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Menon Pistons Ltd.

BSE: 531727 Sector: Auto
NSE: N.A. ISIN Code: INE650G01029
BSE 00:00 | 07 Feb 45.70 -1.40
(-2.97%)
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47.90

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47.90

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NSE 05:30 | 01 Jan Menon Pistons Ltd
OPEN 47.90
PREVIOUS CLOSE 47.10
VOLUME 28603
52-Week high 60.00
52-Week low 36.20
P/E 12.45
Mkt Cap.(Rs cr) 233
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 47.90
CLOSE 47.10
VOLUME 28603
52-Week high 60.00
52-Week low 36.20
P/E 12.45
Mkt Cap.(Rs cr) 233
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Menon Pistons Ltd. (MENONPISTONS) - Auditors Report

Company auditors report

To the Members of Menon Pistons Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone Financial Statements of Menon Pistons Limited ("theCompany") which comprise the Balance Sheet as at March 31 2022 and the Statementof Profit and Loss (including Other Comprehensive Income) Statement of Changes in Equityand Statement of Cash Flows for the year then ended and notes to the FinancialStatements including a summary of Significant Accounting Policies and other explanatoryinformation.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Financial Statements give the information requiredby the Companies Act 2013 (‘the Act’) in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe standalone state of affairs of the Company as at March 31 2022 and its standaloneprofit (including Other Comprehensive Income) and its standalone cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor’s Responsibilities for the Audit of the standalone 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 together with theethical requirements that are relevant to our audit of the standalone Financial Statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.

Other Information

The Company’s Board of Directors is responsible for the other information. Theother information comprises the information included in the Annual report but does notinclude the standalone & consolidated Financial Statements and our auditor’sreport thereon.

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

In connection with our audit of the Financial Statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the standalone Financial Statements or our knowledge obtainedin the audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Financial Statements of the current period.These matters were addressed in the context of our audit of the standalone FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. Following is the Key Audit Matter identified which isof most significance:

Trade Receivables:

The Company has trade receivables of Rs. 5533.45 lakhs at the year- end (refer note 6to the financial statements) which amount to 36.54 % of the total assets of the company.The recoverability of trade receivables and the valuation of the allowances for impairmentof trade receivables is a key audit matter due to the management judgement involved.

Principal Audit procedures performed:

Obtaining an understanding of and assessing the design implementation and operatingeffectiveness of the Company’s key internal controls over the expected credit loss(ECL) policy of estimating the loss allowance for trade receivables including adherence tothe requirements of the relevant Indian accounting standards.

Assessing the company’s ECL policy for provisioning towards trade receivables.

Understanding the key inputs used in the ECL policy by the company such as repaymenthistory terms of underlining arrangements overdue balances market conditionsexpert’s opinion etc.

Obtaining an understanding and assessing the reasonableness of the key outputs derivedfrom provisioning ECL policy as well as key judgements and assumptions used by themanagement.

Disclosure requirements as per schedule III of the company’s act were verified.

Obtaining balance confirmation from debtors on sample basis and matching payablebalances in this confirmation with the receivable balances of the company and addressingthe reconciliation item.

Performed on a sample basis subsequent receipt testing of trade receivable balancespost year end.

Discussion with management about status and prospects of suits filled for receivablesand assessment of requirement for provisioning.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial 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 Financial Statementsthat give a true and fair view of the standalone financial position standalone financialperformance (including other comprehensive income) (standalone changes in equity) andstandalone cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended.

is responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Financial Statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone Financial Statements the management is responsible forassessing the Company’s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. Those Board of Directors arealso responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements:

Our objectives are to obtain reasonable assurance about whether the standaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone 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 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 to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company has adequateinternal financial controls system in place and the operating effectiveness of suchcontrols.

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

Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists 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 standalone Financial Statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor’s report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the standalone FinancialStatements including the disclosures and whether the standalone 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 de_ciencies 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 Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor’s report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor’s Report) Order 2020 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 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.

