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Modipon Ltd.

BSE: 503776 Sector: Industrials
NSE: MODIPON ISIN Code: INE170C01019
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NSE 05:30 | 01 Jan Modipon Ltd
OPEN 15.60
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VOLUME 100
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Mkt Cap.(Rs cr) 18
Buy Price 17.20
Buy Qty 100.00
Sell Price 18.25
Sell Qty 14.00
OPEN 15.60
CLOSE 16.40
VOLUME 100
52-Week high 24.00
52-Week low 12.45
P/E
Mkt Cap.(Rs cr) 18
Buy Price 17.20
Buy Qty 100.00
Sell Price 18.25
Sell Qty 14.00

Modipon Ltd. (MODIPON) - Auditors Report

Company auditors report

To

The Members of

Modipon Limited

Report on the Financial Statements

We have audited the accompanying standalone Ind AS financial statements of MODIPONLIMITED ('the Company') which comprise the Balance Sheet as at 31st March 2018 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement of Cashflows and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information (herein after referredto as "Standalone Ind AS financial statements").

Management's Responsibility for the 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income and cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act read with relevant rules issued thereunder.

This 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 financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's directors as well asevaluating the overall presentation of the standalone Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the standalone Ind AS financialstatements.

Basis for Qualified Opinion

1. Balance confirmation certificates were not obtained by the Company from creditorsloans and advances given/received house/shop security depositors in-operative currentaccounts with banks and loan account with Punjab National Bank (PNB).

Consequent adjustments required if any has not been carried out in the financialresults. [Refer Note No. 36]

2. (a) The Company has not provided interest of Rs. 1000.54 Lakhs up to March 31 2008on overdue amounts payable to a supplier resulting in understatement of liabilities anddebit balance of reserve and surplus by Rs. 1000.54 Lakhs each; and

(b) The amount of interest to be provided for in the books of account for the periodApril 1 2008 to March 31 2018 has not been ascertained. [Refer Note No. 35(c)]

3. The amount of interest to be provided for in the books of account if any for theperiod April 1 2007 to March 312018 to Small and Micro Enterprise has not beenascertained. [Refer Note No. 40]

4. During the year ended March 31 2009 the Company has sold 68042 sq.yds. of itsvacant land at Modinagar for Rs. 1021.15 Lakhs (original cost Rs. 1.95 Lakhs) for whichthe approval of bank is pending. [Refer Note No. 42(b)]

5. During the year 2011-12 the Company has given physical possession of its vacant 59(46 as on March 31 2015) houses located at Modinagar Uttar Pradesh to a lender i.e.Ashoka Mercantile Limited (AML) a related party (balance outstanding of loan taken fromAML as on March 31 2015 as per books of account: secured loan Rs. 882.29 Lakhs andunsecured loan Rs. 1125.57 Lakhs) for use without any charges/rent/security deposit and nolease rent agreement has been entered into with AML. The Company contends that thetemporary possession of houses for use without charges was given to AML as security onlyas the Company was unable to repay the loans taken from AML. [Refer notes to Note No. 45]

6. (a) The Punjab National Bank (PNB) had approved one time settlement of itsoutstanding dues of Rs. 1900 lacs vide its approval letters dated April 02 2014 and April12 2014 respectively. In terms of the settlement OTS amount of Rs. 1710 lakhs (Net ofupfront payment of Rs. 190 lakhs) was to be paid by the company in four quarterlyinstallments with interest during financial year 2014-15. However the company was able tomanage the payment of Rs. 630 lakhs up to March 31 2015 and at the request of theCompany PNB condone the delay and revived the OTS vide its letter dated July 02 2015requiring the Company to make payment of residual OTS amount of Rs. 1270 lakhs by March312016 and total interest on OTS payment @ 10.25% (simple) by June 30 2016. The Companyhas paid Rs. 1205 lakhs upto March 31 2018 and balance 65 lakhs along with outstandinginterest remain to be paid. [Refer notes to Note No. 43(b)]

(b) The company has again requested vide letter dated 9th June 2017 to discharge itsresidual OTS liability of Rs. 65 lakhs and also requested for waiver of interest componenton OTS settlements.

