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Mauria Udyog Ltd.

BSE: 539219 Sector: Others
NSE: N.A. ISIN Code: INE150D01027
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NSE 05:30 | 01 Jan Mauria Udyog Ltd
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VOLUME 98860
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OPEN 3.25
CLOSE 3.42
VOLUME 98860
52-Week high 5.25
52-Week low 1.50
P/E
Mkt Cap.(Rs cr) 46
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Mauria Udyog Ltd. (MAURIAUDYOG) - Auditors Report

Company auditors report

To the Members of Mauria Udyog Limited

Report on the Audit of the Ind AS Financial Statements

Qualified Opinion

We have audited the accompanying Ind AS financial statements of Mauria Udyog Limited("the Company") which comprise the Balance Sheet as at March 31 2021 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes to theInd AS financial statements including a summary of significant accounting policies andother explanatory information (hereinafter referred to as "Ind AS FinancialStatements").

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matter described in the Basis forQualified Opinion section of our report the aforesaid Ind AS financial statements givethe information 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 including Indian Accounting Standards ("Ind AS ) of thestate of affairs of the Company as at March 31 2021 its loss including othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Qualified Opinion

I. The Company has defaulted in repayment of its borrowing taken from various banks/NBFCs and accordingly these loans have been classified as Non-Performing Assets (NPAs) bythe respective banks/ NBFCs. The Company has not been recognising interest on such loansfrom the date of NPA classification by respective banks/ NBFCs. The amount of interestexpenses cannot be ascertained. Further the balances of borrowings are subject toconfirmation from the respective banks/ NBFCs.

II. The Company has classified its investments in unquoted equity shares of otherentities to be Fair Valued through other comprehensive income (FVTOCI). However it hasnot obtained/ carried out fair valuation of such unquoted equity shares. The Company hasmeasured investments in unquoted equity shares based on Net Asset Value of such equityshares as at 31 March 2020 wherever the financial statements of such entities areavailable as on such date. The impact of fair valuation cannot be ascertained.

III. The Company has not used expected credit loss model to assess the impairment lossor gain on trade receivables as required by Ind AS 109 "Financial Instruments'. Theimpact of such non-compliance cannot be ascertained. However the Company has made aprovision of Rs. 7494.41 Lacs against doubtful trade receivables in the current financialyear.

IV. The Company had entered into certain transactions with Amrapali Group of Companiesin past years. In consequent to which forensic audit was conducted as per the Directionsof Hon'ble Supreme Court of India to look into transactions between Amrapali Group ofCompanies and Sureka Group of Companies. After which the Hon'ble Supreme Court vide itsorder No. Writ Petition{s}(Civil) No. 940/2017 dated 2 December 2019 had directed M/sJotindra Steel & Tubes Limited and Mauria Udyog Limited including associated companiesand Directors viz Mr. Navneet Kumar Sureka and Mr. Akhil Kumar Sureka to deposit Rs.16700.00 Lacs. In response to the order of the Hon'ble Supreme Court it had filed anapplication on 9 December 2019 before the Hon'ble Supreme Court to accept the Title deedsof immoveable properties belonging to Sureka family members and associate companies (basedon latest valuation report) worth amounting Rs. 16897.00 Lacs net off incumbency amountof Rs. 3934.00 Lacs including Properties amounting Rs. 10182.00 Lacs belonging to MauriaUdyog Limited.

In the previous financial year 2019-20 the Company has charged Rs. 1500.00 Lacs inthe Statement of Profit and Loss against the above matter on an estimated basis andreduced the value of properties (property which is deposited to Hon'ble Supreme Court).

The Company has neither provided for liability against this matter nor any amount hasbeen shown as contingent liability as required by Ind AS 37 "Provisions ContingentLiabilities and Contingent Assets".

We conducted our audit in accordance with Standards on Auditing (SAs) specified undersection 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Ind AS financialstatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India("ICAI") together with the ethical requirements that are relevant to our auditof the Ind AS financial statements under the provisions of the Act and Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our qualified opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements of the current period. Thesematters were addressed in the context of our audit of the Ind AS financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matters described below to be the key audit mattersto be communicated in our report.

