You are here » Home » Companies » Company Overview » Murudeshwar Ceramics Ltd

Murudeshwar Ceramics Ltd.

BSE: 515037 Sector: Consumer
NSE: MURUDCERA ISIN Code: INE692B01014
BSE 00:00 | 27 Sep 29.60 0.60
(2.07%)
OPEN

29.25

HIGH

30.60

LOW

28.65

NSE 00:00 | 27 Sep 29.65 0.50
(1.72%)
OPEN

29.50

HIGH

30.65

LOW

28.60

OPEN 29.25
PREVIOUS CLOSE 29.00
VOLUME 3874
52-Week high 35.70
52-Week low 20.55
P/E 37.00
Mkt Cap.(Rs cr) 171
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 29.25
CLOSE 29.00
VOLUME 3874
52-Week high 35.70
52-Week low 20.55
P/E 37.00
Mkt Cap.(Rs cr) 171
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Murudeshwar Ceramics Ltd. (MURUDCERA) - Auditors Report

Company auditors report

To the Members of Murudeshwar Ceramics Limited

Report on the Audit of Standalone Ind AS Financial Statement

Opinion

We have audited the standalone Ind AS financial statements ofMurudeshwar Ceramics Limited ("the Company") which comprise the Balance Sheetas at 31 March 2022 and the Statement of Profit and Loss (including other comprehensiveincome) Statement of Changes in Equity and Statement of Cash Flows for the year thenended and notes to the standalone Ind AS financial statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone Ind AS financial 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 March 31 2022the Profit and total comprehensive income changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor's Responsibilities for the Audit of the Standalone Ind ASfinancial statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone Ind AS financial statements under the provisions of the Act and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion on the StandaloneFinancial Statements.

Key Audit Matters:

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

We have determined the matters described below to be the Key Auditmatters to be communicated in our report.

Key Audit Matter Auditor's Response
1. Inventory We have performed the following procedures w.r.t valuation of the inventory and assessment of procedures of physical verification of inventory during the period to ensure accuracy of inventory reporting
The Value of inventory as at 31.03.2022 is 11213.73 lakhs which is 23.59% of total asset value. given the size of the inventory balance relative to the total asset size of the company the valuation of inventory required significant audit attention On a sample basis we tested the net realisable value of inventory to recent selling prices.
As disclosed in the notes forming part of statement of accounts inventories are held at the lower of cost or net realisable value determined using weighted average cost We have also considered the stock audit report by stock auditors engaged by the lending bank to ensure that there are no inconsistencies in reporting
At the year end the valuation of inventory is reviewed by management and cost of inventory is revalued where inventory is forecast to be sold below cost.
The determination of valuation of inventory requires management to exercise qualitative judgments and apply assumptions In the view of the management basic raw material used is clay for manufacturing of tiles and the same being a natural resources does not have any depletion in value over the passage of time.
2. Property Plant and Equipment Our audit procedures included testing the design implantation and operating effectiveness of controls in respect of review of capitalization of assets particularly in respect of timing of the capitalization and recording of additions to items of various categories of PPE with source documentation substantive testing of appropriateness of cut-off date considered for project capitalization
Additions to Fixed assets during the year were 936.31 lakhs(including CWIP of the previous year). inappropriate timing of capitalization of project/ inappropriate classification of categories of the items of PPE could result in material misstatement of CWIP/ PPE with consequent impact on depreciation charge and results for the year We tested the source documentation to determine whether the expenditure is of capital nature and has been approved and segregated into appropriate categories. We reviewed operating expenses to determine the appropriateness of accounting.

Information Other than the Financial Statements and Auditor'sReport Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone Ind AS financialstatements

The Company's management and Board of Directors are responsible for thematters stated in Section 134(5) of the Act with respect to the preparation of thesestandalone Ind AS financial statements that give a true and fair view of the state ofaffairs profit / loss changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India Including Indian AccountingStandard (Ind AS) specified under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended.. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone Ind AS financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone Ind AS financial statements management andBoard of 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 management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so. Board ofDirectors is also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Ind ASfinancial statements

Our objectives are to obtain reasonable assurance about whether thestandalone Ind AS financial statements as a whole are free from material misstatementwhether due 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 Ind AS financialstatements.

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

• Identify and assess the risks of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate 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 control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls with reference to standaloneInd AS financial statements in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone Ind AS financial statements or if such disclosuresare inadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditors' report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone Ind AS financial statements including the disclosures and whether thestandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation.

Materiality

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.

Communication with those charged with governance

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 precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. 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 relatingto preparation of the aforesaid Ind AS financial statements have been kept by the Companyso far as it appears from our examination of those books;

(c) The balance sheet the statement of profit and loss (includingother comprehensive income) the statement of cash flows dealt with by this Report are inagreement with the books of account maintained for the purpose of preparation of the IndAS financial statements;

(d) In our opinion the aforesaid Ind AS financial statements complywith the Accounting Standards specified under Section 133 of the Act read with relevantrule issued there under.

