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Ludlow Jute & Specialities Ltd.

BSE: 526179 Sector: Industrials
NSE: N.A. ISIN Code: INE983C01015
BSE 00:00 | 25 Nov 87.80 0.65
(0.75%)
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87.95

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88.00

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NSE 05:30 | 01 Jan Ludlow Jute & Specialities Ltd
OPEN 87.95
PREVIOUS CLOSE 87.15
VOLUME 2709
52-Week high 118.00
52-Week low 73.65
P/E 60.97
Mkt Cap.(Rs cr) 95
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 87.95
CLOSE 87.15
VOLUME 2709
52-Week high 118.00
52-Week low 73.65
P/E 60.97
Mkt Cap.(Rs cr) 95
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ludlow Jute & Specialities Ltd. (LUDLOWJUTE) - Auditors Report

Company auditors report

TO THE MEMBERS OF

LUDLOW JUTE & SPECIALITIES LIMITED

Report on the Audit of the Financial Statements Opinion

We have audited the accompanying financial statements of Ludlow Jute& Specialities Limited ("the Company") which comprises the Balance Sheet asat March 31 2022 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearended on that date and a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "the financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaidfinancial statements give the information requiredby the CompaniesAct 2013("theAct") inthemanner sorequired and give a true andfair view in conformity with theIndianAccountingStandards prescribed undersection133of theAct read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2022 the profit total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance withthe Standards on Auditing specified under section 143(10) of the Act. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibility for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia(ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics.We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Ind AS financial statements for thefinancial year ended March 31 2022. These matters were addressed in the context of ouraudit of the Ind AS financial statements as a whole and in forming our opinion thereonand we do not provide a separate opinion on these matters. For each matter below ourdescription of how our audit addressed the matter is provided in that context.

Key audit matters How our audit addressed the key audit matter
Inventory Valuation & existence (Refer to note 11 to the financial statements) i) We completed a walkthrough of the inventory valuation process and assessed the design and implementation of the key controls addressing the risk
As described in the accounting policies in note 3.6 to the financial statements inventories are carried at the lower of cost and net realisable value. Inventories valuation and existence is a significant audit risk. This could result in an overstatement of the value of the inventories if the cost is higher than the ii) We assessed the adequacy of controls over the existence of Inventory of Finished goods and raw materials
iii) We also tested sample of inventories items to ensure they were held at the lower of cost and net realisable value.
net realisable value. Furthermore the assessment and application of inventories provisions are subject to significant management judgment. Based on the audit procedures performed we did not identify any significant deviation to the process of Inventory valuation.
Assessment of litigations in respect of Taxes & Duties matter [Refer to note 36(i) to the financial statements] i) We obtained a detailed understanding assessed and tested the design and operating effectiveness of controls surrounding assessment of litigations.
The company has litigations in respect of Taxes & Duties matter which have been disclosed under Contingent liabilities as at 31st March 2022. ii) We discussed with the management the recent developments and status of these matters. We have also gone through recent judicial pronouncements wherever relevant to establish appropriateness of disclosures.
Significant management judgment is required to assess these matters and to determine the probability of material outflow of economic resources and whether a provision should be recognized or disclosure to be made. iii) We performed our assessment on the underlying calculations supporting the disclosure made in the financial statements.
iv) We assessed the adequacy of the Company's disclosures. Based on the audit procedures performed we did not identify any significant deviation to the assessment made by the management in respect of disclosures made under Contingent liabilities in respect of Taxes & Duties matters in the financial statements.

Information Other than the Financial Statements and Auditor'sReport Thereon\

The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Board's Report including Annexures to Board's Report and otherShareholders Information but does not include the financial statements and ourauditor's report thereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financialstatements ourresponsibilityisto read the otherinformation and in doing so consider whether the otherinformation is materially in consistentwiththefinancial statements or our knowledgeobtained in the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is 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 Financial Statements

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 financialstatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted inIndia.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing thefinancial statements management is responsible forassessing the Company's abilityto continue as a going concern disclosing asapplicablematters related to goingconcern and usingthegoingconcernbasis of accountingunless management either intends to liquidate the Company or to cease operations or hasno realistic alternative but to do so.

The Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the FinancialStatements

Our objectives are to obtain reasonable assurance about whether thefinancial 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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs 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 financial statements.

