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KPIT Technologies Ltd.

BSE: 542651 Sector: IT
NSE: KPITTECH ISIN Code: INE04I401011
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VOLUME 24487
52-Week high 385.00
52-Week low 89.80
P/E 61.33
Mkt Cap.(Rs cr) 8,927
Buy Price 0.00
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Sell Price 0.00
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OPEN 325.00
CLOSE 323.15
VOLUME 24487
52-Week high 385.00
52-Week low 89.80
P/E 61.33
Mkt Cap.(Rs cr) 8,927
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

KPIT Technologies Ltd. (KPITTECH) - Auditors Report

Company auditors report

To the Members of KPIT Technologies Limited (Erstwhile KPIT Engineering Limited) Reporton the Audit of the Revised Standalone Financial Statements This Report supersedes ourReport dated 28 April 2021

Opinion

We have audited the revised standalone financial statements of KPIT TechnologiesLimited (Erstwhile KPIT Engineering Limited) ("the Company") which comprise therevised standalone balance sheet as at 31 March 2021 and the revised standalone statementof profit and loss (including other comprehensive income) revised standalone statement ofchanges in equity and revised standalone statement of cash flows for the year then endedand notes to the revised standalone financial statements including a summary of thesignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid revised standalone financial statements give the informationrequired by the Companies Act 2013 ("Act") in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at 31 March 2021 and profit and othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor’s Responsibilities for the Audit of the revised StandaloneFinancial Statements section of our report. We are 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 our audit of the revisedstandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion on the revised Standalonefinancial statements.

Emphasis of Matter

1. We draw attention to Note 1 and Note 44(3) of the revised standalone financialstatements which describes the Basis of preparation. As explained in detail therein theserevised standalone financial statements for the year ended 31 March 2021 have beenprepared pursuant to the Composite Scheme of Arrangement (‘the Scheme’) formerger of Impact Automotive Solutions Limited wholly owned subsidiary of the Company("Transferor Company") with the Company from the specified retrospectiveappointed date (1 April 2019) as approved by the National Company Law Tribunal (NCLT)Mumbai Bench vide order dated 15 June 2021 ("Order"). A certified copy of theOrder sanctioning the Scheme has been filed by the Company with Registrar of theMaharashtra on 22 June 2021.

Note 44 (3) in the Notes to the earlier standalone financial statements explained thata petition regarding the merger of Impact Automotive Solutions Limited with the Companyw.e.f. 1 April 2019 was pending before the NCLT. We issued a separate auditor’sreport dated 28 April 2021 on these standalone financial the shareholders of the Company.The aforesaid petition having been approved subsequently the Company has now preparedrevised standalone financial statements incorporating the impact of the merger.Consequently our revised audit report is with reference to the revised financialstatements. In accordance with the provisions of Standard on Auditing 560 (Revised)‘Subsequent Events’ issued by The Institute of Chartered Accountants of Indiaour audit procedures in so far as they relate to the revision to the Standalone FinancialStatements have been carried out solely on this matter and no additional procedures havebeen carried out for any other events occurring after 28 April 2021 (being the date of ourearlier audit report on the earlier standalone financial statements). Our earlier auditreport dated 28 April 2021 on the earlier standalone financial statements is superseded bythis revised report on the revised standalone financial statements.

2. W e draw attention to Note 44(3) of the revised standalone financial statementswhich describes the accounting for the Scheme of Amalgamation between the Company andImpact Automotive Solutions Limited wholly owned subsidiary of the Company. The Schemehas been approved by the NCLT vide its order dated 15 June 2021 and a certified copy hasbeen filed by the Company with the Registrar June 2021. As per the requirements ofAppendix C to Ind AS 103 "Business Combination" the combination has beenaccounted for as if it had occurred from the beginning of the preceding period in thefinancial statements. Accordingly the amounts for the financial year ended 31 March 2021include the combination for the entire year and the corresponding amounts for the previousyear ended 31 March 2020 have been restated by the Company after recognising the effect ofthe amalgamation as above. The aforesaid Note 44(3) also describes in detail the impact ofthe business combination on the financial statements.

