To
The Members
NGL FINE-CHEM LIMITED
Report on the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of M/S. NGLFINE-CHEM LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2022 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flows for the year ended onthat date and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the standalone financial statements").
Inouropinionandtothebestofourinformationandaccording to the explanations given to usthe aforesaid standalone financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian
Accounting Standards prescribed under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended ("Ind AS") and otheraccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2022 the profit and total comprehensive income changes in equity and itscash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the
Standalone Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of
India (ICAI) together with the independence requirements that are relevant to our auditof the standalone financial statements under the provisions of the Act and the Rules madethereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe standalone financial statements.
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 bethe key audit matters to be communicated in our report.
| Key Audit Report | How was the matter addressed in our audit |
| Revenue Recognition | Our audit procedures among other things included the following: |
| Revenue is recognized upon transfer of control of promised goods to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those goods. Revenue is measured based on transaction price | • Considered the appropriateness of the Company's accounting policies regarding revenue recognition |
| which is the consideration adjusted for rebates discounts and incentives as also estimated sales returns. | • Testing controls automated and manual around dispatches/deliveries/shipments inventory reconciliations and process of confirmation of receivable balances |
| Revenue is one of the key profit drivers and therefore testing for cut-offs and analytical review procedures accounting of revenue is considered as a key audit matter. [Refer Note 2.07 to the financial statements] | |
| • Assessed the disclosures in accordance with the requirements of Ind AS 115 on "Revenue from Contracts with Customers". |
| Valuation of inventories | Our audit procedures among other things included the following. |
| The Company has complex product manufacturing process and thus the overhead absorption over each process is quite complex and more particularly to have the basis of absorption. | • Evaluated the appropriateness of the basis applied to arrive at the overhead absorption rate; |
| The Company has worked out the overhead absorption cost rate based on the consumption of electricity of each process and apply the same for all other overheads. | • Examined the workings of the absorption of over heads to arrive at the cost of inventories. |
| Due to significance of arriving at the overhead absorption rate for the valuation of inventories it is considered to be a key audit matter. | Our audit methodology involves process adopted to ascertain and evaluate the methods used are reasonable and absorbs overheads in an appropriate & logical manner. |
| [Refer Note 2.06 to the financial statements] | • Assessed the disclosures in accordance with the requirements of Ind AS 2 on "Inventories". |
Key Audit Report How was the matter addressed in our audit
Allowance for Expected Credit Loss of Trade Receivables Our audit procedures includedamong others the following :
Provision for impairment by way of Allowance for Expected Obtained sufficient andappropriate audit evidence about Credit Loss (ECL) of Trade Receivables require whetherpolicies operational procedures internal control • the appropriateness ofaccounting policies for systems and other relative assumptions for estimationdetermination of Allowance for ECL; and determination of Allowance for ECL are reasonable.
• operational procedures and systems of internal control in Objectively evaluatedthe estimates made in the broader estimation of ECL. context of the financial statementsas a whole;
• estimation of expected losses and appropriate
• Assessed the estimates and assumptions adopted by the assumptions andsignificant judgments on the Company in determining the need to recognize a provisionrecoverability of receivables; and where applicable its amount;
• the completeness accuracy relevance and reliability of • Evaluated thecompleteness of disclosures in respect of historical information; Allowance for ExpectedCredit Loss.
• the Company's overall review of the estimate; and
the clarity and reasonableness of related ECL disclosures. In view of the determinationof the basis and quantum of Allowance of ECL it is a significant item in the financialstatements and hence considered to be a key audit matter. [Refer Note 2.15 to thestandalone financial statements]
Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Management
Discussion 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 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 course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (IndAS) prescribed under Section 133 of the Act read with the Companies (Indian AccountingStandard) Rules 2015 as amended and other accounting principles generally accepted inIndia.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the 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 is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company's financial reportingprocess.
Auditor's 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 auditor's 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 standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal financial controls 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 system in place and the operatingeffectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 exists we are required to draw attention inour auditor's report to the related disclosures in the standalone financial statements orif such disclosures are inadequate to modify our opinion. Our conclusions are based onthe audit evidence obtained up to the date of our auditor's report. However future eventsor conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in
(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 financialstatements.