(c) The Company has also requested for assignment of the debt in favour of one of theNBFC company at the time of full and final settlement of outstanding residual amount andoverdue interest (OTS of Rs 100 lakhs and interest of Rs 255 lakhs up to 31st May 2017)and Lender Punjab National Bank has requested to the company to convey the details of theNBFC company for assignment of debts so as to enable the bank to inform the same to itscompetent authority for the approval. Further several letters regarding the approval ofNBFC have been sent by the Company. PNB Bank vide its letter dated 01.02.2018 informed thecompany that the request for revival of OTS was unacceptable and further asked to repaythe bank dues.

(d) The outstanding liability in the books of the company is higher than the OTS amountby Rs. 183.90 lakhs. However interest on OTS amount has been provided @ 10.25% p.a.amounting to Rs. 7.35 lakhs for the year ended on March 31st 2018.

(e) In the absence of any documentary evidences from the management as well as PNB weare unable to quantify the amount of interest on the amount of Rs.183.90lacs; the amountof Rs.183.90lacs is over and above the loan amount on account of the sales tax liabilityon PNB on account of the auction held by the bank for old plant and machinery of thecompany.

7. (a). The amounts paid by the Ashoka Mercantile Limited (AML) a related party toAbu Dhabi Commercial Bank (ADCB) on account of One Time Settlement (OTS) of dues of thebank was accounted for in the books of the Company to the extent of OTS amount paid to theADCB by AML and the balance amount of Rs.153.92 Lakhs is still lying unallocated underunsecured loans in view of pending successful implementation of OTS of the dues of PNB asthe settlement of assigned dues with AML is linked to the OTS of dues with PNB. [Refernotes to Note No. 43(d)]

(b) The amount paid to Karnataka Bank by Ashoka Mercantile Limited (AML) a relatedparty during the year ended March 31 2012 on account of OTS of dues of the bank wasaccounted for in the books of the Company to the extent of OTS amount paid to theKarnataka Bank by AML and the balance amount of Rs.339.20 Lakhs is still lying unallocatedunder unsecured loans in view of pending successful implementation of OTS of the dues ofPNB as the settlement of dues with AML is linked to the OTS of dues with PNB. [Refer notesto Note No. 43(c) (i)]

(c) The part payment made to Bank of Baroda by Ashoka Mercantile Limited (AML) arelated party during the year ended March 31 2013 on account of OTS of dues of the bankwas accounted for in the books of the company to the extent of OTS amount paid to the Bankof Baroda by AML and the Company and the balance amount of Rs.232.04 Lakhs is still lyingunallocated under unsecured loans in view of pending successful implementation of OTS ofthe dues of PNB as the settlement of dues with AML is linked to the OTS of dues with PNB.[Refer notes to Note No. 43(c) (ii)]

The effect if any on the income/expenditure of the company on final OTS with PNBcannot be ascertained.

8. The company has 15% redeemable cumulative preference shares of Rs 100 each.Preference share due for redemption since 31st March 1996."

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in paragraphs in the 'Basisfor Qualified Opinion the aforesaid standalone Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India including the IndAS.

Emphasis of Matter

The above financial results of the Company for the year ended March 31 2018 has notbeen prepared on a going concern basis since the Company has closed its manufacturingoperations since May 19 2007 (closure of factory w.e.f. September 8 2007) on account ofhuge losses incurred and sale of entire plant & machinery during the year ended March31 2010. [Refer Note No. 37]

Our opinion is not qualified in respect ofthis matter

Opinion

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 Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS

a) In the case of the Balance Sheet of the state of affairs of the Company as at 31March 2018;

b) In the case of the Statement of Profit & Loss including other comprehensiveincome of the loss for the year ended on that date;

c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate; and

d) In the case of the Statement of Changes in Equity of the change in equity for theyear ended on that date.

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 A a statement on the matters specified in theparagraph 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 and the Cash Flow Statementand the Statement of Changes in Equity dealt with by this Report are in agreement with thebooks of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards speci- bed under Section 133 of the Act read with rules issuedthereunder;

(e) on the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (2) of the Act;

(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"; and

(g) 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. On the basis of written representations received from the management of the Companythe Company has disclosed the impact of pending litigations on its financial position inits financial statements- Refer Note No.35 to the 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 B. M. Chatrath & Co. LLP
Chartered Accountants
FRN: E300025
Sd/-
CA. Sunil Kumar Jha
Place : New Delhi Partner
Date : 28th May 2018 Membership No.543805

Annexure 'A' To the Independent Auditors' Report

The Annexure referred to in independent Auditors' Report to the members of the Companyon the standalone Ind AS financial statements for the year ended March 31 2018; we reportthat:

i) In respect of Axed assets:

