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LIC Housing Finance Ltd.

BSE: 500253 Sector: Financials
NSE: LICHSGFIN ISIN Code: INE115A01026
BSE 13:23 | 23 Jun 469.55 -2.50
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NSE 13:09 | 23 Jun 470.05 -1.95
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OPEN 475.90
PREVIOUS CLOSE 472.05
VOLUME 93818
52-Week high 542.35
52-Week low 255.00
P/E 8.67
Mkt Cap.(Rs cr) 23,696
Buy Price 469.30
Buy Qty 1.00
Sell Price 469.65
Sell Qty 548.00
OPEN 475.90
CLOSE 472.05
VOLUME 93818
52-Week high 542.35
52-Week low 255.00
P/E 8.67
Mkt Cap.(Rs cr) 23,696
Buy Price 469.30
Buy Qty 1.00
Sell Price 469.65
Sell Qty 548.00

LIC Housing Finance Ltd. (LICHSGFIN) - Auditors Report

Company auditors report

To the Members of LIC Housing Finance Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the Standalone Financial Statements of LIC Housing Finance Limited(hereinafter referred to as "the Company”) which comprise the StandaloneBalance Sheet as at 31st March 2020 the Standalone Statement of Profit andLoss (including other comprehensive income) the Standalone Statement of Changes in Equityand Standalone Cash Flow Statement for the year then ended and notes to the StandaloneFinancial Statements including a summary of the significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 ("the Act”) in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31st March 2020 and profit totalcomprehensive income changes in equity and its cash flows for the year then ended.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing specified undersub-section (10) of section 143 of the Act ("the SAs”). Our responsibilitiesunder those SAs are further described in the Auditor's Responsibilities for the Audit ofthe Standalone Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India ("the ICAI”) together with the ethical requirements thatare relevant to our audit of the Standalone Financial Statements under the provisions ofthe Act and the Rules thereunder and we have fulfilled our other ethical responsibilitiesin accordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Emphasis of Matter

We draw attention to Note 37.4 to the Standalone Financial Statements which explainsthe uncertainties and management's assessment of the financial impact due to the lockdownand other restrictions imposed by the Government and condition related to the COVID-19pandemic situation for which definitive assessment of the impact would highly depend uponcircumstances as they evolve in the subsequent periods.

Key Audit Matters

Key audit matters are those matters that in our professional judgement 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. For each matter below our description of how our auditaddressed the matter is provided in that context.

