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Kreon Finnancial Services Ltd.

BSE: 530139 Sector: Financials
NSE: N.A. ISIN Code: INE302C01018
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NSE 05:30 | 01 Jan Kreon Finnancial Services Ltd
OPEN 40.00
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VOLUME 4464
52-Week high 100.65
52-Week low 37.00
P/E 12.93
Mkt Cap.(Rs cr) 43
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 40.00
CLOSE 40.85
VOLUME 4464
52-Week high 100.65
52-Week low 37.00
P/E 12.93
Mkt Cap.(Rs cr) 43
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kreon Finnancial Services Ltd. (KREONFINNANCIAL) - Auditors Report

Company auditors report

To the Members of KREON FINNANCIAL SERVICES LIMITED

Opinion

We have audited the accompanying standalone financial statements of Kreon FinancialServices Limited Chennai which comprise the Balance Sheet as at March 31 2022 andthe Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and a summary ofthe significant 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 standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the companyas at March 31 2022; and its Profit Total Comprehensive Income the changes in Equityand Cash Flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor’s Responsibilities for the Audit ofthe Financial 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 thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Key audit matters Audit Response
1 Ind-AS 109 (Financial Instruments) We have evaluated the management’s process in estimation of
requires the Company to recognise interest income by applying the effective interest rate (EIR) method. While estimating future cash receipts for the purpose of determining the EIR factors including expected behaviour life cycle of the financial asset probable fluctuation in collateral value which may have an impact on the EIR are to be considered future cash receipts for the purpose of determination of EIR including identification of factors like expected behaviour life cycle of the financial asset and probable fluctuation in collateral value. We tested the accuracy of key data inputs and calculations used in this regard.
2 Completeness in identification accounting and disclosure of related party transactions in accordance with the applicable laws and financial reporting framework We have assessed the systems and processes laid down by the company to appropriately identify account and disclose all material related party transactions in accordance with applicable laws and financial reporting framework. We have designed and performed audit procedures in accordance with the guidelines laid down by ICAI in the Standard on Auditing (SA 550) to identify assess and respond to the risks of material misstatement arising from the entity’s failure to appropriately account for or disclose material related party transactions which includes obtaining necessary approvals at appropriate stages of such transactions as mandated by applicable laws and regulations.
3 Compliance and disclosure requirements under the applicable Indian Accounting Standards RBI Guidelines and other applicable statutory regulatory and financial reporting framework. We have assessed the systems and processes laid down by the company to appropriately ensure compliance and disclosures as per the applicable Indian Accounting Standards RBI Guidelines and other applicable statutory regulatory and financial reporting framework. We have designed and performed audit procedures to assess the completeness and correctness of the details disclosed having regard to the assumptions made by the management in relation to the applicability and extent of disclosure requirements; and have relied on internal records of the company and external confirmations wherever necessary
4 Key Information technology (IT) systems used in financial reporting process. The company’s operational and financial processes are dependent on IT systems due to large volume of transactions that are processed daily. Accordingly our audit was focused on key IT systems and controls due to the pervasive impact on the financial statements. We obtained an understanding of the Company’s IT control environment and key changes during the audit period that may be relevant to the audit We tested the design implementation and operating effectiveness of the company’s General IT controls over the key IT systems which are critical to financial reporting. We also tested key automated and manual controls and logic for system generated reports relevant to the audit that would materially impact the financial statements.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board’sreport Management discussion and analysis and Report on corporate governance but doesnot include the standalone financial statements and our auditor’s report thereon. Ouropinion on the standalone financial statements does not cover the other information and wedo not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is no materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance (changes in equity) and cash flows of the Company inaccordance with6 the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible for assessing theCompany’s ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those Board of Directors are also responsible for overseeing the Company’sfinancial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 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 financial statements.

Paragraph 40(b) of this SA explains that the shaded material below can be located in anAppendix to the auditor’s report. Paragraph 40(c) explains that when law regulationor applicable auditing standards expressly permit reference can be made to a website ofan appropriate authority that contains the description of the auditor’sresponsibilities rather than including this material in the auditor’s reportprovided that the description on the website addresses and is not inconsistent with thedescription of the auditor’s responsibilities below.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However future events or conditions may cause theCompany to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves 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 anysignificant deficiencies in internal control that we identify during our audit.