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 other comprehensiveincome) the Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account

d) In our opinion the aforesaid standalone Financial Statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended.

e) On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

g) As required by section 197 (16) of the Act; in our opinion and according toinformation and explanation provided to us the remuneration paid by the company to itsdirectors is in accordance with the provisions of section 197 of the Act and remunerationpaid to directors is not in excess of the limit laid down under this section.

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 has disclosed the impact of pending litigations on its financialposition in its Financial Statements – Refer Note 33 to the Financial Statements;

(ii) The Company did not have any long-term contracts including derivative contracts asat 31st March 2022

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company

(iv) (a) The management has represented to us that to the best of its knowledge andbelief as disclosed in the Note 47 of notes to the accounts no funds have been advancedor loaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person(s) or entity(ies) includingforeign entities ("Intermediaries") with the understanding whether recorded inwriting or otherwise that the Intermediary shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe company ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries.

(b) The management has represented to us that to the best of its knowledge andbelief as disclosed in the Note 47 of notes to the accounts no funds have been receivedby the Company from any person(s) or entity(ies) including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries.

(c) Based on the information and explanation given to us and audit procedures performedas considered reasonable and appropriate in the circumstances nothing has come to ournotice that has caused us to believe that the representations made by the management andas mentioned under sub-clause (v)(a) and (v)(b) above contain any material misstatement.

(v) The Board of Directors of the Company have proposed final dividend for the yearwhich is subject to the approval of the members at the ensuing Annual General Meeting. Theamount of dividend proposed is in accordance with section 123 of the Act.

(vi) The requirement to the use of accounting so_ware for maintaining Company’sbooks of account which has a feature of recording audit trail (edit log) facility isdeferred to financial years commencing on or after April 1 2023 therefore reportingunder Rule 11(g) of Companies (Audit & Auditors) Rules 2014 is not applicable forfinancial year ended on March 31 2022.

For P G BHAGWAT LLP
Chartered Accountants
Firm Registration Number: 101118W/W100682
Akshay B. Kotkar
Partner
Place : Kolhapur Membership Number: 140581
Date : 24.05.2022 UDIN:22140581AJMICT8503

Annexure A to the Independent Auditor’s Report

Referred to in paragraph 1 of our "Report on Other legal and RegulatoryRequirements" of our report on even date to the Members of Menon Pistons Limited.

i.(a) (A) The Company is maintaining proper records showing full particulars includingquantitative details and situation of Property Plant & Equipment.

(B) The Company is maintaining proper records showing full particulars of intangibleassets;

(b) The Property Plant & Equipment of the Company have been physically verified bythe Management during the year and no material discrepancies have been noticed on suchverification. In our opinion the frequency of verification is reasonable.

(c) The title deeds of immovable properties as disclosed in Note 1 on Property Plant& Equipment to the financial statements are held in the name of the Company.

(d) The Company has not revalued its Property Plant and Equipment (including Right ofUse assets) or intangible assets or both during the year.

(e) According to the information and explanations provided to us there are noproceedings have been initiated or are pending against the company for holding any benamiproperty under the Prohibition of Benami Property Transactions Act 1988 (as amended in2016) and rules made thereunder. Hence reporting under clause 3(i) (e) of the order is notapplicable.

ii. (a) The physical verification of inventory [excluding stocks with third parties]have been conducted at reasonable intervals by the Management during the year. In respectof inventory lying with third parties these have substantially been confirmed by them. Inour opinion and based on the policy adopted by the management the coverage and procedureof such verification is appropriate.The discrepancies noticed on physical verification ofinventory as compared to book records were not material and have been appropriately dealtwith in the books of accounts.

(b) According to the information and explanations provided to us the company has beensanctioned working capital limits in excess of five crore rupees during the year inaggregate from banks or financial institutions on the basis of security of currentassets. The management of the company has provided us with the quarterly returns orstatementswhich they have represented to us have been filed by the company with theirbanks or financial institutions. In our opinion these quarterly statements are inagreement with the books of account of the Company.

iii. The company during the year has not made investments in provided any guarantee orsecurity or granted any loans or advances in the nature of loans secured or unsecured tocompanies firms Limited Liability Partnerships or any other parties. Hence reportingunder Clause (iii)(a) (iii)(b) (iii)(c) (iii) (d) (iii)(e) and (iii)(f) of the saidOrder are not applicable to the Company.

