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NHC Foods Ltd.

BSE: 517554 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE141C01028
BSE 00:00 | 19 Oct 17.10 -1.44
(-7.77%)
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18.70

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19.49

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NSE 05:30 | 01 Jan NHC Foods Ltd
OPEN 18.70
PREVIOUS CLOSE 18.54
VOLUME 41983
52-Week high 21.10
52-Week low 5.47
P/E 17.10
Mkt Cap.(Rs cr) 20
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 18.70
CLOSE 18.54
VOLUME 41983
52-Week high 21.10
52-Week low 5.47
P/E 17.10
Mkt Cap.(Rs cr) 20
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

NHC Foods Ltd. (NHCFOODS) - Auditors Report

Company auditors report

To

the Members of NHC Foods Limited

Report on the Audit of the Ind AS Financial Statements

Opinion

We have audited the accompanying Ind AS financial statements of NHC FOODS LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2020 thestatement of Profit and Loss (Including Other Comprehensive Income) the Statement ofChange in Equity and the Statement of Cash Flows for the year ended on that date and asummary of significant accounting policies and other explanatory information (hereinafterreferred to as the "Ind AS financial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS Financial Statements give the information required bythe Companies Act 2013 (the "Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2020 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing ("SA"s) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibility for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India ("ICAI") together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Key audit matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statement as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Sr. No. Key Audit Matter How was the matter addressed in our audit
1. Adoption of Ind AS 116 Leases: Principal Audit Procedures:
The Company has adopted Ind AS 116 Leases (Ind AS 116) in the current year. The application and transition to this accounting standard is complex and is an area of focus in our audit since the Company has a large number of leases with different contractual terms. Our audit procedures on adoption of Ind AS 116 include:
• Assessed and tested new processes and controls in respect of Ind AS 116 - Leases
• Assessed the Company's evaluation on the identification of leases based on the contractual agreements and our knowledge of the business;
Ind AS 116 introduces a new lease accounting model wherein lessees are required to recognise a right-of-use (ROU) asset and a lease liability arising from a lease on the balance sheet.
• Involvement of our internal subject matters experts accounting standard specialists to review the judgements exercised by the management in determining the application of the Standard
The lease liabilities are initially measured by discounting future lease payments during the lease term as per the contract/ arrangement.Implementation of the standard involves review of contractual arrangements to determine those which fall under purview of the Standard. Judgement is also involved in determining the application of the Standard to the relevant contractual arrangements about whether an arrangement is scoped out of the purview of the Standard by virtue of it not involving an identified asset composite arrangements which involve both an element of service and identified asset and variable leasing arrangements which do not require recognition of a right of use asset and a corresponding lease liability. • Involved our internal subject matters experts to evaluate the reasonableness of the discount rates applied in determining the lease liabilities;
• Upon transition as at 1 April 2019:
• Evaluated the method of transition and related adjustments;
• Tested completeness of the lease data by reconciling the Company's operating lease commitments to data used in computing ROU asset and the lease liabilities.
• On a statistical sample we performed the following procedures:
• assessed the key terms and conditions of each lease with the underlying lease contracts;
• evaluated computation of lease liabilities amortisation of Right of Use Assets (ROU) and corresponding finance cost and impact on taxation
This involves significant judgements and estimates including determination of the discount rates and the lease term.Additionally the standard mandates detailed disclosures in respect of transition. Accordingly implementation of Ind AS-116 has been reported as a key audit matter
• challenged the key estimates such as discount rates and the lease term.
• Assessed and tested the presentation and S L.disclosures relating to Ind AS 116 including disclosures relating to transition.
2 Trade receivables and other financial assets and Impairment In view of the significance of the matter we applied the following key audit procedures:
The Company has significant trade receivables and other financial assets at year end. Given the size of the balances and the risk that some of the trade receivables and other financial assets may not be recoverable judgement is required to evaluate whether any allowance should be made to reflect the risk. The Company recognizes loss allowance for trade receivables and other financial assets at the expected credit loss (‘ECL').Assessment of the recoverability of trade receivables and other financial assets is inherently subjective and requires significant management judgment (which includes repayment history and financial position of entities from whom these balances are recoverable terms of underlying arrangements overdue balances market conditions etc.). • Obtaining an understanding of and assessing the design implementation and operating effectiveness of the Company's key internal controls over the process of estimating the loss allowance for trade receivables and other financial assets including adherence to the requirements of the relevant accounting standards.
• Assessing the Company's methodology for provisioning towards trade receivables and other financial assets.
• Understanding the key inputs used in the provisioning model by the Company such as repayment history overdue balances market conditions.
• As a part of substantive audit procedures we tested on sample basis the aging of trade receivable having different overdue period and checked the computation of ECL is appropriate and in line with the Company's policy.
• In case of overdue debts inquired with management for any dispute which may require additional provisions.
• Assessing the disclosures made against the relevant accounting standards.

