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Kuantum Papers Ltd.

BSE: 532937 Sector: Industrials
NSE: KUANTUM ISIN Code: INE529I01021
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OPEN 145.00
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VOLUME 1257
52-Week high 179.70
52-Week low 63.20
P/E 16.63
Mkt Cap.(Rs cr) 1,288
Buy Price 0.00
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OPEN 145.00
CLOSE 144.85
VOLUME 1257
52-Week high 179.70
52-Week low 63.20
P/E 16.63
Mkt Cap.(Rs cr) 1,288
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kuantum Papers Ltd. (KUANTUM) - Auditors Report

Company auditors report

To the Members of Kuantum Papers Limited

Report on the Audit of the Ind AS Financial Statements Opinion

We have audited the Standalone Ind AS financial statements of KuantumPapers Limited("the Company") which comprise the balance sheet as at March 312022 the statement of Profit and Loss including the statement of other ComprehensiveIncome Cash Flow Statement and the Statement of Changes in Equity for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information(hereinafter referred to as the"standalone financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Ind AS financial statements give theinformation required by the Companies Act 2013 (the "Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standards("Ind AS") prescribed under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 312022the profit total comprehensive income changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Standalone Ind AS Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the Companies Act 2013and the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Description of Key Audit Matter

Key Audit Matters How our Audit Addressed the matter
Evaluation of Tax Position- Our procedures included and were not limited to the following:
With effect from financial year 2019-2020 the Income Tax Act provides an option of paying income taxes at a lower rate subject to complying with certain prescribed conditions ('new tax regime'). The Company had opted to shift to the new tax regime from a specified financial year in the future. • Examined the implications of the new provisions on the tax position of the company keeping in view the various interpretations to assess the impact of adopting the new tax regime and determination of the specified future financial year for shifting to the new tax regime.
Accordingly in the previous year the deferred tax liabilities which were expected to reverse subsequent to the Company shifting to the new tax regime in the specified future year were remeasured and the consequential amount was recognized in the Statement of Profit and Loss of the current year. • Evaluated the design and implementation effectiveness of key internal controls regarding budgeting procedures upon which the forecasts are based and those on estimation of amount of deferred tax assets to be carried forward including MAT credit entitlement. We also tested the operating effectiveness of such controls.
The determination of the point in time at which the aforesaid Company would shift to the new tax regime involves significant judgement and estimation regarding forecasting future taxable profits and realization of MAT credit entitlement (an item of deferred tax assets). Since the impact of remeasurement of deferred tax liabilities as stated above is sensitive to these judgements and estimates it affects the amount of deferred tax liabilities that are reversed in the Statement of Profit and Loss of the current year. • Tested appropriateness of forecasts of future taxable profits including revenue growth rates EBITDA growth rates and other tax positions based on our knowledge of the business and the observable market data of the industry.
Given the significant level of judgement involved and the quantitative significance we have determined this to be a key audit matter • Also compared actual results of current year with forecasts made in previous year. Ascertained reasons for any material variance.
• Reassessed the recoverability of MAT credit entitlement (an item of deferred tax assets) against the forecast future taxable profits.
• Assessed the adequacy of related disclosures in the financial statements.
Procurement and physical verification of agriculture based raw materials- Our procedures included and were not limited to the following:
The Company incurs significant costs on procurement of agriculture based raw material in bulk from various aggregators. The raw materials are susceptible to risk of incorrect weighing or measurement. Sound procurement processes involving critical attributes of raw material are required to mitigate this risk. • We evaluated the design and implementation of key internal controls relating to acceptance of goods. We also tested the operating effectiveness of such controls through a combination of procedures involving observation re-performance and inspection of evidence of samples selected.
Further the Company follows volume-based method for physical verification of raw material which involves a wide range of attributes such as the height of stockpiles area of spread etc. making the measurement of raw material inventory complex and sensitive to the attributes. • We performed substantive testing by selecting samples (using statistical sampling) of purchase transactions recorded during the year by examining the underlying documents such as supplier invoices goods receipt notes e-way bill etc.
In view of the above we have identified the confirmation of physical inventories of raw material as a key audit matter. * Assessed the appropriateness of the underlying data and estimates used for calculation of the yield ratio and compared the same with the previous years.
* Tested the manual journal entries to identify unusual items.
* Observed physical verification of raw materials selected using statistical sampling. We also assessed the appropriateness of the Company's standard operating procedures for conducting recording and reconciling physical verification of raw materials. On a sample basis we verified reconciliation of raw material as per physical verification with the corresponding book records.

