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Morarjee Textiles Ltd.

BSE: 532621 Sector: Industrials
NSE: MORARJEE ISIN Code: INE161G01027
BSE 00:00 | 14 Oct 19.35 -0.50
(-2.52%)
OPEN

19.80

HIGH

20.10

LOW

19.10

NSE 00:00 | 14 Oct 19.30 -0.70
(-3.50%)
OPEN

20.40

HIGH

20.45

LOW

19.10

OPEN 19.80
PREVIOUS CLOSE 19.85
VOLUME 8998
52-Week high 23.45
52-Week low 8.35
P/E
Mkt Cap.(Rs cr) 70
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 19.80
CLOSE 19.85
VOLUME 8998
52-Week high 23.45
52-Week low 8.35
P/E
Mkt Cap.(Rs cr) 70
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Morarjee Textiles Ltd. (MORARJEE) - Auditors Report

Company auditors report

To the Members of Morarjee Textiles Limited

Report on the Audit of the Standalone IndAS Financial Statements

Opinion

We have audited the accompanying standalone IndAS financial statements of Morarjee Textiles Limited("the Company") which comprise the BalanceSheet as at March 31 2021 the Statementof Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equityand the Statement of Cash Flows for theyear then ended and notes to the standaloneInd AS financial statements including a summaryof significant accounting policies and other explanatoryinformation (hereinafter referred to as "standaloneInd AS financial statements").

In our opinion and to the best of ourinformation and according to the explanations givento us the aforesaid standalone Ind AS financialstatements give the information required by theCompanies Act 2013 ("the Act") in themanner so required and give a true andfair view in conformity with the accountingprinciples generally accepted in India includingthe Indian Accounting Standards ("Ind AS")prescribed under section 133 of the Act ofthe state of affairs of the Company asat March 31 2021 its loss (including othercomprehensive income) changes in equity and itscash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with Standardson Auditing (SAs) specified under section 143(10)of the Act. Our responsibilities under thoseStandards are further described in the Auditor’sResponsibilities for the Audit of the StandaloneInd AS Financial Statements section of ourreport. We are independent of the Companyin accordance with the Code of Ethics issuedby the Institute of Chartered Accountants ofIndia ("ICAI") together with the ethicalrequirements that are relevant to our auditof the standalone Ind AS financial statementsunder the provisions of the Act and Rulesthereunder and we have fulfilled our otherethical responsibilities in accordance with theserequirements and the Code of Ethics. We believethat the audit evidence we have obtained issufficient and appropriate to provide a basisfor our opinion on the standalone Ind ASfinancial statements.

Material Uncertainty Related to Going Concern

We draw attention to Note 48(ii) in thestandalone Ind AS financial statements which indicatesthat the Company has incurred a net lossafter tax of Rs.6163 Lakhs including cashlosses during the year ended March 31 2021and as of that date the Company’s accumulatedlosses amount to Rs.8665 lakhs resulting incomplete erosion of the net worth of theCompany. Further there have been delays anddefaults in repayment of debt obligations leadingto classification of Company’s debt as nonperforming by lenders. These conditions along withother matters as set forth in the saidnote indicate that a material uncertainty existsthat may cast significant doubt on the Company’sability to continue as a going concern. Duringthe year the Company has submitted a debtrestructuring plan with the consortium of lenderswhich is under consideration of the lendersand certain measures have been put in place.With the successful implementation of debt restructuringplan along with other strategic initiatives themanagement has a reasonable expectation that theCompany would have ability and adequate resourcesto continue its operational existence for theforeseeable future and therefore the standaloneInd AS financial statements has been preparedon going concern basis.

Our opinion is not modified in respect ofthis matter.

Emphasis of Matter

We draw attention to the following mattersin the notes to the standalone Ind ASfinancial statements:

1. Note 47 to the standalone Ind ASfinancial statements which describes the uncertaintiesand the management’s assessment of the financialimpact on the Company due to COVID-19 pandemicsituation for which a definitive assessment ofthe impact is highly dependent upon the circumstancesas they evolve in the subsequent period.