Our opinion is not modified in respect of above matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the revised standalone financial statements of the currentperiod. These matters were addressed in the context of our audit of the revised standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Description of Key Audit Matter

The key audit matter How the matter was addressed in our audit
Revenue recognition in respect of fixed price contracts Our audit procedures in this area included the following:
The Company engages into fixed-price contracts with customers. In respect of fixed-price contracts revenue is recognized using percentage of completion computed as per the input method. This is based on the Company’s estimate of contract costs and efforts for completion of contract. Obtained an understanding of the systems processes and controls implemented by the Company and evaluating the design and implementation of internal controls for measuring and recording revenue and the associated contract assets and unearned revenue.
Provision for estimated losses on uncompleted contracts are recorded in the period in which such losses become probable based on the expected contract estimates at the reporting date. Tested the design and operating effectiveness of key IT controls over IT environment in which the business systems operate. This includes access controls program change controls program development controls and IT operation controls;
Contract estimates are formed by the Company considering the following: For selected samples of contracts we inspected the terms of the contract and assessed the revenue recognized in accordance with Ind AS by:
Application of the revenue recognition accounting standard is complex. It involves a number of key judgements and estimates. One of the key estimate is total cost-to- completion of these contracts. It is used to determine the percentage of completion of the relevant performance obligation. E valuating the identification of performance obligations.
There is judgement involved in identification of distinct performance obligations and determination of transaction price for such performance obligations. Agr eeing the transaction price to the underlying contracts. I nspecting the approval of the estimates of cost to complete.
COVID 19 pandemic may impact the total revenue and costs to complete the contracts. In some cases Company’s contract interests are adequately protected. In other cases there may be possible significant risks though the Company is cautious of them. E valuating the impact on the total revenue and the cost to complete the contract from COVID 19 pandemic.
These contracts may involve onerous obligations on the Company requiring critical estimates to be made. Challenging the Company’s estimate of contract cost through a retrospective comparison of costs incurred with budgeted costs. Identifying significant variations and testing variations resulting into re- estimating the remaining costs to complete the contract.
Contracts are subject to modification to account for changes in contract specification and requirements. A ssessing the work in progress (contract assets) on the balance sheet date by inspecting the underlying invoices and signed agreements on sample basis to identify possible delays in achieving milestones.
At year-end a significant amount of work in progress (Contract assets and liabilities) related to these contracts is recognised on the balance sheet representing the work completed costs incurred and accrued. Those may require change in estimated costs to complete the remaining performance obligations.
Considering the significant estimate involved in recognition of revenue based on percentage of completion method in respect of fixed price contracts we have considered this as key audit matter. Comparing on a sample basis revenue transactions recorded during the year with the underlying contracts actual costs incurred and invoices raised on customers. Also checked the related revenue contract costs provision for onerous contracts contract assets and unearned revenue had been recognised in accordance with the requirements of Ind AS 115.
(Refer note 1.2 and 41 to the revised standalone financial statements) P erforming analytical procedures on incurred and estimated contract costs or efforts. It includes assessment of contracts with unusual or negative margins little or no movement in efforts from previous periods. We also performed analytical procedures on contract assets with little or no movement in invoicing from previous periods.

Information Other than the revised Standalone Financial Statements and revisedAuditors’ Report Thereon

The Company’s Management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in theCompany’s annual report but does not include the revised financial statements andour revised auditors’ report thereon.

Our opinion on the revised standalone financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the revised standalone financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the revised standalone financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management’s and Board of Directors’ Responsibility for the revisedStandalone Financial Statements

The Company’s Management and Board of Directors are responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these revisedstandalone financial statements that give a true and fair view of the state of affairsprofit/loss andother comprehensive income changes in equity and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring accuracy and completeness of the accounting recordsrelevant to the preparation and presentation of the revised standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the revised standalone financial statements the Management and Board ofDirectors 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 the Board of Directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company’s financialreporting process.

Auditor’s Responsibilities for the Audit of the revised Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether the revised standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue a revised 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 revised standalone financialstatements. As part of an audit in accordance with SAs we exercise professional judgmentand maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the revised standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence basis for our opinion. The risk ofnot detecting a material sufficie thatis misstatement resulting from fraud is higher thanfor one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures in the revised standalone financialstatements made by the Management and Board of directors.

Conclude on the appropriateness of the Management and Board of Directors 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 we conclude that amaterial uncertainty exists we are required to draw attention in our revisedauditor’s report to the related disclosures in the revised standalone financialstatements or if such disclosures are inadequate to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our earlier 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 revised standalonefinancial statements including the disclosures and whether the revised standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including internalcontrol that we identify any significant deficiencies during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the revised standalone financialstatements of the current period and are therefore the key audit matters. We describethese matters in our revised auditors’ report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Other Matter

We did not audit the financial statements of Transferor Company (now merged with effectfrom 1 April 2019 per the NCLT order dated 15 June 2021 and as mentioned in Emphasis ofMatter paragraph above) included in the revised standalone financial statements of theCompany whose financial statements reflect total assets of Rs. 314.73 million as at 31March 2021 and the total revenue of Rs. 4.94 million total net loss after tax Rs. 200.67million and net cash outflows amounting to Rs. 184.40 million for the year ended on thatdate as considered in the revised standalone financial statements. This TransferorCompany has been audited by the independent auditor whose reports have been furnished tous and our opinion in so far as it relates to the amounts and disclosures included inrespect of this Transferor Company is based solely on the report of such independentauditor as adjusted for the accounting effects of the Scheme recorded by the Company (inparticular the accounting effects of Ind AS 103 ‘Business Combinations’) andother consequential adjustments which have been audited by us.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors’ Report) Order 2016 ("theOrder") issued by the Central Government in terms of section 143 (11) of the Act wegive in the "Annexure A" a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