Key Audit Matter How the matter was addressed in our audit
Expected Credit Loss - Impairment of carrying value of loans and advances We performed audit procedures set out below
We understood and assessed the Company's process on timely recognition of impairment in the loan portfolio both retail loans and project loans. This included assessing the accuracy of the system generated reports of ageing and defaults.
Under Ind AS 109 Expected Credit Loss (ECL) is required to be determined for recognising impairment loss on financial assets which are stated at amortised cost or carried at fair value through other comprehensive income. The calculation of impairment loss or ECL is based on significant management judgement and considers the historical default and loss ratios of the loan portfolio and to the extent possible forwardlooking analysis.
We also performed a test check of the design and implementation of key internal financial controls over loan impairment process used to calculate the impairment charge and management review controls over measurement of impairment allowances and disclosures in the Standalone Financial Statements.
The significant areas in the calculation of ECL where management estimates and judgements are required as under:
1. Judgements about credit risk characteristics taking into account instrument type class of borrowers credit risk ratings date of initial recognition remaining term to maturity property valuations industry and other relevant factors for collective evaluation of impairment under various stages of ECL. We have discussed with the management and the external specialists to test the working of the ECL model and reasonableness of assumptions used more specifically in the light of the RBI moratorium and its probable ramifications.
We performed substantive procedures over validating completeness and correctness of the data and reasonableness of assumptions used in the ECL model including capturing of PD and LGD in line with historical trends of the portfolio and evaluation of whether the results support the appropriateness of the PDs at the portfolio level.;
2. Loan staging criteria
3. Calculation of probability of default and loss given default.
4. Consideration of probability weighted scenarios and forward looking macro-economic factors
5. For Project loans assessment based on a borrower's financial performance solvency liquidity and industry outlook. We performed cut off procedures on a sample basis relating to recoveries at year end that would impact staging of loans;
The Company has also appointed a domain specialist to assist it in arriving at the ECL provisions required to be recognised. We test checked the basis of collateral valuation in the determination of ECL provision.
Further the COVID-19 pandemic situation and the lockdown in the country coupled with the moratorium granted by RBI has cast an uncertainty on the timing and manner in which the Company would be able to collect the contractual cashflows in the form of repayments from its borrowers. We have relied upon the work done by other experts like Independent Valuers Lawyers Legal Experts and other such professionals who have rendered services to the company
In our opinion this is considered as a Key Audit Matter in view of the criticality of the item to the Standalone Financial Statements and the complex nature of assumptions and judgements exercised by the management. We have also obtained management representations wherever considered necessary
Refer Note 2.14 A(f) "Impairment of Financial Assets” and Note 37.4.2.3 "Impairment Assessment” and 37.4.2.4 "ECL model and assumptions considered in the ECL model” to the Standalone Financial Statements.
Refer Note 3.1 "Determination of Expected Credit Loss” to the Standalone Financial Statements and
Refer Note 9 "Loans” to the Standalone Financial Statements
Evaluation of uncertain tax positions our procedures included:
The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. We obtained details of completed tax assessments and demands for the year ended March 31 2020 from the management.
Refer Note 40(b) "Contingent Liabilities” to the Standalone Financial Statements. We assessed the management's underlying assumptions in estimating the tax provision in light of the amendments in the taxation laws and the possible outcome of the disputes. We have also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions.
Additionally we considered the effect of new information in respect of uncertain tax positions as at April 1 2019 to evaluate whether any change was required to management's position on these uncertainties.
IT Systems and controls We have carried out the following procedures to verify the effectiveness of IT controls:
The company has separate software applications for management of its loan portfolio from origination to servicing and closure and for the routine accounting. Transfer of data from / to these softwares is critical for accurate compilation of financial information. Adequate supervision over these IT controls is required to ensure that these IT applications process data as expected updates and changes are made in an appropriate manner and confidentiality availability and integrity is maintained. Such controls mitigate the risk of incorrect financial reporting. Our audit outcome is dependent on the effective functioning of such IT controls. a. We have planned designed and carried out the desired audit procedures and sample checks which in our opinion are adequate to provide reasonable assurance on the adequacy of IT controls in place.
b. 1 n addition we have relied on IS and other related audit reports provided by the management wherever available.
c. We also tested key automated and manual business cycle controls and logic for system generated reports relevant to the audit and performed alternate procedures to assess whether there were any unaddressed IT risks that would materially impact the Standalone Financial Statements.
d. We have also obtained management representations wherever considered necessary.
Impact of COVID-19 pandemic We have carried out the validation of the electronic evidence provided by the management by performing the following procedures:
Due to the national lockdown in India the information necessary for conducting the audit was provided by the Company remotely through a secure connection and suitable IT systems were made available to us. As a result we have relied completely on digital or electronic evidence as a part of our audit process effective from the date of the lockdown till the date of this report. a. We reviewed the steps taken by various Departments of the Company to ensure that the controls and operations were functioning effectively in the period of the lockdown.
b. We have correlated the electronic evidence obtained with the financial information to ensure consistency and accuracy.
c. We have obtained management representations wherever considered necessary.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's management and Board of Directors are responsible for the preparation ofthe other information. The other information comprises the information included in theDirector's report and Management Discussion & Analysis (MD&A) report but does notinclude the Standalone Financial Statements and our auditor's report thereon. TheDirector's report and MD&A report is expected to be made available to us after thedate of this auditor's report.

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 identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the StandaloneFinancial Statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

Management's Responsibilities for the Standalone Financial Statements

The Company's management and Board of Directors are responsible for the matters statedin sub-section (5) of Section 134 of the Act with respect to the preparation of theseStandalone Financial Statements that give a true and fair view of the financial positionfinancial performance total comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the accounting standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the Standalone Financial Statements management and Board of Directors areresponsible 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 the Company's financialreporting process.

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 Standards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Standalone Financial Statements.

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

i. Identify and assess the risks of material misstatement of the Standalone FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

ii. Obtain an understanding of internal controls relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under the 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.

