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Kovilpatti Lakshmi Roller Flour Mills Ltd.

BSE: 507598 Sector: Agri and agri inputs
NSE: KLRF ISIN Code: INE014E01015
BSE 00:00 | 07 Feb 148.25 -5.20
(-3.39%)
OPEN

152.00

HIGH

158.30

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145.80

NSE 05:30 | 01 Jan Kovilpatti Lakshmi Roller Flour Mills Ltd
OPEN 152.00
PREVIOUS CLOSE 153.45
VOLUME 16720
52-Week high 176.90
52-Week low 59.00
P/E 6.34
Mkt Cap.(Rs cr) 82
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 152.00
CLOSE 153.45
VOLUME 16720
52-Week high 176.90
52-Week low 59.00
P/E 6.34
Mkt Cap.(Rs cr) 82
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kovilpatti Lakshmi Roller Flour Mills Ltd. (KLRF) - Auditors Report

Company auditors report

The Members of Kovilpatti Lakshmi Roller Flour Mills LimitedGangaikondan.

Report on the Audit of the Standalone Financial Statements Opinion

I have audited the standalone financial statements of KovilpattiLakshmi Roller Flour Mills Limited ("the Company") which comprise the balancesheet as at 31st March 2022 and the statement of Profit and Loss statement of changes inequity and statement of cash flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation in which are included the financial statements/ information for the year endedon that date audited by the branch auditors of the Company's branches located atCoimbatore Tamilnadu.

In my opinion and to the best of my information and according to theexplanations given to me the aforesaid standalone financial statements give theinformation required by the Companies Act ("the Act") in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India of the state of affairs of the Company as at March 31 2022 its profitand other comprehensive income changes in equity and its cash flows for the year ended onthat date

Basis for Opinion

I conducted my audit in accordance with the Standards on Auditing (SAs)specified under section 143(10) of the Companies Act 2013. My responsibilities underthose standards are further described in the Auditor's Responsibilities for the Auditof the Financial Statements section of my report. I am independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to my audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and I have fulfilled my other ethical responsibilities in accordance withthese requirements and the Code of Ethics. I believe that the audit evidence I haveobtained is sufficient and appropriate to provide a basis for my opinion.

Key Audit Matters

Key audit matters are those matters that in my professional judgmentwere of most significance in my audit of the financial statements of the current period.These matters were addressed in the context of my audit of the financial statements as awhole and in forming my opinion thereon and I do not provide a separate opinion on thesematters. I have determined that there are no key audit matters to be communicated in myreport.

Information Other than the Financial Statements and Auditor'sReport Thereon

The Company's Management and Board of Directors are responsiblefor the other information. The other information comprises the Board's Report and theCorporate Governance Report but does not include the standalone financial statements andmy auditor's report thereon.

My opinion on the standalone financial statements does not cover theother information and I do not express any form of assurance conclusion thereon.

In connection with my audit of the standalone financial statements myresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements ormy knowledge obtained during the course of my audit or otherwise appears to be materiallymisstated. If based on the work I have performed I conclude that there is a materialmisstatement of this other information; I am required to report that fact. I have nothingto report in this regard.

Management's Responsibility for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the accounting standards specified under section 133 of the Act read withrelevant rules issued thereunder.

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

In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. The Board of Directors are alsoresponsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the FinancialStatements

My objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes my opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements. I give in "AnnexureA" a detailed description of Auditors; responsibilities for Audit of the StandaloneFinancial Statements.

Other Matter

I did not audit the financial statements/ information of 1 (One) branchincluded in the stand-alone financial statements of the Company whose financial statements/ financial information reflect total assets of Rs 6465.82 lakhs as at 31st March 2022and the total revenue of Rs 10443.22 lakhs for the year ended on that date asconsidered in the standalone financial statements/ information of these branches have beenaudited by the branch auditors whose reports have been furnished to me and my opinion inso far as it relates to the amounts and disclosures included in respect of branch is basedsolely on the report of such branch auditors.

My opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

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 of the Companies Act 2013 I give in the "Annexure B" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

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

(a) I have sought and obtained all the information and explanationswhich to the best of my knowledge and belief were necessary for the purposes of my audit.

(b) In my opinion proper books of account as required by law have beenkept by the Company so far as it appears from my examination of those books and properreturns adequate for the purposes of my audit have been received from the branches notvisited by me. (c) The reports on the accounts of the branch offices of the Companyaudited under Section 143(8) of the Act by branch auditors have been sent to me and havebeen properly dealt with by me in preparing this report.

