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L G Balakrishnan & Bros Ltd.

BSE: 500250 Sector: Auto
NSE: LGBBROSLTD ISIN Code: INE337A01034
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NSE 13:09 | 08 Dec 697.55 -9.50
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OPEN 708.30
PREVIOUS CLOSE 703.20
VOLUME 1708
52-Week high 805.15
52-Week low 487.25
P/E 9.09
Mkt Cap.(Rs cr) 2,186
Buy Price 695.60
Buy Qty 1.00
Sell Price 696.75
Sell Qty 1.00
OPEN 708.30
CLOSE 703.20
VOLUME 1708
52-Week high 805.15
52-Week low 487.25
P/E 9.09
Mkt Cap.(Rs cr) 2,186
Buy Price 695.60
Buy Qty 1.00
Sell Price 696.75
Sell Qty 1.00

L G Balakrishnan & Bros Ltd. (LGBBROSLTD) - Auditors Report

Company auditors report

TO THE MEMBERS OF

L.G.BALAKRISHNAN & BROS LIMITED

Report on the Standalone Ind AS Financial Statements:

Opinion

We have audited the accompanying Standalone Ind AS Financial Statementsof L.G.BALAKRISHNAN & BROS LIMITED Coimbatore ("the Company") whichcomprises the Balance Sheet as at 31st March 2022 the Statement of Profit andLoss (including Other Comprehensive Income) the Statement of Cash Flows notes to thefinancial statements the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information.

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 accounting principlesgenerally accepted in India including Ind AS of the state of affairs of the Company as at31st March 2022 the profit and total comprehensive income its cash flows andthe changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone IND AS financial statements inaccordance with the Standards on Auditing specified u/s 143(10) of the Companies Act2013. Our responsibilities under those standards are further described in theAuditor?s responsibilities for the Audit of the Standalone Financial Statementssection of our report. We are Independent of the company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and ICAI?sCode of Ethics.

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

Key audit matters

Key audit matters are those matters that in our professionaljudgement were of most significance in our audit of the standalone financial statementsof the current period. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. We have determined the matters describedbelow to be the key audit matters to be communicated in our audit report.

S.No Key Audit Matters Auditor?s Response
1 Allowance for Credit Loss: Our audit procedures related to the allowance for credit losses for trade receivables include the following among others:
The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. In calculating expected credit loss the Company has also considered other related credit information for its customers to estimate the probability of default in future. We tested the effectiveness of controls over the (1) development of the methodology for the allowance for credit losses including consideration of the current and estimated future economic conditions (2) computation of the allowance for credit losses.
We identified allowance for credit losses as a key audit matter because the Company exercises significant judgment in calculating the expected credit losses.
2 Assessment of carrying value of investments: Our procedures in relation to assessing the carrying value of investments include the following observation.
The company has invested in listed equity instruments and also in unlisted equity instruments. We consider this a key audit matter given the relative significance of the value of investments (1) The equity investments other than those measured as per Ind AS 27 are carried at fair values as on 31st March 2022.
(2) The equity investments in subsidiaries are measured at cost as per Ind AS 27.

Information other than the standalone financial statements and theauditor?s report thereon

The Company?s Board of directors are responsible for thepreparation of other information. The other information comprises the information includedin the management discussion and analysis Board?s Report including annexures toBoard?s Report Business responsibility report Corporate Governance andShareholder?s information but does not include the standalone Ind AS financialstatements and our auditor?s report thereon.

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 standalone Ind ASfinancial statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management?s Responsibility for the Standalone Ind AS FinancialStatements:

The Company?s Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these StandaloneInd AS Financial Statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the Accounting principles generally accepted inIndia including the Indian Accounting Standards ("Ind AS") prescribed underSection 133 of the Act 2013 read with relevant rules issued there under.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Standalone Ind AS Financial Statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

In preparing the Standalone financial statements management isresponsible for assessing the Company?s ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing thecompany?s financial reporting process.

Auditor?s Responsibility for the Audit of the Standalone Ind ASFinancial Statements:

Our objectives are to obtain reasonable assurance about whether theStandalone financial statements as a whole are free from material misstatement whetherdue 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 financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system withreference to standalone financial statements in place and the operating effectiveness ofsuch controls.

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

• Conclude on the appropriateness of management?s use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company?s ability to continue as a going concern. If we conclude thatmaterial uncertainty exists we are required to draw attention in our auditor?sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor?s report. However future events orconditions may cause 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 event 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 standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our 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.