(e) On the basis of the written representations received from theDirectors of the Company as on 31 March 2022 taken on record by the Board of Directors ofthe Company none of the directors is disqualified as on 31 March 2022 from beingappointed as a director in terms of Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlsover financial reporting and the operating effectiveness of such controls refer to ourseparate report in "Annexure A" which is based on the auditors' report of thecompany.

(g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended : Inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act.

(h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements.

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

iv. (a) The Company's Management and the Board of Directors haverepresented that to the best of their knowledge and belief no funds have been advancedor loaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentity ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries.

(b) The Company's Management and the Board of Directors haverepresented that to the best of their knowledge and belief no funds have been receivedby the Company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries")or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries; and

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 declared/paid any dividend during the financialyear under audit.

2. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of section143(11) of the Act we give in the Annexure B a statement on the matters specified in theparagraph 3 and 4 of the order.

For K G Rao & Co.
Chartered Accountants
Firm Registration Number - 010463S
Place : Bengaluru
Date : 30.05.2022 Sd/-
Krishnaraj K
Partner
(Membership Number - 217422)
UDIN - 22217422AJWHWG7637

(Referred to in paragraph 1(f) under ‘Report on Other Legal &Regulatory Requirement' of our report to the members of Murudeshwar Ceramics Limited ofeven date)

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act") ofMurudeshwar Ceramics Limited

We have audited the internal financial controls over financialreporting of Murudeshwar Ceramics Limited ("the Company") as of 31 March 2022 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended 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 maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit.We conducted our audit inaccordance with the Guidance Note and the Standards on Auditing prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls. The Guidance Note and those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 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 internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess 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 control overfinancial reporting includes those policies and procedures that(1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 ICAI.

For K G Rao & Co.
Chartered Accountants
Firm Registration Number - 010463S
Place : Bengaluru
Date : 30.05.2022
Krishnaraj K
Partner
(Membership Number - 217422)
UDIN - 22217422AJWHWG7637

(Referred to in paragraph 2 under ‘Report on Other Legal &Regulatory Requirement' of our report to the members of Murudeshwar Ceramics Limited ofeven date)

i. In respect of the Company's Property Plant and Equipment:

(a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of property plant andequipment;

(B) Based on the information and explanations made available to us thecompany do not have any Intangible assets.

(b) The property plant and equipment were physically verified by themanagement in accordance with a regular program of verification which in our opinionprovides for physical verification of fixed assets at regular intervals. According to theinformation and explanations given to us no material discrepancies between the booksrecords and the physical fixed assets have been noticed.

(c) According to the information and explanations given to us and therecords examined by us and based on the examination of the conveyance deed provided to uswe report that the title deeds comprising all the immovable properties of land andbuildings which are freehold are held in the name of the company as at the balance sheetdate. In respect of immovable properties of land and building that have been taken onlease and disclosed as fixed assets in the standalone financial statements the leaseagreements are in the name of the Company.

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

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

ii. (a) As explained to us the inventories were physically verifiedduring the year by the Management at reasonable intervals and no material discrepancieswere noticed on physical verification of the inventory.

(b) Based on the information and explanations given to us and documentsverified by us During the year the Company has been sanctioned working capital limits inexcess of rupees five crore in aggregate from State Bank of India Bank of Baroda Etcon the basis of security of current assets. The quarterly returns / statements filed bythe Company with Banks are in agreement with the books of account of the Company exceptthe details submitted in the last quarter details of variances are as under -

Inventory as per books as on 31.03.2022 Inventory as per details submitted to the banker as on 31.03.2022 Difference (Rs. In Lakhs)
(Rs. In Lakhs) (Rs. In Lakhs)
1338.04
11213.73 9875.69 (Shown less in the statement submitted to the banker)

iii. According to the information and explanations given to us. thecompany has not granted the loans/advances secured or unsecured to the Companies firmsLimited Liability Partnerships or any other parties except the guarantee given to RNSInfrastructure Limited as detailed under and hence reporting under cluase3(MI) (a) (c)(d) (e) (f) of the Order are not applicable to the company and hence not commented thereupon.

