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Maharashtra Seamless Ltd.

BSE: 500265 Sector: Metals & Mining
NSE: MAHSEAMLES ISIN Code: INE271B01025
BSE 11:27 | 10 May 314.05 13.60
(4.53%)
OPEN

306.30

HIGH

320.80

LOW

306.30

NSE 11:14 | 10 May 314.00 13.30
(4.42%)
OPEN

304.50

HIGH

321.00

LOW

304.05

OPEN 306.30
PREVIOUS CLOSE 300.45
VOLUME 47831
52-Week high 349.95
52-Week low 187.00
P/E 8.34
Mkt Cap.(Rs cr) 2,104
Buy Price 313.85
Buy Qty 9.00
Sell Price 314.05
Sell Qty 636.00
OPEN 306.30
CLOSE 300.45
VOLUME 47831
52-Week high 349.95
52-Week low 187.00
P/E 8.34
Mkt Cap.(Rs cr) 2,104
Buy Price 313.85
Buy Qty 9.00
Sell Price 314.05
Sell Qty 636.00

Maharashtra Seamless Ltd. (MAHSEAMLES) - Auditors Report

Company auditors report

TO THE MEMBERS OF MAHARASHTRA SEAMLESS LIMITED

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

1. We have audited the accompanying Ind AS financial statements ofMAHARASHTRA SEAMLESS LIMITED ("the Company”) which comprise the Balance Sheetas at March 31st 2020 the Statement of Profit and Loss including the Statement of OtherComprehensive Income the Statement of Cash Flows and the Statement of Changes in Equityfor the year then ended and notes to the standalone Ind AS financial statementsincluding a summary of significant accounting policies and other explanatory information.

2. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid Ind AS financial statements give theinformation required by the Companies Act 2013 ("the Act”) in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31st2020 its loss including other comprehensive income its cash flows and the change inequity for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013 (the Act). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Ind AS financial statements section ofour report. We are independent of the Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the standalone Ind AS financial statements under theprovisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone Ind AS financial statements.

Emphasis of Matters

4. We draw attention to the following matters included in the notes tothe Ind AS financial statements:

a. Note No.2.36 (b) which states that during the year the Company hasmade provisions for impairment on loans amounting to ' 8148.40 Lakhs on investments inperpetual preference shares amounting to ' 24801.22 Lakhs on investment in equity sharesaggregating to ' 59.68 Lakhs and has recognized corporate guarantees as financialliabilities amounting to ' 12031.59 Lakhs in its foreign subsidiaries / step downsubsidiaries.

b. Note No. 2.50 which relates to the impact of COVID 19 as assessed bythe Management.

Our opinion is not modified in respect of these matters.

