManagement Discussion and Analysis (but does not include the standaloneInd AS financialstatements and our auditor’s report thereon) which we obtained prior to the date ofthis auditor’s report.

Our opinion on the Ind AS financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the financial statementsor our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required toreport that fact. We have nothing 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 Companies Act 2013 ("the Act") withrespect to the preparation andpresentation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India includingthe Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act read with Company (Indian Accounting Standards) Rules2015as amended. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safe guarding the assets of the Companyand 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 Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Ind AS financial statements management is responsible for assessingthe Company’s ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis ofaccounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. Board of Directors are also responsible for overseeingthe Company’s financial reporting process.

Auditor’s Responsibility for the audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS financialstatements as a whole are free from material misstatement whether due to fraud orerrorand to issue an auditor’s report that includes our opinion.Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and areconsidered material if individually or in the aggregatethey could reasonably be expected to influence the economic decisions of users taken onthe basis of these Ind AS 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 Ind AS financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficientand appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from erroras fraud may involve collusion forgeryintentional 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)(i) of the Act we are also responsible for expressing our opinion on whether the Companyhas adequate internal financial controls system in place and the operating effectivenessof 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'sabilityto 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 tocontinue asa going concern.

• Evaluate the overall presentation structure and content of the Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in amanner that achieves fairpresentation.

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 Ind AS financial statements forthe financial year ended March 312022 and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicatedin our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 sub-section (11) of section 143 ofthe Act we give in the Annexure - I a statement on the matters specified in theparagraph 3 and 4 of the order.

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

(a) We have sought and obtained all the information and explanations whichto 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 the statement ofother comprehensive income the cash flow statement dealt with by this Report are inagreement with the books of account;

(d) In our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Act read with companies (Indianaccounting Standards) Rule 2015 as amended;

(e) On the basis of the 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 31 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 II to this report";

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

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The company has disclosed the impact of pending litigations on its financialPosition in its Ind AS financial statements - Refer Note 29 to the financial Statements;

ii. The company did not have any long -term contracts including derivative contractsfor which there were any material for eseeable losses;

iii. There was no amount which were required to be transferred to the Investoreducation and Protection Fund by the company.

iv. a. The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate)have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentity ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

b. The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities 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;

c. Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule11(e) as provided under (a) and(b) above contain any material misstatement.

v. The company has not declared and paid any dividend during the year.

For Kothari Kuldeep & Co.
Chartered Accountants
ICAI Firm Registration No. - 015960C
CA KULDEEP KOTHARI
Partner
Place: New Delhi Membership No.: 413714
Dated: 30/05/2022 UDIN:- 22413714AJXDYV4242

The Annexure as referred in paragraph (1) 'Report on Other Legal and RegulatoryRequirements of our Independent Auditors’ Report to the members of KothariFermentation & Biochem Limited on the financial statements as of and for the yearended 31 March 2022

i. (a) (A) The Company has maintained proper records showing full particularsincluding Quantitative details and situation of property plant and equipment on the basisof available information.

(B) The Company has maintained proper records showing full particulars of intangibleassets on the basis of available information.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner by the management.In accordancewith this programme All the Fixed assets have not been physically verified by themanagement during the year which in our opinion is reasonable having regard to the sizeof company and nature of its assets. No material discrepancies were noticed on suchverification as compared with the available records.

(c) According to the information and explanations provided to us and on the basis ofour examination of the registered sale deed/conveyance deed (other than properties wherethe company is the lessee and the lease agreement are duly executed in favour of thelessee)We report that the title deeds comprising the immovable Properties of land andbuilding which are freehold are held in the name of the Company as at the balance sheetdate.

(d) The Company has not revalued its property plant and equipment (including right ofuse assets) and intangible assets during the year. Therefore the provisions of clause3(i)(d) of the Order are not applicable to the Company

(e) According to information and explanations given by the management no proceedingshave been initiated or are pending against the Company for holding any benami propertyunder the Prohibition of Benami Property Transactions Act 1988(as amended in 2016) andrules made thereunder. Therefore provisions of clause 3(1)(e) of the Order are notapplicable to the Company.

ii. (a) The management has conducted Physical Verification of inventory at reasonableintervals during the year other than stock lying with third parties and in our opinionthe coverage and procedure of such verification by the management is appropriate. Asexplained to us and on the basis of records examined by us no discrepancies of 10% ormore in the aggregate for each class of inventory were noticed on such physicalverification.