iv. The Company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under Section 185 and 186. erefore theprovisions of Clause 3(iv) of the said Order are not applicable to the Company.

v. The Company has not accepted any deposits or amounts which are deemed to be depositsfrom the public within the meaning of Sections 73 74 75 and 76 of the Act and the Rulesframed there under to the extent notified.

vi. Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under Section 148(1) of the Act in respectof its products.We have broadly reviewed the same and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate or complete.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us the Company is generally regular in depositing the undisputedstatutory dues including Goods and Service Tax provident fund employees’state insurance income tax sales tax service tax duty of customs duty of excisevalue added tax cess and other statutory dues as applicable with the appropriateauthorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of dues Goods and Service Tax provident fundemployees’ state insurance income tax sales tax service tax duty of customs dutyof excise value added tax cess as at 31st March 2022 which have not been deposited onaccount of a dispute are as follows:

Name of the statute Nature of dues Amount (Rs. In lakhs) Period to which the amount relates Forum where the dispute is pending
Service Tax Act Disallowed credit on RCM 3.31 2007-09 CCE (Appeals) Pune-II.
Service Tax Act Disallowed credit on RCM 0.96 2009-10 CCE (Appeals) Pune-II.
The Central Sales Tax Act Disallowance on non- receipt of forms 5.51 2014-15 Joint Commissioner of State Tax Kol- App-F-001 Kolhapur
The Maharashtra Value Added Tax Act Disallowance of credit 8.89 2014-15 Joint Commissioner of State Tax Kol- App-F-001 Kolhapur
The Central Sales Tax Act Excess sales demand 187.36 2015-16 Joint Commissioner of State Tax Kol- App-F-001 Kolhapur
The Maharashtra Value Added Tax Act Disallowance of credit 49.41 2015-16 Joint Commissioner of State Tax Kol- App-F-001 Kolhapur

viii. In terms of the information and explanations given to us and the books of accountand records examined by us the Company has not surrendered or disclosed as income duringthe year in the tax assessments under the Income Tax Act 1961. Hence reporting underclause 3(viii) of the order is not applicable.

ix. (a) According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or otherborrowings or in the payment of interest thereon to any lender as at the balance sheetdate.

(b) According to the information and explanations given to us and on the basis of ouraudit procedures we report that the company has not been declared willful defaulter byany bank or financial institution or government or any government authority.

(c) In our opinion and according to the information and explanations given to us thecompany has utilized the money obtained by way of term loans during the year for thepurposes for which they were obtained.

(d) According to the information and explanations given to us and the proceduresperformed by us and on an overall examination of the financial statements of the companywe report that no funds raised on short-term basis have been used for long-term purposesby the company.

(e) According to the information and explanations given to us and on an overallexamination of the financial statements of the company we report that the company has nottaken any funds from any entity or person on account of or to meet the obligations of itssubsidiaries associates or joint ventures.

(f) According to the information and explanations given to us and procedures performedby us we report that the company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries joint ventures or associate companies.

x. (a) The Company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) during the year. Accordingly the provisions ofClause 3(ix) of the Order are not applicable to the Company.

(b) The Company has not made any preferential allotment or private placement of sharesor fully or partly or optionally convertible debentures during the year. Accordingly theprovisions of Clause 3(x) (b) of the Order are not applicable to the Company.

xi. (a) 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 acrossanyinstance of fraud by the Company or on the Company noticed or reported during the yearnor have we been informed of any such case by the Management.

(b) 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 report in the form ADT-4 asspecified under sub-section (12) of section

143 of the Companies Act has not been filed. Accordingly reporting under clause3(xi)(b) of the order is not applicable.

(c) 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 and as represented to us by themanagement there are no whistle blower complaints received by the company during theyear.

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

xiii. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of related partytransactions have been disclosed in the financial statements as required under Ind AS 24Related Party Disclosures specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

xiv. (a) In our opinion and based on our examination the company has an internal auditsystem commensurate with the size and nature of its business.

