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MEP Infrastructure Developers Ltd.

BSE: 539126 Sector: Infrastructure
NSE: MEP ISIN Code: INE776I01010
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OPEN 16.20
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VOLUME 97970
52-Week high 30.95
52-Week low 10.60
P/E
Mkt Cap.(Rs cr) 286
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 16.20
CLOSE 15.95
VOLUME 97970
52-Week high 30.95
52-Week low 10.60
P/E
Mkt Cap.(Rs cr) 286
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

MEP Infrastructure Developers Ltd. (MEP) - Auditors Report

Company auditors report

To

The Members of

MEP INFRASTRUCTURE DEVELOPERS LIMITED

REPORT ON THE STANDALONE FINANCIAL STATEMENTS OPINION

We have audited the accompanying standalone financial statements of MEPINFRASTRUCTURE DEVELOPERS LIMITED ("the Company") which comprise theBalance sheet as at March 31 2021 and the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "Standalone FinancialStatements").

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 Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2021 the loss and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

BASIS FOR OPINION

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on standalonefinancial statements.

EMPHASIS OF MATTER

1. We draw attention to note no 5 to the accompanying financial results which statesthat considering the Long-term business outlook and future growth plans of the MEP GroupManagement is of the opinion that the losses in subsidiary companies namely MEP NagzariToll Road Private Limited MEP IRDP Solapur Toll Road Private Limited and MEP ChennaiBypass Toll Road Private Limited and MEP Hyderabad-Bangalore Toll Road Private LimitedMEP Longjian ACR Private Limited MEP Longjian CLR Private Limited and MEP Longjian LWRPrivate Limited and losses due to termination of HAM projects in its jointly controlledentities namely MEP Sanjose Talaja Mahuva Road Private Limited and MEP Sanjose MahuvaKagavadar Road Private Limited are temporary in nature and overall going concern of thebusiness is not adversely affected. In view of the above there is no diminution in thevalue of Investment and advances given are fully recoverable.

2. We draw attention to note no 46 to the accompanying financials which states that thecompany lodged and accounted for the claim amounting to Rs. 7491.94 lakhs with SouthDelhi Municipal Corporation (SDMC) pertaining to the half year ended September 302019 with respect to revenue loss on account of passing of commercial vehicles throughfree lanes at 13 major border entry points of Delhi. The high-level committee wasconstituted to quantify the claims and give its recommendations on the same however thehigh-level committee and the commissioner SDMC did not approve the claims. The Companyapproached the honorable high court of New Delhi for relief and the matter is sub-judice.Considering the facts of the case the company is confident about recovery of these claimsrecognised as such and hence no provision against the said claims have been made in thebooks of accounts.

3. We draw attention to note no 45 wherein company has recognised claims filed withvarious authorities amounting to Rs. 1181.64 lakhs on account of nationwide lockdown dueto COVID Pandemic for the period April 01 2020 till March 31 2021.

4. We draw attention to note no 14 wherein company has also recognised claims filedwith various authorities amounting to

Rs. 10664.58 lakhs (including COVID Claims) up to March 31 2021 based on thecontractual provisions of the agreements with various authorities. The company isconfident about recovery of these claims recognised. Our opinion is not modified inrespect of above.

KEY AUDIT MATTERS

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report:

