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Muthoot Finance Ltd.

BSE: 533398 Sector: Financials
NSE: MUTHOOTFIN ISIN Code: INE414G01012
BSE 00:00 | 21 Jan 1431.05 -42.55
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NSE 00:00 | 21 Jan 1432.75 -40.75
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OPEN 1459.70
PREVIOUS CLOSE 1473.60
VOLUME 36103
52-Week high 1722.55
52-Week low 1090.25
P/E 14.53
Mkt Cap.(Rs cr) 57,434
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1459.70
CLOSE 1473.60
VOLUME 36103
52-Week high 1722.55
52-Week low 1090.25
P/E 14.53
Mkt Cap.(Rs cr) 57,434
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Muthoot Finance Ltd. (MUTHOOTFIN) - Auditors Report

Company auditors report

TO THE MEMBERS OF MUTHOOT FINANCE LIMITED Report on the Audit of theStandalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements ofMuthoot Finance Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2021 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and Cash Flow Statement for the year ended on thatdate and the notes to the financial statements including a summary of significantaccounting policies and other explanatory information.

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 accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021its Profit total comprehensive income changes in equity and its cash flows for the yearended 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 Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Standalone Financial Statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Act and the Rules thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion on the standalone financial statements.

Emphasis of matter

We draw attention to Note 57 to the standalone financial statementsregarding outbreak of the COVID-19 pandemic and the consequential lock-down restrictionsimposed by the Government which as per the assessment of the management has notsignificantly impacted the operations and financial position of the Company.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professionaljudgement were of most significance in our audit of the standalone financial statementsof the current period. These matters were addressed in the context of our audit of thefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Key Audit Matters How addressed in Audit
Ind-AS 109 (Financial Instruments) requires the Company to recognise Expected credit Loss (ECL) and impairment loss allowances on financial assets which involves application of significant judgement and estimates including use of key assumptions such as probability of default and loss given We have evaluated the management's process and tested key controls around the determination of expected credit loss allowances including controls relating to:
- The identification of events leading to a significant increase in risk and credit impairment events; and
default. The spread of the COVID - 19 pandemic during the year necessitates that the Company shall specifically consider the possible impact of uncertainties associated with the same in applying such judgement and estimates - The determination of the impaired credit loss allowances and the key assumptions including probability of default and loss given default on a forward-looking basis having regard to historical experiences.
Refer Note 42(1) to the standalone financial statements We understood and assessed the appropriateness of the impairment methodology developed and used by the management at the entity level including with reference to the possible impact of the uncertainties associated with the COVID-19 pandemic. This included assessing the appropriateness of key judgements. We tested the accuracy of key data inputs and calculations used in this regard.
We found that these key controls as above were designed implemented and operated effectively and therefore have placed reliance on these key controls and management's assessment of financial impact associated with COVID - 19 pandemic for the purposes of our audit of ECL and impairment loss allowances.
Key Audit Matters How addressed in Audit
Ind-AS 109 (Financial Instruments) requires the Company to recognise interest income by applying the effective interest rate (EIR) method. While estimating future cash receipts for the purpose of determining the EIR factors including expected behaviour life cycle of the financial asset probable fluctuation in collateral value which may have an impact on the EIR are to be considered. We have evaluated the management's process in estimation of future cash receipts for the purpose of determination of EIR including identification of factors like expected behaviour life cycle of the financial asset and probable fluctuation in collateral value. We tested the accuracy of key data inputs and calculations used in this regard.
Completeness in identification accounting and disclosure of related party transactions in accordance with the applicable laws and financial reporting framework. Refer Note 39 to the standalone financial statements We have assessed the systems and processes laid down by the company to appropriately identify account and disclose all material related party transactions in accordance with applicable laws and financial reporting framework. We have designed and performed audit procedures in accordance with the guidelines laid down by ICAI in the Standard on Auditing (SA 550) to identify assess and respond to the risks of material misstatement arising from the entity's failure to appropriately account for or disclose material related party transactions which includes obtaining necessary approvals at appropriate stages of such transactions as mandated by applicable laws and regulations.
Compliance and disclosure requirements under the applicable Indian Accounting Standards RBI Guidelines and other applicable statutory regulatory and financial reporting framework. We have assessed the systems and processes laid down by the company to appropriately ensure compliance and disclosures as per the applicable Indian Accounting Standards RBI Guidelines and other applicable statutory regulatory and financial reporting framework. We have designed and performed audit procedures to assess the completeness and correctness of the details disclosed having regard to the assumptions made by the management in relation to the applicability and extent of disclosure requirements; and have relied on internal records of the company and external confirmations wherever necessary.
Key Audit Matters How addressed in Audit
The Company has material uncertain tax positions including matters under dispute which involves significant judgement to determine the possible outcome of these disputes. Refer Note 38 (A) (a) to the standalone financial statements We have obtained details of completed tax assessments and demands for the year ended March 31 2021 from management. We obtained opinion of experts and also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions.
Key Information technology (IT) systems used in financial reporting process. The company's operational and financial processes are dependent on IT systems due to large volume of transactions that are processed daily. Accordingly our audit was focused on key IT systems and controls due to the pervasive impact on the financial statements. We obtained an understanding of the Company's IT control environment and key changes during the audit period that may be relevant to the audit We tested the design implementation and operating effectiveness of the company's General IT controls over the key IT systems which are critical to financial reporting. We also tested key automated and manual controls and logic for system generated reports relevant to the audit that would materially impact the financial statements.