2. Note 13 to the standalone Ind ASfinancial statements regarding carry forward ofGST input tax credit amounting to Rs.3577lakhs as on March 31 2021 for thereason stated in the said note.

3. Note 35(i) to the standalone Ind ASfinancial statements regarding MAT Credit Entitlementamounting to Rs.3041 lakhs as on March 312021 which is based on the judgment ofthe management that the MAT credit would befully utilized against future tax liability.

Our opinion is not modified in respect ofthese matters.

Key Audit Matters

Key audit matters are those matters that inour professional judgment were of most significancein our audit of the standalone Ind ASfinancial statements of the current year. Thesematters were addressed in the context of ouraudit of the standalone Ind AS financial statementsas a whole and in forming our opinionthereon and we do not provide a separateopinion on these matters. In addition to thematter described in the Material Uncertainty Relatedto Going Concern section above we have determinedthe matter described below to be the keyaudit matter to be communicated in our report

Key audit matter How our audit addressed the key audit matter
Valuation of Inventory: Our audit procedures in respect of this area included but not limited:
Total inventory valuation as on March 31 2021 is Rs.6398.11 lakhs (March 31 2020: Rs 8544.82 lakhs) We understood and tested the design and operating effectiveness of controls as established by the management for valuation of inventory and identifying slow moving inventory and determination of net realizable value of inventory as on date.
Inventory of Company comprises of finished goods and Work in Progress ( WIP) and R a w M a t e r i a l . A s described in Note 8 to the standalone Ind AS financial statements cost of Inventory represents the costs of materials conversion cost and related production costs at each stage till date. It is held at the lower of cost and net realisable value (NRV). Some of the finished goods and WIP (Grey Cloth) are slow moving. We observed the physical inventory verification procedures carried out by the management as at the year end. We performed year end cut-off procedures to validate the actual stocks carried in the inventory as at year end.
C o n s i d e r i n g t h e materiality of the amount involved and degree of management judgment in valuation we have identified valuation of inventory as a key audit matter for the current year audit. We tested the adequacy of the key assumptions and estimates used to determine cost allocation at each stage of production and consistency in such allocation including mathematical accuracy of the calculations.
We performed NRV testing by comparing subsequent sale/order value. We also evaluated judgment used by the management for arriving at the diminution in value of slow moving inventory.
The above audit procedures enabled us to conclude on the valuation of inventory held by the Company as on the date of Balance Sheet.

Other Information

The Company’s Board of Directors is responsiblefor the other information. The other informationcomprises the information included in the ManagementDiscussion & Analysis Corporate Governance andDirector’s Report but does not include thestandalone Ind AS financial statements consolidatedInd AS financial statements and our auditor’sreport thereon.

Our opinion on the standalone Ind AS financialstatements does not cover the other informationand we do not express any form of assuranceconclusion thereon. In connection with our auditof the standalone Ind AS financial statementsour responsibility is to read the other informationand in doing so consider whether the otherinformation is materially inconsistent with the standaloneInd AS financial statements or our knowledgeobtained in the audit or otherwise appearsto be materially misstated. If based on thework we have performed we conclude that thereis a material misstatement of this other informationwe are required to report that fact. Wehave nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Standalone IndAS Financial Statements

The Company’s Board of Directors is responsiblefor the matters stated in section 134(5) ofthe Act with respect to the preparation ofthese standalone Ind AS financial statements thatgive a true and fair view of the financialposition financial performance (including other comprehensiveincome) changes in equity and cash flowsof the Company in accordance with the accountingprinciples generally accepted in India includingInd AS prescribed under section 133 of theAct read with the Companies (Indian AccountingStandards) Rules 2015 as amended. This responsibilityalso includes maintenance of adequate accountingrecords in accordance with the provisions ofthe Act for safeguarding of the assets ofthe Company and for preventing and detectingfrauds and other irregularities; selection and applicationof appropriate accounting policies; making judgmentsand estimates that are reasonable and prudent;and design implementation and maintenance of adequateinternal financial controls that were operatingeffectively for ensuring the accuracy and completenessof the accounting records relevant to thepreparation and presentation of the standalone IndAS financial statements that give a true andfair view and are free from material misstatementwhether due to fraud or error.

