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Kothari Products Ltd.

BSE: 530299 Sector: Others
NSE: KOTHARIPRO ISIN Code: INE823A01017
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VOLUME 916
52-Week high 137.40
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P/E 823.75
Mkt Cap.(Rs cr) 295
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OPEN 99.95
CLOSE 98.65
VOLUME 916
52-Week high 137.40
52-Week low 55.10
P/E 823.75
Mkt Cap.(Rs cr) 295
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kothari Products Ltd. (KOTHARIPRO) - Auditors Report

Company auditors report

To

The Members of Kothari Products Limited

REPORT ON THE AUDIT OF THE STANDALONE IND AS FINANCIAL STATEMENTSOPINION

We have audited the standalone financial statements of Kothari ProductsLimited ("the Company") which comprise the Standalone Balance Sheet as at 31March 2020 the Standalone Statement of Profit and Loss (including other comprehensiveincome) Standalone Statement of Changes in Equity and Standalone Statement of Cash Flowsfor the year then ended and notes to the standalone financial statements including asummary of significant accounting policies and other explanatory information (hereinafterreferred to as "the standalone financial statements").

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 Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March 2020and profit (including other comprehensive income) changes in equity and its cash flowsfor 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 Act. Our responsibilities under those SAs arefurther described in the 'Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements' section 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 standalone financial statements underthe provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and theCode of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

KEY AUDIT MATTERS

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Ind AS financial statements for thefinancial year ended March 312020. These matters were addressed in the context of ouraudit of the Ind AS financial statements as a whole and in forming our opinion thereonand we do not provide a separate opinion on these matters.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor's responsibilities for the audit of the Ind AS financial statements sectionof our report including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the Ind AS financial statements. The results of our audit proceduresincluding the procedures performed to address the matters below provide the basis for ouraudit opinion on the accompanying Ind AS financial statements.For each matter below ourdescription of how our audit addressed the matter is provided in that context.

1. Impact of the COVID-19 Pandemic on the Company's ability to continueas a going concern:

The company is primarily engaged in exports and its receivablescomprise of debts due from various overseas parties. Thus vis-a-vis the company theimpact of COVID-19 pandemic on recoverability of its receivables and future businessprospects on its ability to continue as a going concern required extensive verificationprocedures analysis of the post Balance Sheet events management discussions andjudgements.

How our audit addressed the key audit matter

For the matter referred to above our procedures included amongothers verification and recovery pattern of all material export receivables upto the dateof completion of our audit other relevant documentation/correspondence includingcorrespondence with Banks customers on-going/pending export orders and shipments to thevarious parties assessing management's conclusions etc. in view of the laid downaccounting and measurement principles.

2. Verification of inventories as at the close of the year:

In view of the fact that a nationwide lockdown was in force as at thereporting date the inventories as at the said date could

not be verified physically. Thus recognition and valuation ofinventories as at the reporting date required extensive verification procedures analysisof the post Balance Sheet events management discussions and judgements.

How our audit addressed the key audit matter

For the matter referred to above our procedures included amongothers verification of material items of inventories after the close of the year andreconciliation of the same to the closing inventories as at the reporting date; analysisof impact of fall in recoverable prices on the value of the stock in trade verificationof documents and records submitted to various authorities including revenue authorities;checking of documents evidencing movement of material after lifting of the lockdowndiscussions with management etc.

EMPHASIS OF MATTER

Reference is invited towards Note No.47 which describes the change inclassification of certain items of the Balance Sheet which has resulted inreclassification of the corresponding said items for the preceding year as well. Thecompany has not presented a third balance sheet as at the beginning of the precedingperiod as required under Ind-AS-1 since in terms of Para 40A thereof suchreclassification is said to not have a material effect on the information in the balancesheet at the beginning of the preceding period.

Our report is not modified in respect of the above matter.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITOR'S REPORTTHEREON

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 standalone Ind AS financial statements and our auditor'sreport thereon.

Our opinion on the standalone Ind AS financial statements does notcover the other information and we do not express any form of assurance conclusionthereon.

In connection with our audit of the standalone Ind AS financialstatements our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.However the 'other information' has not been made available upto the date of this report.