Report on Other Legal and Regulatory Requirements:

As required by the Companies (Auditor?s Report) Order 2020("the Order") issued by the Central Government of India in terms of sub-section(11) of Section 143 of the Act we enclose in "Annexure A" a statement on thematters specified in Paragraphs 3 and 4 of the Order.

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 have beenkept 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 othercomprehensive income) the Statement of Cash Flows and the Statement of Changes in Equitydealt with by this Report are in agreement with the relevant books of accounts.

d) In our opinion the aforesaid Standalone Ind AS Financial Statementscomply with the Indian Accounting Standards specified under Section 133 of the Act readwith Companies (Indian Accounting Standards) Rules 2015 as amended.

e) On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directors noneof the directors are disqualified as on 31 March 2022 from being appointed as a directorin terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls withreference to financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".

g) With respect to the other matters to be included in theAuditor?s Report in accordance with the requirements of Section 197(16) of the Actas amended:

In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the company to its directors during theyear is in accordance with the provisions of Section 197 of the Act.

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

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Ind AS Financial Statements - Refer Note No.29 to theStandalone Financial Statements

ii. The company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

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

iv.

(a) The Management has represented that to the best of its knowledgeand belief no funds have been advanced or loaned or invested (either from borrowed fundsor share premium or any other sources or kind of funds) by the Company to or in any otherperson or entity including foreign entity ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries")or provide any 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 have been received by the Company from any person or entityincluding foreign entity ("Funding Parties") with

the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("ultimate Beneficiaries") or provide any guarantee security or the like onbehalf 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.

(a) The final dividend paid by the Company during the year in respectof the same declared for the previous year is in accordance with section 123 of theCompanies Act 2013 to the extent it applies to payment of dividend.

(b) As stated in Note No. 10(iv)(b) to the financial statements theBoard of Directors of the Company have proposed final dividend for the year which issubject to the approval of the members at the ensuing Annual General Meeting. The dividenddeclared is in accordance with section 123 of the Act to the extent it applies todeclaration of dividend.

‘Annexure -A? to the Independent Auditor?s Report to themembers of L.G.BALAKRISHNAN & BROS LIMITED

In terms of the information and explanation sought by us and given bythe Company and the books and records examined by us in the normal course of audit and tothe best of our knowledge and belief we report the following:

i. (a) i) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment.

ii) The Company has maintained proper records showing full particularsof intangible assets.

(b) The Property Plant and Equipment were physically verified duringthe year by the management at reasonable intervals in a phased manner and no materialdiscrepancies were noticed on such verification.

(c) According to the information and explanation given to us and thebooks and records verified by us and based on the examination of the registered saledeeds/transfer deed/conveyance deed/scheme of arrangements approved by Hon?ble highCourts & appropriate authorities and property tax receipts provided to us we reportthat the title deeds of immovable properties of Land and Buildings which are freeholdare held in the name of the Company as at Balance sheet date.

In respect of immovable properties of Land that have been taken onlease and disclosed as fixed assets in the financial statements and the buildingsconstructed on such leasehold land whose lease deeds have been pledged as security forcredit facilities taken from the banks the lease agreements are in the name of theCompany where the Company is the lessee in the agreement based on the confirmationdirectly received by us from banks.

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

(e) No proceedings have been initiated during the year or are pendingagainst the Company as at March 31 2022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (45 of 1988) and rules made thereunder.

ii.

(a) According to information and explanations furnished to us theinventories have been physically verified by the management at reasonable intervals and inour opinion the frequency of such verification is reasonable. No material discrepancieswere noticed on such verification which were more than 10% in aggregate for each class ofinventory.