(b) The Company has been sanctioned working capital limits during the year in excess offive crores rupees in aggregate from a bank on the basis of security of current assets.Based on the examinations of the books of accounts and quarterly statements submitted tothe bank aggregate value of stocks and debtors are not in agreement with the books ofaccounts as mentioned in note no. 42 to the financial statements.

iii. In Our opinion and according to the information provided to us the Company hasnot made any investments provided any guarantee or security or granted any loans oradvances in the nature of loans secured or unsecured to companies firms Limitedliability partnerships or any other parties during the year. Accordingly para 3(iii) a topara 3(iii) f are not applicable.

iv. The Company has no transaction with respect to loaninvestment guarantee andsecurity covered under section 185 and 186 of the Companies Act 2013 during the year.Therefore the provisions of clause3(iv) of the Order are not applicable to the Company.

v. According to the information and explanations given to us the Company has notaccepted any deposits under the provisions of Sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under. Accordinglyparagraph 3(v) of the Order is not applicable.

vi. According to the information and explanations given to us the Central Governmenthas not Prescribed the maintenance of cost records under section 148(1) of the companiesAct 2013 in respect of the activities carried on by the company.Therefore the provisionsof clause (vi) of paragraph 3 of the order is not applicable.

vii. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the company the company is regular in depositingamounts deducted/ accrued in the books of account in respect of undisputed statutory duesincluding provident fund employees’ state insurance income-tax duty of customsGoods and service tax cess and other statutory dues applicable to it. There were noundisputed outstanding statutory dues as at year end for a period of more than 6 monthsfrom the date they became payable.

(b) According to the information and explanation given to us and the records of thecompany examined by us there are not statutory dues referred to in sub clause (a) onaccount of any dispute except followings :

Name of the Statute Nature of Dues Amount (in Lacs) Period to which the amount relates Forum Where the dispute is pending
Income Tax Act Demand of Tax (Addition U/s 41(1) of the Income Tax Act1961) # Rs. 981.80 lacs A.Y. 2008-09 CIT(A) New Delhi & Hon’ble High Court Delhi

# Amount of Tax disputed and not deposited.

viii. According to the information and explanation given to us there were notransactions which have not recorded in the books of account have been surrendered ordisclosed as income in the tax assessments under the Income Tax Act 1961 (43 of 1961)during the year. Therefore provisions of clause 3(viii) of the Order are not applicableto the Company.

ix. (a) According to the information and explanation given to us and based on ourexamination of records the Company has not defaulted in repayment of loans or otherborrowings or in the payment of Interest there on to any lender and hence reporting underclause 3(ix)(a) of the Order is not applicable.

(b) Based on the information and explanations obtained by us the Company has not beendeclared willful defaulter by any bank or financial institution or other lender and hencereporting under clause 3(ix)(b) of the Order is not applicable.

(c) According to the information and explanation given to us and based on ourexamination of records the Company has applied the term loans for the purpose for whichthe loans were obtained.

(d) According to the information and explanation given to us and based on ourexamination of records funds raised on short- term basis have prima facie not been usedduring the year for long-term purposes by the Company. Accordingly reporting under thisclause 3(ix)(d) of the Order is not applicable.

(e) The Company has no subsidiaries joint ventures or associates. Therefore theprovisions of clause 3(ix)(e) of the Order are not applicable to the Company.

(f) The Company has no subsidiaries hence reporting under clause 3(ix)(f ) of theOrder is not applicable

x. (a) The Company did not raise any money by way of initial public offer or furtherpublic offer(including debt instruments) during the year. Therefore the provisions ofclause 3(x)(a) of theOrder are not applicable to the Company.