Sr No Key Audit Matter Auditor's Response
1. Accuracy of revenue recognition in respect of fixed price construction contracts involves critical estimates. Our audit procedures on revenue recognized from fixed price construction contracts included
The Company engages in Fixed-price construction contracts where revenue is recognized using the percentage of completion computed as per the input method based on management's efforts or inputs to the satisfaction of a performance obligation relative to the total expected inputs to the satisfaction of that performance obligation. Refer Note 1 (xi) to the Standalone Financial Statements. • Obtaining an understanding of the contract processes and controls implemented by management for recording and calculating revenue and the associated contract assets and contract liabilities.
We identified revenue recognition of fixed price construction contracts as a Key audit matter considering – • Involving Civil and Roads & Infrastructure department to assess the nature of work done and status of completion of work.
• Application of revenue recognition accounting standard is complex and involves a number of key judgments and estimates including estimating the future cost-to-completion of these contracts which is used to determine the percentage of completion of the relevant performance obligation; On selected samples of contracts we tested that the revenue recognized is in accordance with the accounting standard by
• The revenue on contracts may also include variable consideration (variations and claims). Variable consideration is recognised when the recovery of such consideration is highly probable. • Evaluating the identification of performance obligation;
• These contracts may involve onerous obligations on the Company that require critical estimates to be made by management; and • Testing management's calculation of the estimation of contract cost and onerous obligation.
• At year-end a significant amount of work in progress (Contract assets and liabilities) related to these contracts is recognized on the balance sheet. ? Observed that the estimates of cost to complete were reviewed and approved by appropriate levels of management;
? Performed a retrospective review of costs incurred with estimated costs to identify significant variations and verify whether those variations have been considered in estimating the remaining costs to complete the contract;
? Assessed the appropriateness of work in progress (contract assets) on balance sheet by evaluating the underlying documentation to identify possible delays in achieving milestones which may require change in estimated costs to complete the remaining performance obligations;
? Verified the budget by technical experts of the management to review estimates of costs to complete for sample contracts; and
? Performed test of details including analytics to determine reasonableness of contract costs.
2. Recoverability of claim receivables from Government Authorities: We assessed management's estimate regarding recoverability of the claim receivables from authorities. Our work included but was not limited to the following procedures:
As a part of concession agreement with authority for tolling projects the company is entitled to claim revenue loss or operating cost due to closure of tolls for various reasons as per terms of agreement during the entire tenure. Consequently the company has recorded claim receivables from authority amounting to Rs. 10664.58 lakhs as at March 2021. • Verified the concession agreement with respect to nature of force majeure event and obligation of authority to reimburse the claims made by the company.
The assessment of recoverability of the receivables requires management to make judgement and estimate to assess the uncertainty regarding claims recoverable from authority. The assessment process is considering inter alia history of amounts claimed documentation process and requirements potential litigation or arbitration proceedings. • Reviewed management's assessment of the recoverability of the claims the policy of credit losses including the history of amounts claimed as against amounts accepted and reimbursed from various contracts at the group level.
The company's disclosure about claim receivables is included in Note No 14 (Other Current Financial Assets). • Discussed with management with respect to the estimates of timing of collection from the authorities; and relied on the workings prepared by the company forming basis for the claims filed with the authority.
• Although the management is making reasonable efforts to recover the claims given the nature of the receivables the delay in the settlement of claims receivables is inevitable.

INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS AND AUDITOR'S REPORT THEREON

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon. Our opinionon the standalone financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon. In connection with our audit of thestandalone financial statements our responsibility is to read the other information andin doing so consider whether the other information is materially inconsistent with thestandalone financial statements or our knowledge obtained during the course of our auditor otherwise appears to be materially misstated. If based on the work we have performedwe conclude that there is a material misstatement of this other information we arerequired to report that fact. We have nothing to report in this regard.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance (changes in equity and cash flows of the Company inaccordance with IND AS and the accounting principles generally accepted in Indiaincluding the accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateimplementation and maintenance of accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error. In preparing the financial statementsmanagement is responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so. Those Board ofDirectors are also responsible for overseeing the Company's financial reporting process.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the 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 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 standalonefinancial 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 financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation. Materiality is the magnitude of misstatements in the standalone financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements. Wecommunicate with those charged with governance regarding among other matters the plannedscope and timing of the audit and significant audit findings including any significantdeficiencies in internal control that we identify during our audit. We also provide thosecharged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence and to communicate with them all relationships andother matters that may reasonably be thought to bear on our independence and whereapplicable related safeguards. From the matters communicated with those charged withgovernance we determine those matters that were of most significance in the audit of thestandalone financial statements of the current period 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

As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the Annexure "A" a statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

I) 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 Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in termsof Section 164 (2) of the Act. f) With respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting.

II) 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 does not have any pending litigations which would impact on itsfinancial position as per information and explanation provided by Company's Management.

ii. The Company does not have any long-term contracts including derivative contractsfor which there are any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company. III) With respect to the matterto be included in the Auditors' Report under Section 197(16) of the Act: In our opinionand according to the information and explanations given to us the remuneration paid bythe Company to its directors during the current year is in accordance with the provisionsof Section 197 of the Act. The remuneration paid to any director is not in excess of thelimit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has notprescribed other details under Section 197(16) which are required to be commented upon byus.