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 thefinancial 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 forgeryintentional omissions misrepresentations or the override of internalcontrol.

• 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 inplace and the operating effectiveness of such 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 that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

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

We also provide those charged with governance with a statement that wehave complied withrelevantethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour 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 Ind ASfinancial statements for the financial year ended March 31 2022 and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to out weigh the publicinterest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order2020("the Order") issued by the Central Government in terms of Section 143(11)of the Act we give in "Annexure A" a statement on the matters specifiedin paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act based on our audit wereport that: a) We have sought and obtained all the information and explanations which tothe best of our knowledge and belief were necessary for the purposes of our audit; b) Inour opinion proper books of account as required by law have been kept by the Company sofar as it appears from our examination of those books; c) The Balance Sheet the Statementof Profit and Loss including the Statement of Other Comprehensive Income Statement ofChanges in Equity and the Statement of Cash Flow dealt with by this Report are inagreement with the relevant books of account; d) In our opinion the aforesaid financialstatements comply with the Ind-AS specified under Section 133 of the Act read withCompanies (Indian Accounting Standards) Rules 2015 as amended from time to time; e) Onthe basis of the written representations received from the directors as on March 31 2022taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2022 from being appointed as a director in terms of Section 164 (2) of the Act;

f) With respect to the adequacy of theinternalfinancialcontrolsoverfinancialreportingofthe Companyand the operatingeffectiveness of such controls refer to our separate Report in"AnnexureB".Our report expresses an unmodified opinion on the adequacy and operating effectiveness ofthe Company's internal financial controls over financial reporting;

g) In our opinion and to the best of our information and according tothe explanations given to us the managerial remuneration paid/provided by the Company toits directors during the year is in accordance with the provisions of section 197 readwith Schedule V to the Act; and 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 2014as amended inouropinionand to thebest ofourinformation and according to theexplanations given to us: i. The Company has disclosed the impact of pending litigationson its financial position in itsfinancial statements Refer Note 36 (i); ii. The Companydid not have any long-term contracts including derivative contracts for which there wereany 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 during the yearended 31st March 2022. iv. The Management has represented to us that to the best of itsknowledge and belief no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the company toor in any other person(s) or entities including foreign entities("intermediaries") with the understanding whether recorded in writing orotherwise that the intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of thecompany ("Ultimate Beneficiary") or provide any guarantee security or the likeon behalf of the Ultimate Beneficiaries; v. The Management has represented to us that tothe best of its knowledge and belief no funds have been received by the company from anyperson(s) or entities including foreign entities ("Funding Parties") with theunderstanding whether recorded in writing or otherwise that the company shall whetherdirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries; and. vi. Based on our audit procedures that are consideredreasonable and appropriate in the circumstances nothing has come to our notice that hascaused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e)as provided under paragraph 2(h) (iv)(a) &(b) above contain any materialmis-statement. vii. The Company has not declared any dividend in previous financial yearwhich has been paid in current year. Further the dividend declared in current yearsubject to approval of the shareholders at the ensuing Annual General Meeting.

Accordingly the provision of section 123 of the Act is applicable tothe company.

For JKVS & CO
Chartered Accountants
Firm Registration No. 318086E
Utsav Saraf
Kolkata Partner
Dated: 7th day of May 2022 Membership No.: 306932
UDIN: 22306932AMEVUQ4693

ANNEXURE ‘A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements' section of our Report to the Members of Ludlow Jute &Specialities Limited of even date)

We report that i. (a) (A) The company has maintained proper recordsshowing full particulars including quantitative details and situation of Property Plantand Equipment;

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

(b) The property Plant and Equipment are physically verified by theManagement according to a phased programme designed to cover all the items over a periodof three years which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the programme a portion of theProperty Plant and equipment has been physically verified by the Management during theyear and no material discrepancies have been noticed on such verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

(d) The Company has not revalued its Property Plant and Equipment(including Right of use assets) or intangible assets during the year ended March 31 2022.

(e) According to information and explanations given to us and on thebasis of our examination of the records of the Company there are no proceedings initiatedor are pending against the Company for holding any benami property under the Prohibitionof Benami Property Transactions Act 1988 and rules made thereunder and therefore thequestion of our commenting on whether the Company has appropriately disclosed the detailsin its financial statements does not arise. ii. (a) The inventory has been physicallyverified at reasonable intervals during the year by the Management. The discrepanciesnoticed on verification between the physical stock and the book stocks whereverascertained were not material and have been properly dealt in the books of accounts.