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

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor’s report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

(1) 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 A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable. (2) As required bySection 143 (3) of the Act we report that: a) We have sought and obtained all theinformation and explanations which to the best of our knowledge and belief were necessaryfor the purposes of our audit. b) In our opinion proper books of account as required bylaw have been kept by the Company so far as it appears from our examination of those; c)the Balance Sheet the Statement of Profit and Loss including Other Comprehensive IncomeStatement of Changes in Equity and the Statement of Cash Flow dealt with by this Reportare in agreement with the books of account; d) In our opinion the aforesaid standalonefinancial statements comply with the Indian Accounting Standards specified under Section133 of the Act. e) On the basis of written representations received from the directors ason March 31 2022 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2022 from being appointed as a director in terms of Section164(2) of the Act. f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B". g) With respect to the other matters tobe included in the Auditor’s Report in accordance with Rule 11 of the

Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: i. The Company has disclosedthe impact of pending litigations on its financial position in its standalone financialstatements. ii. The Company has made provision as required under the applicable law andAccounting standards for material foreseeable losses if any on long-term contracts.iii. There has been no delay in transferring amounts required to be transferred to theinvestor’s education and protection fund by the Company.

for J.V. Ramanujam & Co.
Chartered Accountants
FRN No.02947S
Sd/-
Sri Narayana Jakhotia
Partner
Place: Chennai M.No.233192
Date: May 20 2022 UDIN: 22233192ANFOJU2738

"Annexure A" to Independent Auditors’ Report

(Referred to in Paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date on the accounts of KreonFinancial Services Limited

("the Company") for the year ended March 31 2022)

i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its Property Plant and Equipment (PPE). (b)According to the information and explanations given to us physical verification of PPE isbeing conducted in a phased manner by the management under a programme designed to coverall the PPE over a period of three years which in our opinion is reasonable havingregard to the size of the Company and nature of its business. Pursuant to the program aportion of the PPE has been physically verified by the management during the year and nomaterial discrepancies between the books records and the physical PPE have been noticed.(c) There are no immovable properties in the name of the company. (d) The Company has notrevalued any of its Property Plant and Equipment (including right-of-use assets) andintangible assets during the year. (e) Based on the information and explanations furnishedto us 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 madethereunder. ii) (a) There are no inventories in the company during the year. (b) Thecompany has not been sanctioned working capital limits in excess of five crore rupees inaggregate

from banks or financial institutions on the basis of security of current assets. iii)(a) The Company is registered with Reserve Bank of India (RBI) under section 45-IA as anon- banking financial company and its principal business is to give loans. Accordinglythe provisions of clause 3(iii)(a) of the Order are not applicable to the Company. (b)Based on our examination and the information and explanations given to us in respect ofinvestments/ guarantees/ securities/ loans/ advances in nature of loan in our opinionthe terms and conditions under which such loans were granted/ investments were made/guarantees provided/ security provided are not prejudicial to the Company’s interest.

(c) In respect of the loans/ advances in nature of loan the schedule of repayment ofprincipal and payment of interest has been stipulated by the Company. Considering that theCompany is a non-banking financial company engaged in the business of granting loansmajorly to retail customers the entity-wise details of the amount due date for paymentand extent of delay (that has been suggested in the Guidance Note on CARO 2020 issued bythe Institute of Chartered Accountants of India for reporting under this clause) have notbeen reported because it is not practicable to furnish such details owing to thevoluminous nature of data generated in the normal course of the Company’s business.Further except for the instances where there are delays or defaults in repayment ofprincipal and/ or interest the parties are repaying the principal amounts as stipulatedand are also regular in payment of interest as applicable. The Company has recognisedprovisions against the above loans in accordance with the principles of Indian Accounting

Standards (Ind AS) and the guidelines issued by the Reserve Bank of India("RBI") for Income

Recognition and Asset Classification.

(d) In respect of the loans/ advances in nature of loans the total amount overdue formore than ninety days as at March 31 2022 is Rs.50.49 Lakhs. In such instances in ouropinion based on information and explanations provided to us reasonable steps have beentaken by the Company for the recovery of the principal amounts and the interest thereon.(e) This Company is registered with the Reserve Bank of India (RBI) under section 45-IA asa non- banking financial company and its principal business is to give loans.Accordingly the provisions of clause 3(iii)(e) of the Order are not applicable to theCompany. (f) The loans/advances in nature of loans granted during the year including topromoters/related parties had stipulated the scheduled repayment of principal and paymentof interest and the same were not repayable on demand. iv) In our opinion and according tothe information and explanations given to us the Company has complied with the provisionsof Section 185 and sub-section (1) of Section 186 of the Act in respect of the loans andinvestments made and guarantees and security provided by it. The provisions ofsub-sections (2) to (11) of Section 186 are not applicable to the Company as it is anon-banking financial company registered with the RBI engaged in the business of givingloans. v) The Company has not accepted any deposits from public during the year hence thedirectives issued by RBI and the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the Companies (Acceptance of Deposits) Rules2015 are not applicable. vi) The Company is not required to maintain cost recordspursuant to the Rules made by the Central Government for maintenance of Cost Records undersub-section (1) of section 148 of the Act.

vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is regular in depositing theundisputed statutory dues including goods and services tax provident fundemployees’ state insurance income tax sales tax service tax value added taxcess and other material statutory dues as applicable with the appropriate authorities(b) According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees State Insurance Income Tax Sales TaxService Tax duty of Customs duty of Excise Value Added Tax Cess and any otherstatutory dues were outstanding as at March 31 2022 for a period of more than six monthsfrom the date they became payable. (c) According to the information and explanations givento us there are no dues with respect to Excise Duty and Sales Tax which has not beendeposited with the appropriate authorities on account of any dispute. viii) According tothe information and explanations given to us and the records of the Company examined byus there are no transactions in the books of account that has been surrendered ordisclosed as income during the year in the tax assessments under the Income Tax Act 1961that has not been recorded in the books of account.

