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L&T Technology Services Ltd.

BSE: 540115 Sector: IT
NSE: LTTS ISIN Code: INE010V01017
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NSE 15:59 | 17 Oct 1593.30 49.75
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VOLUME 41488
52-Week high 1817.75
52-Week low 1400.00
P/E 21.95
Mkt Cap.(Rs cr) 16,546
Buy Price 1593.25
Buy Qty 5.00
Sell Price 1597.20
Sell Qty 200.00
OPEN 1551.00
CLOSE 1544.00
VOLUME 41488
52-Week high 1817.75
52-Week low 1400.00
P/E 21.95
Mkt Cap.(Rs cr) 16,546
Buy Price 1593.25
Buy Qty 5.00
Sell Price 1597.20
Sell Qty 200.00

L&T Technology Services Ltd. (LTTS) - Auditors Report

Company auditors report

To the Members of L&aT Technology Services Limited

Report on the audit of the standalone financial statements

Opinion

We have audited the accompanying standalone financial statements of L&T TechnologyServices Limited ("the Company") which comprise the balance sheet as at 31March 2019 the statement of profit and loss (including other comprehensive income) thestatement of changes in equity and statement of cash flows for the year then ended andnotes to the standalone financial statements including a summary of significantaccounting policies and other explanatory information ("the standalone financialstatements").

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 Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31 March 2019 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing

(SAs) specified under section 143(10) of the Companies Act 2013 ('the Act'). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India ('ICAI') together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion on the standalone financial statements.