(b) The Company has been sanctioned working capital limits in excess ofRs. 5 crores in aggregate from banks and/or financial institutions during the year on thebasis of security of current assets of the Company. The quarterly returns/statements filedby the Company with such banks and financial institutions are in agreement with the booksof accounts of the Company. iii. a) to (d) and (f) According to the information andexplanations given to us and on the basis of our examination of the records of theCompany the Company has not made any investments provided guarantee or security orgranted any loans or advances in the nature of loans secured or unsecured to companiesfirms limited liability partnerships or any other parties during the year. Accordinglyprovisions of clauses 3(iii)(a) to 3(iii) (d) & (f) of the Order are not applicable tothe company.

(e) According to the information and explanations given to us and onthe basis of our examination of the records of the Company there is no loan or advance inthe nature of loan granted falling due during the year which has been renewed or extendedor fresh loans granted to settle the overdue of existing loans given to same parties. iv.In our opinion and according to the information and explanations given to us the Companyhas complied with the provisions of section 185 and 186 of the Act with respect to theloans and investments made. The Company has neither issued any guarantee norh as providedany security on behalf of any party. v. In our opinion and according to the informationand explanations given to us the Company did not receive any deposits covered undersections 73 to 76 of the Companies Act and the rules framed there under with regard todeposits accepted from the public during the year. vi. The Central Government hasprescribed maintenance of cost records under section 148 (1) of the Companies Act. We havebroadly reviewed such accounts and records and are of the opinion that prima facie theprescribed accounts & records have been made & maintained but no detailedexamination of such records and accounts have been carried out by us.

vii. (a).According to the information and explanations given to us andon the basis of our examination of the records of the Company amounts deducted/ accruedin the books of account in respect of undisputed statutory dues including provident fundincome tax sales tax service tax Goods & Service Tax duty of customs value addedtax cess and other material statutory dues have been regularly deposited during the yearby the Company with the appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of provident fundincome tax sales tax service tax duty of customs value added tax cess and othermaterial statutory dues were in arrears as at 31st March 2022 for a period of more thansix months from the date they became payable.

(b) According to the information and explanations given to us and therecords of the Company examined by us the dues of income tax sales tax wealth taxservice tax duty of customs duty of excise value added tax and cess as at 31st March2022 which have not been deposited on account of any dispute and the forum where thedisputes are pending are as under:

SI No Nature of Dues Gross Amount Outstanding (in Rs lakhs) Paid under protest (in Rs lakhs) Period to which the amount relates Forum where dispute is pending
1 Sales Tax as per WBST Act 1994 22.20 1.20 1999-00 & 2004-05 WBCT (A & R) Board
2 CST Act 1956 1.54 NIL WBCT (A & R) Board
3 WB VAT Act 2003 16.03 Nil 2005-06 to WBCT (A & R) Board & Appellate Forum
4 CST Act 1956 469.79 18.98 2017-18 WBCT (A & R) Board & Appellate Forum

viii. The Company has not surrendered or disclosed any transactionpreviously unrecorded in the books of account in the tax assessments under the Income TaxAct 1961(43 of 1961) as income during the year. Accordingly the requirement to report onclause 3(viii) of the Order is not applicable to the Company.

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

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

(c) In our opinion and according to the information and explanationsgiven to us by the management term loans were applied for the purpose for which the loanswere obtained.

(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) According to the information and explanations given to us and on anoverall examination of the financial statements of the company we report that the companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its subsidiaries associates or joint ventures as defined under Companies Act 2013.

(f) According to the information and explanations given to us andprocedures performed by us we report that the company has not raised loans during theyear on the pledge of securities held in its subsidiaries joint ventures or associatecompanies (as defined under Companies Act 2013).

x. (a) The Company has not raised any money during the year by way ofinitial public offer / further public offer (including debt instruments) hence therequirement to report on clause 3(x)(a) of the Order is not applicable to the Company.