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

iv. Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the ability ofthe Company to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the Standalone Financial Statements or if such disclosures are inadequateto modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

v. Evaluate the overall presentation structure and content of the Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

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 financial year ended 31st March 2020 and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Other Matter

The Standalone Financial Statements of the Company for the year ended March 31 2019were audited by other auditors who expressed an unmodified opinion on those StandaloneFinancial Statements vide their report dated 4th May 2019.

Our opinion on the Standalone Financial Statements is not modified in respect of theabove matter.

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 Act we give in "Annexure A” a statement on the matters specified inparagraphs 3 and 4 of the Order.

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

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

b. in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;

c. the Balance Sheet the Statement of Profit and Loss the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account;

d. in our opinion the aforesaid Standalone Financial Statements comply with theAccounting Standards specified under Section 133 of the Act read with relevant rulesissued thereunder;

e. on the basis of written representations received from the directors as on March 312020 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2020 from being appointed as a director in terms of Section 164(2) of theAct;

f. with respect to the adequacy of the internal financial controls with reference toStandalone 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 the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. the Company has disclosed the impact of pending litigations on its financialposition in its Standalone Financial Statements - Refer Note 40(b) to the StandaloneFinancial Statements.

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

ii. there has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

3. As required by Section 197(16) of the Act in our opinion and to the best of ourinformation and according to the explanations given to us the remuneration paid by theCompany to its directors during the year is in accordance with the provisions of Section197 of the Act.

For Gokhale & Sathe For M. p. Chitale & Co.
Chartered Accountants Chartered Accountants
Firm Regn. No. 103264W Firm Regn. No. 101851W
Rahul Joglekar Ashutosh pednekar
Partner Partner
Membership No.: 129389 Membership No.: 041037
UDIN: 20129389AAAADZ2735 UDIN: 20041037AAAABM6277
place: Mumbai place: Mumbai
Date: June 19 2020 Date: June 19 2020

ANNEXUREA

TO INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of LIC Housing Finance Limited of evendate)

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

(b) The Company has a regular programme of physical verification of property plant andequipment by which property plant and equipment are verified annually. In our opinionthis periodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets. No material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us and the records examineby us and based on the examination of the registered sale deed/ transfer deed /conveyancedeed provided to us we report that the title deeds comprising all the immovableproperties of land and acquired buildings which are freehold are held in the name of theCompany as at the balance sheet date.

In respect of immovable properties of buildings that have been taken on lease anddisclosed as property plant and equipment in the Standalone Financial Statements thelease agreements are in the name of the Company where the Company is the lessee in theagreement.

(ii) The nature of the Company's business is such that it is not required to hold anyinventories and hence reporting under paragraph 3 (ii) of the order is not applicable tothe 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. Hence reporting under paragraph 3 (iii) (a) (b) and (c) of the Order is notapplicable to the Company.

(iv) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the provisions of Section 185 of the CompaniesAct 2013 are not applicable to the Company. The Company has complied with the provisionsof Section 186 of the Companies Act 2013 in respect of investments made or loans orguarantee or security provided to the parties covered under Section 186.

(v) As per the Ministry of Corporate Affairs notification dated 31st March2014 the provisions of Sections 73 to 76 or any other relevant provisions of the Act andthe Companies (Acceptance of Deposits) Rules 2014 as amended with regard to thedeposits accepted are not applicable to the Company and hence reporting under Clause3(v) of the Order is not applicable.

(vi) According to the information and explanations given to us and to the best of ourknowledge the Central Government has not prescribed the maintenance of cost records undersub-section 1 of section 148 of the Companies Act 2013 read with Companies (Cost Recordsand Audit) Rules 2014 as amended for the services of the Company and hence reportingunder paragraph 3 (vi) of the order is not applicable to the Company.

(vii) (a) According to the information and explanations given to us and on the basisof examination of the books of account of the company examined by us in our opinion theCompany is regular in depositing with the appropriate authorities undisputed statutorydues including provident fund employees' state insurance income tax sales-tax goodsand service tax cess and other material statutory dues applicable to it. According toinformation and explanations given to us no undisputed amounts payable were outstandingat the year end for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofincome tax sales tax goods and service tax cess and other material statutory dues whichhave not been deposited with the appropriate authorities on account of any dispute.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowings to financialinstitutions banks Government and dues to debenture holders. The Company has not takenloans or borrowings from government.