In preparing the standalone Ind AS financialstatements management is responsible for assessingthe Company’s ability to continue as agoing concern disclosing as applicable mattersrelated to going concern and using the goingconcern basis of accounting unless management eitherintends to liquidate the Company or to ceaseoperations or has no realistic alternative butto do so. Those Board of Directors arealso responsible for overseeing the Company’sfinancial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Ind AS FinancialStatements

Our objectives are to obtain reasonable assuranceabout whether the standalone Ind AS financialstatements as a whole are free from materialmisstatement whether due to fraud or errorand to issue an auditor’s report thatincludes our opinion. Reasonable assurance is ahigh level of assurance but is not aguarantee that an audit conducted in accordancewith SAs will always detect a material misstatementwhen it exists. Misstatements can arise fromfraud or error and are considered materialif individually or in the aggregate theycould reasonably be expected to influence theeconomic decisions of users taken on the basisof this standalone Ind AS financial statements.As part of an audit in accordance withSAs we exercise professional judgment and maintainprofessional skepticism throughout the audit. Wealso:

Identify and assess the risks of materialmisstatement of the standalone Ind AS financialstatements whether due to fraud or errordesign and perform audit procedures responsive tothose risks and obtain audit evidence thatis sufficient and appropriate to provide abasis for our opinion. The risk of notdetecting a material misstatement resulting fromfraud is higher than for one resulting fromerror as fraud may involve collusion forgeryintentional omissions misrepresentations or the overrideof internal control.

Obtain an understanding of internal controlrelevant to the audit in order to designaudit procedures that are appropriate in thecircumstances. Under section 143(3) (i) of theAct we are also responsible for expressingour opinion on whether the Company has adequateinternal financial controls with reference to financialstatements in place and the operating effectivenessof such controls.

Evaluate the appropriateness of accountingpolicies used and the reasonableness of accountingestimates and related disclosures made by management.

Conclude on the appropriateness of management’suse of the going concern basis of accountingand based on the audit evidence obtainedwhether a material uncertainty exists related toevents or conditions that may cast significantdoubt on the Company’s ability to continueas a going concern. If we conclude thata material uncertainty exists we are requiredto draw attention in our auditor’s reportto the related disclosures in the standaloneInd AS financial statements or if such disclosuresare inadequate to modify our opinion. Ourconclusions are based on the audit evidenceobtained up to the date of our auditor’sreport. However future events or conditions maycause the Company to cease to continue asa going concern.

Evaluate the overall presentation structureand content of the standalone Ind AS financialstatements including the disclosures and whetherthe standalone Ind AS financial statements representthe underlying transactions and events in amanner that achieves fair presentation.

We communicate with those charged with governanceregarding among other matters the planned scopeand timing of the audit and significant auditfindings including any significant de_ciencies ininternal control that we identify during ouraudit.

We also provide those charged with governancewith a statement that we have complied withrelevant ethical requirements regarding independence andto communicate with them all relationships andother matters that may reasonably be thoughtto bear on our independence and where applicablerelated safeguards.

From the matters communicated with those chargedwith governance we determine those matters thatwere of most significance in the audit ofthe standalone Ind AS financial statements ofthe current year and are therefore the keyaudit matters. We describe these matters inour auditor’s report unless law or regulationprecludes public disclosure about the matter orwhen in extremely rare circumstances we determinethat a matter should not be communicated inour report because the adverse consequences ofdoing so would reasonably be expected to outweighthe public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

(1) As required by the Companies (Auditor’sReport) Order 2016 ("the Order") issuedby the Central Government of India in termsof section 143(11) of the Act we givein "Annexure 1" a statement on thematters specified in paragraphs 3 and 4 ofthe Order to the extent applicable.