Information Other than the Standalone Financials Statements andAuditor's Report thereon (Other Information)

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the CorporateOverview Board's Report Management Discussion and Analysis Report BusinessResponsibility Report and Report on Corporate Governance in the Annual Report of theCompany for the financial year 2020-21 but does not include the standalone financialstatements and our auditor's report thereon. The reports containing the otherinformation as above are expected to be made available to us after the date of thisauditor's report.

Our opinion on the financial statements does not cover the otherinformation and we will 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 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 in theaudit or otherwise appears to be materially misstated.

When we read the reports containing the other information if weconclude that there is a material misstatement therein we are required to communicate thematter to those charged with governance.

Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements.

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgements and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

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

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

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 professionaljudgement and maintain professional skepticism 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 control relevant to theaudit including internal audit system in vogue in order to design audit procedures thatare appropriate in the circumstances. Under section 143(3)(i) of the Act we are alsoresponsible for expressing our opinion on whether the company has adequate internalfinancial controls with reference to financial statements in place and the operatingeffectiveness 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 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 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Companies Act 2013 we give in ‘Annexure A' astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

2. As required by Section 143(3) of the Act we report 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 havebeen kept by the Company so far as it appears from our examination of those books. Sincethe key operations of the Company are automated with the key applications integrated tothe core banking system/ ERP the audit is carried out centrally as all the necessaryrecords and data required for the purposes of our audit are available therein.

(c) The Balance Sheet the Statement of Profit and Loss (includingOther Comprehensive Income) the Statement of Changes in Equity and the Cash FlowStatement dealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statementscomply with the Indian Accounting Standards specified under Section 133 of the Act readwith relevant rules issued there under.

(e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controlsover financial statement reporting of the Company and the operating effectiveness of suchcontrols refer to our separate Report in ‘Annexure B'.

(g) With respect to the other matters to be included in theAuditor's Report in accordance with Section 197(16) of the Act in our opinion and tothe best of our information and according to the explanations given to us theremuneration paid/ provided by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

(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 in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements - Refer Note 38(A)(a) to thestandalone financial statements

ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

For Varma & Varma
(FRN : 004532S)
Sd/-
Vijay Narayan Govind
Partner
Chartered Accountants
Place: Kochi Membership No. 203094
Date: June 02 2021 UDIN: 21203094AAAABG6157

‘ANNEXURE A' REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING"REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR INDEPENDENTAUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF MUTHOOTFINANCE LIMITED FOR THE YEAR ENDED MARCH 31 2021

1. (a) The company is maintaining records showing full particularsincluding quantitative details and situation of fixed assets which however requires to beupdated.

(b) The fixed assets have been physically verified by the managementduring the year in accordance with a regular programme of verification the frequency ofwhich in our opinion is reasonable having regard to the size of the company and thenature of its assets. According to the information and explanations furnished to us andbased on the records of the company examined by us no material discrepancies were noticedon such verification.

(c) According to the information and explanations given to us therecords of the company examined by us and based on the details of land and buildingsfurnished to us by the company the title deeds of immovable properties are held in thename of the Company. In respect of certain immovable properties acquired under a scheme ofamalgamation in a prior year the title deeds continue to remain in the name of theerstwhile owners.

2. The Company is a Non-Banking Finance Company and does not hold anyinventory during the period under audit. Accordingly the reporting requirement underclause (ii) of paragraph 3 of the Order is not applicable.

3. According to the information and explanations given to us and therecords of the company examined by us the Company has granted unsecured loans to twosubsidiary companies during the year and the same is covered in the register maintainedunder section 189 of the Act.

The terms and conditions of the grant of such loans are not prejudicialto the Company's interest. The repayment or receipts of principal and interest are asper schedule stipulated and are regular. There are no overdue amounts.

4. According to the information and explanations given to us and therecords of the company examined by us the company has complied with the provisions ofsections 185 and 186 of the Act in respect of loans granted investments made andguarantees given where applicable. The company has not provided security for which theprovisions of sections 185 and 186 of the Act are applicable.

5. The Company has not accepted any deposits from the public during theyear which attract the directives issued by the Reserve Bank of India. Being a Non-BankingFinance Company the provisions of Sections 73 to 76 or any other relevant provisions ofthe Act and the rules framed thereunder regarding acceptance of deposits are notapplicable. Therefore the reporting requirement under clause (v) of paragraph 3 of theOrder is not applicable.

6. To the best of our knowledge and according to the information andexplanations given to us the Central Government has not prescribed the maintenance ofcost records under Section 148 (1) of the Act for the company.

7. (a) As per the information and explanations furnished to us andaccording to our examination of the records of the Company the Company has been generallyregular in depositing undisputed statutory dues including Provident Fund Employee'sState Insurance Income Tax Goods and Services Tax Duty of customs Cess and any othermaterial statutory dues as applicable to the Company to the appropriate authoritiesduring the year.

