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Kothari Sugars & Chemicals Ltd.

BSE: 507190 Sector: Agri and agri inputs
NSE: KOTARISUG ISIN Code: INE419A01022
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Kothari Sugars & Chemicals Ltd. (KOTARISUG) - Auditors Report

Company auditors report

FOR THE YEAR ENDED 31st MARCH 2022

To the Members of Kothari Sugars and Chemicals Limited

REPORT ON THE AUDIT OF THE INDIAN ACCOUNTING

STANDARDS (IND AS) FINANCIAL STATEMENTS

Opinion

1. We have audited the accompanying Ind AS financial statements of Kothari Sugars andChemicals Limited ("the Company") which comprise the balance sheet as at March312022 and the statement of profit and loss (including other comprehensive income)statement of changes in equity and statement of cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.

2. 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 Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 312022 and total comprehensive income(comprising of profit after tax and other comprehensive income) changes in equity and itscash flows for the year then ended.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Ind AS FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the Ind AS financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

Key Audit Matters

4. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements of the current period. Thesematters were addressed in the context of our audit of the Ind AS financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

S No Key Audit Matters Principal audit procedures
Quantity of raw materials Significant portion of the material procurement is from individual farmers and sugarcanes 1. are accounted on weight-basis. Hence any variance in the ascertainment of the quantity purchased may have a significant impact on the cost of materials. Our audit procedures included: > Assessment of controls over ascertaining the quantity of purchase for which payment is made. > Assessment of controls over calibration system of the weighing equipment. > Performed substantive audit procedures on cane procurement.
Contingent liabilities The Company has material amounts of disputed statutory levies such as Goods and Service Tax Excise 2 Duty Customs Duty and ‘ Electricity taxes which have not been paid pending adjudication by the respective authority. Refer to Note 42 of the Financial Statements. Our audit procedures included: > Evaluation of internal controls relating to identification and evaluation of litigations involving statutory dues. > Obtained the list of litigations and claims from the Company's legal team identified material litigations from the list and performed inquiries on the management's evaluation of these material litigations. > Performed an independent assessment of the conclusions reached by the management. > Evaluated the management's assumptions estimates and judgements used for calculating the provisions and contingent liabilities disclosed in the Ind AS financial statements.

Information other than the financial statements and auditor's report thereon

5. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Board's Report together with theannexure thereto and Report on Corporate Governance but does not include the Ind ASfinancial statements and our auditor's report thereon.

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 Ind AS financial statements or our knowledge obtained inthe audit 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 to report that fact.

We have nothing to report in this regard.

Responsibilities of management and those charged with governance for the Ind ASfinancial statements

6. The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Ind AS financial statementsthat give a true and fair view of the financial position financial performance changesin equity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under section133 of the Act. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

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

Auditor's responsibilities for the audit of IndAS financial

statements

8. 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 or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Ind AS financial statements.

9. As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism 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 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)

(i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness 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 Ind AS financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

10. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

11. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

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

Report on Other Legal and Regulatory Requirements

13. As required by the Companies (Auditor's Report) Order 2020 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure B a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

14. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of Section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its Directors during the year is inaccordance with the provisions of Section 197 of the Act.

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

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Statement of Changes in Equity and Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors and takenon record by the Board of Directors none of the directors are disqualified

as on March 31 2022 from being appointed as a director in terms of Section 164 (2) ofthe Act.

(f) With respect to the adequacy of the internal financial controls with reference tofinancials statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols with reference to financial statements.

(g) 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 in Note 42 to thefinancial statements.

(ii) The Company did not have any long-term contracts including derivative contracts onwhich there were material foreseeable losses.

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

(iv) (a) The Management has represented that to the best of its knowledge and beliefno funds (which are material either individually or in the aggregate) have been advancedor loaned 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 or entities identified in any manner whatsoever by or on behalf of the FundingParty ("Ultimate Beneficiaries") or provide any guarantee security or the likeon behalf 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 as provided under (a) and (b) above contain any materialmisstatement.

v. The Company has not declared or paid any dividend during the year ending 31st March2022. Hence reporting under Rule 11(f) of Companies (Audit and Auditors) Rules 2014 isnot applicable.

For P. Chandrasekar LLP
Chartered Accountants
FRN: 000580S/S200066
S. Raghavendhar
Partner
Membership No.: 244016
UDIN : 22244016ALFGRJ7843
Place: Chennai
Date : 24th May 2022

Annexure - A to the Independent Auditor's Report for the year ended 31st March 2022

Referred to in paragraph 15(f) of the Independent Auditor's Report of even date to themembers of Kothari

Sugars and Chemicals Limited on the Ind AS financial statements as of and for the yearended March 312022.