(2) As required by section 143(3) of theAct we report that:

a. We have sought and obtained all theinformation and explanations which to the bestof our knowledge and belief were necessaryfor the purposes of our audit;

b. In our opinion proper books of accountas required by law have been kept bythe Company so far as it appears fromour examination of those books;

c. The Balance Sheet the Statement of Profitand Loss (including Other Comprehensive Income)the Statement of Changes in Equity and theStatement of Cash Flows dealt with by thisreport are in agreement with the books ofaccount;

d. In our opinion the aforesaid standaloneInd AS financial statements comply with theInd AS prescribed under section 133 of theAct read with the Companies (Indian AccountingStandards) Rules 2015 as amended;

e. The matter described under the MaterialUncertainty Related to Going Concern and Emphasisof Matter section above in our opinion mayhave an adverse effect on the functioningof the Company;

f. On the basis of the written representationsreceived from the directors as on March 312021 and taken on record by the Boardof Directors none of the directors is disqualifiedas on March 31 2021 from being appointedas a director in terms of section 164(2)of the Act;

g. With respect to the adequacy of theinternal financial controls with reference to financialstatements of the Company and the operatingeffectiveness of such controls refer to ourseparate report in "Annexure 2";

h. With respect to the other matter tobe included in the Auditor’s Report inaccordance with the requirements of section 197(16)of the Act: In our opinion and to thebest of our information and according to theexplanations given to us the remuneration paid/provided by the Company to its directors duringthe year is in accordance with the provisionsof section 197 of the Act;

i. With respect to the other matters tobe included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 in our opinionand to the best of our information andaccording to the explanations given to us:

(i) The Company has disclosed the impact ofpending litigations on its financial position inits standalone Ind AS financial statements Refer Note 37 on Contingent Liabilities tothe standalone Ind AS financial statements;

(ii) The Company did not have any long-termcontracts including derivative contracts for whichthere were any material foreseeable losses;

(iii) There has been no delay in transferringamounts required to be transferred to theInvestor Education and Protection Fund by theCompany.

For Haribhakti & Co. LLP

Chartered Accountants

ICAI Firm Registration No. 103523W / W100048

Sumant Sakhardande

Partner

Membership No. 034828

UDIN: 21034828AAAADA5037

Mumbai

Date: May 19 2021

ANNEXURE 1 TO THE INDEPENDENT AUDITOR’S REPORT

[Referred to in paragraph 1 under ‘Reporton Other Legal and Regulatory Requirements’section in the Independent Auditor’s Reportof even date to the members of MorarjeeTextiles Limited on the standalone Ind ASfinancial statements for the year ended March31 2021] Based on the audit procedures performedfor the purpose of reporting a true andfair view on the standalone Ind AS financialstatements of the Company and taking intoconsideration the information and explanations givento us and the books of account andother records examined by us in the normalcourse of audit we report that:

(i) (a) The Company has maintained proper recordsshowing full particulars including quantitative detailsand situation of fixed assets.

(b) During the year the fixed assets ofthe Company have been physically verified bythe management and no material discrepancies werenoticed on such verification. In our opinionthe frequency of verification is reasonable havingregard to the size of the Company andthe nature of its assets.

(c) The title deeds of immovable propertiesrecorded as fixed assets in the books ofaccount of the Company are held in thename of the Company.

(ii) The inventory except goods-in-transit and stockslying with third parties have been physicallyverified by the management during the year.In our opinion the frequency of verificationis reasonable. For stocks lying with thirdparties at the year end these have substantiallybeen confirmed by them. No material discrepancieswere noticed on physical verification carried outduring the year.

(iii) The Company has not granted any loanssecured or unsecured to companies firms LimitedLiability Partnerships or other parties covered inthe register maintained under section 189 ofthe Act. Accordingly clause 3(iii)(a) 3(iii)(b)and 3(iii)(c) of the Order is not applicableto the Company.

(iv) The Company has complied with the provisionsof section 186 of the Act. The provisionsof section 185 of the Act are not applicableto the Company. Further the Company has notgiven any loan or provided any guaranteesor securities.