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 auditor's 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 Section 143(3) of the Act based on our audit 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 Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.
d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.
e) On the basis of the written representations received from the directors as on March31st 2022 taken on record by the Board of Directors none of the directors aredisqualified as on March 31st 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid 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 othermatters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules 2014 as amended in our opinion and tothe best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Financial Statements-
Refer Note 34 to the Standalone Financial Statements.
(ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.
(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
(iv) (a) The Management has represented that to the best of its knowledge and beliefno funds (which are material either individually or in the aggregate) 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 Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe 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.
(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement.
(v) (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) As stated in note 55 to the financial statements the Board of Directors of theCompany have proposed final dividend for the year which is subject to the approval of themembers at the ensuing Annual General Meeting. The dividend declared is in accordance withsection 123 of the Act to the extent it applies to declaration of dividend
2. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.
For MANEK & ASSOCIATES
Chartered Accountants
Firm's registration number: 0126679W
(SHAILESH MANEK)
Partner
Mumbai Membership number: 034925 Dated: 02nd May 2022 UDIN: 22034925AIGGZW2668
Annexure - A
TO THE AUDITORS' REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") We have audited the internalfinancial controls over financial reporting of M/S. NGL FINE-CHEM LIMITED("the Company") as of 31st March 2022 in conjunction with our audit of thestandalone financial 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 and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI').
These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Auditors' Responsibility
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting on our audit. We conducted our audit in accordance withthe Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the
Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10)of the Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered
Accountants of India. Those Standards and the Guidance Note 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies 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 financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance 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 financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion 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 of Internal Financial Controls Over Financial
Reporting issued by the Institute of Chartered Accountants of India.
For MANEK & ASSOCIATES
Chartered Accountants
Firm's registration number: 0126679W
(SHAILESH MANEK)
Partner
Mumbai Membership number: 034925 Dated: 02nd May 2022 UDIN: 22034925AIGGZW2668
Annexure - B
TO THE AUDITORS' REPORT
The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone financial statements for the year ended 31 March 2022 we report that:(i) (a) (A) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment and relevant detailsof right-of-use assets.
(B) The Company has maintained proper records showing full particulars of intangibleassets. (b) The Company has a regular programme of physical verification of its propertyplant and equipment by which property plant and equipment are verified in a phased mannerover three years. In accordance with this programme certain property plant and equipmentwere verified during the year and the material discrepancies which were noticed have beenproperly dealt with in the books of account. In our opinion this periodicity of physicalverification is reasonable having regard to the size of the Company and the nature of itsassets.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company except the following
| Type of Asset | Total No of cases | Leasehold/ Freehold | Gross Block as on 31st March 2022 | Net Block as on 31st March 2022 | Remarks |
| Land-FS/5 MIDC Additional Mahad Industrial Area | 1 | Leasehold | 3694875 | 3153981 | Transfer order of property has been received from MIDC and Registration formalities with the stamp duty authorities is pending for adjudication. |
(d) The company has not revalued its property plant and equipment (including right ofuse assets) and intangible assets during the year.
(e) In our opinion and according to the information and explanations given to us noproceedings has been initiated or are pending against the company for holding any benamiproperty under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) and rules madethereunder and therefore provision of clause 3(i)(e) of the order are not applicable tothe company.
(ii) (a) The inventories have been physically verified by the management at reasonableintervals during the year.