According to the information and explanations given to us noundisputed statutory dues payable in respect of Provident Fund Employees State InsuranceIncome Tax Goods and Services Tax Duty of Customs Cess and other material statutorydues were outstanding as at March 31 2021 for a period of more than six months from thedate they became payable.

(b) According to the information and explanations given to us and therecords of the Company examined by us there are no disputed amounts due to be depositedof Sales tax Duty of Customs Duty of Excise Value Added Tax or Goods and Services Taxas at March 31 2021.

According to the information and explanations given to us the followingdisputed amounts of income tax and service tax have not been deposited with theauthorities as at March 31 2021:

Nature of dues Statute Amount payable (net of payments made) Rs in millions Period to which the amount relates Forum where the dispute is pending
Service Tax (excluding interest) Finance Act 1994 3004.08 2007-2008 to 2011-2012 Customs Excise and Service Tax Appellate Tribunal (Bangalore)
94.21 2014-2015 High Court of Kerala
Income tax Income Tax 128.06 AY 2011-12 Commissioner of
Act 1961 277.08* AY 2012-13 Income Tax
59.97 AY 2013-14 (Appeals)
705.60 AY 2014-15
127.85 AY 2015-16
258.92 AY 2016-17
3.67 AY 2017-18

* Net of adjustment of refunds due of Rs 201.66 millions

8. In our opinion and according to the information and explanationsgiven to us and the records of the Company examined by us the Company has not defaultedin repayment of loans or borrowings to financial institutions banks government or duesto debenture holders.

9. According to the information and explanations given to us and therecords of the Company examined by us the moneys raised by way of public offer of debtinstruments and the term loans availed by the company have been applied for the purposefor which they were raised.

10. During the course of our examination of the books and records ofthe company carried out in accordance with generally accepted auditing practices in Indiaand according to the information and explanations given to us there have been instancesof fraud on the company by its employees amounting to Rs 31.41 millions as included inNote 50 to the standalone financial statements. No fraud by the company has been noticedor reported during the year nor have we been informed of any such case by the management.

11. According to the information and explanations given to us and therecords of the Company examined by us managerial remuneration has been paid or providedin accordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

12. The company is not a Nidhi Company. Accordingly the reportingrequirements under clause (xii) of paragraph 3 of the Order are not applicable.

13. According to the information and explanations given to us and therecords of the Company examined by us all transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and the details havebeen disclosed in Note 39 to the standalone financial statements as required by theapplicable accounting standard.

14. The company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.Accordingly the reporting requirements under clause (xiv) of paragraph 3 of the Order arenot applicable.

15. The company has not entered into any non-cash transactions withdirectors or persons connected with the directors. Accordingly the reporting requirementunder clause (xv) of paragraph 3 of the Order is not applicable.

16. The Company is engaged in the business of Non-Banking FinancialInstitution and has obtained the certificate of registration under section 45-IA of theReserve Bank of India Act 1934.

For Varma & Varma
(FRN : 004532S)
Sd/-
Vijay Narayan Govind
Partner
Chartered Accountants
Place: Kochi Membership No. 203094
Date: June 02 2021 UDIN: 21203094AAAABG6157

‘ANNEXURE B' REFERRED TO IN PARAGRAPH 2(f) UNDER THE HEADING"REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR INDEPENDENTAUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF MUTHOOTFINANCE LIMITED FOR THE YEAR ENDED MARCH 31 2021

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

We have audited the internal financial control systems with referenceto standalone financial statements reporting of Muthoot Finance Limited ("theCompany") as of March 31 2021 in conjunction with our audit of the standalonefinancial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal controls with reference tostandalone financial statements 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 (‘ICAI'). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls systems with reference to financial statements reporting based on ouraudit. We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Act to the extent applicable to an audit of internal financial controls bothapplicable to an audit of Internal Financial Controls and both issued by the ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls system with reference to financial statements reporting was establishedand maintained 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 with reference to financialstatements reporting and their operating effectiveness. Our audit of internal financialcontrols system with reference to financial statements reporting included obtaining anunderstanding of internal financial controls system with reference to financial statementsreporting 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 judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

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 with reference to financial statements reporting.

Meaning of Internal Financial Controls with reference to FinancialStatements reporting

A company's internal financial controls system with reference tofinancial statements reporting is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company's internal financial controls system with reference to financialstatements 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 with reference toFinancial Statements reporting

Because of the inherent limitations of internal financial controlssystem with reference to financial statements reporting including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls system with reference to financial statements reporting tofuture periods are subject to the risk that the internal financial controls system withreference to financial statements reporting may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system with reference to financial statements reporting andsuch internal financial controls system with reference to financial statements reportingwere operating effectively as at March 31 2021 based on the internal control withreference to financial statements reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the ICAI.

For Varma & Varma (FRN : 004532S)
Sd/-
Vijay Narayan Govind
Partner
Chartered Accountants
Place: Kochi Membership No. 203094
Date: June 02 2021 UDIN: 21203094AAAABG6157

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