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Mawana Sugars Ltd.

BSE: 523371 Sector: Agri and agri inputs
NSE: MAWANASUG ISIN Code: INE636A01039
BSE 00:00 | 19 Jan 84.20 -0.90
(-1.06%)
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86.00

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NSE 00:00 | 19 Jan 84.40 -0.60
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86.00

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86.00

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OPEN 83.60
PREVIOUS CLOSE 85.10
VOLUME 9766
52-Week high 124.05
52-Week low 29.40
P/E 28.45
Mkt Cap.(Rs cr) 329
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 83.60
CLOSE 85.10
VOLUME 9766
52-Week high 124.05
52-Week low 29.40
P/E 28.45
Mkt Cap.(Rs cr) 329
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Mawana Sugars Ltd. (MAWANASUG) - Auditors Report

Company auditors report

To the Members of Mawana Sugars Limited

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying standalone Ind AS financial statements of MawanaSugars Limited ("the Company") which comprise the Balance sheet as at March 312021 the Statement of Profit and Loss including the statement of Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and notes to the standalone Ind AS financial statements including a summary ofsignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 as amended ("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 312021its profit including other comprehensive income its cash flows and the changes in equityfor the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) as specified under section 143(10) of 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'issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we

have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the standalone Ind ASfinancial statements.

Emphasis of Matter

We draw attention to Note 55 to the standalone Ind AS financial statements whichdescribes the uncertainties and the impact of Covid-19 pandemic (including second wave ofCovid-19) on the Company's operations and results as assessed by the management. Ouropinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements for the financialyear ended March 31 2021. These matters were addressed in the context of our audit of thestandalone Ind AS financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. For each matter below ourdescription of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the standalone Ind AS financial statementssection of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the standalone Ind AS financial statements. The results of ouraudit procedures including the procedures performed to address the matters below providethe basis for our audit opinion on the accompanying standalone Ind AS financialstatements.

Key audit matters How our audit addressed the key audit matter
Recognition of Deferred Tax Asset (as described in Note 19 of the standalone Ind AS financial statements) Our audit procedures included the following:
Deferred tax assets are recognized on unabsorbed depreciation when it is probable that taxable profit will be available against which unabsorbed depreciation can be utilized. The Company's ability to recognize deferred tax assets on unabsorbed depreciation carried forward is assessed by the management at the end of each reporting period taking into account forecasts of future taxable profits and the law and jurisdiction of the taxable • We assessed the methodology applied by the Company with applicable accounting standards and taxation laws along with the future business forecast of taxable profits. Our audit approach consisted of assessing the business plans of the Company's assessment to utilize deferred tax assets. In particular we assessed:
items and the assumptions on which these projections are determined by management. - the underlying projections and assumptions used for management estimates as calculated during the
At March 31 2021 the Company has recognized deferred tax assets amounting to Rs. 523.76 million on the unabsorbed depreciation. budget process by analyzing projected and actual performances;
Recognition of Deferred Tax Asset (as described in Nott 19 of the standalone Ind AS financial statements)
Significant management judgement is required to determine the forecasted profits expected future market economic conditions tax laws. - tested sensitivity of key assumptions used in projections which are based on profits earned and after considering expected future market economic conditions tax laws management's expansion plans and lower interest costs due to repayment/ payment of certain borrowings out of proceeds of sale of chemical unit.
Given the degree of judgement management's decision to recognize and classify deferred tax assets as recoverable we consider this issue to be a key audit matter.
- the schedules for the reversal of temporary differences • We also understood the income tax computation process and review controls around recognition of Deferred tax assets and evaluated the design and tested the effectiveness of controls in this area relevant to our audit.
• Engaged tax specialists to assist us in assessing the management prepared schedule for computation of tax and deferred taxes.
• We have assessed the adequacy of disclosures included in the standalone Ind AS financial statements in this regard.
ImDairment testina of investment in Subsidiaries and Associate (as described in note 50 of the standalone Ind AS financial statements)
Impairment indicators were identified on the investment and recoverable amount in subsidiaries namely Siel Industrial Estate Limited and Siel Infrastructure & Estate Developers Private Limited and an associate namely Mawana Foods Private Limited. As a result an impairment assessment was performed by comparing the carrying value of investment in subsidiaries and associate to its recoverable amount to determine whether an impairment was required to be recognized. Our audit procedures included the following:
• In conjunction with review by technical and valuation specialists we assessed the Company's valuation methodology applied in determining the recoverable amount and we assessed the assumptions of the cash flow forecasts.
• We tested the Company's internal controls in relation to preparing and reviewing cash flow projections considering the future business plans.
In case of Subsidiaries impairment testing was carried out by getting the assets valuation from approved valuer. The recoverable amount was determined to be the higher of the fair value less cost of disposal and the value in use determined by discounting future cash flows.
• We discussed potential changes in assumptions with management in order to evaluate the inputs and assumptions used in the cash flow forecasts.
In case of Associate the recoverable amount was determined to be the higher of the fair value and the value in use determined by discounting future cash flows. • We performed sensitivity analysis on the key assumptions adopted in the impairment assessment to understand the impact of changes in assumptions on the estimated recoverable amounts.
The determination of recoverable amount of the Company's investment in associate relies on management's estimates of future cash flows and their judgement with respect to the associates' performance. • We assessed the adequacy of disclosures made in the standalone Ind AS financial statements in this regard.
Due to the uncertainty of forecasting and discounting future cash flows the level of management's judgement involved and the significance of the Company's investment in subsidiaries and associate of Rs. 877.27 million as at March 312021 this audit area is considered a key audit matter.