2. (A) 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 revised standalone balance sheet the revised standalone statement of profit andloss (including other comprehensive income) the revised standalone statement of changesin equity and the revised standalone statement of cash flows dealt with by this Report arein agreement with the books of account

d) In our opinion the aforesaid revised standalone financial statements comply withthe Ind AS specified under section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 from being appointed as a director in terms of Section164(2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate revised

Report in "Annexure B".

(B) With respect to the other matters to be included in the revised Auditors’Report 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 does not have any pending litigations which would impact its financialposition in its revised standalone financial statements; ii. The Company did not have anylong-term contracts including derivative contracts for which there were any materialforeseeable losses; iii. There are no amounts which are required to be transferred to theInvestor Education and Protection Fund by the Company; iv. The disclosures in the revisedstandalone financial statements regarding holdings as well as dealings in specified banknotes during the period from 8 November 2016 to 30 December 2016 have not been made inthese revised financial statements since they do not pertain to the financial year ended31 March 2021.

(C) With respect to the matter to be included in the revised Auditors’ Reportunder section 197(16): In our opinion and according to the information and explanationsgiven to us the remuneration paid by the company to its directors during the current yearis in accordance with the provisions of Section 197 of the Act. The remuneration paid toany director is not in excess of the limit laid down under Section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) whichare required to be commented upon by us.

For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No. 101248W/W-100022
Swapnil Dakshindas
Partner
Place : Pune Membership No. 113896
date : 23 July 2021 UdIN: 21113896AAAAEK1940

Annexure A to the revised Independent Auditor’s Report – 31 March 2021

(Referred to in our revised report of even date on the revised financial statements)

This Report supersedes our Report dated 28 April 2021

The Annexure referred to in revised Independent Auditor’s Report to the members ofthe Company on the revised financial statements for the year ended 31 March 2021 wereport that:

(i) In respect of its fixed assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The Company has a regular program of physical verification of its fixed assets bywhich its fixed assets phased manner over a period of three years. In our opinionthis periodicity of physical areverifiedin having regard to the size of the Company andthe nature of its assets. In accordance with this program certain fixed assets wereverified during the year and no material discrepancies were noticed on such verification.

c. The title deeds of the immovable properties are in the name of the Company.

(ii) The inventory has been physically verified by the Management during the year. Inour opinion the frequency of such verification is reasonable and there were no materialdiscrepanciesnotedduringsuchverification. The Management has re-determined obsolescenceand has written off completely the Inventory value in books.

(iii) In our opinion and according to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under Section189 of the Act. Accordingly paragraph 3(iii) of the Order is not applicable to theCompany.

(iv) In our opinion and according to information and explanation given to us theCompany has complied with provisions of Section 186 of the Act with respect to investmentsmade during the year. The Company has not given any loan guarantee or security coveredunder Section 185 and 186 of the Act during the year.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public to which the provisions of Section 73 to Section 76or any other relevant provisions of the Act and the rules framed there under apply.Accordingly paragraph 3(v) of the Order is not applicable.

(vi) According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under sub section (1) of Section 148 ofthe Act for any of the services rendered by the Company. Accordingly paragraph 3(vi) ofthe Order is not applicable.

(vii) a. According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccounts in respect of undisputed statutory dues including provident fund employee’sstate insurance income tax goods and services tax and any other statutory dues havegenerally been deposited regularly during the year by the Company to the appropriateauthorities. As explained to us the Company did not have any dues on account of salestax custom duty excise duty value added tax and cess.

According to the information and explanations given to us no undisputed statutory duespayable in respect of provident fund employees’ state insurance income-tax goodsand services tax and other material statutory dues were in arrears as at 31 March 2021 fora period of more than six months from the date they became payable.

b. According to the information and explanations given to us there are no dues withrespect to income tax sales tax goods and services tax value added tax custom dutyexcise duty which have not been deposited with the appropriate authorities on account ofany dispute.

(viii) I n our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowings to banks and government.The Company did not have any borrowings from debenture holders and financial institutionsduring the year.

(ix) In our opinion and according to the information and explanations given to us theCompany has not raised any money by way of initial public offer or further public offer(including debt instruments) and term loans during the year. Accordingly paragraph 3(ix)of the Order is not applicable to the Company.