(b) The Company has not made any preferential allotment or private placement of sharesor convertible debentures (fully partially or optionally convertible) during theyear.Therefore the provisions of clause 3(x)(b) of the Order are not applicable to theCompany.

xi. (a) As per the information and explanation given to us and on the basis of ourexamination of the records we have neither come across any instance of material fraud bythe company or on the company or reported during the year nor have been informed of suchcase by the management.

(b) According to the information and explanation given to us and based on ourexamination of records no report under sub-section (12) of section 143 of the CompaniesAct has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government during the year and upto the date ofthis report.

(c) We have been informed that there are no whistle blower complaints received by theCompany during the year (and upto the date of this report). Accordingly the reportingunder the clause 3(xi)(c) of the Order is not applicable.

xii. The company is not Nidhi Company. Accordingly Clause (xii) (a) (xii)(b) and(xii)(c) of Para 3 of the order is not applicable to the Company.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableIndian accounting standards (Ind-As).

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

(b) We have considered internal audit reports of the Company issued till date for theperiod under audit.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him as referred to in section 192 ofcompanies act 2013. Accordingly paragraph 3(xv)of the Order is not applicable.

xvi. (a) The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.Accordingly the provisions of the clause 3(xvi)(a) of theOrder are not applicable to the company.

(b) According to the information and explanations given to us and based on ourexamination of the recordsthe Company has not conducted any Non-Banking Financial orHousing Finance activities. Accordinglyparagraph 3(xvi)(b) of the Order is notapplicable.

(c) According to the information and explanations given to us and based on ourexamination of the records the Company is not a Core Investment Company (CIC) as definedin the regulations made by the Reserve Bank of India accordingly paragraph 3(xvi)(c) ofthe Order is not applicable.

(d) According to the information and explanations given to us the Group does not haveany core investment company (CIC) and accordingly reporting under clause 3(xvi)(d) of theOrder is not applicable.

xvii. In our opinion and according to the explanation given to us the Company has notincurred any cash losses during the year and in the immediately preceding financial yearhence clause (xvii) of paragraph 3 is not applicable to the company.

xviii. There has been no resignation of the statutory auditors of the company henceclause (xviii) of paragraph 3 is not applicable to the company.

xix. On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and 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 not capable 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. In our opinionand according to the explanation given to us no material uncertainty exists on the date ofaudit report that the company is capable of meeting its liabilities existing at the dateof balance sheet as and when they fall due within a period of one year from the balancesheet date hence clause (xix) of the paragraph 3 is not applicable to the company.

xx. There are no unspent amounts towards Corporate Social Responsibility (CSR) onongoing or other than ongoing projects requiring a transfer to a Fund specified inScheduleVII to the Companies Act in compliance with second proviso to subsection (5) ofSection 135 of the said Act. Accordingly reporting under clause 3(xx)(a) and 3(xx)(b) ofthe Order is not applicable for the year. In our opinion and according to the explanationgiven to us there is no ongoing project of the company hence clause (xx) of paragraph 3is not applicable to the company.

xxi. The Company does not have subsidiary associate or joint venture. Therefore theprovisions of clause 3(xxi) of the Order are not applicable to the Company.

For Kothari Kuldeep & Co.
Chartered Accountants
ICAI Firm Registration No. - 015960C
CA KULDEEP KOTHARI
Partner
Place: New Delhi Membership No.: 413714
Dated: 30/05/2022 UDIN:- 22413714AJXDYV4242

Annexure - II to the Independent Auditors’ Report

Report on the Interna! Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") as referred to in paragraph 2(f) of‘Report on Other Legal and Regulatory Requirements’

We have audited the internal financial controls over financial reporting of KothariFermentation and Biochem Limited ("the Company") as of 31 March 2022 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered

Accountants of India ('ICAI’). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company’s policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 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 judgment 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 Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that :

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with 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 havea 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.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31stMarch 2022 basedon the 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 Kothari Kuldeep & Co.
Chartered Accountants
ICAI Firm Registration No. - 015960C
CA KULDEEP KOTHARI
Partner
Place: New Delhi Membership No.: 413714
Dated: 30/05/2022 UDIN:- 22413714AJXDYV4242

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