Impairment of Property plant and equipment ("PPE") and other non-currentassets of Mawana Sugar Works (MSW) Unit of the Company (as described in note 51 of thestandalone Ind AS financial statements)

The Mawana Sugar Works unit a separate Cash Our audit procedures included the following:
Generating Unit' of the Company had negative cash flows in earlier years. However during the current year and previous year MSW has earned profit before depreciation.This unit manufactures sugar and generate power from its Cogeneration power plant. The Company is carrying property plant and equipment and other non-current assets aggregating to Rs. 595.41 million in respect of MSW. • We obtained an understanding of the assessment by the Board of directors of carrying value of MSW Unit's property plant and equipment to determine whether any impairment of Property plant and equipment and other non-current assets is required.
Due to the uncertainty of forecasting the level of management's judgement involved and the significance of the carrying value of property plant and equipment and • In conjunction with review by specialists we evaluated the Company's assumptions and estimates used to determine the recoverable amount of Property plant and equipment and other non-current assets of the MSW Unit.
other non-current assets in MSW there is a risk that the carrying value of related property plant and equipment and other non-current assets may be higher than their recoverable amount. • We tested the Company's internal controls in relation to the Company's evaluation of assumptions and estimates to determine the recoverable amount of Property plant and equipment and other non-current assets.
Our audit focused on this area because the assessment of recoverable value requires management to make a number of key judgements and estimates with respect to the future performance and profitability of the said unit including judgements and estimates on future growth rates of sales and the impact of the general economic environment (including competitors). • We assessed the disclosures in the standalone Ind AS financial statements in this regard.
The carrying values of these assets are reviewed annually by management for potential indicators of impairment. For assets where such indicators exist management performs detailed impairment reviews taking into account the impact of revenue assumptions and technical factors which may affect the expected remaining useful lives and carrying value of the assets.

Determination of net realizable value of inventory of sugar at the year ended March 312021 (as described in note 52 of the standalone Ind AS financial statements)

As on March 312021 the Company is carrying inventory Our audit procedures included the following:
of sugar (finished goods and work in progress) amounting to Rs. 6495.29 million. The inventory of sugar is valued at lower of cost and net realisable value. • We have tested the controls established by the management in determination of net realizable value of inventory of sugar.
The relative size of the inventory of sugar as on March 31 2021 is significant to the financial statements and significant judgement was involved in the consideration of factors such as minimum sale price monthly quota fluctuation in selling prices and related notifications of the government in determination of net realizable value. • We considered various factors including actual selling price prevailing around and subsequent to the year end minimum selling price & monthly quota and other notifications of the Government of India with respect to sugar industry as a whole while assessing the net realizable value.
Accordingly determination of net realisable value was determined to be a key audit matter in our audit of the standalone Ind AS financial statements. • We have assessed the disclosures included to the standalone Ind AS Financial Statements in this regard.