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

b) The Company has a regular programme of physical verification of its Axed assets bywhich Axed assets are verified at periodic intervals. In accordance with this programmefor the year no material discrepancies were noticed on such verification. In our opinionsuch periodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

c) On the basis of written representation received from the management of the Companythe title deeds of immovable properties held in the name of the Company are mortgaged withthe Banks for securing the long term borrowings and credit limits raised by the Company.Following title deeds have not been provided to us:

(Amount in Rs.Lakhs)

Net book value of immovable property as on March 312018 (A) Title deeds available (B) Title deed not available (A-B)
17.44 14.78 2.66

ii) On the basis of information and explanation provided by the management the Companydoes not hold any inventory therefore the provisions of paragraph 3 (ii) (a) to (b) arenot applicable to the Company.

iii) According to the information and explanation given to us the Company had notgranted loans secured or unsecured to any of the Companies Arms or other partiescovered in the register maintained under section 189 of the Companies Act 2013.Therefore the provisions of paragraph 3(iii) (a) to (c) of the Companies (Auditor'sReport) Order 2016 are not applicable to the Company.

iv) According to the information and explanation given to us the Company has compliedwith the provisions of section 186 of the Companies Act 2013 in respect of Investmentsmade.

v) In our opinion the Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

vi) On the basis of available information and explanation provided to us the CentralGovernment has not prescribed maintenance of cost records under sub-section (1) of section148 of the Companies Act 2013 read with Companies (Cost Records and Audit) AmendmentRules 2014 dated December 31 2014 to the current operations carried out by the Company.Accordingly the provisions of paragraph 3(vi) of the Companies (Auditor's Report) Order2016 are not applicable to the Company.

vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Income tax Sales tax Servicetax duty of Customs duty of Excise Value Added Tax Cess and other material statutorydues have generally been regularly deposited during the year by the Company with theappropriate authorities According to the information and explanations given to usfollowing undisputed amounts payable in respect of Income tax Sales tax Service taxduty of Customs duty of Excise Value Added Tax Cess and other material statutory dueswere in arrears as at 31st March 2018 for a period of more than six months from the datethey became payable:

Name of the Statute Nature of Dues Amount (Rs.in Lakhs)
Sales Tax Laws Sales Tax Payable-Branch 1.49
Sales Tax Laws 1% State Development Tax .01
Sales Tax Laws 12%U.P.Trade Tax 2.83
Sales Tax Laws 2.5%U.P.Trade Tax .01
Sales Tax Laws 3% Central Sales Tax .06
Sales Tax Laws Sales Tax .01
Sales Tax Laws 8% U.P.Trade Tax .01
Sales Tax Laws Turnover Tax .01
Sales Tax Laws Vat Collection 4% .02
Central Excise Laws Excise Duty From Amount Payable 82.60
Income Tax Laws Income Tax Deducted At Source 47.60
Total 134.65

(b) According to the records of the Company examined by us and the information andexplanations given to us there were no dues of income tax or sales tax or service tax orduty of customs or duty of excise or value added tax except the following which have notbeen deposited on account of any dispute:

The Following are the particulars of above Dues on account of Sales Tax duty ofExcise duty of Customs Water Tax and Income Tax etc. as at March 31 2018 that have beendisputed by the Company in Appeals pending before the Appellate Authorities

Name of the Statute Nature of Dues Amount (In Lacs Rs.) Period to which amount relates Forum where dispute is pending
Sales Tax Laws Sales Tax 94.22 1428.88 1010.75 2004- 05 2005- 06 2006- 07 Commissioner (Appeal)
Sales Tax Laws Sales Tax 1.41 1991-92 High Court
Sales Tax Laws Sales Tax 12.43 2007-08 Addl. Commissioner
Customs Law Custom Duty 74.66 1982-83 Asst. Commissioner
Custom Duty 19.39 2002-03 Appellate Tribunal
The Uttar Pradesh Water Supply and Sewerage (Amendment) Act 1999 Water Tax 7.11 1997- 98 & 1998- 99 Additional Civil Judge
Central Excise Law Excise Duty 115.75 1983-84 High Court
Income tax Act1961 Non - Deduction of TDS 107-71 109.84 2006-07 to 200809 High Court ITAT/ Commissioner (A)
Civil Suit Trade payables 95.08 2008-09 Delhi High Court
Civil Suit Trade payables 18.13 2009-10 District Court Saket Delhi

viii) In our opinion and according to the information and explanation given to us thedetails of default in respect of dues to a bank are as under:

(a) The Punjab National Bank (PNB) had approved one time settlement of its outstandingdues of Rs.1900 lacs vide its approval letters dated April 02 2014 and April 12 2014respectively. In terms of the settlement OTS amount of Rs.1710 lakhs (Net of upfrontpayment of Rs.190 lakhs) was to be paid by the company in four quarterly installments withinterest during financial year 2014-15. However the company was able to manage thepayment of Rs.630 lakhs up to March 31 2015 and at the request of the Company PNBcondone the delay and revived the OTS vide its letter dated July 02 2015 requiring theCompany to make payment of residual OTS amount of Rs.1270 lakhs by March 312016 and totalinterest on OTS payment @ 10.25% (simple) by June 30 2016. The Company has paid Rs.1205lakhs upto March 31 2018 and balance Rs.65 lakhs along with outstanding interest remainto be paid.

(b) . The company has again requested vide letter dated 9th June 2017 to discharge itsresidual OTS liability of Rs.65 lakhs and also requested for waiver of interest componenton OTS settlements.

(c) The Company has also requested for assignment of the debt in favour of one of theNBFC company at the time of full and final settlement of outstanding residual amount andoverdue interest (OTS of Rs.100 lakhs and interest of Rs.255 lakhs up to 31st May 2017)and Lender Punjab National Bank has requested to the company to convey the details of theNBFC company for assignment of debts so as to enable the bank to inform the same to itscompetent authority for the approval. Further several letters regarding the approval ofNBFC have been sent by the Company. PNB Bank vide its letter dated 01.02.2018 informed thecompany that the request for revival of OTS was unacceptable and further asked to repaythe bank dues.

(d) The outstanding liability in the books of the company is higher than the OTS amountby Rs.183.90 lakhs. However interest on OTS amount has been provided @ 10.25% p.a.amounting to Rs.7.35 lakhs for the year ended on March 31st 2018.

(e) In the absence of any documentary evidences from the management as well as PNB weare unable to quantify the amount of interest on the amount of Rs.183.90 lacs ; the amountof Rs.183.90 lacs is over and above the loan amount on account of the sales tax liabilityon PNB on account of the auction held by the bank for old plant and machinery of thecompany.

Further No Debentures have been issued by the company during the year thereforeprovisions of this clause is not applicable to the company.

ix) The Company did not raise any money by the way of initial public or further publicoffer (including debt instruments) during the year. However the term loans taken duringthe year were applied for the purpose for which the same has been raised.

x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during theyear.

xi) The Company has paid/provided managerial remuneration in accordance with provisionsof section 197 read with Schedule V to the Companies Act 2013 as applicable to theCompany.

xii) The Company is not a Nidhi Company and hence the provisions of paragraph 3(xii)of the Order are not applicable to the Company.

xiii) During the course of our examination of the books and records of the Company alltransactions entered with the related parties are in compliance with sections 177 and 188of Companies Act 2013 and the details have been disclosed in the financial statementsetc as required by the applicable accounting standards.

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

xv) The Company has not entered into any non-cash transactions with directors orpersons connected with him and hence provisions of section 192 of the Companies Act 2013are not applicable.

xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of paragraph 3(xvi) of the Order arenot applicable to the Company.

For B.M. Chatrath & Co. LLP
Chartered Accountants
FRN: E300025
Sd/-
CA. Sunil Kumar Jha
Place : New Delhi Partner
Date : 28th May 2018 Membership No.543805

Annexure 'B' to the Independent Auditors' Report of even date on the financialstatement of Modipon Limited

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ModiponLimited ("the Company") as of March 31 2018 in conjunction with our audit ofthe standalone Ind AS financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting 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 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 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

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

According to the information and explanation given to us the Company has notestablished its internal financial controls over financial reporting on criteria based onor considering the essential components of internal control stated in Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India. Because of this reason we are unable to obtain sufficientappropriate audit evidence to provide a basis for our opinion whether the Company hasadequate internal financial controls over financial reporting and whether such internalfinancial controls were operating effectively as at March 31 2018.

We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the financial statements of the Company anddisclaimer does not affect our opinion on the financial statements of the Company.

For B.M. Chatrath & Co. LLP
Chartered Accountants
FRN: E300025
Sd/-
CA. Sunil Kumar Jha
Place : New Delhi Partner
Date : 28th May 2018 Membership No.543805