(v) In our opinion the Company has notaccepted any deposits from the public withinthe provisions of sections 73 to 76 ofthe Act and the rules framed there under.Accordingly the provisions of clause 3(v) ofthe Order are not applicable.

(vi) The maintenance of cost records has beenspecified by the Central Government under sub-section(1) of section 148 of the Act and rulesthereunder. We have broadly reviewed such recordsand are of the opinion that prima faciethe prescribed accounts and records have beenmade and maintained. We have not howevermade a detailed examination of the recordswith a view to determine whether they areaccurate or complete.

(vii) (a) The Company is regular in depositingwith appropriate authorities undisputed statutory duesincluding provident fund employee’s state insuranceincome tax goods and services tax (GST)customs duty cess and any other materialstatutory dues applicable to it except thatthere have been slight delay in few cases. During the year 2017-18 sales tax valueadded tax service tax and duty of excisesubsumed in GST and are accordingly reportedunder GST. No undisputed amounts payable inrespect of provident fund employee’s stateinsurance income tax GST customs duty cessand any other material statutory dues applicableto it were outstanding at the year endfor a period of more than six monthsfrom the date they became payable.

(b) According to the information and explanationsgiven to us the dues outstanding with respectto income tax sales tax service tax valueadded tax GST customs duty excise dutyon account of any dispute are as follows:

Name of the Statute Nature of Dues * Amount (Rs. in lakhs) Financial Year Forum where Dispute is Pending Remarks
Central Excise Act 1944 Excise duty 6.22 FY 1979-80 to FY 1985-86 Commissioner of Income Tax (Appeals) None
0.09 FY 1990-91
146.49 FY 1993-94 to FY 1995-96
218.61 FY 1999-00 to FY 2001-02
Central Excise Act 1944 Excise Duty 2.10 FY 1990-91 to FY 1991-92 CESTAT None
488.27 FY 1995-96 to FY 2002-03
Central Excise Act 1944 Excise Duty 3.19 FY 1997-98 to FY 2001-02 High Court None
Central Excise Act 1944 Excise Duty 133.97 FY 2008-09 to FY 2009-10 High Court Nagpur None
Central Excise Act 1944 Excise Duty 296.14 FY 1981-84 Supreme Court None
Maharashtra Value Added Tax Act 2002 Sales Tax 1.95 FY 2006-07 Joint Commissioner of Sales Tax (Appeals) None

*Includes amounts of interest and penalty whereascertainable.

(viii) During the year the Company has notdefaulted in repayment of loans or borrowingsto financial institutions and banks except fordetails given below:

Particulars Amount of default as at March 31 2021

Period of Default

Remarks
(Rs in lakhs) Due Date Date of Payment
Name of the Lenders:
1 Axis Bank Limited
Principal 241.75 30-09-2020 - Not Yet Paid
331.50 31-12-2020 - Not Yet Paid
331.50 31-03-2021 - Not Yet Paid
122.11 02-08-2020 - Not Yet Paid
120.32 31-08-2020 - Not Yet Paid
129.72 30-09-2020 - Not Yet Paid
123.64 31-10-2020 - Not Yet Paid
129.72 30-11-2020 - Not Yet Paid
124.45 31-12-2020 - Not Yet Paid
130.87 31-01-2021 - Not Yet Paid
130.70 28-02-2021 - Not Yet Paid
Interest 118.40 30-09-2020 - Not Yet Paid
114.00 31-10-2020 - Not Yet Paid
125.22 30-11-2020 - Not Yet Paid
114.15 31-12-2020 - Not Yet Paid
127.44 31-01-2021 - Not Yet Paid
116.18 28-02-2021 - Not Yet Paid
129.71 31-03-2021 - Not Yet Paid
2 TATA Capital Financial Services Limited
Principal 51.50 01-10-2020 - Not Yet Paid
68.50 01-01-2021 - Not Yet Paid
Interest 23.88 01-09-2020 - Not Yet Paid
23.56 01-10-2020 - Not Yet Paid
25.17 01-11-2020 - Not Yet Paid
24.36 01-12-2020 - Not Yet Paid
25.17 01-01-2021 - Not Yet Paid
24.57 01-02-2021 - Not Yet Paid
22.19 01-03-2021 - Not Yet Paid
3 Kotak Mahindra Bank Limited
Principal 71.07 31-03-2020 27-04-2020
61.25 30-04-2020 - Not Yet Paid
82.88 31-05-2020 - Not Yet Paid
82.88 30-06-2020 - Not Yet Paid
82.88 31-07-2020 - Not Yet Paid
82.88 31-08-2020 - Not Yet Paid
82.88 30-09-2020 - Not Yet Paid
82.88 31-10-2020 - Not Yet Paid
82.88 30-11-2020 - Not Yet Paid
82.88 31-12-2020 - Not Yet Paid
82.88 31-01-2021 - Not Yet Paid
82.88 28-02-2021 - Not Yet Paid
82.88 31-03-2021 - Not Yet Paid
Interest 23.71 01-04-2020 27-04-2020
23.84 01-05-2020 17-06-2020
24.19 01-06-2020 17-06-2020
24.15 01-07-2020 14-07-2020
16.79 01-08-2020 - Not Yet Paid
26.47 01-09-2020 - Not Yet Paid
26.89 01-10-2020 - Not Yet Paid
28.35 01-11-2020 - Not Yet Paid
28.10 01-12-2020 - Not Yet Paid
30.37 01-01-2021 - Not Yet Paid
31.79 01-02-2021 - Not Yet Paid
29.91 01-03-2021 - Not Yet Paid
4 Federal Bank Limited
Principal 189.94 30-07-2020 - Not Yet Paid
190 31-08-2020 - Not Yet Paid
170 01-09-2020 - Not Yet Paid
225 01-09-2020 - Not Yet Paid
Interest 13.06 30-07-2020 - Not Yet Paid
18.52 31-08-2020 - Not Yet Paid
41.89 01-09-2020 - Not Yet Paid
12.58 30-09-2020 - Not Yet Paid
14.08 31-10-2020 - Not Yet Paid
13.81 30-11-2020 - Not Yet Paid
14.56 31-12-2020 - Not Yet Paid
14.65 31-01-2021 - Not Yet Paid
13.42 28-02-2021 - Not Yet Paid
15.04 31-03-2021 - Not Yet Paid

(ix) The Company did not raise moneys byway of initial public offer or further publicoffer (including debt instruments). In our opinionthe term loans were applied for the purposesfor which the loans were obtained.

(x) During the course of our examination ofthe books and records of the Company carriedout in accordance with the generally acceptedauditing practices in India and according tothe information and explanations given to uswe have neither come across any instance offraud by the Company or any fraud onthe Company by its officers or employeesnoticed or reported during the year nor havewe been informed of any such instance bythe management.

(xi) Managerial remuneration has been paid /provided in accordance with the requisite approvalsmandated by the provisions of section 197read with Schedule V to the Act.

(xii) In our opinion the Company is nota Nidhi Company. Therefore clause 3(xii) ofthe Order is not applicable to the Company.

(xiii) All transactions entered into by theCompany with the related parties are in compliancewith sections 177 and 188 of Act whereapplicable and the details have been disclosedin the standalone Ind AS financial statementsas required by the applicable accounting standards.

(xiv)The Company has not made any preferentialallotment or private placement of shares orfully or partly convertible debentures during theyear. Therefore clause 3(xiv) of the Orderis not applicable to the Company.

(xv) The Company has not entered into anynon-cash transactions with directors or persons connectedwith them during the year and hence provisionsof section 192 of the Act are not applicable.(xvi)The Company is not required to be registeredunder section 45-IA of the Reserve Bank ofIndia Act 1934.