After the Other Information is made available to us if based on thework we have performed we conclude that there is a material misstatement therein we arerequired to communicate the matter to those charged with governance.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS

The Company's management and Board of Directors are responsible for thematters stated in Section 134(5) of the Act with respect to the preparation of thesestandalone financial statements that give a true and fair view of the state of affairsprofit (including other comprehensive income) changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements management and Boardof Directors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so.

Board of Directors is also responsible for overseeing the Company'sfinancial reporting process.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIALSTATEMENTS

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.As part of an audit in accordance with SAs we exercise professional judgment and maintainprofessional skepticism throughout the audit.

We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls with reference to standalonefinancial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• 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 auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

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 standalonefinancial statements of the current period 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 communicated in 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

As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of Section 143(11) of theAct we give in "Annexure A" a statement on the matters specified in paragraphs3 and 4 of the Order to the extent applicable.

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

a) 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.

b) 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.

c) The Balance Sheet the Statement of Profit and Loss (including othercomprehensive income) the Statement of Changes in Equity and the Statement of Cash Flowsdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements complywith the Ind-AS specified under Section 133 of the Act.

e) On the basis of the written representations received from thedirectors as on 31st March 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on 31stMarch 2020 from being appointed as a director in termsof Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls withreference to financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".

(B) With respect to the other matters to be included in the Auditor'sReport 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:

i. The Company has disclosed the impact of pending litigations as at 31March 2020 on its financial position in its standalone financial statements.

ii. The Company does not have any long term contracts requiring aprovision for material foreseeable losses.

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

iv. The disclosures in the standalone financial statements regardingholdings as well as dealings in specified bank notes during the period from 8 November2016 to 30 December 2016 have not been made in these standalone financial statements sincethey do not pertain to the financial year ended 31 March 2020.

(C) With respect to the matter to be included in the Auditor's Reportunder section 197(16):

In our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of Section 197 read with Schedule V of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) whichare required to be commented upon by us.

Place : Kanpur For RAJIV MEHROTRA & ASSOCIATES
Date : 31st July 2020 CHARTERED ACCOUNTANTS
FIRM REG. NO. 002253C
(Anjani Kheterpal)
Partner
M. No. 401701

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in Para 1 under 'Report on Other legal and RegulatoryRequirements' section of our report of even date)

Re: Kothari Products Ltd.

We report that:

(i) a. The company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed

assets.

b. The company has a program of physical verification of fixed assetsso as to cover all the items over a period of three years. In accordance with thisprogramme property plant and equipment were verified during the year and no materialdiscrepancies were noticed on such verification.

c. According to the information and explanations given to us and therecords examined by us and based on the registered sale deeds/transfer deeds etc.evidencing title in immovable properties which are freehold we report that the immovableproperties capitalized in the books of account of the company are held in its name.

(ii) a. According to the information explanations and documentsproduced for our verification we report that the inventory of

traded goods and immovable properties have been physically verified bythe management at reasonable intervals during the year at various locations and nomaterial discrepancies were noticed on such physical verification. However no yearendphysical verification of stocks was done by the Management due to the nationwide lockdownimposed by the Government of India on account of the COVID-19 pandemic.

b. The procedures of physical verification of inventories followed bythe management are reasonable and adequate in relation to the size of the company and thenature of its business.

c. The company has maintained proper records of inventory. According tothe information and explanations given to us and on the basis of our examination ofrecords we are of the opinion that no material discrepancies were noticed on physicalverification and the same have been properly dealt with in the books of accounts.

(iii) a. That as regards the loans to entities covered in the Registermaintained u/s 189 of the Companies Act 2013 it is reported

that:

- The company has granted unsecured loan to its Subsidiary andassociates during the year under consideration.

- The total outstanding balance as at the close of the year in respectof such advances was INR 26779.41 Lakhs (PY-INR 13293.75 Lakhs).