(b) We have considered the internal audit reports of the company issued till date forthe period under audit.

xv. The Company has not entered into any non-cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.

xvi. (a) The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Orderare not applicable to the Company.

(b) According to the information and explanations given to us and procedures performedby us we report that the Company has not conducted any Non-Banking Financial or HousingFinance activities during the year. erefore reporting under clause 3(xvi)(b) of the orderis not applicable.

(c) According to the information and explanations given to us and procedures performedby us the Company is not Core Investment Company (CIC) as defined in the regulations madeby the Reserve Bank of India hence reporting under clause 3(xvi)(c) of the order is notapplicable

(d) Based on information and explanation given to us and as represented by themanagement the Group does not have any Core Investment Company (CIC) as part of theGroup.

xvii. The Company has not incurred cash losses during current financial year and hadnot incurred cash losses during immediately preceding financial year.

xviii. There has been no resignation by statutory auditors during the year hencereporting under clause 3(xviii) of the order is not applicable.

xix. According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities other information accompanying the financial statements ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatcompany is not capable of meeting its liabilities existing at the date of balance sheet asand when they fall due within a period of one year from the balance sheet date. Wehowever state that this is not an assurance as to the future viability of the company. Wefurther state that our reporting is based on the facts up to the date of the audit reportand we neither give any guarantee nor any assurance that all liabilities falling duewithin a period of one year from the balance sheet date will get discharged by thecompany as and when they fall due.

xx. Company has spent all the amounts required to be spent by the company as persection 135 of the Companies Act 2013 read with Schedule VII thereof during the year(Refer Note 39). Accordingly reporting under clause 3(xx)(a) and 3(xx)(b) of the order isnot applicable.

For P G BHAGWAT LLP
Chartered Accountants
Firm Registration Number: 101118W/W100682
Akshay B. Kotkar
Partner
Place: Kolhapur Membership Number 140581
Date: 24.05.2022 UDIN :22140581AJMICT8503

Annexure B to the Independent Auditor’s Report

(Referred to in paragraph 2(f) of our Report on Other Legal and Regulatory Requirementsof even date to the Members of Menon Pistons Limited)

Report on the Internal Financial Controls with reference to Standalone FinancialStatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls with reference to the StandaloneFinancial Statements of Menon Pistons Ltd. ("the Company") as of March31 2022 in conjunction with our audit of the Standalone Financial Statements of theCompany 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 controls over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols with reference to the Standalone Financial Statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls over Financial Reporting (the "Guidance Note") and the Standards onAuditing to the extent applicable to an audit of internal financial controls both issuedby the Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to the Standalone Financial Statements andtheir operating effectiveness. Our audit of internal financial controls with reference tothe Financial Statements included obtaining an understanding of internal financialcontrols with reference to the Financial Statements assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal controls based on the assessed risk. The procedures selected depend on theauditor’s judgement including the assessment of the risks of material misstatementof the Standalone 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 audit opinion on the Company’s internal financial controlswith reference to the Standalone Financial Statements.

Meaning of Internal Financial controls with reference to the Standalone FinancialStatements

A company’s internal financial controls with reference to the Standalone FinancialStatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of Standalone Financial Statements for externalpurposes in accordance with generally accepted accounting principles. A company’sinternal financial controls with reference to the Standalone Financial Statements includesthose policies and procedures that (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of Standalone Financial Statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorisations of management and directorsof the company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company’s assetsthat could have a material effect on the Standalone Financial Statements.

Inherent Limitations of Internal Financial Controls with reference to the StandaloneFinancial Statements

Because of the inherent limitations of internal financial controls with reference tothe Standalone 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 the Standalone Financial Statements to future periods aresubject to the risk that the internal financial controls with reference to the StandaloneFinancial Statements may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to the Standalone Financial Statements and such internal financialcontrols with reference to the Standalone Financial Statements were operating effectivelyas at March 31 2022 based on the internal controls over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India.

For P G BHAGWAT LLP
Chartered Accountants
Firm Registration Number: 101118W/W100682
Akshay B. Kotkar
Partner
Place: Kolhapur Membership Number 140581
Date: 24.05.2022 UDIN :22140581AJMICT8503

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