Report on the internal Financial Controls with reference to financial statements underClause (i) of Subsection 3 of Section 143 of the Act

1. We have audited the internal financial controls with reference to financialstatements of Kothari Sugars and Chemicals Limited ("the Company") as of March312022 in conjunction with our audit of the Ind AS financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. 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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditor's Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal financial controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls with reference to financial statementswas established and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system 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 controlswith reference to financial statements 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'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemwith reference to financial statements.

Meaning of internal Financial Controls with reference to financial statements

6. A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a

i material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements

7. Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 312022 based on the internal control over financial reporting criteria establishedby the 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.

For P. Chandrasekar LLP
Chartered Accountants
FRN:000580S/S200066
S. Raghavendhar
Partner
Place : Chennai Membership No.: 244016
Date : 24th May 2022 UDIN: 22244016ALFGRJ7843

Annexure - B to the Independent Auditor's Report for the year ended 31st March 2022

Referred to in paragraph 13 of the Independent Auditor's Report of even date to themembers of Kothari Sugars and Chemicals Limited on the Ind AS financial statements as ofand for the year ended March 31 2022

To the best of our information and according to the explanations provided to us by theCompany and the books of account and records examined by us in the normal course of auditwe state that:

(i) In respect of the Company's Property Plant and Equipment and Intangible Assets:

(a) (A) The Company is maintaining proper records showing full particulars includingquantitative details and situation of property plant and equipment investment propertyand relevant details of right-of-use assets

(B) The Company has maintained proper records showing full particulars of intangibleassets.

(b) As explained to us the property plant and equipment investment property andright-of-use assets are physically verified by the Management at reasonable intervals; nomaterial discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and based on theexamination of the documents provided to us we report that the title deeds of all theimmovable properties of land and buildings as disclosed in the Ind AS financial statementsare held in the name of the Company as at the Balance Sheet date.

(d) The Company has not revalued any of its Property Plant and Equipment (includingright-of-use assets) and intangible assets during the year.

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

(ii) (a) The Management has conducted physical verification of inventory at reasonableintervals. In our opinion the coverage and procedure of such verification is appropriate.No discrepancies of 10% or more in aggregate for each class of inventory were noticed onsuch physical verification.

(b) The Company has been sanctioned working capital limits in excess of Rupees fivecrores in aggregate from banks / or financial institutions during the year on the basis ofsecurity of the current assets of the Company. The quarterly returns / statements filed bythe Company with such banks and financial institutions are in agreement with the books ofaccounts of the Company.

(iii) (a) During the year the Company has not provided loans or advances in the natureof loans or stood guarantee

or provided security to any other entity. Hence reporting under clause (iii) (a) of theOrder is not applicable.

(b) The investments made during the year are not prejudicial to Company's interest.Further the Company has not provided guarantees security or granted loans or advances inthe nature of loans to Companies Firms Limited Liability Partnerships or any otherparties consequently requirement to report on these under clause (iii)(b) of the Order isnot applicable.

(c) The Company has not granted loans or advances in the nature of loans to CompaniesFirms Limited Liability Partnerships or any other parties. Accordingly the requirementto report on clause 3(iii) (c) of the Order is not applicable to the Company.

(d) The Company has not granted loans or advances in the nature of loans to CompaniesFirms Limited Liability Partnerships or any other parties. Accordingly the requirementto report on clause 3(iii) (d) of the Order is not applicable to the Company.

(e) There were no loans or advances in the nature of loans granted to Companies FirmsLimited Liability Partnerships or any other parties. Accordingly the requirement toreport on clause 3 (iii) (e) of the Order is not applicable to the Company.

(f) The Company has not granted any loans or advances in the nature of loans eitherrepayable on demand or without specifying the terms or period of repayment to CompaniesFirms Limited Liability Partnerships or any other parties. Accordingly the requirementto report on clause 3(iii) (f) of the Order is not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013in respect of the investments made by it. The Company has not provided any loans orguarantee or security as covered under Section 185 or 186 of the Companies Act 2013.

(v) The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified. Accordingly the requirement to report on clause 3(v) of the Order is notapplicable to the Company.

(vi) Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under Section 148(1) of the Act in respectof its products. We have broadly reviewed the same and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate or complete.

(vii) According to the information and explanations given to us and based on our auditprocedures we report that:

(a) the Company is regular in depositing with the appropriate authorities theundisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax Sales Tax Customs Duty Excise Duty Cess Goods and Service Tax to the appropriateauthorities. There were no undisputed amounts payable which were in arrears as at 31stMarch 2022 for a period of more than six months from the date they become payable.