For G. D. Apte & Co. Chartered Accountants Firm Registration Number: 100515W

Chetan R. Sapre Partner Place : Mumbai Membership No: 116952 Date : June 30 2021UDIN: 21116952AAABVM4574

Annexure "A"

TO THE INDEPENDENT AUDITORS' REPORT ON STANDALONE FINANCIAL STATEMENTS OF MEPINFRASTRUCTURE DEVELOPERS LIMITED

(Referred to in paragraph I under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date) i.

a) The Company has maintained proper records showing full particulars includingquantitative details and location of property plant and equipment for the year.

b) The Company has regular program of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of two years. In ouropinion this periodicity of physical verification is reasonable having regard to the sizeof the company and the nature of its assets. Pursuant to the program certain fixed assetswere physically verified during the year and no material discrepancies were found.

c) According to the information and explanations given to us the title deeds ofimmovable properties as disclosed in Note 3 to the standalone financialstatements are held in the name of the Company.

ii. As per the information and explanations given to us the inventories have beenphysically verified by the management at reasonable intervals during the year and nomaterial discrepancies has been noticed on such verification.

iii. During the year the company has granted unsecured loans to eight companies coveredin the register maintained under Section 189 of the Act; and with respect to thesame:

a) In our opinion and according to the information and explanations given to us theterms and conditions of the loan are not prima facie prejudicial to the company'sinterest.

b) In respect of the loans granted to the companies listed in the register maintainedunder section 189 of the Act there is no principal amount due for payment during the yearand the borrowers shall repay the principal amount as stipulated in the agreement.However there is no stipulation of schedule for payment of interest and hence we areunable to make comment on regularity of payment of interest.

c) According to the information and explanations given to us there is no amount ofloan granted to the companies listed in the register maintained under section 189 of theAct which are overdue and outstanding for more than ninety days. However in absence ofstipulation of schedule for payment of interest we are unable to comment as to whetherthere is any amount which is overdue for more than 90 days and whether reasonable stepshave been taken by the Company for recovery of the principal amount and interest.

iv. In our opinion and according to the information and explanations given to us andbased on the audit procedures conducted by us the Company has complied with theprovisions of Section 185 and 186 of the Act with respect to unsecured loans grantedguarantees provided and investments made by the Company. The Company has not given anysecurity under Section 185 and 186 of the Act. v. In our opinion and according to theinformation and explanations given to us the company has not accepted any deposits as perthe directives issued by the Reserve Bank of India and the provisions of sections 73 to 76of the Act and the rules framed. Accordingly paragraph 3(v) of the order is notapplicable to the company. vi. We have broadly reviewed the books of account maintained bythe company pursuant to the rules prescribed by the Central Government for the maintenanceof cost records under section 148(1) of the Act and are of the opinion that primafacie the specified accounts and records have been made and maintained. We have nothowever made a detailed examination of the records.

vii. a) According to the information and explanations given to us and on the basis ofour examination of the records of the company that the Company is generally regular inpayment of undisputed statutory dues including Provident Fund Employees' State InsuranceIncome Tax Sales Tax Service Tax Goods and Service Tax Duty of Customs Duty ofExcise Value Added Tax Cess and other statutory dues with the appropriate authorities.According to the information and explanation given to us the company did not have anydues on account of wealth tax duty of customs duty of excise.

On the basis of examination of the relevant records and according to the informationand explanations given to us no undisputed amounts payable in respect of Employees' Stateinsurance Value Added Tax Goods and Service Tax Duty of Customs Duty of Excise andCess were outstanding as at March 31 2021 for a period of more than six months from thedate they became payable except for amounts relating to Goods and Service Tax is Rs.194.25 Lakhs. b) According to the information and explanation given to us there are nodues of income tax sales- tax wealth tax service tax duty of customs duty of excisevalue added tax and cess which have not been deposited on account on any dispute. viii. Inour opinion and according to the information and explanation given to us the company hasdefaulted in repayments of dues from financial institutions and banks during the year. Thedetails of loans overdue as on March 31 2021 are given in the table below. The companydoes not have any loans or borrowings from the Government and has not issued anydebentures during the year.