Key Audit Matters

5. Key Audit Matters are those matters that in our professionaljudgment were of most significance in our audit of the standalone Ind As financialstatements for the financial year ended March 31st 2020.These matters were addressed inthe context of our audit of the standalone Ind AS financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Key Audit Matter Auditor's Response
1 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” Principal Audit Procedures
The Company's revenue is principally derived from sale of products of Seamless Pipes Electric Resistance Welded Pipe and Power. We identified revenue recognition as a key audit matter because the Company and its external stakeholders focus on revenue as a key performance indicator. This could create an incentive for revenue to be recognised before control has been transferred. In view of the significance of the matter we applied the following audit procedures in this area among others to obtain sufficient appropriate audit evidence:
• We assessed the appropriateness of the revenue recognition accounting policies by comparing them with applicable accounting standards;
• We evaluated the design of controls and operating effectiveness of the relevant controls with respect to revenue recognition;
• We performed substantive testing on samples selected using statistical sampling of revenue transactions recorded during the year by testing the underlying documents;
• We tested manual journal entries posted to revenue to identify unusual items;
• We carried out year on year product wise variance analysis on revenue recognised during the year to identify unusual variances;
• We obtained external confirmations of debtors' outstanding balance as at the financial year end date selected on a sample basis directly from customers and
• We tested on a sample basis specific revenue transactions recorded before and after the financial year end date to determine whether the revenue had been recognised in the appropriate financial period.
2 Valuation of Inventories Our audit procedures for assessing the valuation of inventories as per
As at March 31 st 2020 the Company's inventories amounted to ' 71246.52 Lakhs representing 14.49 % of the Company's total assets as at March 31st 2020 and the estimates and judgements described below the valuation of inventory required significant audit attention. As disclosed in Note 2 H inventories are held at the lower of cost and net realisable value determined using the weighted average cost method. At year end the valuation of inventory is reviewed by management and the cost of inventory is reduced where inventory is forecast to be sold below cost. Company's policy included but were not limited to the following;
• Understood the management process for determining net realizable value of inventories and identification of slow moving or obsolete inventories and tested whether the same is consistently applied;
• Evaluated and tested on a sample basis the design and operating effectiveness of key controls around inventory valuation operating within the Company;
• Inquired with the management about the slow moving and obsolete inventories as at March 31 st 2020 and evaluated the assessment prepared by the management including forecasted uses of these inventories on a test check basis;
The determination of whether inventory will be realised for a value less than cost requires management to exercise judgement and apply assumptions. Management undertake the following procedures for determining the level of write down required: • Inquired with the management about the slow moving and obsolete inventories as at March 31 st 2020 and evaluated the assessment prepared by the management including forecasted uses of these inventories on a test check basis;
• Use inventory ageing reports together with historical trends to estimate the likely future saleability of slow moving and older inventory lines; • Tested the computation for write down of inventories with the assessment provided by the management and performed independent ageing analysis of the inventory line-items along with specific inquiries with the management to evaluate completeness of the inventory identified as slow moving or obsolete;
• For inventory aged greater than one year management apply a percentage based write down to inventory. The percentages are derived from historical levels of write down; • Reviewed the historical trends of inventory write-downs to compare and assess the actual utilization or liquidation of inventories to the previous assessment done by the management to determine the efficacy of the process of estimation by the management; and
• Perform a line-by-line analysis of remaining inventory to ensure it is stated at the lower of cost and net realisable value and a specific write down is recognised if required. • Assessed the appropriateness of disclosures in the financial statements in accordance with the applicable accounting standards
Write-down of inventories to net realisable value is subjective owing to the nature of inventories and is dependent on significant judgments around probability of decrease in the realisable value of slow moving inventory due to obsolesce or lack of alternative use as well as the consideration of the need to maintain adequate inventory levels for after sales services considering the long useful life of the product. Assessing net realizable value of inventory and identification of slow moving and obsolete inventory are areas requiring the use of significant judgements and owing to the inherent complexities and materiality of the balances we have considered this area to be a key audit matter for current year audit.
3 Contingent Liabilities Principal Audit Procedures
The company has several on-going legal matters relating to statutory taxes which require management judgement to be applied in order to determine the likely outcome. In assessing the potential exposures to the Company we have completed a range of procedures including: -
- assessing the design and implementation of controls in relation to the monitoring of known exposures; -
- reading Board and other meeting minutes to identify areas subject to Company consideration;
- reviewing third party correspondence and reports; and
- reviewing the proposed accounting and disclosure of actual and potential legal liabilities drawing on third party assessment of open matters.
4 Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 116 “Leases” (new accounting standard) Principal Audit Procedures
In responding to the identified key audit matter we completed the following audit procedures:
• Assessed the design and implementation of key controls pertaining to the determination of the Ind AS 116 transition impact disclosures;
Ind AS 116 Leases replaces the existing standard Ind AS 17 and specifies how the Company will recognize measure present and disclose leases. The standard provides a single lessee accounting model requiring lessees to recognize assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Accordingly the Company has adopted Ind AS 116 Leases with effect from 01.04.2019. The implementation of Ind AS 116 is considered a key audit matter due to the judgments needed in establishing the underlying key assumptions. • Assessed the appropriateness of the discount rates applied in determining lease liabilities with input from our valuation specialists;
• Assessed whether the accounting regarding leases is consistent with the definitions of Ind AS 116 including factors such as lease term and measurement principles.
• Verified the accuracy of the underlying lease data by agreeing a representative sample of leases to original contract or other supporting information and checked the integrity and mechanical accuracy of the Ind AS 116 calculations for each lease sampled through recalculation of the expected Ind AS 116 adjustment;
• Considered completeness by testing the reconciliation to the Group's operating lease commitments and by investigating key service contracts to assess whether they contained a lease under Ind AS 116; and
• Assessed whether the disclosures within the financial statements are appropriate in light of the requirements of Ind AS 8 Accounting Policies Changes in Accounting Estimates and Errors.

Other Information

6. The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis; Board's Report including Annexures to Board Report BusinessResponsibility Report Corporate Governance and Shareholders' Information but doesnot include the standalone Ind AS financial statements and our auditor's reportthereon. The aforesaid documents are expected to be made available to us after the date ofthis auditor's report.

7. Our opinion on the Ind AS financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

8. In connection with our audit of the financial statements ourresponsibility is to read the other information identified above when it becomes availableand in doing so consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained in the audit or otherwise appears tobe materially misstated.

9. When we read the aforesaid documents if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance.

Management's Responsibilities for the Standalone Ind AS FinancialStatements

10. The Company's Board of Directors is responsible for thematters stated in section 134(5) of the Companies Act 2013 ("the Act”) withrespect to the preparation of these Ind AS financial statements that give a true and fairview of the financial position financial performance changes in equity and cash flows ofthe Company 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 Ind AS financial statementthat give a true and fair view and are free from material misstatement whether due tofraud or error.

