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Neelamalai Agro Industries Ltd.

BSE: 508670 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE605D01012
BSE 00:00 | 24 Mar 3420.00 -7.80
(-0.23%)
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NSE 05:30 | 01 Jan Neelamalai Agro Industries Ltd
OPEN 3412.55
PREVIOUS CLOSE 3427.80
VOLUME 58
52-Week high 4650.00
52-Week low 2960.35
P/E 46.30
Mkt Cap.(Rs cr) 212
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3412.55
CLOSE 3427.80
VOLUME 58
52-Week high 4650.00
52-Week low 2960.35
P/E 46.30
Mkt Cap.(Rs cr) 212
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Neelamalai Agro Industries Ltd. (NEELAMALAIAGRO) - Auditors Report

Company auditors report

To the members of Neelamalai Agro Industries Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Neelamalai Agro IndustriesLimited ("the Company") which comprise the standalone balance sheet as at 31March 2022 and the standalone statement of Profit and Loss (including other comprehensiveincome) standalone statement of changes in equity and standalone statement of cash flowsfor the year then ended and notes to the standalone financial statements including asummary of significant accounting policies and other explanatory information (hereinafterreferred to as "standalone financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (‘the Act') in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2022 the profit and other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the standalone financialstatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the ethical requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

We have determined the matters described below to be the key audit matters to becommunicated in our report.

Sr.
Key audit matters How our audit addressed the key audit matter
No.
1. Accounting for Government Grants Principal audit procedures:
The company is entitled to apply for and seek support from Tea Board towards Replanting expenditure Rejuvenation Expenditure and also in respect of Orthodox manufacture. ? We have evaluated the company's process of determining the point of reasonable certainty in recognition of the grants for different categories of grants and the robustness with which this process is consistently applied.
Further the company is also entitled for Remissions of Duties and Taxes on Exported Products on exports. ? Our review also included the estimation process in terms of the grant amounts recorded as receivable and the process of re- evaluating the same at each period end
There are uncertainties attached to these government grants in respect of the timing and quantum of approvals based on the processing of the applications. ? We also reviewed the disclosures made in the financial statements in terms of the policy and the treatment of the grants in terms of capital grants and revenue grants
2. Unobservable or interpolated inputs used for the valuation of certain level 3 investments Principal audit procedures:
Given the ongoing market volatility and macroeconomic uncertainty investment valuation is an area of inherent risk. ? We assessed both the methodology and assumptions used by management in the calculation of the year end values of the investments as well as testing the governance controls that the Directors have in place to monitor these processes.
The risk is not uniform for all investment types and is greatest for unquoted investments where the investments are hard to value because quoted prices are not readily available. ? The testing included performing amongst others the following procedures:
The Company's accounting policies in respect of financial assets are included in the Company's accounting policies while the disclosures are included in Note No. 41 to the standalone financial statements. o Evaluating the methodology and assumptions in the valuation models;
o Comparing the assumptions used against appropriate benchmarks and enquiring into significant differences;
o Wherever available recent transactions in the unquoted investments are appropriately considered.

Information Other than the Standalone Financial Statements and Auditors' Report Thereon

The Company's management and Board of Directors are responsible for the preparation ofthe other information. The other information comprises the information included in theDirector's report and Management Discussion and Analysis Report but does not include thestandalone financial statements and our auditors' report thereon.

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

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the audit or otherwise appears to be materially misstated. If based onthe work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of the Management and Those Charged with Governance for StandaloneFinancial Statements

The Company's management and Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financial performanceand total comprehensive income changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian accounting Standards (Ind AS) prescribed under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments 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 and Board of Directors areresponsible 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.

Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditors' Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditors' report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

??Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

??Obtain an understanding of internal financial control relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls with reference to the standalonefinancial statements in place and the operating effectiveness of such controls.

??Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

??Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditors' report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditors' report. However future events or conditions may cause the Company to cease tocontinue as a going concern; and

??Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors' report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

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

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Standalone Balance Sheet the Standalone Statement of Profit and Loss(including other comprehensive income) the Standalone Statement of Changes in Equity andthe Standalone Statement of Cash Flows dealt with by this Report are in agreement with thebooks of account.

(d) In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards (Ind AS) prescribed under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31March 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2022 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls with reference tothe standalone financial statements 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 the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations as at 31 Match 2022 onits financial position in its standalone financial statements – Refer Note 38 to thestandalone financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii.There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended 31 March 2022;iv.

(a) The management has represented that to the best of its knowledge and belief asdisclosed in the Note 48(ii) to the standalone financial statements no funds have beenadvanced or loaned or invested (either from borrowed funds or share premium or any othersources or kind of funds) by the company to or in any other persons or entities includingforeign entities ("Intermediaries") with the understanding whether recorded inwriting or otherwise that the Intermediary shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe company ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries

(b) The management has represented that to the best of its knowledge and belief asdisclosed in the Note 48(ii) to the standalone financial statements no funds have beenreceived by the Company from any persons or entities including foreign entities("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 such audit procedures that we have considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (a) and (b) contain any material mis-statement; andv. As stated in Note 50 to the standalone financial statements

a. The final dividend paid by the Company during the year in respect of the samedeclared for the previous year is in accordance with section 123 of the Companies Act 2013to the extent it applies to payment of dividend.

b. The interim dividend declared and paid by the Company during the year and until thedate of this audit report is in accordance with section 123 of the Companies Act 2013.

c. The Board of Directors of the Company has proposed final dividend for the year whichis subject to the approval of the members at the ensuing Annual General Meeting. Thedividend declared is in accordance with section 123 of the Act to the extent it applies todeclaration of dividend.

3. With respect to the matter to be included in the Auditors' Report under section197(16): In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act.

For PKF Sridhar & Santhanam LLP
Chartered Accountants
Firm's Registration No.003990S/S200018
T V Balasubramanian
Partner
Chennai Membership No.027251
30.05.2022 UDIN: 22027251AJXKIY8332

ANNEXURE A TO INDEPENDENT AUDITORS' REPORT

To the members of Neelamalai Agro Industries Limited

Referred to in paragraph 1 on ‘Report on Other Legal and Regulatory Requirements'of our report of even date to the members of Neelamalai Agro Industries Limited ("theCompany") on the standalone financial statements as of and for the year ended 31March 2022.

(i) (a) In respect of property plant and equipment (PPE) and intangible assets : (A)The Company has maintained proper records showing full particulars including quantitativedetails and situation of Property Plant and Equipment.

(B) The Company does not have any intangible assets as of date and hence question ofwhether the Company maintained proper records showing full particulars of intangibleassets does not ariseand accordingly paragraph 3 (i)(a)(B) is not applicable.

(b) The Company has a regular programme of physical verification of its Property Plantand Equipment by which all Property Plant and Equipment are verified in a phased mannerover a period of three years. In our opinion this periodicity of physical verification isreasonable having regard to the size of the Company and the nature of its assets. Pursuantto the programme certain Property Plant and Equipment were physically verified by themanagement during the year. In our opinion and according to the information andexplanations given to us no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us the records examined byus and based on the examination of the conveyance deeds provided to us we report thatthe title deeds comprising all the immovable properties disclosed in the financialstatements are held in the name of the Company as at Balance Sheet date.

(d) The Company has not revalued its Property Plant and Equipment during the year andhence paragraph 3 (i)(d) is not applicable. is not applicable to the Company.

(e) No proceedings have been initiated or are pending against the Company for holdingany benami property under the Benami Transactions (Prohibitions) Act 1988 (45 of 1988)and rules made thereunder.

