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Nikhil Adhesives Ltd.

BSE: 526159 Sector: Industrials
NSE: N.A. ISIN Code: INE926C01022
BSE 00:00 | 21 Mar 101.65 1.75
(1.75%)
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102.05

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104.00

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NSE 05:30 | 01 Jan Nikhil Adhesives Ltd
OPEN 102.05
PREVIOUS CLOSE 99.90
VOLUME 17556
52-Week high 225.30
52-Week low 66.74
P/E 23.92
Mkt Cap.(Rs cr) 467
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 102.05
CLOSE 99.90
VOLUME 17556
52-Week high 225.30
52-Week low 66.74
P/E 23.92
Mkt Cap.(Rs cr) 467
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Nikhil Adhesives Ltd. (NIKHILADHESIVES) - Auditors Report

Company auditors report

To the Members of Nikhil Adhesives Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Nikhil AdhesivesLimited ("the Company") which comprise the Balance sheet as at 31stMarch2022 the Statement of Profit and Loss(including Other Comprehensive Income) Statement ofChanges in Equity and Statement of Cash Flows for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "the standalone financialstatements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 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 and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2022 its profit other comprehensive loss changesin 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) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor?s Responsibilities forthe Audit of the Standalone 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 together with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the Companies Act 2013and the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our opinionon the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements for thefinancial year ended March 31 2022. These matters were addressed in the context of ouraudit of the standalone financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. For the key auditmatter below our description of how our audit addressed the matter is provided in thatcontext.

We have determined the matter described below to be the key auditmatter to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor?s responsibilities for the audit of the standalone financialstatements section of our report including in relation to this matter. Accordingly ouraudit included the performance of procedures designed to respond to our assessment of therisks of material misstatement of the standalone financial statements. The results of ouraudit procedures including the procedures performed to address the matter below providethe basis for our audit opinion on the accompanying standalone financial statements.

Key audit matters How our audit addressed the key audit matters
Capitalization of property plant and equipment. Our audit procedures included:
The Company has incurred capital expenditure at their factories in augmenting and enhancing its existing production facilities. The items of property plant and equipment that were ready for its intended use as determined by the management have been capitalized in the current yearmeeting the recognition requirement under Ind AS. • Examining the management?s assessment of the assumptions considered in estimation of useful life of the assets capitalized.
• Assessing on a test check basis the nature of additions made to property plant and equipment to conclude whether the expenditure meets the recognition criteria set out in para 16 to 22 of Ind AS 16 including the intended use of such assets as determined by the management.
Revenue recognition Revenue is one of the key profit drivers. Cut –off is the key assertion in so far as revenue recognition is concerned since an inappropriate cut-off can result in material misstatement of results for the year. Our audit procedures with regard to revenue recognition included testing controls for cut-offs and performing analytical review procedures.
Increased risk of non recovery of debts in retail/consumer segment. The issue was addressed by performing extensive procedures to establish the recoverability of the debts including realizations subsequent to the balance sheet date.

 

Other Information

The Company?s Board of Directors is responsible for the otherinformation. The other information comprises the information included in theCompany?s Annual Report but does not include the standalone financial statements andour auditor?s report thereon. The other information is expected to be made availableto us after the date of this auditor?s report.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether such other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.

When we read such other information if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance and to comply with the relevant applicable requirements of the standard onauditing for auditor?s responsibility in relation to other information in documentscontaining audited financial statements. We have nothing to report in this regard.

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

The Company?s Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith Indian Accounting Standards prescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended and other accountingprinciples generally accepted in India. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements the Board of Directors isresponsible for assessing the Company?s ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

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

Auditor?s Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor?s report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.

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

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has adequate internal financial controls system in placeand the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management?s use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company?s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor?sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor?s report. However future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements for the financial year ended 31 March 2022 and are therefore the keyaudit matters.

We describe these matters in our auditor?s report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor?s Report) Order 2020("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Companies Act 2013 we give in the Annexure A astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

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

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income Statement of Changes in Equity and the Cash Flow Statement dealtwith by this report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withCompanies (Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from thedirectors as on 31stMarch 2022 taken on record by the Board of Directors noneof the directors is disqualified as on 31stMarch 2022 from being appointed asa director in terms of Section 164(2) of the Act;

(f) With respect to the adequacy of the internal financial controlswith reference to these standalone financial statements and the operating effectiveness ofsuch controls refer to our separate Report in Annexure B to this report;

B] With respect to the other matters to be included in theAuditor?s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:

(a) The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements – Refer Note 42 to the saidfinancial statements;

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

(c) There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company pertaining to the applicableFinancial Year 2013-14 since no dividend was declared for the said financial year.

