You are here » Home » Companies » Company Overview » Lyka Labs Ltd

Lyka Labs Ltd.

BSE: 500259 Sector: Health care
NSE: LYKALABS ISIN Code: INE933A01014
BSE 00:00 | 22 Sep 18.50 0.05
(0.27%)
OPEN

18.00

HIGH

18.75

LOW

17.90

NSE 00:00 | 22 Sep 18.40 0.15
(0.82%)
OPEN

18.00

HIGH

18.70

LOW

17.60

OPEN 18.00
PREVIOUS CLOSE 18.45
VOLUME 734
52-Week high 24.85
52-Week low 9.70
P/E
Mkt Cap.(Rs cr) 53
Buy Price 18.00
Buy Qty 500.00
Sell Price 18.55
Sell Qty 299.00
OPEN 18.00
CLOSE 18.45
VOLUME 734
52-Week high 24.85
52-Week low 9.70
P/E
Mkt Cap.(Rs cr) 53
Buy Price 18.00
Buy Qty 500.00
Sell Price 18.55
Sell Qty 299.00

Lyka Labs Ltd. (LYKALABS) - Auditors Report

Company auditors report

To the Members of

LYKA LABS LIMITED

Report on the Audit of the Standalone Financial Statements

I. Opinion

We have audited the Standalone Financial Statements of LYKA LABS LIMITED ( hereinafter referred to as the Company) which comprise the Balance Sheet as at March 31 2019 the Statement of Profit and Loss (including Other Comprehensive Income) Statement of Cash Flows and Statement of Changes in Equity for the year then ended and a summaryofsignificantaccounting policies and other explanatory information (hereinafter referred to as Standalone Financial Statements).

In our opinion and to the best of our information and according to the explanations given to us the aforesaid Standalone Financial Statements give the information required by the Companies Act 2013 (the Act) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Indian Accounting Standards (IndAS) specified under Section 133 of the Act of the state of affairs of the Company as at March312019itsprofitincluding total comprehensive income its cash flows and change in equity for the year ended on that date.

II. Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. These require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Standalone Financial Statements are free from material misstatement.

Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

III. EMPHASIS OF MATTER

1. Compromise Settlement Note No. 41 (a) & (b) regarding compromise settlement with Dena Bank and Kapol Co-op Bank for assignment of debts in favour of International Assets Reconstruction Company Pvt Ltd (IARC).

2. Pledged shares of Jt.MD encashed by a Lender

We draw attention to Note No. 42 regarding claims from Jt.MD aggregating to Rs. 51.46 lakhs being the value of equity shares of the Company pledged as security.

3. Scheme of Arrangements

We draw attention to Note No.43 (a) & (b) regarding the status of the schemes of arrangement with LykaExports Limited and Lyka Healthcare Limited.

4. Capital Expenditure:

We draw attention to Note No. 44 (ii) regarding the review of the portfolio of products under development and applied research.

Our report is not qualified in respect of the above matters.

IV. Key Audit Matters

Key audit matters are those matters that in our professional judgment were of most significance 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 Financial Statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters.

1. Key Audit Matter identified by us;

Key Audit Matter (KAM)How Our Audit Addressed The Key Audit Matter
Accuracy of recognition Measurement presentation and disclosure of deferred tax assetsOur procedures included but were not limited to the following:
(DTA) amounting to Rs 883.37 Lakhs in terms of Ind AS 12 - Income Taxes (Refer Note No: 9 to the Standalone Financial Statements);Recognition of DTA;
Deferred tax assets are the amount of income tax recoverable in future periods in respect of;We have tested the Management's assessment of the recoverability of the deferred tax assets including the evaluation of management's assessment on the sufficiency the recognition of deferred tax assets by comparing forecasts of future profits as provided and evaluating the assumptions used in those forecasts.
a. Deductible temporary differences;
b. The carry forward of unused tax losses; and
c. The carry forward of unused tax credits.
Temporary differences are differences between the carrying amount of an asset or liability in the balance sheet and its tax base.Measurement of DTA;
As Company incurred losses during past several years and was not recognizing DTA upto last year but during the year the Company is recognizing DTA by considering that taxable profits will be available against which the DTA created on temporary differences would be set off in future years.Our audit procedures included among others procedures on the completeness and accuracy of the deferred tax assets. We have assessed whether profit forecasts provided by external agency are reasonable in relation to historical revenue trends current year performance launch of new products and formulations and future funding plans for commencing production at the spare capacity of the plant.
We are considering this recognition of DTA as a KAM in view of the effect of DTA turning loss before tax to profit after tax.Presentation and Disclosure of DTA;
We have verified that the effect of DTA recognized is adequately disclosed in the financial statements.
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)Our procedures included but were not limited to the following:
(Refer Note No: 2.9 to the Standalone Financial Statements)We assessed the process to identify the impact of adoption of the new revenue accounting standard. Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
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 recognized over a period. 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. 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. We carried out a combination of procedures involving enquiry and observation reperformance and inspection of evidence in respect of operation of these controls.
 Tested the relevant information technology systems' access and change management controls relating to contracts and related information used in recording and disclosing revenue in accordance with the new revenue accounting standard.
 Selected sample of revenues disaggregated by type of sales and service offerings was tested with the performance obligations specified in the underlying contracts.
 Performed analytical procedures for reasonableness of revenues disclosed by type of sales and service offerings.
 We reviewed the collation of information and the logic of the report generated from the budgeting system used to prepare the disclosure relating to the periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date.
Conclusion
Our procedures did not identify any material exceptions
Existence and valuation of inventories
(Refer Note No. 10 to the Standalone Financial Statements)Our procedures included but were not limited to the following:
Total inventories of the Company amounting to Rs. 594.51 Lakhs represent 15.99% of operating revenue as at March 31 2019.To address the risk for material errors on inventories our audit procedures included amongst others:
These inventories mainly consist of inventories of raw material packing material work in progress traded goods and finished goods.Assessing the compliance of the Company's accounting policy of inventory with applicable Ind AS.
Valuation of the inventories is at lower of cost and net realizable value.
Cost of raw material and traded goods comprises cost of purchases cost of work in progress and finished goods comprises direct materials appropriate share of labour and manufacturing overheads and valued at the lower of cost and net realizable value. Cost of inventories also includes all other cost incurred in bringing the inventories to their present location and condition. Cost of purchase of inventory is determined after deducting rebate and discounts. Assessing inventory valuation process and practices by verification of cost sheets prepared for selected Raw Material and Finished Goods.
 Physical verification of inventories lying at Ankaleshwar division (comprising of 89% of total inventories) was performed by branch auditor as at balance sheet date.
 Assessing the analyses and assessment made by the management with respect to valuation of slow moving and obsolete stock.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated cost necessary to make the sale.We assessed the adequacy of the Company's disclosure related to inventories.
We have considered Inventory as KAM because of:
 Significance of the inventory balance to the profit and statement of financial position.
 Management judgment/ estimation involved in determination of whether inventory will be realized for value less than cost.