- That of the total amount as reported above an amount of INR 5518.18Lakhs (PY- INR 5518.18 lakhs) represents interest free Joint Venture Deposits made by thecompany in earlier years.

b. In our opinion and according to the information and explanationsgiven to us the terms and conditions of the grant of such loans (other than the interestfree Joint Venture Deposits) are not prejudicial to the company's interest.

c. That as per the information and explanations given to us there isno repayment schedule in respect of the short term advance given to the subsidiary and thesame is repayable on demand. That as regards the loans given to the Associate concernsas per the information and explanations given to us and the terms of loans/advances madeby the company no advances are due for payment within one year from the close of theyear.

d. That as per the information and explanations given to us and termsof the loans given by the company there are no amounts overdue on account ofinterest/principal.

e. That as per the information and explanations given to us the JointVenture Deposits are in the nature of strategic investments and there is no stipulation asto the repayment of the same or servicing of interest on the same.

(iv) In Our opinion and according to the information and explanationsgiven to us the company has complied with the provisions of section 185 and 186 of theCompanies Act 2013 in respect of grant of loans making investments and providingguarantees except with respect to the following:

b. Interest free Joint Venture Deposit granted by the company inearlier years as stated in the para above.

c. Non-payment of interest on Loan by the company to its wholly ownedsubsidiary viz. M/s Adyashakti Realtors Ltd.- As per the information and explanation givento us and on the basis of examination of the records and documents produced for ourverification the company had initiated proceedings for merger of the said subsidiary with01.04.2019 as the appointed date. However the merger proceedings are still pending owingto the disruption and Nationwide lockdown on account of the COVID-19 pandemic. The companyis pursuing the same and thus according to the company no interest is payable during theyear as the effective date of merger is 1.4.2019 thus no interest has been paid to thesubsidiary.

(v) In our opinion and according to the information and explanationsgiven to us the company has not accepted any public deposits. No Order has been passed bythe Company Law Board/National Company Law Tribunal or Reserve Bank of India.

(vi) In our opinion and according to the information and explanationsgiven to us the company is not liable for maintenance of cost records u/s 148 of theCompanies Act 2013.

(vii) (a) The company is regular in depositing with appropriateauthorities undisputed statutory dues including investor

education protection fund income tax sales tax wealth tax servicetax & customs duty and other material statutory dues applicable to it. According tothe information and explanations given to us no undisputed amounts payable in respect ofprovident fund income tax sales tax wealth tax customs duty VAT cess and othermaterial statutory dues were in arrears as at 31st March 2020 for a period of more thansix months from the date they became payable.

(b) As per the information and explanations given to us and on thebasis of the verification of the records of the company the statutory dues which have notbeen deposited on account of disputes are as under:

Sl. No. Name of the Statue Nature of Dues Amount in ?Lacs Pending amount Period to which the amount relates Forum where dispute is pending
1. Income Tax Act Income Tax 1.68 1.68 A Y 2013 -14 CPC Bangalore
2. Income Tax Act Income Tax 47.16 47.16 A Y 2013-14 CIT(Appeal). The company has also filed a petition under the Vivad Se Vishwas Scheme
3. Income Tax Act Income Tax 874.01 80.26 A Y 2016-17 CIT(Appeal)
4. Income Tax Act Income Tax 67.02 67.02 A Y 2010-11 CPC Bangalore
5. Income Tax Act Income Tax 30.04 - A Y 2009-10 Income Tax Appellate Tribunal
6. Income Tax Act Income Tax 97.43 97.43 A Y 2009-10 Jurisdictional AO
7. Income Tax Act Income Tax 2.68 2.68 A Y 2009-10 Jurisdictional AO
8. Income Tax Act Income Tax 206.72 - Block Period High Court
9. Income Tax Act Income Tax 65.12 - A Y 2001-02 High Court
10. Income Tax Act Income Tax 117.93 - A Y 2001-02 High Court
11. Income Tax Act Income Tax 29.12 - A Y 2008-09 High Court
12. Income Tax Act Income Tax 19.12 19.12 A Y 2011-12 Jurisdictional AO
13. Income Tax Act Income Tax 22.14 22.14 A Y 2015-16 Jurisdictional AO
14. Income Tax Act TDS Interest and penalty 1.35 1.35 Several years TDS Centralized processing center
15. Income Tax Act Income Tax 5.20 5.20 A Y 2012-13 CIT(Appeal). The company h as also filed a petition under the Vivad Se Vishwas Scheme
16. Income Tax Act Income Tax 6.94 6.94 A Y 2014-15 CIT(Appeal). The company h as also filed a petition under the Vivad Se Vishwas Scheme
17. U.P. Sales Tax Act* Luxary Tax & Sales Tax 17.97 17.97 1994-1995 Deputy Commiss ioner Commercial Tax
18. Tamilnadu VAT ACT* Sales Tax 272.00 272.00 2000-2001 Supreme Court
19. Central Excise Act Prosecution of Excise Act Amount unascertainable - - CJM Court
20. C.R.P.C. U/S 482 C.R.P.C. Amount unascertainable - - High Court
21. E.P.F Act Provident Fund Due 2.03 2.03 2009-2010 High Court

