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Motor & General Finance Ltd.

BSE: 501343 Sector: Financials
NSE: MOTOGENFIN ISIN Code: INE861B01023
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OPEN 26.50
CLOSE 26.05
VOLUME 862
52-Week high 41.60
52-Week low 23.65
P/E
Mkt Cap.(Rs cr) 102
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Motor & General Finance Ltd. (MOTOGENFIN) - Auditors Report

Company auditors report

To The Members of

THE MOTOR & GENERAL FINANCE LIMITED Report on the Audit of theStandalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of

The Motor & General Finance Limited ("the Company")which comprise the Standalone Balance Sheet as at 31 March 2022 and the StandaloneStatement of Profit and Loss (including Other Comprehensive Income) the StandaloneStatement of Cash Flows the Standalone Statement of Changes in Equity for the year thenended notes to the financial statements including a summary of significant accountingpolicies and other explanatory information (hereinafter referred to as the standalonefinancial statements).

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March 2022and its loss total comprehensive income its cash flows and changes in equity for theyear ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the Auditor'sResponsibility for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

S.No. Key Audit Matters Auditor's Response
1. Recoverability of carrying amounts of investments in associates and other entities Audit Procedure Applied
Refer to note no. 5 to the standalone financial statements. The Company has investments in Associates and other entities which are listed on Stock Exchange in India. These investments are valued at fair value based on market information. We obtained an understanding on the Company's policies and procedures to identify impairment indicators on investments in associates and other entities and performed the following procedures in relation to management's impairment assessment:
Therefore the valuation of the investments has a significant impact on the financial results of Company. • evaluated the internal sources and external sources of information to identify impairment indications if any;
Management performed assessment at the end of each reporting period whether there is any indication that investments in associates and other entities may be impaired. • Recalculation of amounts recognised as impairment on the basis of latest available information from stock exchanges.
Should indication of impairment exist an impairment assessment will be performed accordingly. The recoverable amounts of investments in associates are assessed by current market price of the listed entity on stock exchange. • Testing and assessment of the completeness appropriateness and adequacy of the disclosure in Company's financial statements with regards to the measurement of investment.
Management has concluded that there is a reversal of impairment in respect of investments in associates as at 31 March 2022. This area is significant to our audit because of the significance of the carrying amounts of the investment and results of impairment assessment and the significant management judgement involved in determining the value of investment.
2. Company's Investment in Investment Property Audit Procedure Applied
Investment Properties is significant to our audit due to their magnitude and their value. Refer to note no. 4 to the standalone financial statements. We obtained an understanding on the Company's policies and procedures to identify investments of company in investment properties.
• verified accurate and complete initial recognition of the investment property portfolio by agreeing the recorded amounts to external documents and impact of covid19 pandemic on the revenue.
• Verification of lease deed executed for lease out of properties for earning rental income and addendums.
• Verified whether the transactions were recorded as required by the applicable accounting principles.
• Assessed the appropriateness of the disclosures relating to the assumptions as we consider them likely to be important to users of the financial statements. Testing and assessment of the completeness appropriateness and adequacy of the disclosure in Company's financial statements with regards to the measurement of investment.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors are responsible for the otherinformation. The other information comprises the Director's Report ManagementDiscussion and Analysis and Corporate Governance Report but does not include thestandalone financial statements and our auditor's report thereon.

The Director's Report Management Discussion and Analysis andCorporate Governance Report are expected to be made available to us after the date of thisauditor's report.

Our opinion on the standalone financial statements does not cover theother information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statement ourresponsibility is to read the other information identified above when it becomesavailable and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

When we read the Director's Report Management Discussion andAnalysis and Corporate Governance Report if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance as required under SA 720 ‘The Auditor's responsibilities Relating toOther Information'.

Management's Responsibility for the Standalone FinancialStatements

The Company's Management and Board of Directors is responsible forthe matters stated in section 134(5) of the Act with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the Ind AS and other accounting principlesgenerally accepted in India. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management and Boardof Directors are responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless Board of Directors either intends to liquidatethe Company or to cease operations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibility for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

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

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government in terms of sub-section (11) ofSection 143 of the Act we give in Annexure A a statement on the matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act based on our audit wereport that:

a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c. The Standalone Balance Sheet the Standalone Statement of Profit andLoss (including Other Comprehensive Income) the Standalone Statement of Cash Flows andStandalone Statement of Changes in Equity dealt with by this Report are in agreement withthe relevant books of account.