(b) According to information and explanations furnished to us thequarterly stock statements filed by the Company with banks are in agreement with the booksof accounts of the Company.

iii. The Company has not granted loans secured or unsecured tocompanies firms limited liability partnerships or other parties covered in the registermaintained under section 189 of the Companies Act 2013 and hence reporting under clause3(iii) of the order is not applicable to the company.

iv. The Company has not provided any loans guarantees or security asspecified in Sec 185 or 186 of the Act. In respect of investments made by the company weare of the opinion that the provisions of Section 185 and 186 of the Act have beencomplied with.

v. According to the explanation and information provided to us theCompany has complied with the provisions of Sections 73 to 76 and any other relevantprovisions of the Companies Act 2013 and the Companies (Acceptance of Deposits) Rules2014. We have been informed that no order has been passed by the Company Law Board or theNational Company Law Tribunal or the Reserve Bank of India or any court or any otherTribunal in this regard.

vi. The maintenance of cost records has been specified by the CentralGovernment u/s 148(1) of the Companies Act 2013 for automotive components. We havebroadly reviewed the cost records maintained by the company pursuant to the Companies(Cost Records and Audit) Rules 2014 as amended and prescribed by the Central Governmentunder sub-section 1 of Section 148 of the Companies Act 2013 and are of the opinionthat prima facie the prescribed cost records have been made and maintained. We havehowever not made a detailed examination of the cost records with a view to determinewhether they are accurate or complete.

vii.

(a) The Company is regular in depositing undisputed statutory duesincluding provident fund employees? state insurance income-tax duty of customsduty of excise goods and service tax cess and any other statutory dues with theappropriate authorities and there are no undisputed statutory dues outstanding for aperiod of more than six months from the date they became payable as at the balance sheetdate.

(b) The particulars of disputed statutory dues are as follows:

Name of the Statute Nature of Due Amount Disputed In Lakhs) Amount Unpaid In Lakhs) Period to which the amount relates pending
Central Excise Act ED- Transfer of Division 100.00 92.50 2009-10 CESTAT Chennai
Central Excise Act Excess Credit availed 62.72 13.68 2016-17 CESTAT New Delhi
Tamil Nadu Value Added Tax Act Input Tax Credit/ Sales return 355.98 172.47 2007- 08 2008- 09 201011 2011-12 Sales Tax Appellate Tribunal Coimbatore (Department Appeal)
Tamil Nadu Value Added Tax Act Differential tax rate 4.86 4.86 2010-11 Sales Tax Appellate Tribunal Coimbatore
Entry Tax Entry Tax 408.36 408.36 2007-08 Hon?ble High Court of Madras (stayed by the High Court)
Tamil Nadu Value Added Tax Act Dispute on tax charged for Canteen sales 14.02 14.02 2006-07 to 2011-12 Sales Tax Appellate Tribunal Chennai
Income Tax Act Excess claim u/s 80IC 213.02 213.02 2009-10 Commissioner (Appeals)
Income Tax Act Excess claim u/s 80IC 214.23 214.23 2010-11 Commissioner (Appeals)
Income Tax Act Excess claim u/s 80IC 150.99 - 2012-13 Commissioner (Appeals)
Income Tax Act Excess claim u/s 80IC & 14A 428.39 428.39 2013-14 Commissioner (Appeals)
Income Tax Act Excess Claim u/s 80 IC 284.79 284.79 2015-16 ITAT Chennai
Income Tax Act Disallowance claim u/s 14 A 12.92 12.92 2016-17 Commissioner (Appeals)

viii. According to the information and explanation provided to usthere were no transactions relating to previously unrecorded income that have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (43 of 1961).

ix. In our Opinion and according to the information and explanationprovided to us

(a) The Company has not defaulted in repayment of loans or otherborrowings or in the payment of interest to any lender.

(b) The Company has not been declared willful defaulter by any bank orfinancial institution or government or any government authority.

(c) The Company has not taken any term loan during the year and thereare no outstanding term loans at the beginning of the year and hence reporting underclause 3(ix)(c) of the Order is not applicable

(d) On an overall examination of the financial statements of theCompany funds raised on short-term basis have prima facie not been used during the yearfor long-term purposes by the Company.

(e) 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.

(f) The Company has not raised any loans during the year on the pledgeof securities held in its subsidiaries.

x.

(a) The Company has not raised any money by way of initial public offeror further public offer during the year.

(b) The Company has not made any preferential allotment or privateplacement of shares or convertible debt instruments and hence reporting under this clauseis not applicable.

xi. In our opinion and according to the information and explanationprovided to us

(a) No frauds by the Company and no material fraud on the Company byits officers or employees has been noticed or reported during the year.

(b) No report under sub-section (12) of section 143 of the CompaniesAct has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government during the year and up to the date ofthis report.