11. In preparing the standalone Ind AS financial statements themanagement is responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the Board of Directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

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

Auditor's Responsibilities for the Audit of the Standalone Ind ASFinancial Statements

13. Our objectives are to obtain reasonable assurance about whether thestandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that anaudit conducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone Ind AS financialstatements.

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

• Identify and assess the risks of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3) (i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of the management's use ofthe going 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 standalone Ind AS financial statements or ifsuch disclosures are inadequate to modify our opinion. Our conclusions are based on theaudit evidence obtained up to the date of our auditor's report. However futureevents or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone Ind AS financial statements including the disclosures and whether thestandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation.

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

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

17. From the matters communicated with those charged with governancewe determine those matters that were of most significance in the audit of the standaloneInd AS financial statements for the financial year ended March 31st 2020 and aretherefore the key audit matters. We describe these matters in our auditor's reportunless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

18. 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 Act we give in the Annexure-A a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

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

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen 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 (includingother comprehensive loss) and the Cash Flow Statement Statement of Changes in Equitydealt with by this report are in agreement with the books of account and with the returnsreceived from the unit not visited by us.

(d) In our opinion the aforesaid standalone Ind AS financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014.

(e) On the basis of the written representations received from thedirectors as on March 31st 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31st 2020 from being appointed as a director interms of Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company with reference to these standalone Ind ASfinancial statements and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B”.

(g) In our opinion the managerial remuneration for the year endedMarch 31st 2020 has been paid / provided by the Company to its directors in accordancewith the provisions of section 197 read with Schedule V to the Act;

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

a. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind As financial statements - Refer Note 2.28 of thestandalone Ind AS financial statements [except Note No 2.28 (a & b)]

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

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

For L B Jha & Co
Chartered Accountants
Registration No. 30I088E
(Pratik Agarwal)
Partner
Place : Mumbai Membership No. 301880
Date : 27th July 2020 UDIN: 20301880AAAAKN6836

“ANNEXURE A” TO THE INDEPENDENT AUDITOR'S REPORT

To the Members of MAHARASHTRA SEAMLESS LIMITED

[Referred to in paragraph 18 of the Auditors' Report of even date]

1. (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property plant andequipments.

(b) As explained to us the company has a system of verifying all itsmajor Property Plant & Equipments over a period of three years. The Property Plantand Equipment so scheduled for verification during this year have been physicallyverified. The discrepancies noticed on such verification were not material and have beenproperly dealt with in the books of accounts.

(c) According to the information and explanations given to us and therecords of the Company examined by us the title deeds of the immovable properties of theCompany are held in the name of the Company.

2. The inventory has been physically verified by the management duringthe year. The discrepancies noticed on physical verification of inventory as compared tobook records were not material and have been properly dealt with in the books of account.In our opinion the frequency of verification is reasonable.

3. (a) In respect of loans secured or unsecured granted by theCompany to the other parties covered in the register maintained under section 189 of theCompanies Act 2013 (‘the Act'). The Company has granted loans to six companies.The maximum amount involved during the year was ' 91002.90 Lakhs. The year-end balance ofloan granted to such companies was ' 76507.25 Lakhs.The terms and conditions of theseloans in our opinion are not prima-facie prejudicial to the interests of the Company.

(b) In respect of loans granted by the company the interest payment areregular except refer Note No. 2.41 to the financial statement and the principal amountsare being received/ renewed on due dates.

(c ) The aforesaid loans being repayable on demand there is no amountoverdue for more than ninety days in respect of recovery of principal and interest of theabove loans.

4. According to the information and explanations given to us and therecords of the Company examined by us the provisions of section 185 and 186 of theCompanies Act 2013 have been complied with in respect of loans investments guaranteesand securities given by the Company.

5. The Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the rules framed there under.

6. We have broadly reviewed the books of accounts maintained by theCompany pursuant to the order made by the Central Government for the maintenance of costrecords under section 148(1) of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. We have not howevercarried out any detailed examination of such records and accounts.

7. (a) According to the information and explanations given to us andthe records of the Company examined by us in our opinion the Company is regular indepositing the undisputed statutory dues including provident fund employees' stateinsurance income-tax duty of customs goods and services tax cess and any otherstatutory dues as applicable with the appropriate authorities.