(ii) a) The inventory except stocks lying with third parties has been physicallyverified by the management at reasonable intervals during the year. In our opinion thefrequency of such verification is reasonable. In our opinion the coverage and procedureof such verification by the management is appropriate. For stocks lying with third partiesat the year-end written confirmations have been obtained or subsequent utilizationverified. The discrepancies noticed on verification between the physical stocks and thebook records are not 10% or more in the aggregate for each class of inventory.

b) Based on our audit procedures & according to the information and explanationgiven to us the Company has been sanctioned working capital limits in excess of fivecrore rupees in aggregate from banks or financial institutions on the basis of securityof current assets. The insignificant differences noticed between the quarterly return ofinventories and book debts submitted to the banks and the books of account did not affectthe drawing power and the required security cover computed in accordance with thesanctioned terms.

(iii) Based on our audit procedures & according to the information and explanationgiven to us the Company has made investments into companies and mutual funds as part ofits investment portfolio. The Company has not provided any guarantee or security orgranted any loans or advances in the nature of loans secured or unsecured to companiesfirms Limited Liability Partnerships or any other parties. Accordingly (a) In theabsence of any loans guarantee security given during the year this sub-clause is notapplicable (b) Based on our audit procedures & according to the information andexplanation given to us the investments made are not prejudicial to the Company'sinterests.

(c) In the absence of any loans and advances in the nature of loans given during theyear the question of whether the schedule of repayment of principal and payment ofinterest has been stipulated and repayments / receipts are regular does not arise andaccordingly this sub-clause is not applicable.

(d) In the absence of any loans or advances in the nature of loans outstanding as atthe year end the question of whether there are amounts overdue for more than ninety daysas at the balance sheet date and reasonable steps have been taken by the Company forrecovery of the principal and interest does not arise and accordingly this sub-clause isnot applicable

(e) In the absence of any loans or advances in the nature of loans fallen due duringthe year and hence the question of whether the loan has been renewed or extended or freshloans granted to settle the overdue of existing loan given to the same parties does notarise and accordingly this sub-clause is not applicable

(f) In the absence of any loans or advances in the nature of loans either repayable ondemand or without specifying any terms or period of repayment and hence the question ofaggregate amount percentage thereof to the total loans granted aggregate amount of loansgranted to Promoters related parties as defined in clause 76 of section 2 of theCompanies Act 2013 does not arise and accordingly this subclause is not applicable

(iv) In our opinion and according to the information and explanation given to us theCompany has complied with provisions of Section 185 and 186 of the Act with respect ofmaking investments. The company has not granted loans provided guarantees and securitiesas applicable.

(v) Based on our audit procedures & according to the information and explanationgiven to us the Company has not accepted any deposits or amounts which are deemed to bedeposits within the meaning of the Act and the directives issued by the Reserve Bank ofIndia and the provisions of sections 73 to 76 or any other relevant provisions of the Actand the rules framed thereunder. Accordingly paragraph 3(v) of the Order is notapplicable to the Company.

(vi) We have broadly reviewed the books of account maintained by the Company asspecified under sub section (1) of section 148 of the Act for maintenance of cost recordsin respect of the products manufactured by the Company and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. However we havenot made a detailed examination of cost records with a view to determine whether they areaccurate or complete.

(vii) (a) The Company does not have liability in respect of Sales tax Service taxDuty of excise and Value added tax during the year since effective 1 July 2017 thesestatutory dues has been subsumed into GST.

According to the information and explanations given to us and the records of theCompany examined by us the Company has generally been regular in depositing undisputedstatutory dues including Goods and Services Tax (GST) provident fund employees' stateinsurance income-tax custom duty cess and any other statutory dues as applicable withthe appropriate authorities.

According to the information and explanation given to us and the records of the Companyexamined by us no undisputed amounts payable in respect of Goods and Services Tax (GST)provident fund employees' state insurance income-tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues were inarrears as at 31 March 2022 for a period of more than six months from the date theybecame payable.