For Haribhakti & Co. LLP

Chartered Accountants

ICAI Firm Registration No. 103523W / W100048

Sumant Sakhardande

Partner

Membership No. 034828

UDIN: 21034828AAAADA5037

Mumbai:

Date: May 19 2021

ANNEXURE 2 TO THE INDEPENDENT AUDITOR’S REPORT

[Referred to in paragraph 2(g) under ‘Reporton Other Legal and Regulatory Requirements’section in our Independent Auditor’s Reportof even date to the members of MorarjeeTextiles Limited on the standalone Ind ASfinancial statements for the year ended March31 2021.

to Financial Statements under clause (i) of sub-section 3 of section 143 of theCompanies Act 2013 ("the Act")

We have audited the internal financial controlswith reference to financial statements of MorarjeeTextiles Limited ("the Company") as ofMarch 31 2021 in conjunction with our auditof the standalone Ind AS financial statementsof the Company for the year ended onthat date.

Report on the Internal Financial Controls with reference

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishingand maintaining internal financial controls basedon the internal control with reference tofinancial statements criteria established by theCompany considering the essential components of internalcontrol stated in the Guidance Note on Auditof Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Instituteof Chartered Accountants of India ("ICAI").These responsibilities include the design implementationand maintenance of adequate internal financial controlsthat were operating effectively for ensuring theorderly and efficient conduct of its businessincluding adherence to Company’s policies thesafeguarding of its assets the prevention anddetection of frauds and errors the accuracyand completeness of the accounting records andthe timely preparation of reliable financial informationas required under the Act.

Auditors’ Responsibility

Our responsibility is to express an opinionon the Company's internal financial controls withreference to financial statements based on ouraudit. We conducted our audit in accordancewith the Guidance Note and the Standards onAuditing specified under section 143(10) of theAct to the extent applicable to an auditof internal financial controls both issued bythe ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirementsand plan and perform the audit to obtainreasonable assurance about whether adequate internalfinancial controls with reference to financial statementswas established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internalfinancial controls with reference to financial statementsand their operating effectiveness.

Our audit of internal financial controls withreference to financial statements included obtainingan understanding of internal financial controls withreference to financial statements assessing therisk that a material weakness exists andtesting and evaluating the design and operatingeffectiveness of internal controls based on theassessed risk. The procedures selected depend onthe auditor’s judgement including the assessmentof the risks of material misstatement of thefinancial statements whether due to fraud orerror.

We believe that the audit evidence we haveobtained is sufficient and appropriate to providea basis for our audit opinion on theCompany’s internal financial controls with referenceto financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A company's internal financial control with referenceto financial statements is a process designedto provide reasonable assurance regarding the reliabilityof financial reporting and the preparation offinancial statements for external purposes in accordancewith generally accepted accounting principles. Acompany's internal financial control with referenceto financial statements includes those policies andprocedures that (1) pertain to the maintenanceof records that in reasonable detail accuratelyand fairly reflect the transactions and dispositionsof the assets of the company; (2) providereasonable assurance that transactions are recordedas necessary to permit preparation of financialstatements in accordance with generally acceptedaccounting principles and that receipts and expendituresof the company are being made only inaccordance with authorisations of management anddirectors of the company; and (3) providereasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or dispositionof the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements

Because of the inherent limitations of internalfinancial controls with reference to financial statementsincluding the possibility of collusion or impropermanagement override of controls material misstatementsdue to error or fraud may occur andnot be detected. Also projections of anyevaluation of the internal financial controls withreference to financial statements to future periodsare subject to the risk that the internalfinancial controls with reference to financial statementsmay become inadequate because of changes inconditions or that the degree of compliancewith the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in allmaterial respects adequate internal financial controlswith reference to financial statements and suchinternal financial controls with reference to financialstatements were operating effectively as at March31 2021 based on the internal control withreference to financial statements criteria establishedby the Company considering the essential componentsof internal controls stated in the GuidanceNote issued by the ICAI.

For Haribhakti & Co. LLP

Chartered Accountants

ICAI Firm Registration No. 103523W / W100048

Sumant Sakhardande

Partner

Membership No. 034828

UDIN: 21034828AAAADA5037

Mumbai:

Date: May 19 2021

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