In our opinion this periodicity of physical verification is reasonable having regardto the size of the Company and the nature of its assets
(b) The company has availed working capital limits in excess of five crore rupeesduring the financial year in aggregate from banks or financial institutions on the basisof security of current assets. The management has been regular in furnishing returns/statements of book debts and inventories which are primary securities for the purpose ofthe working capital loans. In our opinion based on the representation made by themanagement in note no 51 to the standalone financial statements and based upon ourverification of the quarterly returns/ statements of inventories with the books ofaccounts we have observed that due to the complexities involved in the valuationprocedure and due to typographical errors data submitted to the banks are not in agreementwith books of accounts and in case of book debts due to technical glitch in the ERP thesame are not in agreement with the quarterly returns/ statements been submitted to thebanks the details are herein under
Amounts in Lakhs
| MONTH | Stocks and Receivables submitted to Bank | Stocks and Receivables as per books | Difference |
| Jun-21 | 9222.09 | 9328.58 | -106.49 |
| Sep-21 | 10654.39 | 10857.24 | -202.85 |
| Dec-21 | 5621.28 | 10790.25 | -5168.96 |
(iii) (a) The Company has granted unsecured loans to the wholly owned subsidiaryCompany as per details given below:-
| Particulars | Loans |
| (A) Aggregate amount granted/ provided during the year :- | |
| Wholly owned subsidiary | Rs.161697712/- |
| (B) Balance outstanding as at balance sheet date in respect of above | |
| Wholly owned subsidiary | Rs.310411105 ( Principal : Rs. 284801972/- and Interest Rs.25609133/-) |
(b) In our opinion the terms and conditions of the grant of loans during the yearare prima facie not prejudicial to the Company's interest
(c) In respect of loans granted by the Company the schedule of repayment of principaland payment of interest has not been stipulated.
(d) Since the terms of repayment are not stipulated there is no overdue amount of suchloan and its interest.
(e) .
(f) In our opinion and according to the information and explanation given to us andbased on the audit procedures conducted by us the company has granted following loanseither repayable on demand or without specifying any terms or period of repayment:-
| Particulars | All Parties | Promotors | Related Parties. |
| Aggregate amount of loans Repayable on demand (A) Agreement does not specify any terms or period of repayment (B) | Nil | Nil | Rs.307897135/- |
| Total (A+B) | Nil | Nil | Rs.307897135/- |
| Percentage of loans to the total loans | Nil | Nil | 99.88% |
(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made as applicable.
(v) The Company has not accepted any deposits from the public and consequently thedirectives issued by the Reserve Bank of India the provisions of sections 73 to 76 or anyother relevant provisions of the
Companies Act and the Rules framed there under are not applicable and also no orderswere passed by
Company Law Board National Company Law Tribunal or Reserve Bank of India or any courtor any other Tribunal and therefore clause 3(v) of the order is not applicable.
(vi) According to information and explanations given to us the Central Government hasnot prescribed the maintenance of cost records under clause (d) of subsection (1) ofSection 148 of the Companies Act 2013 in respect of the manufacturing activities carriedon by the Company and therefore the provision of clause 3(vi) of the Order is notapplicable.
(vii) (a) According to the information and explanations given to us and on the basis ofthe books and records examined by us the company is generally regular in depositingundisputed statutory dues including Goods and Services Tax provident fund employees'state insurance income tax Sales tax service tax duty of custom duty of excise valueadded tax cess and other statutory dues to the appropriate authorities applicable to it.
(b) According to the information and explanations given to us no undisputed amountspayable in respect of Goods and Services Tax provident fund employees' state insuranceincome tax sales tax service tax duty of customs duty of excise value added tax cessand any other material statutory dues were in arrears as at 31 March 2022 for a period ofmore than six months from the date they became payable.
(c) According to the information and explanation given to us there are no materialdues of Goods and Services Tax provident fund employees' state insurance income taxSales tax service tax duty of custom duty of excise value added tax cess and otherstatutory dues which have not been deposited on account of any dispute except thefollowing stated below.
| Name of the Statute | Nature of Dues | Amount (Rs.) | Period to which the amount relates | Forum where dispute is pending. |
| Provident Fund- Contractor | Provident Fund | 1775767/- | May2014 to November 2015. | Central Government Industrial Tribunal No.1 Mumbai |
(viii) In our opinion and according to the information and explanations given to usthere are no transactions that have been surrendered or disclosed as income during theyear in the tax assessments under the Income
Tax Act 1961 (43 of 1961) and hence the provision of clause 3 (viii) of the order isnot applicable.
(ix) (a) The Company has not defaulted in repayment of loan or other borrowings or inthe payment of interest to any lender.
(b) According to the information and explanations given to us and on the basis of ouraudit procedures we report that the company has not been declared willful defaulter byany bank or financial institution or any other lender.