(b) According to the information and explanations given to us and therecords of the Company examined by us the particulars of dues of customs central exciseservice tax entry tax income tax and value added tax as at March 31st 2020 which havenot been deposited on account of a dispute are as follows:

Nature of Dues Amount ( Rs in lakhs) Period to which the amount relates Forum where the Dispute is pending
Income Tax Act1961 Demand for Income Tax 2.45 A.Y. 2011-12 Income Tax (Appellate Tribunal )
1105.12 A.Y. 2012-13 to 2017-18 Commissioner of Income Tax (Appeals)
Central Excise Duty and 7.71 FY 2005-06 & 2006-07 High Court
Excise Act 1944 Service Tax 34.35 Various Years from FY 2004-05 to 2017-18 Customs Excise and Service Tax (Appellate Tribunal)
Sales Tax Act Sales Tax 67.94 FY 2014-15 Joint Commissioner Maharashtra of Sales Tax (Appeals)

8. According to the information and explanation given to us and therecords of the Company examined by us the Company has not defaulted in repayment of duesof any of loans or borrowings to any banks.

The Company has neither taken any loan from financial institutions orGovernment nor issued any debentures.

9. In our opinion and according to the information and explanationgiven to us on an overall basis the money raised by Company during the year by way ofterm loan have been applied for the purpose for which they were obtained.

The Company has not raised any money by way of initial public offer orfurther public offer (including debt instruments).

10. During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of fraud on or by the Company noticed or reported during the yearnor have we been informed of such case by the management.

11. In our opinion and to the best of our information and according tothe explanations given to us the remuneration paid by the Company to its directors duringthe year is in accordance with the provisions of section 197 of the Act.

12. The related statutes are not applicable as the Company is not aNidhi Company.

13. According to the information and explanations given to us and therecords of the Company examined by us the company has complied with the requirements ofsections 177 and 188 of the Act with respect to its transactions with the related parties.Pursuant to the requirement of the applicable Accounting Standard details of the relatedparty transactions have been disclosed in Note 2.40 of the standalone financial statementsfor the year under audit.

14. The Company has neither made any preferential allotment of sharesnor fully or partly convertible debentures during the year under audit.

15. According to the information and explanations given to us and therecords of the Company examined by us the Company has not entered into any non-cashtransactions with any director of the Company and the holding company or personsconnected with them involving acquisition of assets by or from them for considerationother than cash.

16. In our opinion and according to the information and explanationsgiven to us not being a non-banking financial company the Company is not required to beregistered under section 45-IA of the Reserve Bank of India Act 1934.

For L B Jha & Co
Chartered Accountants
Registration No. 301088E
(Pratik Agarwal)
Partner
Place : Mumbai Membership No. 301880
Date : 27th July 2020 UDIN: 20301880AAAAKN6836

“ANNEXURE B” TO THE INDEPENDENT AUDITOR'S REPORT

To the Members of MAHARASHTRA SEAMLESS LIMITED

[Referred to in paragraph 19 (f) of the Independent Auditor'sReport of even date]

Report on the Internal Financial Control under Clause (i) of Sub-sections 3 of Section 143 of the Companies Act 20l3(“the Act”)

1. We have audited the internal financial controls over financialreporting of Maharashtra Seamless Limited ("the Company”) as of March31st 2020 in conjunction with our audit of the standalone Ind AS financial statements ofthe Company for the year ended on that date.

Management's Responsibility for Internal Financial Control

2. The Company's management is responsible for establishing andmaintaining internal financial control 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 (the "Guidance Note”) issued by the Institute of CharteredAccountants of India (ICAI). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the "Guidance Note” and the Standard on Auditingissued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act2013 to the extent applicable. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls over financial reporting withreference to these standalone Ind AS financial statements and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includesobtaining an understanding of internal financial control over financial reporting withreference to these standalone Ind AS financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal controls based on the assessed risk. The procedure selecteddepends on the auditor's judgment including the assessment of the risk of materialmisstatement of the financial statement whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting with reference to these standalone IndAS financial statements.

Meaning of Internal Financial Control over Financial Reporting

6. A Company's internal financial control over financial reportingis a process designed to provide reasonable assurance regarding the reliability offinancial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A Company's internalfinancial control over financial reporting includes those policies and procedures that

i) Pertain to the maintenance of the records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company;

ii) provide reasonable assurance that the transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditure of the Company are beingmade only in accordance with authorization of management and directors of company; and

iii) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company's assetsthat could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Control over FinancialReporting

7. Because of inherent limitation of internal financial control overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to errors or fraud may occur and not bedetected. Also projections of any evaluations of the internal financial control 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

8. In our opinion the Company has in all material respect anadequate internal financial controls over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31st 2020 basedon the internal control over financial reporting criteria established by the companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Control Over Financial Reporting issued by Institute ofChartered Accountants of India.

For L B Jha & Co
Chartered Accountants
Registration No. 301088E
(Pratik Agarwal)
Partner
Place : Mumbai Membership No. 301880
Date : 27th July 2020 UDIN: 2030I880AAAAKN6836

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