(d) The Balance Sheet the Statement of Profit and Loss and the CashFlow Statement dealt with by this Report are in agreement with the books of account andwith the returns received from the branches not visited by me.

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

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

(g) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to my separate Report in "Annexure C".

(h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in my opinion and to the best of my information and according to theexplanations given to me:

The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements – Refer Note 36 to the financialstatements;

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

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

(i) (A) The management has represented that to the best of itsknowledge and belief no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the Company toor in any other persons or entities including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall:

• directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever ("Ultimate Beneficiaries") by or onbehalf of the Company or

• provide any guarantee security or the like to or on behalf ofthe Ultimate Beneficiaries.

(B) The management has represented that to the best of its knowledgeand belief no funds have been received by the Company from any persons or entitiesincluding foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the Company shall:

• directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever ("Ultimate Beneficiaries") by or onbehalf of the Funding Party or

• provide any guarantee security or the like from or on behalfof the Ultimate Beneficiaries; and

(C) Based on such audit procedures as considered reasonable andappropriate in the circumstances nothing has come to my notice that has caused me tobelieve that the representations under subclause (i) (A) and

(i) (B) contain any material misstatement.

(j) The dividend declared or paid during the year by the Company is incompliance with Section 123 of the Act.

(k) With respect to the matter to be included in the Auditor'sReport under Section 197(16) of the Act: In my opinion and according to the informationand explanations given to me the remuneration paid by the Company to its directors duringthe current year is in accordance with the provisions of Section 197 read with Schedule Vof the Act. The Ministry of Corporate Affairs has not prescribed any other details underSection 197(16) of the Act which is required to be commented by me.

For M/s ARUN & CO
Chartered Accountants
Firm Registration No.0014464S
A. ARUN
Proprietor
Place : Coimbatore Membership No. 227831
Date : 27th May 2022 UDIN: : 22227831AJYEBD9993

Annexure "A" to the Independent Auditor's Report

(Referred to in Auditor's Responsibilities for the Audit of theFinancial Statements section of my report to the members of Kovilpatti Lakshmi RollerFlour Mills Limited of even date)

Auditor's Responsibilities for the Audit of the FinancialStatements

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

I. Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for my opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

II. Obtain an understanding of internal control relevant to the auditin order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 I am also responsible for expressing myopinion on whether the company has an adequate internal financial controls system in placeand the operating effectiveness of such controls.

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

IV. Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If I conclude that amaterial uncertainty exists I am required to draw attention in my auditor's reportto the related disclosures in the financial statements or if such disclosures areinadequate to modify my opinion. My conclusions are based on the audit evidence obtainedup to the date of my audit report. However future events or conditions may cause thecompany to cease to continue as a going concern.

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

Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate make it probable that the economic decisionsof a reasonably knowledgeable user of the financial statements may be influenced. Iconsider quantitative materiality and qualitative factors in

(i) planning the scope of my audit work and in evaluating the resultsof my work; and

(ii) to evaluate the effect of any identified misstatements in thefinancial statements

I communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that I identify during myaudit.

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

From the matters communicated with those charged with governance wedetermine that matter that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Idescribe these matters in my auditors' report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat the matter should not be communicated in my report because the adverse consequencesof doing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Annexure "B" to the Independent Auditor's Report

(Referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements' section of my report to the members of Kovilpatti LakshmiRoller Flour Mills Limited of even date)

1. (a) In my opinion and according to the information and explanationsgiven to me the Company is maintaining proper records showing full particulars includingquantitative details and situation of property plant and equipment and intangible assets.

(b) The Company has a program of verification to cover all items ofproperty plant and equipment in a phased manner over a period of three years which inmy opinion is reasonable having regard to the size of the Company and the nature of itsassets.

Pursuant to the program certain property plant and equipment werephysically verified by the management during the year. According to the information andexplanations given to me no material discrepancies were noticed on such verification.

(c) In my opinion and according to the information and explanationsgiven to me and based on the examination of the conveyance deeds provided to me we reportthat the title deeds comprising all the immovable properties of land and buildings whichare freehold are held in the name of the Company as at the balance sheet date. In respectof immovable properties given as collateral for loans from banks and financialinstitutions the title deeds were deposited with the said banks/ financial institutionsand the Company has obtained a confirmation from the said banks that the title deeds arein the name of the Company.