(b) According to the information and explanations given to us and based on ourexamination of the records of the Company there are no statutory dues referred to insub-clause (a) as at 31 March 2022 which have not been deposited with the appropriateauthorities on account of any dispute except as stated below:

Name of the Statute Name of dues Amount demanded (Rs. in Lakhs) Amount paid under protest (Rs. in Lakhs) Period to which the amount relates Forum where dispute is pending
Income Tax Act Income Tax demands 4.43 Nil AY 2012-13 and AY 2013-14 CIT (Appeals)

(viii) Based on our audit procedures and as per the information and explanations givenby the management no amount has been surrendered or disclosed as income during the yearin the tax assessments under the Income Tax Act 1961.

Accordingly paragraph 3(viii) of the order is not applicable to the Company.

(ix) (a) Based on our audit procedures and as per the information and explanationsgiven by the management the Company has not defaulted in repayment of loans or otherborrowings or in payment of interest thereon to any lender.

(b) According to the information and explanations given to us the Company is not adeclared willful defaulter by any bank or financial institution or other lender.Accordingly paragraph 3(ix)(b) of the Order is not applicable to the Company.

(c) According to the information and explanations given to us and the records of theCompany examined by us the company has no term loans.

Accordingly paragraph 3(ix)(c) of the Order is not applicable to the Company.

(d) According to the information and explanations given to us and the proceduresperformed by us and on an overall examination of the standalone financial statements ofthe company we report that the company has not used any short term funds raised for longterm purposes during the year.

(e) According to the information and explanations given to us and the records of theCompany examined by us the Company has not taken any funds from any entity or person onaccount of or to meet the obligations of its joint venture or associate companies.Accordingly paragraph 3(ix)(e) of the Order is not applicable to the Company.

(f) According to the information and explanations given to us and the records of theCompany examined by us the Company has not raised any loans during the year on pledge ofsecurities held in its joint venture or associate companies. Accordingly paragraph3(ix)(f) of the Order is not applicable to the Company.

(x) (a) According to the information and explanations given to us the Company did notraise money by way of initial public offer or further public offer (including debtinstruments) during the year and hence the question of whether money raised were appliedfor the purposes for which those are raised does not arise. Accordingly paragraph 3(x) ofthe Order is not applicable to the Company.

(b) According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or convertible debentures(fully partially or optionally convertible) during the year and hence the question ofwhether the requirements of section 42 and section 62 of the Companies Act 2013 have beencomplied with and the funds raised have been used for the purposes for which the fundswere raised does not arise. Accordingly paragraph 3(x)(b) of the Order is not applicableto the Company.

(xi) (a) To the best of our knowledge and belief and according to the information andexplanations given to us we report that no fraud by the Company or on the Company hasbeen noticed or reported during the year.

(b) No report under sub-section (12) of section 143 of the Companies Act has been filedby us in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules2014 with the Central Government (c) To the best of our knowledge and belief and accordingto the information and explanations given to us we report that no whistle blowercomplaints were received during the year by the Company.

(xii) Based on our audit procedures and according to the information and explanationsgiven to us the Company is not required to be registered under Section 45-IA of ReserveBank of India Act 1934.

(xiii) The Company is not a Nidhi company in accordance with Nidhi Rules 2014.Accordingly paragraph 3(xii)(a) to (c) of the Order is not applicable.

(xiv) (a) To the best of our knowledge and belief and according to the information andexplanations given to us the Company has an internal audit system commensurate with thesize and nature of its business.

(b) We have considered the reports of the Internal Auditors for the period under audit

(xv) On the basis of the information and explanations given to us in our opinionduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with its directors and hence provisions of section 192 ofthe Companies Act 2013 are not applicable to the Company.

(xiv) (a) Based on our audit procedures and according to the information andexplanations given to us the Company is not required to be registered under Section 45-IAof Reserve Bank of India Act 1934 (2 of 1934).