Key audit matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key audit matter How the matter was addressed in our audit
Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 "Revenue from Contracts with Customers" (new revenue accounting standard)
Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 "Revenue from Contracts with Customers" (new revenue accounting standard) We assessed the Company's process to identify the impact of adoption of the new revenue accounting standard. Our procedures included:
The application of the new revenue accounting standard involves certain key judgements relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognised over a period. • Evaluated the design of internal controls relating to implementation of the new revenue accounting standard;
• Selected a sample of continuing and new contracts and tested the operating effectiveness of the internal control relating to identification of the distinct performance obligations and determination of transaction price.
Additionally new revenue accounting standard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date. We carried out a combination of procedures involving enquiry and observation reperformance and inspection of evidence in respect of operation of these controls; and
• Selected a sample of continuing and new contracts and performed the following procedures:
• Read analysed and identified the distinct performance obligations in these contracts;
• Compared these performance obligations with that identified and recorded by the Company;
• Considered the terms of the contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration;
• In respect of samples relating to fixed price contracts progress towards satisfaction of performance obligation used to compute recorded revenue was verified with the supporting documentation validated estimates of costs to complete mathematical accuracy of calculations and the adequacy of project accounting; and
• Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings.
Revenue recognition
The Company is primarily in the business of providing engineering services to third parties. Our revenue testing included both testing of the Company's controls as well as substantive audit procedures.
The Company is having two models for the purpose of recognition of revenue from contracts for services rendered which are time and material contracts and fixed price contracts. Our procedures included:
• We ensured that revenue recognition method applied was appropriate based on the terms of the agreement with the customer;
Revenue from contracts that are on time and material basis are recognized at a point in time when services are rendered and related costs are incurred. • We obtained an understanding of the processes and tested relevant controls which impact the revenue recognition;
In case of fixed-price contracts revenue is recognized over a period of time using the proportionate completion method. • For time and material based contracts:
For the year ended 31 March 2019 revenue from services amounts to ' 47120 million (refer note 26 to the standalone financial statements). i. We obtained appropriate evidence based on the circumstances to conclude whether the hours charged on projects were appropriate;
ii. We obtained appropriate evidence based on the circumstances to conclude whether the rate charged per man hours on projects were appropriate; and
iii. We verified the revenue based on the hours charged on the projects and approved per hour rate.
• We considered the appropriateness of disclosures in relation to revenue recognition as detailed in note 26 and 47 to the standalone financial statements.
• For fixed price contracts:
i. We agreed the total project revenue estimate with customer contracts agreements including amendments as appropriate;
ii. We assessed the reliability of management's estimates by comparing actual results of delivered projects to previous estimates;
iii. We evaluated management's estimates and assumptions in recognition of the revenue;
iv. We verified the revenue based on the stage of completion of the projects; and
v. We obtained appropriate evidence based on the circumstances to conclude whether the proportion of completion of projects was appropriate.
Based on the procedures performed we consider the amount of revenue recognised to be fairly stated in the financial statements.
Valuation of goodwill
Our procedures included:
The Company accounted for goodwill at the time of acquisition of certain businesses in earlier years. • We tested the methodology applied for impairment of goodwill;
As required by the applicable Indian Accounting Standards goodwill is not amortised but is tested for impairment by management on an annual basis. The impairment is tested using discounted cash flow models. As disclosed in note 2(k) • We evaluated process by which the future cash flows were drawn up including comparing them to the latest board approved targets and long-term plans;
(ii) and 5 to the standalone financial statements there are a number of key sensitive judgements made in determining the inputs into these models which include: • We tested the key underlying assumptions for revenue growth operating margins cash flow forecasts and the discount rate applied to the projected future cash flows;
• Revenue forecasts; • We compared the current year actual results included in the impairment model to consider whether forecasts included assumptions that with hindsight had been appropriate; and
• Operating margins;
• Cash flow forecasts; and
• The discount rate applied to the projected future cash flows. • We considered the appropriateness of disclosures in relation to impairment assessment as detailed in note 2(k) (ii) and 5 to the standalone financial statements to the financial statements.
Accordingly the impairment test of the goodwill is considered to be a key audit matter.
As at 31 March 2019 goodwill amounts to ' 3891 million. Based on the procedures performed we consider the goodwill to be fairly stated in the financial statements.
Derivative financial instruments and hedge accounting
Our procedures included:
Derivative financial instruments are used to manage and hedge foreign currency exchange risks and interest rate risks. • We obtained an understanding of the risk management policies and testing key controls for the use the recognition and the measurement of derivative financial instruments;
These instruments are typically designated in a fair value or cash flow hedge relationship. Financial instruments that are not designated in a hedging relationship and where no hedge accounting is applied are measured at fair value through profit and loss. • We reconciled derivative financial instruments data with third party confirmations;
The fair value of the derivative financial instruments is based on valuation models using observable input data. • We compared input data used in the Group's valuation models with independent sources and externally available market data;
We focused on this area on account of the number of contracts the forecast by management of net foreign currency exposure in the future their measurement the complexity related to hedge accounting and the potential impact on the statement of profit and loss. • We compared valuation of derivative financial instruments with market data or results from alternative independent valuation models;
As at 31 March 2019 the Company has derivative financial assets at fair value of ' 1450 million and derivative financial liabilities at fair value of ' 148 million (refer note no.8 16 20 23 38 40(i) and 40(iii) to the standalone financial statements). • We tested on a sample basis the applicability and accuracy of hedge accounting; and
• We considered the appropriateness of disclosures in relation to financial risk management derivative financial instruments and hedge accounting to the financial statements.
Based on the procedures performed the derivative financial instruments and hedge accounting are fairly stated in the financial statements.

Information other than the standalone financial statements and auditor's report thereon

The Company's Board of Directors is responsible for the preparation of otherinformation. The other information comprises the information included in the director'sreport including annexures thereto management discussion and analysis and annual businessresponsibility report but does not include the standalone financial statements and ourauditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do 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 on the other information that we obtained priorto the date of this auditor's report 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.

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 Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other 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 standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's responsibilities for the audit of the standalone financial statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

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

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act 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 reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in the aggregate make it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatement in the standalone financial statements.

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 standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor'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 2016 ("the Order")issued by the central government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2 As required by section 143(3) of the Act based on our audit we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) The balance sheet the statement of profit and loss (including other comprehensiveincome) statement of changes in equity and the statement of cash flow dealt with by thisreport are in agreement with the relevant books of account;

(d) In our opinion the aforesaid standalone financial statements comply with the IndAS specified under section 133 of the Act read with rule 7 of the Companies (Accounts)Rules 2014;

(e) On the basis of the written representations received from the directors as on 31March 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2019 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure B. Our report expresses an unmodified opinion on the adequacyand operating effectiveness of the Company's internal financial controls over financialreporting;

(g) With respect to the other matters to be included in the auditor's report inaccordance with the requirements of section 197(16) of the Act (as amended) we reportthat in our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act; and

(h) With respect to the other matters to be included in the auditor's report inaccordance with rule 11 of the Companies (Audit and Auditors) Rules 2014 (as amended) 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 its financial positionin its financial statements - refer note 34 to the standalone financial statements;

ii the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and

iii There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company - refer note 49 to the standalone financialstatements.