(b) Details of dues of various taxes and statutory dues not deposited on account ofdisputes as of 31st March 2022 is given below:

Name of the Statute Nature of the Dues Amount* (Rs in Lakhs) Forum where the dispute is pending Period to which the dues belong to
Central Excise Act 1944 Excise Duty* 3.87 Madras High Court OctRs 1999 to MarRs 2000
Finance Act 1994 Service Tax* 1.32 CESTAT Mar 2011 to May 2011
Central Excise Act 1944 Excise Duty* 80.76 CESTAT April 1997 to December 1997
Tamil Nadu Tax on Electricity Tax 539.94
Consumption or sale of electricity Act 2003 Interest on above dues 786.59 Government of Tamil Nadu April 2009 to May 2011

*Amounts exclude interest and payments under protest.

(viii) The Company has not surrendered or disclosed any transaction previouslyunrecorded in the books of account in the tax assessments under the Income Tax Act 1961as income during the year. Accordingly the requirement to report on clause 3 (viii) ofthe Order is not applicable to the Company.

(ix) (a) According to the records of the Company examined by us and the information andexplanation given to

us the Company has not defaulted in repayment of loans or borrowings to any lender.

(b) The Company has not been declared wilful defaulter by any bank or financialinstitution or government or any government authority.

(c) In our opinion and according to the information and explanations given by themanagement the term loans were applied for the purpose for which they were obtained.

(d) On an overall examination of the financial statements of the Company no fundsraised on short-term basis have been used for long term purposes by the Company.

(e) The Company does not have any subsidiary associate or joint venture. Accordinglythe requirement to report under clause (ix) (e) of the Order is not applicable.

(f) The Company does not have any subsidiary associate or joint venture. Accordinglythe requirement to report under clause (ix) (f) of the Order is not applicable.

(x) (a) The Company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) during the year. Accordingly reporting underclause (x) (a) of the Order is not applicable.

(b) On an overall examination of the financial statements we report that the Companyhas not made any preferential allotment or private placement of shares or convertibledebentures during the year. Accordingly reporting under clause (x) (b) of the Order isnot applicable.

(xi) (a) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

(b) During the year no report under sub-section (12) of section 143 of the CompaniesAct 2013 has been filed by cost auditor / secretarial auditor or by us in Form ADT-4 asprescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 with the CentralGovernment.

(c) There were no whistle blower complaints received by the Company during the year.

(xii) As the Company is not a Nidhi Company and the Nidhi Rules 2014 are notapplicable to it the provisions of Clause 3(xii) of the Order are not applicable to theCompany.

(xiii) In our opinion the Company has entered into transactions with related partiesin compliance with the provisions of Sections 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the Ind AS financial statements asrequired under Indian Accounting Standard (Ind AS) 24 Related Party Disclosures specifiedunder Section 133 of the Act.

(xiv) (a) In our opinion the Company has an adequate internal audit system commensuratewith the size and the nature of its business.

(b) We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with the director or persons connected withthem as referred to in Section 192 of the Companies Act 2013.

(xvi) (a) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

(b) The Company has not conducted any non-banking or housing finance activities.

(c) The Company is not a Core Investment Company as defined in the regulations made bythe Reserve Bank of India. Accordingly reporting under clause 3 (xvi) (c) of the Order isnot applicable.

(d) There is no Core Investment Company as a part of the Group hence the requirementto report on clause 3 (xvi) (d) of the Order is not applicable to the Company.

(xvii) The Company has not incurred cash losses in the current financial year and inthe immediately preceding financial year.

(xviii) There has been no resignation of statutory auditors during the year andaccordingly requirement to report on Clause 3(xviii) of the Order is not applicable.

(xix) On the basis of ratios disclosed in the financial statements ageing and expecteddates of realization of financial assets and payment of financial liabilities otherinformation accompanying the financial statements our knowledge of the meetings of theBoard of Directors and management plans and based on our examination of the evidencesupporting the assumptions nothing has come to our attention which causes us to believethat any material uncertainty exists as on the date of the audit report that Company isnot capable of meeting its liabilities existing at the date of the balance sheet as andwhen they fall due within a period of one year from the balance sheet date. We howeverstate that this is not an assurance as to the future viability of the Company. We furtherstate that our reporting is based on the facts upto the date of the audit report and weneither given any guarantee nor any assurance that all liabilities falling due withing oneyear from the balance sheet date will get discharged by the Company as and when they falldue.

(xx) There are no unspent amounts that are required to be transferred to a fundspecified in Schedule VII of the Companies Act 2013 within a period of six months of theexpiry of the financial year in compliance with second proviso to sub-section 5 ofsection 135 of the Act. Accordingly clauses 3(xx)(a) and 3(xx)(b) of the Order are notapplicable.

For P. Chandrasekar LLP
Chartered Accountants
FRN: 000580S/S200066
S. Raghavendhar
Place : Chennai Partner Membership No.: 244016
Date : 24th May 2022 UDIN: 22244016ALFGRJ7843

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