(d) The Company has not revalued its property plant and equipment(including right of use asset) during the year. Accordingly paragraph 3 (i) (d) of theOrder is not applicable.

(e) In my opinion and according to the information and explanationsgiven to me there are no proceedings initiated or are pending against the Company forholding any benami property under the Benami Transactions (Prohibition) Act 1988 (45 of1988) and rules made thereunder. Accordingly paragraph 3 (i) (e) of the Order is notapplicable.

2. (a) The inventories have been physically verified by the managementduring the year. In my opinion the coverage and procedure of such verification by themanagement is appropriate and no discrepancies of 10% or more in the aggregate for eachclass of inventory were noticed on such verification.

(b) The Company has been sanctioned working capital limits in excess offive crore rupees in aggregate from banks or financial institutions on the basis ofsecurity of current assets and the quarterly returns or statements filed by the companywith such banks or financial institutions are in agreement with the books of account ofthe Company.

3. In my opinion and according to information and explanation given tome the Company has not made investments in/ provided any guarantee or security/ grantedany loans or advances in the nature of loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties. Accordingly paragraph 3 (iii) of theOrder is not applicable.

4. In my opinion and according to information and explanation given tome the company has not granted any loans or provided any guarantees or given any securityor made any investments to which the provision of section 185 and 186 of the CompaniesAct 2013. Accordingly paragraph 3 (iv) of the order is not applicable.

5. In my opinion and according to the information and explanationsgiven to me the Company has not accepted any deposits or amounts which are deemed to bedeposits during the year. Accordingly paragraph 3 (v) of the Order is not applicable.

6. The Central Government of India has prescribed the maintenance ofcost records under sub-section (1) of section 148 o the Act for the activities of theEngineering division of the company and based on the report of the branch auditors I am ofthe opinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not carried out a detailed examination of the same.

7. In my opinion and according to the information and explanationsgiven to me:

(a) Amounts deducted/ accrued in the books of account in respect ofundisputed statutory dues including goods and services tax provident fund employees'state insurance income-tax sales-tax service tax duty of customs duty of excisevalue added tax cess and other material statutory dues have been generally regularlydeposited by the Company with the appropriate authorities.

(b) No undisputed amounts payable in respect of goods and services taxprovident fund employees' state insurance income-tax sales-tax service tax dutyof customs duty of excise value added tax cess and other material statutory dues werein arrears as at March 31 2022 for a period of more than six months from the date theybecame payable.

(c) Details of dues of Income Tax Sales Tax Service Tax Excise DutyValue Added Tax and Goods and Service Tax which have not been deposited as at March 312022 on account of dispute are given below:

Statute Nature of dues Amount (Rs in Lakhs) Period to which the amount relates Forum where the dispute is pending
Tamil Nadu Value Added Tax Act TNVAT 25.05 FY 2008-09 to 2013-14 Commercial Tax Appellate Tribunal Madurai

8. In my opinion and according to the information and explanationsgiven to me there are no transactions not recorded in the books of account that have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (43 of 1961). Accordingly paragraph 3 (viii) of the Order is notapplicable.

9. (a) In my opinion and according to the information and explanationsgiven to me the Company has not defaulted in repayment of loans or other borrowings or inthe payment of interest thereon to any lender during the year.

(b) In my opinion and according to the information and explanationsgiven to me the Company is not declared as a wilful defaulter by any bank or financialinstitution or other lender.

(c) In my opinion and according to the information and explanationsgiven to me the term loans obtained during the year were applied for the purpose forwhich they were availed.

(d) In my opinion and according to the information and explanationsgiven to me funds raised on short term basis have not been utilised for long termpurposes. (e) The Company does not have any subsidiaries/ associates/ joint-ventures andaccordingly paragraphs 3 (ix) (e) and 3 (ix) (f) of the Order are not applicable.

10. (a) In my opinion and according to the information and explanationsgiven to me the Company has not raised any money by way of initial public offer orfurther public offer (including debt instruments) during the year. Accordingly paragraph3 (x) (a) of the Order is not applicable.

(b) In my opinion and according to the information and explanationsgiven to me the Company has not made any preferential allotment or private placement ofshares or convertible debentures (fully partially or optionally convertible) during theyear. Accordingly paragraph 3 (x) (b) of the Order is not applicable.

11. (a) To the best of my knowledge and according to the informationand explanations given to me no fraud by the Company or no material fraud on the Companyby any person has been noticed or reported during the year. Accordingly paragraph 3 (xi)(a) of the Order is not applicable.