(c) No whistle blower complaints have been received by the Companyduring the year (and up to the date of this report).

xii. The Company is not a Nidhi Company and hence reporting underclause (xii) of Paragraph 3 of the order is not applicable.

xiii. In our opinion based on the information and explanation given tous all transactions with the related parties are in compliance with section 177 and 188of the Act and the details thereof have been disclosed in the Standalone Ind AS FinancialStatements as required by the applicable accounting standards and the Act.

xiv.

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

(b) We have considered the internal audit reports for the year underaudit issued to the Company during the year and till date in determining the naturetiming and extent of our audit procedures.

xv. The Company has not entered into any non-cash transactions withdirectors or persons connected with him and hence reporting under clause (xv) of Paragraph3 of the Order is not applicable.

xvi. The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

xvii. The Company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors of theCompany during the year.

xix. On the basis of the financial ratios ageing and expected dates ofrealization of financial assets and payment of financial liabilities other informationaccompanying the standalone financial statements and our knowledge of the Board ofDirectors and Management plans and based on our examination of the evidence supporting theassumptions nothing has come to our attention which causes us to believe that anymaterial uncertainty exists as on the date of the audit report indicating that Company isnot capable of meeting its liabilities existing at the date of balance sheet as and whenthey fall due within a period of one year from the balance sheet date. We however statethat this is not an assurance as to the future viability of the Company. We further statethat our reporting is based on the facts up to the date of the audit report and we neithergive any guarantee nor any assurance that all liabilities falling due within a period ofone year from the balance sheet date will get discharged by the Company as and when theyfall due.

xx.

(a) There are no unspent amounts towards Corporate SocialResponsibility (CSR) at the end of the previous financial year and at the end of thecurrent financial year on other than ongoing projects requiring a transfer to a Fundspecified in Schedule VII to the Companies Act in compliance with second proviso tosub-section (5) of Section 135 of the said Act. Accordingly reporting under clause3(xx)(a) of the Order is not applicable for the year.

(b) In respect of ongoing projects the Company has transferred theunspent Corporate Social Responsibility (CSR) amount to a Special Account within a periodof 30 days from the end of the financial year in compliance with the provision ofsub-section (6) of section 135 of the said Act.

xxi. The company does not have any Indian Subsidiary and hencereporting under this clause is not applicable to the company.

"Annexure - B" to the Independent Auditor?s Report tothe members of L.G.BALAKRISHNAN & BROS LIMITED

Report on the Internal Financial Controls under Clause (i) ofSub-Section 3 of Section 143 of the Companies Act 2013:

We have audited the internal financial controls with reference tofinancial statements of L.G.BALAKRISHNAN & BROS LIMITED ("the Company") asof 31st March 2022 in conjunction with our audit of the Standalone Ind ASFinancial Statements of the Company for the year ended on that date.

Management?s Responsibility for the Internal Financial Controls:

The Company?s management and Board of Directors are responsiblefor establishing and maintaining internal financial controls with reference to financialstatements criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note issued by the Institute of CharteredAccountants of India. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany?s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors? Responsibility:

Our responsibility is to express an opinion on the Company?sinternal financial controls with reference to standalone financial statements based on ouraudit. We conducted our audit in accordance with 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 controlswith reference to standalone financial statements. Those Standards and the Guidance Noterequire that 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 aboutthe adequacy of the internal financial controls with reference to financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor?sjudgement including the assessment of the risks of material misstatement of theStandalone Ind AS Financial Statements whether due to 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 internalfinancial controls system with reference to standalone financial statements.

Meaning of Internal Financial Controls Over Financial Reporting:

A Company?s internal financial controls with reference tofinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of Standalone Ind AS FinancialStatements for external purposes in accordance with generally accepted accountingprinciples. A Company?s internal financial controls with reference to financialstatements 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 Standalone Ind AS Financial Statements in accordancewith generally accepted accounting principles and that receipts and expenditures of theCompany are being made only in accordance with authorizations of management and directorsof the Company; and

3. Provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company?s assetsthat could have a material effect on the Standalone Ind AS Financial Statements.

Inherent Limitations of Internal Financial controls with reference toFinancial Statement:

Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial controls with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion:

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls with reference to financial statements and such internal financialcontrols with reference to financial statements were operating effectively as at 31stMarch 2022 based on the internal financial controls with reference to financialstatements 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

For SURI & CO.
Chartered Accountants
Firm Registration No.: 004283S
M. SIvARAM
Partner
Place: Coimbatore Membership No.: 211916
Date: 30.04.2022 uDIN: 22211916AIELYu3942

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