Key Audit Matters How our audit addressed the key audit matter
Loss allowance for Trade receivables (refer note 1 (v) of Note 13 to the accompanying financial statements and point iii of Basis for Qualified Opinion para) Our audit procedures included the following:
The Company has trade receivables of Rs. 17270.11 lacs as at 31 March 2021 (net of impairment loss of Rs 7494.41 lacs). During the year the Company has recorded a charge of Rs 7494.41 lacs towards provision for doubtful debts for such trade receivables. • Understanding the trade receivables process with regards to valuation and testing of controls designed and implemented by the management.
Owing to the nature of operations of the Company and related customer profiles the Company has significant long standing trade receivable balances for which appropriate loss allowance is required to be created for expected credit losses using simplified approach in accordance with the requirements of Ind AS 109 Financial Instruments measuring the loss allowance equal to lifetime expected credit losses. • Testing the accuracy of ageing of trade receivables at year end on sample basis.
For the purpose of expected credit loss assessment of trade receivables significant judgment is required by the management to estimate the timing and amount of realization of these receivables basis the past history customer profiles and consideration of other internal and external sources of information including the impact of COVID 19 pandemic in aforesaid estimates. • Obtained a list of outstanding receivables with the identified significant long outstanding receivables and discussed plan of recovery lifetime with management.
Considering the significant judgement involved increased complexities due to the pandemic high estimation uncertainty and materiality of the amounts involved we have identified loss allowance on trade receivables as a key audit matter for current year audit. • Circularized balance confirmations to a sample of trade receivables and reviewed the reconciling items if any.
• Verified the appropriateness of judgments regarding provisions for trade receivables and assess as to whether these provisions were calculated in accordance with the Company's provisioning policies.
• Tested subsequent settlement of trade receivables after the balance sheet date on a sample basis as applicable.
• Verified the related disclosures made in notes to the financial statements in accordance with Ind AS 115 and Ind AS 109.
• The Company has not used expected credit loss model to assess the impairment loss or gain on trade receivables as required by Ind AS 109 "Financial Instruments".
Litigation Claims and Contingent Liabilities (Refer Notes 39 read along with point iv of Basis for Qualified Opinion paragraph in Independent Auditor's Report to the Ind AS financial statements) Principal audit procedures performed:
The Company is exposed to a variety of different laws regulations and interpretations thereof which encompasses indirect taxation and legal matters. In the normal course of business provisions and contingent liabilities may arise from legal proceedings including regulatory and other Governmental proceedings constructive obligations as well as investigations by authorities and commercial claims. • We understood the processes evaluated the design and implementation of controls and tested the operating effectiveness of the Company's controls over the recording and reassessment of uncertain legal positions claims and contingent liabilities.
Based on the nature of regulatory and legal cases management applies significant judgement when considering whether and how much to provide for the potential exposure of each matter. These estimates could change substantially over time as new facts emerge as each legal case or matters progresses. • We held discussions with senior management including the person responsible for legal and compliance to obtain an understanding of the factors considered by management in classification of the matter as 'probable' 'possible' and 'remote';
Given the different views possible basis the interpretations complexity and the magnitude of the potential exposures and the judgement necessary to determine required disclosures this is a key audit matter. • Examined the Company's legal expenses on sample basis and read the minutes of the board meetings and the legal compliance committee in order to ensure completeness.
• We read the correspondence from Court authorities and considered legal opinion obtained by the Management from external law firms to evaluate the basis used for provisions recognised or the disclosures made in the Ind AS financial statements.
• We also obtained direct legal confirmations for significant matters from the law firms handling such matters to corroborate management's conclusions.
• For those matters where Management concluded that no provision should be recorded we also considered the adequacy and completeness of the Company's disclosures made in relation to contingent liabilities.

Emphasis of Matter

We draw attention to note 53 to the Statement which describes the uncertaintiesrelating to COVID- 19 pandemic outbreak and management's evaluation of its impact on theoperations of the Company and accompanying Statement as at and for the year ended 31 March2021 the extent of which is significantly dependent on future developments as theyevolve.