Other Information

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the annual reportbut does not include the Standalone Ind AS financial statements and our auditor's reportthereon.

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

In connection with our audit of the Standalone Ind AS financialstatements our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Responsibilities of Management and Those Charged with Governance forthe Financial Statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these IND AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income changes inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards(Ind AS) specifiedunder section 133 of the Act read with the Companies (Indian Accounting Standards)Rules2015 as amended. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Standalone Ind AS financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the Standalone Ind AS financial statements the Board ofDirectors is 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. Those Boardof Directors are also responsible for overseeing the company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether theStandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Ind AS financialstatements.

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

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

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

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

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the Standalone Ind AS financial statements or if such disclosuresare inadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theStandalone Ind AS financial statements including the disclosures and whether theStandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

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

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

Report on Other Legal and Regulatory Requirements

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

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss including theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid Ind AS financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;

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

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure I". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

(g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended:

In our opinion and according to the information and explanations givento us the remuneration paid by the company to its directors during the current year is inaccordance with the provisions of section 197 of the Act.

(h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Ind AS financial statements. Refer Note 33 to thefinancial statements.

ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts- Refer Note 35 B(iv)(c) to the financialstatements;

iii. There were no amounts which were required to be transferredduring the year to the Investor Education and Protection Fund by the Company.

iv. (a) The Management has represented that to the best of itsknowledge and belief no funds (which are material either individually or in theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries;

(b) The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;

(c) Based on the audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material misstatement.

v. The company has neither declared dividend nor paid any dividendduring the year.

2. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of Section143(11) of the Act and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in "Annexure II" a statement on the matters specified inparagraphs 3 and 4 of the said Order to the extent applicable.

ANNEXURE- I TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under 'Report on Other Legal andRegulatory Requirements' section of our report of even date)

We have audited the internal financial controls over financialreporting of Kuantum Papers Limited ("the Company") as of 31st March 2022 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting with reference to these standalone financialstatements based on our audit. We conducted our audit in accordance with the Guidance Noteon Audit of Internal Financial Controls Over Financial Reporting (the "GuidanceNote") and the Standards on Auditing as specified under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth issued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting with reference to these standalone financial statements wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting withreference to these financial statements and their operating effectiveness. Our audit ofinternal financial controls over financial reporting included obtaining an understandingof internal financial controls over financial reporting with reference to these standalonefinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

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

Meaning of Internal Financial Controls Over Financial Reporting withreference to these financial statements

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls 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 our opinion the company has in all material respects an adequateinternal financial controls system over financial reporting with reference to thesestandalone financial statements and such internal financial controls over financialreporting were operating effectively as at 31st March 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 InternalFinancial Controls Over Financial Reporting" issued by the Institute of CharteredAccountants of India.

ANNEXURE- II TO THE INDEPENDENT AUDITOR'S REPORT

Annexure II referred to in paragraph 2 under the heading "Reporton other legal and regulatory requirements" of our report of even date

i. In respect of the company's Property Plant and equipment andIntangible assets.

a. (A) The company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant and Equipment

(B) The company has maintained proper records showing full particularsand intangible assets.

b. The Property Plant and Equipment have been physically verified bythe management in a phased manner designed to cover all the items over a period of threeyears which in our opinion is reasonable having regard to the size of the company andnature of its business. Pursuant to the program a portion of the fixed assets has beenphysically verified by the management during the year and no material discrepancies werenoticed on such verification.

c. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of the immovableproperties included in property plant and equipment are held in the name of the Company.