(ix) According to the information and explanations given to us and on the basis of ourexamination of the books of account of the Company money raised by way of debtinstruments and term loans have been applied by the Company during the year for thepurpose for which they were raised other than temporary deployment in fixed deposits withBanks pending application of proceeds. Apart from money raised by way of debt instrumentsthe Company has neither raised any moneys by way of initial public offer / further publicoffer nor were such proceeds pending to be applied during the current year.

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

(xi) According to the information and explanations given to us and on the basis of ourexamination of the records the Company has paid / provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

(xii) The Company is not a Nidhi Company and hence reporting under paragraph 3 (xii)of the Order is not applicable.

(xiii) According to the information and explanations given to us and on the basis ofour examination of the records the Company is in compliance with Section 177 and 188 ofthe Act where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the Standalone Financial Statements asrequired by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on the basis of ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

(xv) According to the information and explanations given to us and on the basis of ourexamination of the records the Company has not entered into any non-cash transactionswith directors or persons connected with directors. Hence reporting under paragraph 3(xv)of the Order is not applicable.

(xvi) In our opinion and according to information and explanation given to us theCompany is not required to be registered under section 45-IA Reserve Bank of India Act1934.

For Gokhale & Sathe For M. p. Chitale & Co.
Chartered Accountants Chartered Accountants
Firm Regn. No. 103264W Firm Regn. No. 101851W
Rahul Joglekar Ashutosh pednekar
Partner Partner
Membership No.: 129389 Membership No.: 041037
UDIN: 20129389AAAADZ2735 UDIN: 20041037AAAABM6277
place: Mumbai place: Mumbai
Date: June 19 2020 Date: June 19 2020

ANNEXUREB

TO INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of LIC HOUSING FINANCE LIMITED of evendate)

Report on the internal financial controls with reference to the aforesaid StandaloneFinancial Statements under Clause (i) of sub-section (3) of Section 143 of the CompaniesAct 2013 (the ‘Act')

We have audited the internal financial controls with reference to financial reportingof LIC Housing Finance Limited (hereinafter referred to as "the Company”)as of March 31 2020 in conjunction with our audit of the Standalone Financial Statementsof the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management and Board of Directors are responsible for establishing andmaintaining internal financial controls based on the internal control with reference tofinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note”) issued by the Instituteof Chartered Accountants of India. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to Standalone Financial Statements based on our audit. Weconducted our audit in accordance with the Guidance Note issued by the Institute ofChartered Accountants of India and the Standards on Auditing prescribed under sub-section(10) of Section 143 of the Act to the extent applicable to the audit of internalfinancial controls with reference to Standalone Financial Statements. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols with reference to 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 with reference to financial reporting and theiroperating effectiveness. Our audit of internal financial controls with reference toStandalone Financial Statements included obtaining an understanding of internal financialcontrols with reference to Standalone Financial Statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the Standalone Financial Statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls with reference toStandalone Financial Statements.

Meaning of Internal Financial Controls with reference to Standalone FinancialStatements.

A Company's internal financial control with reference to Standalone FinancialStatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of Standalone Financial Statements for externalpurposes in accordance with generally accepted accounting principles. A Company's internalfinancial control with reference to Standalone Financial Statements includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe Company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of Standalone Financial Statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorisations of management and directors of theCompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the Standalone Financial Statements.

Inherent Limitations of Internal Financial Controls With reference to StandaloneFinancial Statements

Because of the inherent limitations of internal financial controls with reference toStandalone 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 Standalone Financial Statements to future periods are subjectto the risk that the internal financial control with reference to Standalone FinancialStatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlswith reference to Standalone Financial Statements and such internal financial controlswere operating effectively as at March 31 2020 based on the internal financial controlswith reference to Standalone Financial Statements criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Gokhale & Sathe For M. p. Chitale & Co.
Chartered Accountants Chartered Accountants
Firm Regn. No. 103264W Firm Regn. No. 101851W
Rahul Joglekar Ashutosh pednekar
Partner Partner
Membership No.: 129389 Membership No.: 041037
UDIN: 20129389AAAADZ2735 UDIN: 20041037AAAABM6277
place: Mumbai place: Mumbai
Date: June 19 2020 Date: June 19 2020