For SHARP & TANNAN
Chartered Accountants
Firm's registration No.109982W
FIRDOSH D. BUCHIA
Partner
Mumbai 3 May 2019 Membership no. 38332

Annexure 'A' to

The Independent Auditor's Report

(Referred to in paragraph 1 of 'Report on Other Legal and

Regulatory Requirements' section of our report of even date)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) The Company has a program of verification to cover all the items of fixed assets ina phased manner which in our opinion is reasonable having regard to the size of theCompany and nature of its assets. Pursuant to the program certain fixed assets werephysically verified during the year. According to the information and explanations givento us no material discrepancies were noticed on such verification; and

(c) The Company does not hold any immovable properties. Accordingly paragraph 3(i) (c)of the Order is not applicable to the Company.

(ii) The Company does not hold any physical inventories. Thus paragraph 3(ii) of theOrder is not applicable to the Company.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theAct. Accordingly paragraphs 3(iii) (a) (b) and (c) of the Order are not applicable tothe Company.

(iv) In our opinion and according to the information and explanations given to usthere are no loans investments guarantees and securities granted in respect of whichprovisions of sections 185 and 186 of the Companies Act 2013 are applicable. The Companyhas complied with the provisions of section 186 of the Act in respect of investments made.

(v) In our opinion and according to information and explanations given to us theCompany has not accepted deposits as per the directives issued by the Reserve Bank ofIndia under the provisions of sections 73 to 76 or any other relevant provisions of theAct and the rules framed there under. Accordingly paragraph 3(v) of the Order is notapplicable to the Company.

(vi) According to the information and explanations given to us the central governmenthas not prescribed the maintenance of cost records under section 148(1) of the Act for anyof the services rendered by the Company. Accordingly paragraph 3(vi) of the Order is notapplicable to the Company.

(vii) (a) According to the information and explanations given

to us and on the basis of our examination of records of the Company amounts deducted/accrued in the books of account in respect of undisputed statutory dues includingprovident fund income tax service tax goods and service tax cess and other materialstatutory dues have been regularly deposited during the year by the Company with theappropriate authorities. As explained to us the Company did not have any dues on accountof sales tax duty of customs duty of excise employee's state insurance and value addedtax.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax service tax goods and service tax cessand other material statutory dues were in arrears as at 31 March 2019 for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us and on the basis of ourexamination of records of the Company the particulars of income tax value added taxsales tax service tax duty of excise and duty of custom which have not been depositedwith the appropriate authorities on account of any dispute as at 31 March 2019 are asunder:

Name of the statue Nature of the disputed dues Amount Period to which the amount relates Forum where dispute is pending
(द million)*
Finance Act 1944 Dispute for availment of cenvat credit on input services 3.61 2014-2019 CESTAT

* Net of pre-deposit paid in getting the stay/ appeal admitted.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to bank. The Companyhas not borrowed any funds from the public financial institutions government anddebenture holders.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the Order is not applicable to the Company.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year.

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

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the

Company transactions with the related parties are in compliance with sections 177 and188 of the Act where applicable and details of such transactions have been disclosed inthe financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or partly convertible debentures during the year.Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non- cashtransactions with directors or persons connected with him and hence provisions of section192 of the Act are not applicable to the Company.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For SHARP & TANNAN
Chartered Accountants
Firm's registration No.109982W
FIRDOSH D. BUCHIA
Partner
Mumbai 3 May 2019 Membership no. 38332

Annexure 'B' to

The Independent Auditor's Report

(Referred to in paragraph 2(f) of our report of even date)

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 L&TTechnology Services Limited ("the Company") as of 31 March 2019 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 ("ICAI"). 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 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 reportingand the standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth applicable to an audit of internal financial controls and both issued by the ICAI.Those standards and the guidance note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

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 judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

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 controls systemover 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 standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the standalonefinancial 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 31 March 2019 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 ICAI.

For SHARP & TANNAN
Chartered Accountants
Firm's registration No.109982W
FIRDOSH D. BUCHIA
Partner
Mumbai 3 May 2019 Membership no. 38332