(b) Based on our audit procedures and according to the information and explanationsgiven to us the Company has not conducted any Non-Banking Financial or Housing Financeactivities without a valid Certificate of Registration (CoR) from the Reserve Bank ofIndia as per the Reserve Bank of India Act 1934. Accordingly paragraph 3(xvi)(b) of theOrder is not applicable to the Company.

(d) Based on our audit procedures and according to the information and explanationsgiven to us the Company is not a Core Investment Company (CIC) as defined in theregulations made by the Reserve Bank of India and hence the questions of fulfillingcriteria of a CIC and in case the Company is an exempted or unregistered CIC whether itcontinues to fulfill such criteria do not arise.

Accordingly paragraph 3(xvi)(c) of the Order is not applicable to the Company.

(e) Based on our audit procedures and according to the information and explanationsgiven to us there are no Core Investment Companies (CICs) in the Group (basis definitionof "Companies in the Group" as per Core Investment Companies (Reserve Bank)Directions 2016) as at the end of the reporting period.

(viii) Based on our audit procedures and according to the information and explanationsgiven to us the Company has not incurred cash losses in the financial year and in theimmediately preceding financial year.

(ix) There has been no resignation of the statutory auditors during the year andaccordingly this clause is not applicable.

(x) On the basis of financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements our knowledge of the management plans we are of the opinion that nomaterial uncertainty exists as on the date of the audit report of the Company's capabilityof meeting its liabilities existing at the date of balance sheet as and when they fall duewithin a period of one year from the balance sheet date. We however state that this isnot an assurance as to the future viability of the company. We further state that ourreporting is based on the facts up to the date of the audit report and we neither give anyguarantee nor any assurance that all liabilities falling due within a period of one yearfrom the balance sheet date will get discharged by the company as and when they fall due.

(xi) Based on our audit procedures and according to the information and explanationsgiven to us the company is not required to spend the amount for corporate socialresponsibilities and Accordingly paragraph 3(xx)(a) and 3(xx)(b) of the Order is notapplicable to the Company.

For PKF Sridhar & Santhanam LLP
Chartered Accountants
Firm's Registration No.003990S/S200018
T V Balasubramanian
Partner
Chennai Membership No.027251
30.05.2022 UDIN: 22027251AJXKIY8332

Referred to in paragraph 2(f) on ‘Report on Other Legal and RegulatoryRequirements' of our report of even date Report on the Internal Financial Controls withreference to the aforesaid standalone financial statements under Clause (i) of Sub-section3 of Section 143 of the Companies Act 2013 Management's Responsibility for InternalFinancial Controls

The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal control with referenceto standalone financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India (the "Guidance Note"). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013 (hereinafter referred to as "the Act").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to standalone financial statements. 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 with reference to standalone financial statements were established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls with reference to standalone financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to standalonefinancial statements included obtaining an understanding of internal financial controlsassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Company's internal financial controls withreference to standalone financial statements.

Meaning of Internal Financial Controls with reference to standalone financialstatements

A Company's internal financial control with reference to standalone financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of standalone financial statements for externalpurposes in accordance with generally accepted accounting principles. A Company's internalfinancial control with reference to standalone financial statements includes thosepolicies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorizations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with reference to standalonefinancial statements

Because of the inherent limitations of internal financial controls with reference tostandalone financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial control with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

We have audited the internal financial controls with reference to standalone financialstatements of Neelamalai Agro Industries Limited ("the Company") as of 31 March2022 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date. In our opinion the Company has in all materialrespects an adequate internal financial controls with reference to financial statementsand such internal financial controls were operating effectively as at 31 March 2022 basedon the internal control with reference to financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India (the "Guidance Note"). .

For PKF Sridhar & Santhanam LLP

Chartered Accountants Firm's Registration No.003990S/S200018

T V Balasubramanian
Partner
Chennai Membership No.027251
30.05.2022 UDIN: 22027251AJXKIY8332

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