(c) According to the information and explanations given to us and on the basis of ouraudit procedures we report that the company has not taken any term loan during the yearand hence the provision of clause 3 (ix)(c) of the order is not applicable.
(d) On an overall examination of the financial statements of the Company funds raisedon short-term basis have prima facie not been used during the year for long-termpurposes by the
Company.
(e) According to the information and explanations given to us and on an overallexamination of the financial statements of the company we report that the company has nottaken any funds to meet the obligations of its subsidiaries associates or joint venturesand hence the provision of clause 3 (ix)(e) of the order is not applicable.
(f) According to the information and explanations given to us and procedures performedby us we report that the company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries joint ventures or associate companies and hence theprovision of clause 3 (ix)(f) of the order is not applicable.
(x) (a) During the financial year the company has not raised any money by way ofinitial public offer or further public offer (including debt instruments) and thereforethe provisions of clause 3(x)(a) of the Order is not applicable.
(b) The Company has not made any preferential allotment or private placement of sharesor fully or partially or optionally convertible debentures during the year under reviewtherefore the provisions of clauses 3(x)(b) of the Order are not applicable to thecompany.
(xi) (a) According to information and explanations given to us there were no fraud bythe company or any fraud on the Company has been noticed or reported during the year andtherefore the provision of clause 3 (xi)(a) of the Order is not applicable.
(b) According to information and explanations given to us no report under sub- section(12) of section 143 of the Companies Act is required to be filed by the auditors in FormADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014 with theCentral Government x hence the provision of clause 3 (xi)(b) of the order is notapplicable.
(c) As represented to us by the management there are no whistle blower complaintsreceived by the company during the year.
(xii) In our opinion the company is not a chit fund or a nidhi Company and thereforethe provisions of clause 3(xii) (a)3(xii)(b) and 3(xii)(c) of the Order are notapplicable to the company.
(xiii) According to information and explanation given to us all the transactions withrelated parties are in compliance with the provisions of sections 177 and 188 of CompaniesAct 2013 where applicable. The details of related party transactions have been disclosedin the Ind As financial statements as required under the applicable Accounting Standards.
(xiv) (a) In our opinion and based on our examination the company has an internalaudit system commensurate with the size and nature of its business.
(b) We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date
(xv) During the financial year the Company has not entered into any non-cashtransactions with directors or persons connected with him and therefore the provisions ofclause 3(xv) of the Order are not applicable to the company.
(xvi) (a) In our opinion the Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause 3(xvi)(a) (b)and (c) of the Order is not applicable.
(b) In our opinion there is no core investment company within the Group (as defined inthe Core Investment Companies (Reserve Bank) Directions 2016) and accordingly reportingunder clause 3(xvi)(d) of the Order is not applicable.
xvii) In our opinion the company has not incurred cash losses in the financial yearand in the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year andaccordingly provisions of clause
3(xviii) of the Order is not applicable.
(xix) According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities other information accompanying the financial statements ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatcompany is not capable of meeting its liabilities existing at the date of balance sheet asand when they fall due within a period of one year from the balance sheet date. Wehowever state that this is not an assurance as to the future viability of the company. Wefurther state that our reporting is based on the facts up to the date of the audit reportand we neither give any guarantee nor any assurance that all liabilities falling duewithin a period of one year from the balance sheet date will get discharged by thecompany as and when they fall due.
(xx). (a) There are no unspent amounts towards Corporate Social Responsibility (CSR)requiring a transfer to a Fund specified in Schedule VII to the Companies
Act in compliance with second proviso to subsection (5) of Section 135 of the said Act.Accordingly reporting under clause 3(xx)(a) of the Order is not applicable for the year.
(b) There are no amounts that remains unspent under section (5) of section 135 of theCompanies Act pursuant to any ongoing project. (xxi) In our opinion there have been noqualifications or adverse remarks by the auditor in the Companies
(Auditor's Report) Order (CARO) reports of the companies included in the consolidatedfinancial statement.
For MANEK & ASSOCIATES
Chartered Accountants
Firm's registration number: 0126679W
(SHAILESH MANEK)
Partner
Mumbai Membership number: 034925 Dated: 02nd May 2022 UDIN: 22034925AIGGZW2668