(a) Details of the guarantee given by the company

Guarantee given to during the year Guarantee as at the end of the year
350 Crores 350 Crores

(b) In our opinion the investments made during the year and guaranteegiven are prima facie not prejudicial to the Company's interest

iv. In our opinion and according to the information and explanationsgiven to us the company has complied with the provisions of section 185 and 186 of theCompanies Act 2013 in respect of loans investments guarantees and securities asapplicable.

v. The Company has not accepted any deposits from the public during theyear and hence the directives issued by the Reserve Bank of India and the provisions ofSections 73 to 76 or any other relevant provisions of the Act and the Companies(Acceptance of Deposit) Rules 2015 with regard to the deposits accepted from the publicare not applicable.

vi. The maintenance of cost records has not been specified by theCentral Government under section 148(1) of the Companies Act 2013 for the businessactivities carried out by the Company. Thus reporting under clause 3(vi) of the order isnot applicable to the Company.

vii. According to the information and explanations given to us inrespect of statutory dues:

a) The Company has generally been regular in depositing undisputedstatutory dues including Provident Fund Employees' State Insurance Income Tax Goods& Service Tax Duty of Customs Cess and other material statutory dues applicable toit with the appropriate authorities.

b) There were no undisputed amounts payable in respect of ProvidentFund Employees' State Insurance Income Tax Goods & Service Tax Duty of CustomsCess and other material statutory dues in arrears as at March 312022 for a period of morethan six months from the date they became payable.

c) Details of dues of income tax excise duty and custom duty whichhave not been deposited as at 31.03.2022 on account of dispute are as under:

Nature of the statute Nature of dues Forum where Dispute is Pending Period to which Relates Remarks
The Income Tax Act 1961 Income Tax Appellate Tribunal AY 2007-2008 to 2015-16 Disallowances of expenses and additions to income Carry forward loss hence no tax demand arises
The Income Tax Act 1961 Income Tax CIT Appeals AY 2006-2007 Disallowances of expenses and additions to income Tax is paid under MAT no additional demand

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) The Company has not defaulted in repayment of loans or otherborrowings 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 other lender.

(c) The term loans were applied for the purpose for which the loanswere obtained.

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

(e) The Company has not taken any funds from any entity or person onaccount of or to meet the obligations of its subsidiaries associate or joint ventures andhence reporting under clause 3(ix)(e) of the Order is not applicable for the year underreport.

(f) The Company has not raised any loans during the year on the pledgeof securities held in its subsidiaries associat or joint ventures and hence reporting onclause 3(ix)(f) of the Order is not applicable for the year under report.

x. (a) Based upon the audit procedures performed and the informationand explanations given by the management the company has not raised moneys by way ofinitial public offer or further public offer including debt instruments except term Loanswhich is applied for the purpose for which the same is raised.

(b) Based upon the audit procedures performed and the information andexplanations given by the management the company has made preferential allotment ofshares (Converted Share Warrants into Equity Shares) to Murudeshwar Power CorporationPrivate Limited. The requirements of section 42 and section 62 of the Companies Act 2013have been complied with and the funds raised have been used for the purposes for which thefunds were raised.

xi. (a) Based upon the audit procedures performed and the informationand explanations given by the management we report that no fraud by the Company or on thecompany by its officers or employees has been noticed or reported during the year.

(b) No report under sub-section (12) of section 143 of the CompaniesAct has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies(Audit and Auditors) Rules 2014 with the Central Government during the year and upto thedate of this report.

c)As per information and explanations given to us no whistle blowercomplaints were received by the Company during the year.

xii. The Company is not a Nidhi Company and hence reporting underclause 3 (xii) of the Order is not applicable to the Company.

xiii. In our opinion all transactions with the related parties are incompliance with section 177 and 188 of Companies Act 2013 and the details have beendisclosed in the Ind AS Financial Statements as required by the applicable accountingstandards.

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 in determining the nature timing and extent of our auditprocedures and reporting.

xv. Based upon the audit procedures performed and the information andexplanations given by the managementthe company has not entered into any non-cashtransactions with directors or persons connected with him andhence reporting under theprovisions of clause 3 (xv) of the Order are not applicable to the Company.

xvi. (a) The company is not required to be registered under section 45IA of the Reserve Bank of India Act 1934and hence reporting under the provisions ofclause 3 (xvi) (a) (b) & (c) of the Order are not applicable to the Company.

(b) In our opinion there is no core investment company within theGroup (as defined in the Core Investment Companies (Reserve Bank) Directions 2016) andaccordingly reporting under clause 3(xvi)(d) of the Order is not applicable.

xvii. The Company has not incurred cash losses during the financialyear covered by our audit and has incurred cash loss of Rs.569.70 Lakhs in the immediatelypreceding financial year.

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. a) For the financial year 2021 - 22 reporting under clause 3(xx)(a)of the Order is not applicable.

b) In our opinion there are no ongoing projects towards CorporateSocial Responsibility (CSR) requiring a transfer to special account in compliance with theprovision of sub-section (6) of section 135 of the said Act. Accordingly reporting underclause 3(xx)(b) of the Order is not applicable for the year.

For K G Rao & Co.
Chartered Accountants
Firm Registration Number - 010463S
Place : Bengaluru
Date : 30.05.2022 Sd/-
Krishnaraj K
Partner
UDIN - 22217422AJWHWG7637 (Membership Number - 217422)

 

.