(b) The Company has not made any preferential allotment or privateplacement of shares /fully or partially or optionally convertible debentures during theyear under audit and hence the requirement to report on clause 3(x)(b) of the Order isnot applicable to the Company. xi. (a) During the course of our examination of the booksand records of the Company carried out in accordance with the generally accepted auditingpractices in India and according to the information and explanations given to us we haveneither come across any instance of material fraud by the Company or on the Companynoticed or reported during the year nor have we been informed of any such case by theManagement.

(b) According to the information and explanations given to us noreport under sub-section (12) of section 143 of the Companies Act has been filed in FormADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014 with theCentral Government during the year and up to the date of this report.

(c) As represented to us by the management there are no whistle blowercomplaints received by the Company during the year. xii. (a) (b) & (c) The Company isnot a Nidhi company as per the provision of the Companies Act 2013.Therefore therequirement to report on clause 3(xii)(a) (b) & (c) of the Order is not applicable tothe Company.

xiii. According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are incompliance with sections 177 and 188 of the Act where applicable and detailsof suchtransactions have been disclosed in the financial statements as required by theapplicable accounting standards.

xiv. (a) In our opinion and based on our examination the company hasan internal audit system commensurate with the size and 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. In our opinion during the year the Companyhas not entered into any non-cash transactions with its Directors or persons connectedwith its directors and hence provisions of section 192 of the Companies Act 2013 are notapplicable to the Company.

xvi. (a) The provisions of section 45-IA of the Reserve Bank of IndiaAct 1934 (2 of 1934) are not applicable to the Company. Accordingly the requirement toreport on clause (xvi)(a) of the Order is not applicable to the Company.

(b) The Company has not conducted any Non-Banking Financial or HousingFinance activities without obtained a valid Certificate of Registration (CoR) from theReserve Bank of India as per the Reserve Bank of India Act 1934.

(c) The Company is not a Core Investment Company as defined in theregulations made by Reserve Bank of India. Accordingly the requirement to report onclause 3(xvi)(c) of the Order is not applicable to the Company.

(d) In our opinion there is no core investment company within theGroup (as defined in the Core Investment Companies (Reserve Bank) Directions 2016) andaccordingly reporting under clause 3(xvi)(d) of the Order is not applicable. xvii. TheCompany has not incurred cash losses in the current financial year. In the immediatelypreceding financial year the Company had not incurred cash losses.

xviii. There has been no resignation of the statutory auditors duringthe year and accordingly requirement to report on Clause 3(xviii) of the Order is notapplicable to the Company. xix. According to the information and explanations given to usand on the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements our knowledge of the Board of Directors and management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report that company is not capable of meeting its liabilities existingat the date of balance sheet as and when they fall due within a period of one year fromthe balance sheet date. We however state that this is not an assurance as to the futureviability of the company. We further state that our reporting is based on the facts up tothe date of the audit report and we neither give any guarantee nor any assurance that allliabilities falling due within a period of one year from the balance sheet date will getdischarged by the company as and when they fall due.

xx. (a) In our opinion and according to the information andexplanations given to us in respect of other than ongoing projects there are no unspentamounts that are required to be transferred to a fund specified in Schedule VII of theCompanies Act (the Act) in compliance with second proviso to sub section 5 of section 135of the Act.

(b) In our opinion and according to the information and explanationsgiven to us there are no unspent amounts in respect of ongoing projects that arerequired to be transferred to a special account in compliance of provision of sub section(6) of section 135 of Companies Act.

For J K V S & CO.
Chartered Accountants
Firm Registration No. 318086E
Utsav Saraf
Kolkata Partner
Dated: 7th day of May 2022 Membership No.: 306932
UDIN: 22306932AMEVUQ4693

ANNEXURE ‘B' TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal andRegulatory Requirements' section of our report to the Members of Ludlow Jute &Specialities Limited of even date)

Report on the Internal Financial Controls Over Financial Reportingunder Clause(i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of LUDLOW JUTE & SPECIALITIES LIMITED ("the Company") as of March31 2022 in conjunction with our audit of the financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguardingof its 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 Act2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143 (10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the 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 internal financial controlssystem over financial reporting of the Company.

Meaning of Internal Financial Controls Over Financial Reporting

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

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

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

(3) Provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assetsthat could have a material effect on the financial statements.

Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For J K V S & CO.
Chartered Accountants
Firm Registration No. 318086E
Utsav Saraf
Kolkata Partner
Dated: 7th day of May 2022 Membership No.: 306932
UDIN: 22306932AMEVUQ4693

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