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

e. Based on audit procedures performed and the representation obtainedfrom the management no proceedings have been initiated during the year or are pendingagainst the Company as at March 312022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

ii. a. As explained to us physical verification has been conducted bythe management at reasonable intervals. In our opinion the procedures of physicalverification of inventory followed by the management are reasonable and adequate inrelation to the size of the company and the nature of its business. We are explained thatno material discrepancies have been noticed on physical verification.

b. The Company has a working capital limit in excess of Rs 5 croresanctioned by banks and financial institutions based on the security of current assetsduring the year. The quarterly returns/statements in respect of the working capitallimits have been filed by the Company with such banks and financial institutions and suchreturns/statements are in agreement with the books of account of the Company for therespective periods which were subject to audit/review.

iii. The Company during the year has not made investment providedany guarantee or security or granted any loans or advances in the nature of loans securedor unsecured to companies firms limited liability partnerships or any other partiesTherefore the provisions of clause 3(iii)(a) to 3(iii)(f) of the Order are notapplicable.

iv. Based on audit procedures performed and the representation obtainedfrom the management the company has not granted any loans or provided any guarantees orgiven any security or made any investments requiring compliance with provisions of section185 and 186 of the Companies Act. Accordingly provisions of clause 3(iv) are notapplicable to the Company.

v. In our opinion and according to the information and explanationsgiven to us the Company has complied with the directives issued by the Reserve Bank ofIndia ('the RBI') the provisions of sections 73 to 76 and other relevant provisions ofthe Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended) as applicablewith regard to the deposits accepted or amounts which have been considered as deemeddeposits. According to the information and explanations given to us no order has beenpassed by the Company Law Board or National Company Law Tribunal or RBI or any Court orany other Tribunal in this regard.

vi. We have broadly reviewed the books of account maintained by theCompany in respect of the product covered where pursuant to the Rule made by the CentralGovernment the maintenance of cost records has been prescribed under section 148 (1) ofthe Act in respect of products covered and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the records with a view to ensuring whether they are accurate orcomplete.

vii. a) As per information and explanations given to us and on thebasis of our examination of records the company is generally regular in depositingundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added taxgoods and service tax cess and other statutory dues with the appropriate authorities. Asinformed to us there are no outstanding statutory dues in arrears as at the last day ofthe financial year concerned for a period of more than six months from the date theybecame payable.

b) According to the information and explanations given to us there areno dues of income tax GST Duty of custom Duty of excise Value added tax Sales tax andService tax which have not been deposited with the appropriate authorities on account ofany dispute except as mentioned below:

Name of the statute Nature of dues Amount * (Rs. In lakhs) Period to which the amount relates Forum where dispute is pend ing
Income Tax Act1961 Income Tax 7.57 2005-2006 (Assessment year) CIT(A)
Income Tax Act1961 Income Tax 856.36 2016-2017 (Assessment year) CIT(A)
Income Tax Act1961 Income Tax 96.26 2012-2013 (Assessment year) CIT(A)
Income Tax Act1961 Income Tax 154.88 2013-2014 (Assessment year) CIT(A)
Income Tax Act1961 Income Tax 267.28 2017-2018 (Assessment year) CIT(A)
Income Tax Act1961 Income Tax 6.60 2018-2019 (Assessment year) CIT(A)
Central Excise Act1944 Excise Duty 447.36 2000-2001 to 2007-2008 Punjab and Haryana High Court
Central Excise Act1944 Excise Duty 65.06 2008 -2009 CESTAT Chandigarh

*Amount are as per demand order and include interest and penaltywhichever indicated in the said orders.

viii. According to the information and explanations given to us notransactions were surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961) which have not been recorded inthe books of accounts.

ix. a. According to the information and explanations given to uspursuant to receiving the approvals for rescheduling its loans from the lenders theCompany has not defaulted in repayment of its loans or borrowings or in the payment ofinterest thereon to any lender. b. According to the information and explanations given tous including confirmations received from banks/ financial institution and other lendersand representation received from the management of the Company and on the basis of ouraudit procedures we report that the Company has not been declared a willful defaulter byany bank or financial institution or other lender.