(Amt in lakhs)

Amount of Default as on Balance Sheet Date

Particulars Principal Interest Period of Default
From Banks
Yes Bank 966.33 29.65 From 0 to 60 days
IDBI Bank 434.86 256.81 From 0 to 60 days
Axis Bank 6.15 2.64 From 0 to 60 days
HDFC Bank 26.79 4.08 From 0 to 60 days
Indusind Bank 17.08 - From 0 to 30 days
Kalyan Janta Sahakari Bank 75.87 3.12 From 0 to 60 days
Kalyan Janta Sahakari Bank - 18.05 From 0 to 1 day
Ambarnath Jaihind Bank 33.19 - From 0 to 89 days
Bank of India - OD Account - 21.00 From 0 to 1 day
Bank of Maharashtra- CC - 52.31 From 0 to 1 day
Account
Federal Bank Limited 3.65 0.75 From 0 to 89 days
Total 1563.91 388.41
From Financial Institutions
Srei Equipment Finance Ltd 57.16 11.74 From 0 to 89 days
Kotak Mahindra Prime Ltd 1.28 0.08 From 0 to 60 days
Sub-total 58.44 11.82
Total 1622.35 400.24

ix. According to the information and explanations given to us and on the basis ofexamination of records of the Company money raised by way of term loans were applied forthe purpose for which those were raised. The company has not raised any money by way ofinitial public offer or further public offer during the year.

x. According to the information and explanation given to us no fraud on or by thecompany by its officers and employees has been noticed or reported during the course ofour audit.

xi. According to the information and explanations given to us and based on ourexamination of records of the Company the managerial remuneration has been paid orprovided in accordance with the requisite approvals mandated by the provisions of section197 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 and accordingly the provisions of clause (xii) of the Orderare not applicable to the Company.

xiii. According to the information and explanations given to us and based on ourexamination of records of the Company the transactions entered with related parties arein compliance with provisions of section 177 and 188 of the Act where applicable and thedetails of such transactions are disclosed in the Standalone Financial Statements asrequired by the applicable accounting standards.

xiv. In our opinion and according to the information and explanation given to usduring the year the company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year under review.Therefore the provisions of clause 3 (xiv) of the Order are not applicable.

xv. In our opinion and according to the information and explanations given to us andbased on our examination of records of the Company the Company during the year has notentered into any non-cash transactions with directors or persons connected with thedirectors and accordingly the provisions of clause (xv) of the Order are not applicable tothe Company.

xvi. In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct1934 and accordingly the provisions of clause (xvi) of the Order are not applicable tothe Company.

For G. D. Apte & Co. Chartered Accountants Firm Registration Number: 100515W

Chetan R. Sapre Partner Place : Mumbai Membership No: 116952 Date : June 30 2021UDIN: 21116952AAABVM4574

Annexure "B"

TO THE INDEPENDENT AUDITORS' REPORT ON STANDALONE IND AS FINANCIAL STATEMENTS OF MEPINFRASTRUCTURE DEVELOPERS LIMITED

(Referred to in paragraph 1 (f) under ‘Report on Other Legal and RegulatoryRequirements' of our report of even date) Report on the Internal Financial Controls OverFinancial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act")

We have audited the internal financial controls over financial reporting of MEPINFRASTRUCTURE DEVELOPERS LIMITED ("the Company") as of March 31 2021 inconjunction with our audit of the Standalone Financial Statements of the Company for theyear 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 Reporting("the Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

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 and the Standards on Auditing issued by the ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance Note requirethat 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 system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Standalone Financial Statements whether due to fraud orerror.

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 controls systemover financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Standalone 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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of StandaloneFinancial Statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the StandaloneFinancial 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as of March 31 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the ICAI.

For G. D. Apte & Co. Chartered Accountants Firm Registration Number: 100515W

Chetan R. Sapre Partner

Place : Mumbai Membership

No: 116952

Date : June 30 2021

UDIN: 21116952AAABVM4574

.