d. In our opinion the aforesaid standalone financial statements complywith the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act readwith Companies (Indian Accounting Standards) Rules 2015 as amended.

e. On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2022 from being appointed as a director in termsof Section 164(2) of the Act.

f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in Annexure B. Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controlsover financial reporting

g. With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Actas amended:

In our opinion and to the best of our information and according to theexplanation given to us the remuneration paid/provided by the Company to its directorsduring the years is in accordance with the provisions of section 197 of the Act. Theremuneration paid to any directors is not in excess of the limit laid down under section197 of the Act. The Ministry of Corporate Affairs has not prescribed other details undersection 197 (16) of the Act which are required to be commented upon by us.

h. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:

I. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements –Refer Note No- 30 ofstandalone financial statements.

II. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses during the yearended 31 March 2022.

III. There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended 31 March2022.

IV. (a) The Management has represented that to the best of itsknowledge and belief no funds (which are material either individually or in theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries;

b) The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;

(c) Based on the audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material misstatement.

V. The Company has not paid or declared dividend during the year anduntil the date of this report.

For JAGDISH CHAND & CO
Chartered Accountants
ICAI Firm Registration Number: 000129N
Santosh Kumar Jha
Place of signature: New Delhi Partner
Date: May 27 2022 Membership Number: 532638
UDIN: 22532638AKMPOD9428

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph 1 of the Independent Auditors' Report ofeven date to the members of The Motor & General Finance Limited on the StandaloneFinancial Statements as of and for the year ended March 31 2022

To the best of our information and according to the explanationprovided to us by the Company and the books of accounts and records examined by us in thenormal course of audit we state that:

i) (a) (A) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment and relevant details of right of use assets.

(B) The Company has no intangible assets. Accordingly clause 3(i) (a)(B) of the Order is not applicable.

(b) The Property Plant and Equipment were physically verified duringthe year by the Management in accordance with a regular programme of verification whichin our opinion provides for physical verification of all the Property Plant andEquipment and right of use assets at reasonable intervals. According to the informationand explanation given to us no material discrepancies were noticed on such verification.

(c) The title deeds of immovable properties (other than propertieswhere the company is the lessee and the lease agreements are duly executed in favour ofthe lessee) as disclosed in the standalone financial statements are held in the name ofthe Company as at the balance sheet date.

(d) The Company has not revalued any of its Property Plant andEquipment (including right of use assets) or intangible assets during the year.

(e) No proceedings have been initiated during the year or are pendingagainst the Company as at March 31 2022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made there under.

ii) (a) The physical verification of inventory comprising of stock intrade of commercial project has been conducted at reasonable intervals by the Managementduring the year. No discrepancies were noticed on physical verification of inventory ascompared to book records.

(b) The Company has not been sanctioned working capital limits inexcess of Rs 5 crore in aggregate during the year from banks on the basis of securityof current assets. Hence clause 3(ii) (b) of the Order is not applicable.

iii) During the year the Company has not made investments in providedany guarantee or security or granted any loans or advances in the nature of loans securedor unsecured to companies firms Limited Liability Partnerships or any other parties.Hence clause3 (iii) (a) and clause3 (iii) (b) are not applicable.

(a) The Company has not granted any loans and advances in the nature ofloans hence clause3 (iii) (c) clause3 (iii) (d) clause3 (iii) (e) and clause3 (iii)(f) of the Order are not applicable.

iv) The Company has not given any loans and made investments and givenany security and guarantees hence clause 3(iv) of the Order is not applicable.

v) The Company has not accepted any deposits or amounts which aredeemed to be deposit from the public. Hence clause 3(v) of the Order is not applicable.

vi) The company is not carrying any activities which require themaintenance of cost records under sub-section (1) of Section 148 of the Act for any of theproducts/services of the company.

vii) a) According to the records of the Company and information andexplanations given to us and the records of the Company examined by us the Company hasbeen regular in depositing the undisputed statutory dues including goods and service taxprovident fund employees state insurance income tax sale tax service tax duty ofcustoms duty of excise value added tax cess and other material statutory duesapplicable to it with the appropriate authorities.