(x) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company no fraud by the Company or no material fraud onthe Company by its officers or employees has been noticed or reported during the course ofthe audit.

(xi) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company as per the Act. Accordingly paragraph 3(xii) of the Orderis not applicable.

(xiii) According to the information and explanations given to us and on the basis ofour examination of the records of the Company all transactions with the related partiesare in compliance with section 177 and 188 of the Act and the details have been disclosedin the revised financial statements as required by the applicable accounting standards.

(xiv) In our opinion and according to the information and explanations given to usduring the year under audit the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures. Hence theprovisions of clause 3 (xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) In our opinion and according to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934.

For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No. 101248W/W-100022
Swapnil Dakshindas
Partner
Place : Pune Membership No. 113896
date : 23 July 2021 UdIN: 21113896AAAAEK1940

Annexure B to the revised Independent Auditors’ report on the revisedstandalonefinancial statements of KPIT Technologies Limited

(Erstwhile KPIT Engineering Limited) for the period ended 31 March 2021

Revised report on the internal financial controls with reference to the aforesaidrevised standalone financial statements under Clause (i) of Sub-section 3 of Section 143of the Companies Act 2013 (Referred to in paragraph 2(A)(f) under ‘Report on OtherLegal and Regulatory Requirements’ section of our revised report of even date) ThisReport supersedes our Report dated 28 April 2021

Opinion

We have audited the internal financial controls with reference to financial statementsof KPIT Technologies Limited (Erstwhile KPIT Engineering Limited) ("theCompany") as of 31 March 2021 in conjunction with our audit of the revised standalonefinancial statements of the Company for the year ended on that date.

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to financial statements and such internal financial controls wereoperating effectively as at 31 March 2021 based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India (the "Guidance Note").

Emphasis of Matter

We draw attention to Note 1 and Note 44(3) of the revised standalone financialstatements which describes the Basis of preparation. As explained in detail therein theserevised standalone financial statements for the year ended 31 March 2021 have beenprepared pursuant to the Composite Scheme of Arrangement (‘the Scheme’) formerger of Impact Automotive Solutions Limited wholly owned subsidiary of the Company("Transferor Company") with the Company from the specified retrospectiveappointed date (1 April 2019) as approved by the National Company Law Tribunal (NCLT)Mumbai Bench vide order dated 15 June 2021 ("Order"). A certified copy of theOrder sanctioning the Scheme has been filed by the Company with Registrar of theCompanies Maharashtra on 22 June 2021. Note 44 (3) in the Notes to the earlierstandalone financial of Impact Automotive Solutions Limited with the Company w.e.f. 1April 2019 was pending before the NCLT. We issued a separate auditor’s report dated28 April 2021onthesestandalonefinancial statements to the shareholders of the Company. Theaforesaid petition having been approved subsequently the Company has now prepared revisedstandalone financial statements incorporating the impact of the merger. Consequently ourrevised audit report is with reference to the revised financial statements. In accordancewith the provisions of Standard on Auditing 560 (Revised) ‘Subsequent Events’issued by The Institute of Chartered Accountants of India our audit procedures in so faras they relate to the revision to the Standalone Financial Statements have been carriedout solely on this matter and no additional procedures have been carried out for any otherevents occurring after 28 April 2021 (being the date of our earlier auditreportonthefinancial statements). Our earlier standalone audit report dated 28 April 2021 onthe earlier standalone financial statements is superseded by this revised report on therevised standalone

Our opinion is not modified in respect of this matter.

Management’s Responsibility for Internal Financial Controls

The Company’s management and the Board of Directors are responsible forestablishing and maintaining internal financial controls based on the internal financialstatements criteria established controls with reference to by the Company consideringthe essential components of internal control stated in the Guidance Note. 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 safeguardingof its 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 (hereinafter referred to as"the Act").

Auditors’ Responsibility

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 and the Standards on Auditing prescribed undersection 143(10) of the Act to the extent applicable to an audit of internal financialwith reference to financial statements. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to financialstatements were established and maintained and whether such controls operated effectivelyin all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit controls with reference to financial statements includedobtaining an understanding of such controls 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 revisedstandalone statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlswith reference to

Meaning of Internal Financial controls with Reference to Financial Statements

A company’s internal financial controls with reference to financial statements 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 financialcontrols with reference to financial statements include those policies and procedures that

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

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

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company’s assets that could havea material effect on the revised standalone financial statements.

Inherent Limitations of Internal Financial controls with Reference to FinancialStatements

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 revised standalone financial statements to future periods are subject to therisk that the internal with reference to revised standalone financial statements maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.

For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No. 101248W/W-100022
Swapnil Dakshindas
Partner
Place : Pune Membership No. 113896
date : 23 July 2021 UdIN: 21113896AAAAEK1940

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