(b) Since there is no fraud by the Company or no material fraud on theCompany by any person has been noticed or reported during the year paragraph 3 (xi) (b)of the Order is not applicable.

(c) To the best of my knowledge and according to the information andexplanations given to me no whistle-blower complaints have been received by the Companyduring the year.

12. The Company is not a Nidhi Company and accordingly Paragraphs 3(xii) of the Order is not applicable.

13. In my opinion and according to the information and explanationsgiven to me the transactions with the related parties are in compliance with section 177and 188 of the Act. Where applicable the details of such transactions have been disclosedin the financial statements as required by the applicable accounting standards.

14. (a) In my opinion and according to the information and explanationsgiven to me the Company has an internal audit system commensurate with the size andnature of its business.

(b) The reports of the internal auditors for the year under audit wereconsidered by me as part of my audit procedures.

15. In my opinion and according to the information and explanationsgiven to me the Company has not entered into non-cash transactions with directors orpersons connected with them. Accordingly paragraph 3 (xv) of the Order is not applicable.16.

(a) In my opinion and according to the information and explanationsgiven to me the Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.

(b) In my opinion and according to the information and explanationsgiven to me the Company has not conducted any Non-Banking Financial or Housing Financeactivities without a valid Certificate of Registration (CoR) from the Reserve Bank ofIndia as per the Reserve Bank of India Act 1934.

(c) In my opinion and according to the information and explanationsgiven to me the Company is not a Core Investment Company (CIC) as defined in theregulations made by the Reserve Bank of India. Accordingly paragraph 3 (xvi) (c) of theOrder is not applicable.

(d) In my opinion and according to the information and explanationsgiven to me the Company is not a Core Investment Company (CIC) and it does not have anyother companies in the Group. Accordingly paragraph 3 (xvi) (d) of the Order is notapplicable.

17. The Company has not incurred cash losses in the financial year andin the immediately preceding financial year.

18. There has been no resignation of the statutory auditors during theyear. Accordingly paragraph 3 (xviii) of the Order is not applicable.

19. In my opinion and according to the information and explanationsgiven to me and on the basis of the financial ratios ageing and expected dates ofrealisation of financial assets and payment of financial liabilities other informationaccompanying the financial statements my knowledge of the board of directors andmanagement plans there are no material uncertainty exists as on the date of the auditreport that Company is capable of meeting its liabilities existing at the date of balancesheet as and when they fall due within a period of one year from the balance sheet date.

20. In my opinion and according to the information and explanationsgiven to me there is no unspent amount under sub-section (5) of Section 135 of theCompanies Act 2013 pursuant to any project. Accordingly clauses 3(xx)(a) and 3(xx)(b) ofthe Order are not applicable.

21. In my opinion and according to the information and explanationsgiven to me the Company does not have investments in subsidiaries/ associates or jointventure companies. Accordingly paragraph 3 (xxi) of the Order is not applicable.

For M/s ARUN & CO
Chartered Accountants
Firm Registration No.0014464S
A. ARUN
Proprietor
Place : Coimbatore Membership No. 227831
Date : 27th May 2022 UDIN: 22227831AJYEBD9993

Annexure "C" to the Independent Auditor's Report

(Referred to in paragraph 2 (g)under ‘Report on Other Legal andRegulatory Requirements' section of my report to the Members of Kovilpatti LakshmiRoller Flour Mills Limited of even date)

Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub- section 3 of Section 143 of the Companies Act 2013 ("theAct")

I have audited the internal financial controls over financial reportingof Kovilpatti Lakshmi Roller Flour Mills Limited ("the Company") as of March 312022 in conjunction with my audit of the financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishingand maintaining 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 the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

My responsibility is to express an opinion on the internal financialcontrols over financial reporting of the Company based on my audit. I conducted my auditin accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that I comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects. My audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness. My audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgement including the assessment of the risks of material misstatementin the financial statements whether due to fraud or error.

I believe that the audit evidence I have obtained is sufficient andappropriate to provide a basis for my audit opinion on the Company's internalfinancial control system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting isa process 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 controlover financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

In my opinion and according to the information and explanations givento me the Company has in all material respects an adequate internal financial controlsystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2022 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For M/s ARUN & CO
Chartered Accountants
Firm Registration No.0014464S
A. ARUN
Proprietor
Place : Coimbatore Membership No. 227831
Date : 27th May 2022 UDIN: 22227831AJYEBD9993

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