According to the information and explanations given to us noundisputed amounts payable in respect of the aforesaid dues were in arrears as at 31 March2022 for a period of more than six months from the date they became payable.

b) Details of statutory dues referred to in sub-clause (a) above whichhave not been deposited as on March 31 2022 on account of disputes are given below:

Name of the Statute Nature of the Due Rs (In Lakhs) Period to which the amount relates Forum where dispute is pending
Employees State Insurance Act Employees State Insurance 74.60 1989-90 to 2012-2013 Hon'ble High Court Delhi
NDMC Act Property Tax 162.15 1999-00 to 2016-17 Hon'ble High Court Delhi
DMC Act Property Tax 62.78 2004-05 to 2009-10 Hon'ble Municipal Taxation Tribunal

viii) There were no transactions relating to previously unrecordedincome that have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961).

ix) a) According to the records of the Company examined by us and theinformation and explanation given to us the Company has not defaulted in repayment ofloans or other borrowings or in the payment of interest thereon to any lender.

b) The Company has not been declared wilful defaulter by any bank orfinancial institution or government or any government authority.

c) According to the records of the Company examined by us and theinformation and explanation given to us no term loans have been taken by the companyhence clause 3(ix) (c) of the Order is not applicable.

d) On an overall examination of the financial statements of theCompany funds raised on short- term basis have prima facie not been used during theyear for long-term purposes by the Company.

e) On an overall examination of the financial statements of theCompany the Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiary associate or Joint venture.

f) The Company has not raised any loans during the year on the pledgeof securities held in its subsidiary joint venture or associate company.

x) a) The Company has not raised moneys by way of initial public offeror further public offer (including debt instruments) during the year and hence reportingunder clause 3(x)(a) of the Order is not applicable.

b) During the year the Company has not made any preferential allotmentor private placement of shares or convertible debentures (fully or partly or optionally)and hence reporting under clause 3(x) (b) of the Order is not applicable.

xi) a) No fraud by the Company and no material fraud on the Company hasbeen noticed or reported during the year. b) No report under sub-section (12) of section143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13 ofCompanies (Audit and Auditors) Rules 2014 with the Central Government during the yearand up to the date of this report.

c) No whistle blower complaints were received by the Company during theyear (and up to the date of this report) and hence reporting under clause 3(xi) (c) of theOrder is not applicable.

xii) The Company is not a Nidhi Company and hence reporting underclause (xii) of the Order is not applicable.

xiii) In our opinion the Company is in compliance with Section 177 and188 of the Companies Act 2013 with respect to applicable transactions with the relatedparties and the details of related party transactions have been disclosed in thestandalone financial statements as required by the applicable accounting standards.

xiv) (a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports for the year underaudit issued to the Company during the year and till date in determining the naturetiming and extent of our audit procedures.

xv) In our opinion during the year the Company has not entered into anynon-cash transactions with its directors or persons connected with its directors and henceprovisions of section 192 of the Companies Act 2013 are not applicable to the Company.

xvi) In our opinion the Company is not required to be registered undersection 45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause 3(xvi)(a) (b) and (c) of the Order are not applicable. In our opinion there is no coreinvestment company within the Group (as defined in the Core Investment Companies (ReserveBank) Directions 2016) and accordingly reporting under clause 3(xvi) (d) of the Order isnot applicable.

xvii) The Company has incurred cash losses of Rs 116.00 lakhs infinancial year 2021-22 and Rs 289.43 lakhs in the immediately preceding financial year2020-21.

xviii) There has been no resignation of the statutory auditors of theCompany during the year.

xix) On the basis of the financial ratios ageing and expected dates ofrealisation of financial assets and payment of financial liabilities other informationaccompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examination of the evidence supporting the assumptionsnothing has come to our attention which causes us to believe that any materialuncertainty exists as on the date of the audit report indicating that Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the Company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the Company as and when they falldue.

xx) In View of continuing losses the company is not required to spendmoney towards Corporate Social Responsibility (CSR) under section 135 of the Act. Hence3(xx) of the Order is not applicable for the year.

For JAGDISH CHAND & CO
Chartered Accountants
ICAI Firm Registration Number: 000129N
Santosh Kumar Jha
Place of signature: New Delhi Partner
Date: May 27 2022 Membership Number: 532638
UDIN: 22532638AKMPOD9428

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph 2(f) of the Independent Auditors' Reportof even date to the members of The Motor & General Finance Limited on the standalonefinancial statements for the year ended March 31 2022

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Act

We have audited the internal financial controls over financialreporting of The Motor & General Finance Limited ("the Company") as of 31March 2022 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding 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 Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For JAGDISH CHAND & CO
Chartered Accountants
ICAI Firm Registration Number: 000129N
Santosh Kumar Jha
Place of signature: New Delhi Partner
Date: May 27 2022 Membership Number: 532638
UDIN: 22532638AKMPOD9428

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