V. Information other than the Standalone Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report but does not include the Standalone Financial Statements and our auditor's report thereon.

Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If based on the work we have performed we conclude that there is a material misstatement of this other information we are required to report that fact. We have nothing to report in this regard.

VI. Management's Responsibility for the Standalone Financial Statements and Those charged with Governance for the Financial Statement.

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 (the Act) with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position financialperformance changes in equityand cash flows of the Company in accordance with the accounting principles generally accepted in India including the accounting Standards specifiedunder section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the Standalone Financial Statement that give a true and fair view and are free from material misstatement whether due to fraud or error.

In preparing the Standalone Financial Statements management is responsible for assessing the Company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financial reporting process.

VII. Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.

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

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

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

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

 Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions thatmaycastsignificantdoubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the Standalone Financial Statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However future events or conditions may cause the Company to cease to continue as a going concern.

 Evaluate the overall presentation structure and content of the Standalone Financial Statements including the disclosures and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant audit findings includinganysignificantdeficiencies in internal control that we identify during our audit.

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

From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

VIII. 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 of the Companies Act 2013 we give in the Annexure `A' statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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 best of 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 the Company so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d. In our opinion the aforesaid Standalone Financial Statements comply with the Accounting Standards 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 March 31 2019 taken on record by the Board of Directors none of the directors is disqualified as on March 31 2019 from being appointed as a director in terms of Section 164 (2) of the Act.

f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate Report in Annexure B.

g. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of our information and according to 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 36 to the Standalone Financial Statements;

ii. The Company has made provision as required under the applicable law or accounting standards for material foreseeable losses if any on long-term contracts including derivative contracts.

iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31 2019.

Annexure A to the Independent Auditor's Report

(Referred to in paragraph VIII 1 of Report on Other Legal and Regulatory Requirements of our Independent Auditors' Report of even date on the accounts of LYKA LABS LIMITED for the year ended March 31 2019) On the basis of such checks as we considered appropriate and in terms of information and explanations given to us we state that: -

i. In respect of the fixed assets:

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

(b) There is a regular programme of verification of fixed assets adopted by the Management whereby part of fixed assets were verified during the year. In our opinion the programme of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) The title deeds of immovable properties including leasehold land as disclosed in Note 3 on property plant and equipment to the Financial Statements are held in the name of the Company.

ii. The inventory has been physically verified at reasonable intervals during the The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been appropriately dealt with in the books of accounts.

iii. According to the information and explanation given to us the Company has not granted any loans secured or unsecured to companies firms Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act.