Emphasis of Matter

We draw attention to Note no. 36 to the Ind AS financial Statements which explain thatas per management assessment lockdown did not have any material impact in the operationsof the Company for the year ended March 312020. It may impact the business activities ofthe Company in the Current Financial Year 2020-21. The negative effect of COVID-19 willsurely be reflected in the turnover and profitability of the Company for the FinancialYear 2020-21 but the expected financial impact of COVID-19 is not ascertainable at thisstage

Our opinion is not modified in respect of this matter.

Information Other than the Financial Statements and Auditor's Report Thereon

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

The Board's Report Annexures to Board's Report Corporate Governance Report andShareholder Information is expected to be made available to us after the date of thisauditor's report. Our opinion on the Ind AS Financial Statements does not cover the otherinformation and we will not express any form of assurance conclusion thereon. Inconnection with our audit of the Ind AS Financial Statements our responsibility is toread the other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

When we read the Board's Report Report on Corporate governance and BusinessResponsibility report if we conclude that there is a material misstatement therein weare required to communicate the matter to those charged with governance and describeactions applicable in the applicable laws and regulations.

Responsibilities of Management and Those Charged with Governance for the Ind ASFinancial Statements:

The Company's board of directors are responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Ind AS Financial Statementsthat give a true and fair view of the financial position financial performance includingother comprehensive Income changes in equity and cash flows of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India including theaccounting standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities selection and application of appropriate accounting policies;making judgements and estimates that are reasonable and prudent; and designimplementation 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 financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

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

Auditor's Responsibility for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

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

• Identifying and assess the risks of material misstatements of the 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.

• Obtaining an understanding of internal financial control relevant to the auditin order 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 the 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 existswe are required to draw attention in our auditor's 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 ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually 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 auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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.

Other Matters

The comparative financial information of the Company for the year ended 31stMarch 2019 prepared in accordance with Ind AS included in these Financial Statements havebeen audited by the predecessor auditor. The report of the predecessor auditor on thecomparative financial information dated May 16 2019 expressed an unmodified opinion.

Our opinion on is not modified in respect of above matter.

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 ofthe Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act based on our audit 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 Flows dealt with by thisReport are in agreement with the relevant books of account;

d. In our opinion the aforesaid Ind AS Financial Statements comply with the Ind ASspecified under Section 133 of the Act read with Companies (Indian Accounting Standards)Rules 2015 as amended;

e. On the basis of the written representations received from the directors as on 31stMarch 2020 taken on records by the Board Directors none of the disqualified as on 31stMarch 2020 from being appointed as a director in terms of Section 164 (2) of the Act;

f. With respect to the adequacy of the Internal Financial Controls over financialreporting of the Company with reference to these Standalone Financial Statements and theoperating effectiveness of such controls refer to our separate report in "AnnexureB"; Our report expresses an unmodified opinion on adequacy and operativeeffectiveness of the Company's internal financial controls over financial 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 " S LI MIT ED

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid / provided by the Company to its directors during theyear is in accordance with the provisions of section 197 read with Schedule V of the Act.The Ministry of Corporate Affairs has not prescribed other details under Section 197(16)which are required to be commented upon by us.

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

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements as referred to Note 30(b) to the Ind ASFinancial Statements.

ii. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.

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

For JMMK & Co.
(earlier known as JMK & Co.)
Chartered Accountants
ICAI Firm Registration No. 120459W
CA Timal Maru
Partner
Membership No: 104942
Place: Mumbai
Date: 30th June 2020
UDIN : 20104942AAAAAG4435

Annexure A to the Independent Auditor's Report

(Referred to in Paragraph 9 under the heading of ‘Report on Other Legal andRegulatory Requirements of our report of even date')

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

a) The Company has maintained proper records showing full particulars includingsituation of Property Plant and Equipment. However the Company is in the process ofupdating quantitative details in fixed assets register and assets identification number infixed assets register and marked on respective fixed assets.

b) Property PIant and Equipment have been physically verified by the management atregular Interval which in our opinion is reasonable having regard to the size of thecompany and the nature of its assets. No material discrepancies were noticed on suchphysical verification.

c) According to the information and explanation given to us by the management of theCompany and based on our examination of the books and records of the Company immovableproperties of freehold land factory building which was self-constructed and officepremises whose title deed have been pledged as security for loans and not available forour verification are held in the name of the Company.

ii. In respect to Inventories:

a) As explained to us the inventories of finished goods and raw materials werephysically verified during the year by the Management. In our opinion having regard tothe nature and location of the stocks the frequency of verification is reasonable.'ODSLIM IT ED

b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the Management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.

iii. In our opinion and accordingly to the information explanations and ManagementExplanation given to us the Company has not granted any loans secured or unsecured tocompanies firms Limited Liability partnerships or other parties covered in the Registermaintained under section 189 of the Act. Accordingly the provisions of clause 3 (iii) (a)to (c) of the Order are not applicable to the Company.

iv. In our opinion and according to the information and explanations given to us thereare no loans guarantees or securities granted in respect of which provisions of Section185 and 186 of the Act are applicable to the Company. The Company has complied with theprovision of section 186 of the Act in respect of the investment made.