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

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual report but does not includethe standalone Ind AS financial statements and our auditor's report thereon.

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

In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management for the Standalone Ind AS Financial 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 standalone Ind AS financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone Ind AS financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative 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 Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone 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 standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• 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 theCompany has adequate internal financial controls with reference to 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 concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe 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'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the standalone IndAS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

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

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

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone Ind AS financialstatements for the financial year ended March 31 2021 and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure 1"a statement on the matters specified inparagraphs 3 and 4 of the Order.

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

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

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

(c) The Balance Sheet the Statement of Profit and Loss including the Statement ofOther Comprehensive Income the Cash Flow Statement and Statement of Changes in Equitydealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from the directors as on March312021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164 (2) of theAct;

"(f) With respect to the adequacy of the internal financial controls withreference to standalone Ind AS financial statements and the operating effectiveness ofsuch controls refer to our separate Report in "Annexure 2" to this report;

"(g) In our opinion the managerial remuneration for the year ended March 31 2021has been paid / provided by the Company to its directors in accordance with the provisionsof section 197 read with Schedule V to the Act;

(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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements - Refer Note 32(c) to thestandalone Ind AS financial statements;

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

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

For S.R. Batliboi & CO. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Anil Gupta
Partner
Membership Number: 87921
UDIN: 21087921AAAABY8724
Place of Signature: New Delhi
Date: June 25 2021

Annexure 1 referred to in paragraph 1 under the heading

"Report on other legal and regulatory requirements" of

our report of even date

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

(i)(b) The Company has a program of verification of fixed assets to cover all the itemsin a phased manner over a period of three years which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. Pursuant to programcertain fixed assets were physically verified by the management during the year. Accordingto the information and explanations given to us no material discrepancies were identifiedon such verification.

(i) (c) According to the information and explanations

given by the management the title deeds of immovable properties included in fixedassets are held in the name of Company.

(ii) The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under Section 189 of theCompanies Act 2013. Accordingly the provisions of clause 3(iii) (a) (b) and (c) of theOrder are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to usprovisions of Section 185 and 186 of the Companies Act 2013 in respect of loans todirectors including entities in which

they are interested and in respect of loans and advances given and investments madehave been complied with by the Company. The Company has not given any guarantees orsecurities in respect of entities covered under Section 185 and 186 of the Companies Act2013.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records underSection 148(1) of the Companies Act 2013 related to the manufacture of its products andare of the opinion that prima facie the specified accounts and records have been made andmaintained. We have not however made a detailed examination of the same.

(vii) (a) The Company is regular in depositing with

appropriate authorities undisputed statutory dues including provident fund employees'state insurance income-tax sales-tax service tax duty of custom duty of excise valueadded tax goods and service tax cess and other statutory dues applicable to it.

(vii)(b) According to the information and explanations given to us undisputed dues inrespect of provident fund employees' state insurance income-tax service tax sales taxduty of custom duty of excise value added tax goods and service tax cess and otherstatutory dues 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 Dues Amount (Rs. Million) Period to which the amount relates Due Date Date of Payment Remarks if any
The UP Sugarcane (Purchase tax) Act 1961 Purchase Tax 4.06 2017-18 July 2017 Unpaid -

(vii)(c) According to the records of the Company the dues of income-tax sales-taxservice tax duty of custom duty of excise value added tax and cess on account of anydispute are as follows:

Nature of Statute Nature of Dues Amount (Rs. Million) Amount Paid under protest (Rs. Million) Period to which the Amount relate Forum where dispute is pending
Sales Tax Laws Sales Tax 63.12 5.39 2006-07 2012-13 2013-14 Appellate Authority upto Commissioner's level
Central Excise Laws Service Tax 7.86 0.03 2005-2006 to 2014-15 Appellate Authority upto Commissioner's level
Central Excise Laws Excise Duty 1.45 - 2007-08 to 2014-15 High Court
Central Excise Laws Excise Duty 84.15 0.21 1994-95 to 1996-97 1998-99 1999-00 2001-02 and 2004-05 to 2016-17 Appellate Authority upto Commissioner's level
Income tax Act 1961 Income tax (including interest) 138.99 42.79 2016-17 Commissioner of Income Tax(Appeals)
Income tax Act 1961 Income tax (including interest) 0.40 - 2006-07 Assessing officer

(viii) In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowing or debenturesto a financial institution or banks. Further the Company did not have any outstandingloan from Government during the year. The Reserve Bank of India vide its circular datedMarch 27 2020 permitted the lenders to allow a moratorium for three months of EMI(Equated Monthly Instalments) falling due between March 012020 and May 312020 forvarious categories of loans. The Company had availed the permitted moratorium for its oneof the borrowing. The Company has paid all its due EMI's within the extended moratoriumperiod.

(ix) In our opinion and according to the information and explanations given by themanagement the Company has utilized the monies raised by way of term loans for thepurposes for which they were raised. According to the information and explanations givenby the management the Company has not raised any money by way of initial public offer /further public offer and debt instruments hence not commented upon.

(x) Based on the audit procedures performed for the purposes of reporting the true andfair view of financial statements and according to the information and

explanations given by the management we report that no fraud by the Company or nofraud or material fraud on the Company by the officers and employees of the Company hasbeen noticed or reported during the year.

(xi) According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct 2013.

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with Section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly

convertible debentures during the year under review and hence reporting requirementsunder clause 3(xiv) are not applicable to the Company and not commented upon.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in Section 192 of Companies Act 2013.

(xvi) According to the information and explanations given to us the provisions ofSection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For S.R. Batliboi & CO. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Anil Gupta
Partner
Membership Number: 87921
UDIN: 21087921AAAABY8724
Place of Signature: New Delhi
Date: June 25 2021

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE IND ASFINANCIAL STATEMENTS OF MAWANA SUGARS LIMTED

Report on the Internal Financial Controls under Clause

(i) of Sub-Section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of MawanaSugars Limited ("the Company") as of March 31 2021 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat 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 the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these standalone Ind AS financialstatements based on our audit We conducted our audit in accordance with the Guidance Noteon Audit of Internal Financial Controls Over Financial Reporting (the "GuidanceNote") and the Standards on Auditing as specified under section 143(10) of the Actto the extent applicable to an audit of internal financial controls both issued by ICAI.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to these standalone Ind AS financial statements wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to these standalone Ind AS financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to standalone Ind AS financial statements included obtaining anunderstanding of internal financial controls with reference to these standalone Ind ASfinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls over financialreporting with reference to these standalone Ind AS financial statements.

Meaning of Internal Financial Controls Over Financial Reporting With Reference to theseStandalone Ind AS Financial Statements

A Company's internal financial control over financial reporting with reference to thesestandalone Ind AS financial statements is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A Company's internal financial control over financial reportingwith reference to these standalone Ind AS financial statements includes those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the Company's assets that could have a material effecton the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting WithReference to these Standalone Ind AS financial Statements

Because of the inherent limitations of internal financial controls with reference tostandalone Ind AS financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone Ind AS financial statements to future periods aresubject to the risk that the internal financial control with reference to standalone IndAS financial statements may become inadequate because of

changes in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls over financial reporting with reference to these standalone Ind ASfinancial statements and such internal financial controls over financial reporting withreference to these standalone Ind AS financial statements were operating effectively as atMarch 312021 based on the internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe ICAI.

For S.R. Batliboi & CO. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Anil Gupta
Partner
Membership Number: 87921
UDIN: 21087921AAAABY8724
Place of Signature: New Delhi
Date: June 25 2021

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