Our opinion is not modified in respect of this matter.

Responsibilities of Management and Those Charged with Governance for the Ind ASFinancial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Ind AS financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including Ind AS specifiedunder section 133 of the Act read with relevant rules issued thereunder 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 statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

In preparing the Ind AS financial statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

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

Auditor's Responsibilities for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of this Ind AS financial statements.

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

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

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to Ind AS financial statements inplace and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management’s use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the Ind AS 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 conditions maycause the Company to cease to continue as a going concern.

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

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

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

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

Other Matter

The Ind AS financial statements of the Company for the year ended 31 March 2020 wereaudited by another auditor M/s LK Bohania & Co. - Chartered Accountants who haveexpressed a qualified opinion on those Ind AS financial statements vide their audit reportdated 4 September 2020.

Report on Other Legal and Regulatory Requirements

(1) As required by Section 197(16) of the Act based on our audit we report that theCompany has paid remuneration to its directors during the year in accordance with theprovisions of and limits laid down under section 197 read with Schedule V of the Act.

(2) As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of section 143(11) of the Act we givein "Annexure 1" a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable.

(3) As required by section 143(3) of the Act we report that:

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

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

c) The Balance Sheet the Statement of Profit and Loss and the Statement of Cash Flowsdealt with by this report are in agreement with the books of account;

d) In our opinion the aforesaid Ind AS financial statements comply with the Ind ASspecified under section 133 of the Act read with relevant rules issued thereunder exceptfor the matters described in Basis for Qualified Opinion paragraph;

e) the matters described in Basis for Qualified Opinion & Emphasis of Matterparagraphs in our opinion may have an adverse effect on the functioning of the Company;

f) On the basis of the written representations received from the directors as on March31 2021 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2021 from being appointed as a director in terms of section164(2) of the Act;

g) With respect to the adequacy of the internal financial controls with reference toInd AS financial statements of the Company and the operating effectiveness of suchcontrols we give our separate report in "Annexure 2".

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company as detailed in note 55 to the Ind AS financial statements hasdisclosed the impact of pending litigations on its financial position as at March 312021;

ii. The Company did not have any long-term contracts including derivative contracts.Hence the question of any material foreseeable losses does not arise;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

Annexure 1lto!the Independent Auditor's Report

[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'in the Independent Auditor's Report of even date to the members of Mauria Udyog Limited onthe Ind AS financial statements for the year ended March 31 2021.]

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

(b) The Company has a regular programme of physical verification of the fixed assetswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. However during the year fixed assets have not been physicallyverified by the management as per the programme of verification.

(c) The title deeds of immovable properties recorded in the books of account of theCompany are held in the name of the Company except for the details given below:

Land/ Building Total number of cases Leasehold/ Freehold Gross Block as at March 31 2021 Net Block as at March 31 2021 Remarks
Land 2 Freehold 8681.90 Lacs 8681.90 Lacs Refer Note No. 9 of accompanying Ind AS Financial Statements
Land 1 Freehold 54.00 Lacs 54.00 Lacs Not registered in the name of the Company
Building 1 Leasehold 336.40 Lacs 293.06 Lacs Not registered in the name of the Company

(ii) The inventory has been physically verified by the management during the year. Inour opinion the

frequency of verification is reasonable. As informed no material discrepancies werenoticed on physical verification carried out during the year.

(jjj) According to the information and explanations given to us the Company hasgranted unsecured

loans to companies firms Limited Liability Partnerships or other parties covered inthe register maintained under Section 189 of the Act.

(a) According to the information and explanations given to us and based on the auditprocedures conducted by us we are of the opinion that the terms and conditions of theaforesaid loans granted by the Company are not prejudicial to the interest of the Company.

1 (b) The schedbte of repayment of principal in respect of such loans has notbeen stipulated thus we are unable to comment whether the repayments are regular andreport amounts overdue for more than ninety days if any as required under paragraph3(iii)(c) of the Order.