c. According to the information and explanations given to us the termloan taken by the Company have been applied for the purposes for which they were raised.

d. In our opinion and according to the information and explanationsgiven to us and on anoverall examination of the financial statements of the Companyfunds raised by the Company on short term basis have not been utilized for long termpurposes.

e. The Company does not have any subsidiaries joint ventures orassociate companies and therefore the clause 3(ix)(e) and 3(ix)(f) is not applicable.

x. a. The company has not raised any money by way of public offer orfurther public offer (including debt instruments) during the year. Accordingly reportingunder clause 3(x)(a) of the order is not applicable to the company.

b. According to the information and explanations given to us thecompany has not made any preferential allotment or private placement of shares or (fullypartially or optionally) convertible debentures during the year. Accordingly reportingunder clause 3(x)(b) of the order is not applicable to the company.

xi. a. To the best of our knowledge and according to the informationand explanations given to us no fraud by the

Company or on the Company has been noticed or reported during theperiod covered by our audit.

b. No report under section 143(12) of the Act has been filed with theCentral Government for the period covered by our audit.

c. According to the information and explanations given to us includingthe representation made to us by the management of the Company there are nowhistle-blower complaints received by the Company during the year.

xii. The Company is not a Nidhi company and therefore clause 3(xii) ofthe Order related to such companies is not applicable to the Company.

xiii. In our opinion and according to the information and explanationsgiven to us all transactions entered into by the Company with the related parties are incompliance with sections 177 and 188 of the Act where applicable. Further the details ofsuch related party transactions have been disclosed in the standalone financialstatements as required under Accounting Standard (AS) 18 Related Party Disclosuresspecified in Companies (Accounting Standards) Rules 2021 as prescribed under section 133of the Act / Indian Accounting Standard (Ind AS) 24 Related Party Disclosures specifiedin Companies (Indian Accounting Standards) Rules 2015 as prescribed under section 133 ofthe Act.

xiv. a. In our opinion and according to the information andexplanations given to us the Company has an internal audit system as required undersection 138 of the Act which is commensurate with the size and nature of its business.

b. We have considered the internal audit reports of the company issuedtill date in determining the nature timing and extent of our audit procedures.

xv. According to information and explanations given to us by themanagement the company has not entered into any non-cash transactions with any of itsdirectors or persons connected with the directors during the year. Therefore clause 3(xv)of the Order is not applicable.

xvi. a. In our opinion in view of its business activities the Companyis not required to be registered under Section 45IA of Reserve Bank of India Act 1934.Hence reporting under clause 3(xvi)(a) (b) and (c) of the Order is not applicable.

b. In our opinion and as per the information and explanations providedto us there is no core investment company within the Group (as defined in the CoreInvestment Companies (Reserve Bank) Directions 2016) and accordingly reporting underclause 3(xvi)(d) of the Order is not applicable.

xvii. The Company has not incurred any cash loss in the current as wellas the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors duringthe year. Accordingly reporting under clause 3(xviii) of the Order is not applicable tothe Company.

xix. According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the standalonefinancial statements our knowledge of the plans of the Board of Directors and managementwe are of the opinion that 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.We however state that this is not an assurance as to the future viability of thecompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the company as and when they fall due.

xx. The Company has transferred the remaining unspent amount undersub-section (5) of section 135 of the Act in respect of ongoing project to a specialaccount in compliance with the provision of sub-section (6) of section 135 of the Act asper details below:

Financial year Amount unspent on CSR activities for "On going Projects" Amount transferred to Special Account within 30 days from the end of the Financial Year Amount Transferred after the due date Date of transfer
2020-21 Rs. 134.39 Lacs NIL Rs. 134.39 Lacs 18.08.2021

xxi. The reporting under clause 3(xxi) is not applicable in respect ofaudit of standalone financial statements of the Company. Accordingly no comment has beenincluded in respect of said clause under this report.

For O P Bagla & Co LLP
Chartered Accountants
Firm Registration No.: 000018N/N500091
Atul Bagla
Partner
Place : Chandigarh Membership No: 91885
Date : May 21 2022 UDIN No. 22091885AJIXDI1287

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