(viii) In our opinion and according to the information and explanationsgiven to us the company has not defaulted in repayment of dues to any financialinstitution Banks or Government. There are no debenture holders.

(ix) In our opinion and according to the information and explanationsgiven to us the company has applied term loans for the purposes for which the same wereavailed. The company is a listed company. However no funds have been raised through apublic offering in the year under consideration.

(x) According to the information and explanations given to us no fraudby the company or on the company by its officers or employees has been noticed orreported during the course of our audit.

(xi) In our opinion and according to the information and explanationsgiven to us the company has paid/provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 r.w. Schedule V of theCompanies Act 2013.

(xii) The Company is not a Nidhi Company and hence the reporting underclause (xii) of CARO 2016 Order is not applicable.

(xiii) In our opinion and according to the information and explanationsgiven to us the company has complied with Sections 177 and Section 188 of the CompaniesAct 2013 where applicable for all transactions with related parties and the details ofrelated party transactions have been disclosed in the financial statements etc. asrequired by the applicable accounting standards.

(xiv) During the year the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures andhence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.

(xv) In our opinion and according to the information and explanationsgiven to us the company has not entered into any noncash transactions with its directorsor directors of its subsidiary or associate companies or persons connected with themduring the year under consideration and hence provisions of section 192 of Companies Act2013 are not applicable.

(xvi) In our opinion the company is not required to be registered underSection 45-IA of the Reserve Bank of India Act 1934.

Place : Kanpur For RAJIV MEHROTRA & ASSOCIATES
Date : 31st July 2020 CHARTERED ACCOUNTANTS
FIRM REG. NO. 002253C
(Anjani Kheterpal)
Partner
M. No. 401701

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in Para 2(f) under 'Report on Other legal and RegulatoryRequirements' section of our report of even date)

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER SECTION 143(3)(I) OFTHE COMPANIES ACT 2013 ("THE ACT")

We have audited the internal financial controls with reference tofinancial statements of Kothari Products Limited ("the Company") as of March312020 in conjunction with our audit of the financial statements of the Company for theyear ended on that date.

OPINION

In our opinion to the best of our information and according to theexplanations given to us the company has in all material aspects an adequate internalfinancial control's system over financial reporting and such internal financial controlswith reference to financial statements were operating effectively as at March 31st 2020based on the internal control over financial reporting criteria established by the companyconsidering the essential components of internal control stated in Guidance Note of Auditof Internal financial Controls Over financial Reporting issued by the Institute ofChartered Accountants of India.

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. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to financial statements based on our audit. We conductedour audit in accordance with the Guidance Note on Audit of Internal financial controlswith reference to financial statements (the "Guidance Note") and the Standardson Auditing to the extent applicable to an audit of internal financial controls bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlswith reference to financial statements was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal controls based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system with reference to financial statements.

MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIALSTATEMENTS

A company's internal financial control with reference to FinancialStatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial control with reference to Financial Statements includes those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TOFINANCIAL STATEMENTS

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 withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to Financial Statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Place : Kanpur For RAJIV MEHROTRA & ASSOCIATES
Date : 31st July 2020 CHARTERED ACCOUNTANTS
FIRM REG. NO. 002253C
(Anjani Kheterpal)
Partner
M. No. 401701

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