(iv) Based on information and explanation given to us in respect of loans investmentsguarantees and securities the Company has complied with the provisions of section 185 and186 of the Act.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the provisions of Sections 73to 76 of the Act and the rules framed there under.

(vi) We have broadly reviewed the books of accounts maintained by the Company inrespect of products where the maintenance of cost records has been specified by theCentral Government under sub-section (1) of Section 148 of the Act and the rules framedthere under and we are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. We have however not made a detailed examinationof the records with a view to determine whether they are accurate or complete.

(vii) (a) The Company is not regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insurance incometax sales tax service tax value added tax customs duty excise duty cess and anyother material statutory dues applicable to it and there have been serious delays in alarge number of cases.

According to the information and explanations given to us undisputed dues in respectof provident fund employees' state insurance income tax sales tax service tax valueadded tax customs duty excise duty cess and any other material statutory duesapplicable to it which were outstanding at the year-end for a period of more than sixmonths from the date they became payable are as follows:

Name of the statute Nature of the dues Amount (Rs. In Lacs) Period to which the amount relates Due Date Date of Payment
The Employees’ Provident Funds and Miscellaneous Provisions Act 1952 Provident Fund 3.28 2019-20 Various dates Various dates
The Employees’ Provident Funds and Miscellaneous Provisions Act 1952 Provident Fund 5.07 2019-20 Various dates Not yet paid
The Employees' Provident Funds and Miscellaneous Provisions Act 1952 Provident Fund 4.99 2020-21 Various dates Various dates
State Insurance Act 1948 Employee State Insurance 6.37 2019-20 Various dates Various dates
Employees’ State Insurance Act 1948 Employee State Insurance 1.29 2019-20 Various dates Not yet paid
Employees' State Insurance Act 1948 Employee State Insurance 1.90 2020-21 Various dates Not yet paid
Labour Welfare Fund Labour Welfare Fund 1.43 2018-19 January 15 2019 Various dates
Labour Welfare Fund Labour Welfare Fund 0.41 2019-20 January 15 2020 Various dates
Labour Welfare Fund Labour Welfare Fund 0.20 2019-20 January 15 2020 Not yet paid

(b) According to the information and explanation given to us there are no dues withrespect to income tax sales tax service tax value added tax customs duty excise dutywhich have not been deposited on account of any dispute.

(viii) According to the information and explanations given to us the Company hasdefaulted in repayment of loans to banks and financial institutions during the year. Thedetails of which is as follows.

Bank/Financial Institution Name Amount Period of Delay
(Rs. In Lacs)
Deewan Housing Finance Limited 326.27 1 -22 months
Housing Development Finance Limited 453.45 1-20 months
Kotak Mahindra Bank Limited 435.11 1-17 months
Total 1214.83

In addition to above during the year there were defaults aggregating Rs. 115.42 Lacswhich were made good through payments. Further there are no dues in respect of debentureholders.

(ix) Based upon the audit procedure performed and the information and explanationsgiven by the management the Company has not raised money by way of initial public offeror further public offer including debt instruments and term loans. Accordingly theprovisions of clause 3 (ix) of the order are not applicable to the Company.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by the Company or any fraud on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such instance by themanagement.

: (k&d /' According to the information and explanations given to us managerialremuneration has been paid in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act.

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

(xiii) According to the information and explanation given to us all transactionsentered into by the Company with the related parties are in compliance with Sections 177and 188 of Act where applicable and the details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him.

(xvi) According to the information and explanation given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

Annexure 2 to the Independent Auditor's Report

[Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'in the Independent Auditor's Report of even date to the members of Mauria Udyog Limited(on the Ind AS financial statements for the year ended March 31 2021]

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of MauriaUdyog Limited ("the Company") as of March 31 2021 in conjunction with our auditof the Ind AS 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 internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing specified under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth issued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion on the Company's internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that

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

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company’s assets that could havea material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

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

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting with reference to Ind AS financialstatements and such internal financial controls over financial reporting with reference tofinancial statements were operating effectively as at March 31 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

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