ix) (a) Based on our audit procedures and according to the information and explanationsgiven to us the Company has not defaulted in repayment of loans or borrowings to afinancial institution bank or dues to debenture holders. (b) According to theinformation and explanations given to us and on the basis of our audit procedures wereport that the Company has not been declared wilful defaulter by any bank or financialinstitution or government or any government authority. (c) According to the informationand explanations given to us and on overall examination of the financial statements ofthe Company funds raised on short-term basis have prima facie not been used during theyear for long-term purposes by the Company. (d) According to the information andexplanations given to us and on an overall examination of the financial statements of theCompany the Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries. (e) The company has not raised loans on thepledge of securities held in subsidiaries joint ventures and associates. x) (a) TheCompany has not raised any money by way of initial public offer or further public offer(including debt instruments) during the year. Accordingly the reporting under clause3(x)(a) of the Order is not applicable to the Company.

(b) The Company has made preferential allotment of equity shares warrants andcompulsorily convertible preference shares during the year. Based on the information andexplanations given to us requirements of section 42 and section 62 of the Companies Act2013 have been complied with and the funds raised have been used for the purposes forwhich the funds were raised. xi) (a) During the course of our examination of the books andrecords of the Company carried out in accordance with the generally accepted auditingpractices in India and according to the information and explanations given to us we haveneither come across any instance of material fraud by the Company or on the Companynoticed or reported during the year nor have we been informed of any such case by theManagement.

(b) 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 a report under Section 143(12)of the Act in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)Rules 2014 was not required to be filed with the Central Government. Accordingly thereporting under clause 3(xi)(b) of the Order is not applicable to the Company. (c) Duringthe course of our examination of the books and records of the Company carried out inaccordance with the generally accepted auditing practices in India and according to theinformation and explanations given to us the Company has received whistle-blowercomplaints during the year which have been considered by us for any bearing on our auditand reporting. xii) In our Opinion the company is not a Nidhi Company and the NidhiRules 2014 are not applicable to it. Therefore clause 3 (xii) of the Companies(Auditor’s Report) Order is not applicable to the Company.

xiii) The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under IndianAccounting Standard 24 "Related Party Disclosures specified under

Section 133 of the Act.

xiv) (a) In our opinion and according to the information and explanation given to usthe Company has an internal audit system commensurate with the size and nature of itsbusiness.

(b) The reports of the Internal Auditor for the period under audit have been consideredby us. xv) In our opinion during the year the Company has not entered into any non-cashtransactions with its Directors or persons connected with its directors. and henceprovisions of section 192 of the Companies Act 2013 are not applicable to the Company.xvi) (a) The Company is required to and has been registered under Section 45-IA of theReserve Bank of India Act 1934 as an Non Deposit Taking Non-Systemically Important NBFC.The company is NBFC - Others - Loan Company (LC).

(b) The Company has conducted non-banking financial activities during the year and theCompany holds a valid Certificate of Registration from the Reserve Bank of India as perthe Reserve Bank of India Act 1934. (c) The Company is not a Core Investment Company(CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly thereporting under clause 3(xvi)(c) of the Order is not applicable to the Company. xvii) TheCompany has incurred cash losses in the financial year of Rs.381.17 Lakhs. The company hasnot incurred cash losses in the immediately preceding financial year. xviii) Therehas been no resignation of the statutory auditors of the Company during the year. xix)According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realisation of financial assets and paymentof financial liabilities other information accompanying the financial statements ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatCompany is not capable of meeting its liabilities existing at the date of balance sheet asand when they fall due within a period of one year from the balance sheet date. Wehowever state that this is not an assurance as to the future viability of the Company. Wefurther state that our reporting is based on the facts up to the date of the audit reportand we neither give any guarantee nor any assurance that all liabilities falling duewithin a period of one year from the balance sheet date will get discharged by the Companyas and when they fall due. xx) Reporting on CSR: Provisions of Section 135Corporate Social Responsibility (CSR) are not applicable to the company. Accordinglyreporting under clause 3(xx)(a) and (b) of the Order is not applicable for the year.

xxi) The reporting under clause 3(xxi) of the Order is not applicable in respect ofaudit of Standalone Financial Statements. Accordingly no comment in respect of the saidclause has been included in this report.

"ANNEXURE B" to the Independent Auditor’s Report of even date on theStandalone Financial Statements of

Kreon Finnancial Services Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of M/s KreonFinnancial Services Limited

("the Company") as of March 31 2022 in conjunction with our audit of thestandalone financial statements of the

Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding 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 Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial

Controls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India and jointly controlled companies which are companies incorporated inIndia as of that date.

for J.V. Ramanujam & Co.
Chartered Accountants
FRN No.02947S
Sd/-
Sri Narayana Jakhotia
Partner
Place: Chennai M.No.233192
Date: May 20 2022 UDIN: 22233192ANFOJU2738

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