v. According to the information and explanations given to us the Company has notaccepted any deposits from the public hence the directives issued by the Reserve Bank ofIndia and provisions of section 73 to Section 76 of the Act and Rules framed there underare not applicable to it. According to information and explanation provided to us no orderhas been passed by Company Law Board or National Company Law Tribunal or Reserve Bank ofIndia or any court or any other tribunal in the current year. Accordingly the provisionsof Clause 3(v) of the Order are not applicable to the Company.

vi. We have broadly reviewed the books of account and records maintained by the Companypursuant to the rules made by the Central Government of India for the maintenance of costrecords prescribed under sub-section (1) of section 148 of the Act in respect ofmanufacturing activities of the Company and are of the opinion that prima facie theprescribed accounts and records have been maintained. We have however not made a detailedexamination of the records with a view to determine whether they are accurate or complete.

vii. In respect of Statutory Dues:

a) According to the information and explanation given to us and on the basis of ourexamination of books and records of the Company the Company has been generally regular indepositing undisputed statutory dues including Provident Fund Employees State InsuranceIncome Tax Sales Tax Goods and Services Tax Service Tax duty of Customs duty ofExcise Value Added Tax Cess and other Material Statutory Dues as applicable with theappropriate authorities within the due dates expect non deduction of tax at source.Thedetails of which are as follows:

Name of the Statute Nature of the dues Amount ( In 7) Period to which the amount relates Due Date Date of Payment
Income Tax Act 1961 Tax deducted at Sources 0.64 December 2019 7th of the subsequent month Not yet paid
2.35 July 2019 7th of the subsequent month Not yet paid

b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company no amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including provident fund Income-TaxCess Goods and Service Tax and other material statutory dues in arrears as at March 312020 for a period of more than six months from the date they became payable except due tonon-deduction of tax at source as mentioned in (a) above.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company produced before us in accordance with thegenerally accepted auditing practices in India following are the dues which have not beendeposited as at 31st March 2020 on account of dispute :

Sr. Nature of the Statue Nature of dues Forum where dispute is pending Period to which the amount Relates Disputed amount (Rs.) Amount paid as Appeal Fees (Rs.)
1. Central Excise Act 1962 Excise Duty Custom Excise and Service Tax Appellate Tribunal F.Y 1992-1995 2.27
2. The Income Tax 1961 Income Tax ITAT has referred back the case to assesssing Officer A.Y 2012-13 5.48
ITAT A.Y 2012-13 28.04 5.61
ITAT A.Y. 2014-15 5.30 -

viii. In our opinion and according to the information and explanation given to us theCompany has not defaulted in repayment of dues to banks and Financial Institutions duringthe year. The Company did not have dues relating to any loans or borrowing from Governmentor debenture holders.

ix. In our opinion and according to the information and explanations given to us themoney raised by way of term loans have been applied for the purposes for which they wereobtained. As the Company has not raised any moneys by way of initial public offer andfurther public offer (including debt instruments) the provisions of Clause 3(ix) of theOrder to that extent are not applicable to the Company.

x. According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during theyear.

xi. In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

xii. In our opinion and according to Information and explanations provided to us theCompany is not a Nidhi Company. Accordingly provisions of the clause 3(xii) of the Orderare not applicable to the Company.

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements as required by the applicableaccounting standard.

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures. Accordingly provisionof the clause 3(xiv) of the Order is not applicable to the Company.

xv. According to the information and explanations given to us during the year theCompany has not entered into any non-cash transactions with its Directors or personsconnected with them and hence provisions of section 192 of the Companies Act 2013 are notapplicable to the Company. Accordingly clause 3(xv) of the Order is not applicable to theCompany.

xvi. According to the information and explanations given to us the Company the Companyis not required to be registered under section 45-IA of the Reserve Bank of India Act1934.

For JMMK & Co.
(earlier known as JMK & Co.)
Chartered Accountants
ICAI Firm Registration No. 120459W
CA Timal Maru
Partner
Membership No: 104942
Place: Mumbai
Date: 30th June 2020
UDIN : 20104942AAAAAG4435

Annexure B to the Independent Auditor's Report

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of NHC FOODS LIMITED of even date)

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

We have audited the internal financial controls over financial reporting of NHC FOODSLIMITED (the "Company") as of 31st March 2020 in conjunction withour audit of the 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 (the "Guidance Note").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 the respective company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013('the Act).

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit in accordance with the Guidance Noteand the Standards on Auditing prescribed under Section 143(10) Act to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting with reference to Ind ASFinancial Statement and their operating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining an understanding of internalfinancial controls over financial reporting with reference to Ind AS Financial Statementassessing 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 judgment including the assessment of the risks ofmaterial misstatement 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 with reference to Ind AS Financial Statement.

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 authorisations of the management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorised 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 with reference to these Ind AS Financial Statement 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 over financial reporting to future periods are subject to therisk that the internal financial control over financial reporting may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2020 based on theinternal financial control over financial 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 JMMK & Co.
(earlier known as JMK & Co.)
Chartered Accountants
ICAI Firm Registration No. 120459W
CA Timal Maru
Partner
Membership No: 104942
Place: Mumbai
Date: 30th June 2020
UDIN : 20104942AAAAAG4435

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