As the Company has not granted any loans secured or unsecured to companies firms Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act. Accordingly paragraph 3(iii) sub-clauses (a) (b) and (c) of the Order is not applicable.

iv. In our opinion and according to the information and explanations given to us the Company has complied with the provisions of section 185 and 186 of the Companies Act 2013 in respect of the loans and investments made and security provided by it.

v. According to the information and explanations given to us the Company had received National Company Law Tribunal (NCLT) order dated 22nd January 2016 granting extension of time for repayment of Fixed Deposits. During the year the Company has repaid deposits that were claimed and as regards the balance Rs. 44.82Lakhs the same shall be paid as and when claimed. Refer note no.37

vi. We have broadly reviewed the Cost records maintained by the Company which have been specified by the Central Government under sub-section (1) of section 148 of the Companies Act in respect of the manufacture of Bulk Drugs and Formulations to which the said rules are made applicable and are of the opinion that prima-facie the prescribed accounts and records have been made and maintained. We have however not made a detailed examination of the records with a view to determine whether they are accurate or complete.

vii. According to the information and explanation given to us and as per relevant records produced before us in respect of the statutory and other dues

a. During the year the Company has not been regular in depositing undisputed statutory dues including provident fund employees' state insurance income tax and any other statutory dues with the appropriate authorities. The arrears of the Sales Tax deferral Scheme-SICOM dues as at the last day of the financial year and outstanding for more than six months from the date they become payable are as is Rs. 50.14 Lakhs.

b. Following disputed dues have not been deposited since the matters are pending with the respective forums:

Sr. NoNature of DuesAmount ( Rs. In Lakhs)*Period to which the amount relatesName of the forum
1.Demand under Drugs Price Control order1061.96Demands raised in 19871990 and 1995Gujarat High Court
2.Purchase Tax
3.Excise Duty16.001991-96Maharashtra Sales Tax Appellant Tribunal
11.222006-07Commissioner Of Central Excise & Service Tax
60.152008-2013Customs Excise and Service Tax Appellant Tribunal
4.Bombay Sales Tax83.751995 to February 2000Commissioner Of Central Excise & Service Tax
5.Maharashtra Value Added Tax61.861998-1999Bombay High Court
30.542005-06Deputy Commissioner of sales tax appeals
6.Central Sales Tax34.142007-08Deputy Commissioner of sales tax appeals
17.951998-1999Sales Tax Appellant Tribunal.
46.682005-06Deputy Commissioner of sales tax appeals
5.922006-07Sales Tax Appellant Tribunal
59.452007-08Deputy Commissioner of sales tax appeals
7.Service Tax38.122011-12Joint commissioner of Sales Tax
8.Gujarat Sales Tax16.292011-12Commissioner of Service Tax
39.602002-03Commissioner of Sales Tax
25.162013-14Commissioner of Sales Tax
9.Income Tax8.662014-15Asst. Commissioner of Sales Tax
44.63AY 2002-03Commissioner of Income Tax Appeals
150.00AY 2004-05Commissioner of Income Tax Appeals
80.85AY 2010-11Commissioner of Income Tax Appeals
155.40AY 2011-12Commissioner of Income Tax Appeals
61.77AY 2014-15Commissioner of Income Tax Appeals

(*net of amounts paid under protest) viii. According to the records of the Company examined by us and the information and explanation given to us during the year the Company has entered into compromise settlement through one time settlement (OTS) of debts of the Banks and Assignment of debts in favour of International Assets Reconstruction Company (IARC) refer note no 41 (a) & (b). As the borrowings from bank had been assigned to IARC there is no default in repayment of loans or borrowings. The Company did not have any outstanding loans or borrowings from financial institutions or government.

The Company had repaid Debenture as per Order of National Company Law Tribunal dated 22nd May2017 and Rs 13 Lakhs is outstanding as on March 31 2019 due to cheques returned undelivered/ unclaimed. Refer note no. 38

ix. Based on our audit procedure and according to the information and explanations given by management the Company has not raised money by way of initial public offer and term loan during the year. Accordingly reporting under paragraph 3(ix) of the Order is not applicable.

x. During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.

xi. The Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicable to it and hence paragraph 3(xii) of the Order is not applicable.

xiii. In our opinion and according to the information and explanations given to us the Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Companies Act. The details of such related party transactions have been disclosed in the Standalone Financial Statements as required under Indian Accounting Standard (Ind. AS) 24 Related Party Disclosures.

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

xv. According to the information and explanations given to us the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly paragraph 3(xv) of the Order is not applicable.

xvi. According to the information and explanations given to us the company is not required to get registered under section 45-IA of the Reserve Bank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is not applicable.

Date: May 18 2019

Annexure B to the Independent Auditor's Report

(Referred to in paragraph VIII2(f) of Report on Other Legal and Regulatory Requirements of our Independent Auditors' Report of even date on the accounts of LYKA LABS LIMITED for the year ended March 31 2019) Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act We have audited the internal financial controls over financial reporting of LYKA LABS LIMITED (`the Company) as at March 31 2019 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial on the internal financial control over financial essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to Company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information. as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls both 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 and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financialreporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement including the assessment of the risks of material misstatement of the Financial Statements. Whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company'sinternalfinancial assurance regarding thereliabilityoffinancialreporting and the preparation of Financial statements for external purposes in accordance with generally accepted accounting principles. A Company's internal financial control over financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Standalone Financial Statements in accordance with generally accepted accounting principles and that receipts expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition use or disposition of the Company's assets that could have a material effect on the Standalone Financial Statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over at March 31 2019 based on the internal control over financialreporting criteria established by the Company considering the essential components of internal financial control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For Mehta Chokshi & Shah
Chartered Accountants
Firm Registration No: 106201W
A.R. Mehta
Partner
Membership No.046088
Place: Mumbai
Date: May 18 2019

   

.