(d) (i) The management has represented that to the best of itsknowledge and belief as disclosed in the note 41B(ix) to the financial statements nofunds have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person(s)or entity(ies) including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shalldirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") orprovide any guarantee security or the like to or on behalf of the Ultimate Beneficiaries.

(ii) The management has represented that to the best of its knowledgeand belief as disclosed in note 41B(x) to the financial statements no funds have beenreceived by the Company from any person(s) or entity(ies)including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall directly or indirectly lend or invest in other personsor entities 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.

(iii) Based on such audit procedures performed as considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under subclause (d) (i) and (d) (ii) above contain anymaterial mis-statement.

(e) The final dividend declared and paid by the Company during the yearis in accordance with Section 123 of the Act as applicable.

C] With respect to the other matters to be included in theAuditor?s Report in accordance with the requirements of section 197(16) of the Actas amended in our opinion and according to the explanations given to us the managerialremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 read with Schedule V to the Act.

For PPV & CO
Chartered Accountants
Firm Registration No.153929W
Priyanshi Vakharia
Proprietor
Membership No.: 181834
UDIN: 22181834AJMZBR1043
Mumbai
21 May 2022

Annexure A

Referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements? section of our Independent Auditors? Report of evendate to the members of Nikhil Adhesives Limited on the standalone financial statements forthe year ended March 31 2022:

(i) (a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment.

(B) The Company does not have any intangible assets and hence clause3(i)(a)(B) of the Order is not applicable.

(b) The Property Plant and Equipment have been physically verifiedduring the year by the Management at reasonable intervals. According to the informationand explanations given to us no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us thetitle deeds of all immovable properties (other than properties where the Company is thelessee and lease agreements are duly executed in favour of the lessee) disclosed instandalone financial statements are held in the name of the Company.

(d) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not revaluedits Property plant and equipment (including Right-of-use assets) hence clause 3(i)(d) ofthe Order is not applicable.

(e) According to the information and explanations given to us noproceedings have been initiated or are pending against the Company for holding any benamiproperty under the Benami Transactions (Prohibition) Act 1988 and rules made thereunderand hence clause 3(i)(e) of the Order is not applicable.

(ii) (a) The management has conducted physical verification ofinventory at reasonable intervals during the year the coverage and procedure of suchverification by the management is appropriate and no discrepancies of 10% or more inaggregate for each class of inventory were noticed.

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has beensanctioned working capital limits in excess of five crore rupees in aggregate from bankson the basis of security of current assets. According to the information and explanationgiven and reviewed by usthe quarterly statements filed by the Company with such banks aregenerally in agreement with the unaudited books of account and the differences between thequarterly returns and books of account are explainable and not material in nature.

(iii) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not made anyinvestments provided guarantee or security or granted any advances in the nature ofloans secured or unsecured to companies firms limited liability partnerships or anyother parties during the year hence clause (iii) is not applicable.

(iv) In our opinion and according to the information and explanationgiven to us the Company has not granted loans not made investments not given guaranteesand securities during the year to parties covered under section 185 and 186 of the Act.Accordingly compliance under section 185 and 186 of the Act is not applicable to theCompany.

(v) In our opinion and according to the information and explanationsgiven to us the Company has accepted deposits during the year and complied with theprovisions of Sections 73 to 76 and other relevant provisions of the Companies Act 2013and the rules framed there under as applicable.

(vi) The maintenance of cost records have been specified by the CentralGovernment under section 148(1) of the Companies Act 2013. We have broadly reviewed thecost records maintained by the Company pursuant to the Companies (Cost Records and Audit)Rules 2014 as amended prescribed by the Central Government under sub-section (1) of theSection 148 of the Companies Act 2013 and are of the opinion that prima facie theprescribed cost records have been made and maintained. We have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

(vii) (a) According to the information and explanations given to usand on the basis of our examination of the books of account the Company has beengenerally regular in depositing with the appropriate authorities undisputed statutory duesincluding Income Tax duty of custom Goods and Service Tax (GST) provident fundemployees? state insurance cess and other statutory dues as applicable and as atMarch 31 2022 there were no undisputed dues payable for a period of more than six monthsfrom the date of becoming payable.

(b) According to the information and explanations given to us thereare no dues of GST provident fund employees? state insurance income-tax salestax service tax duty of customs value added tax cess or other statutory dues whichhave not been deposited by the Company on account of disputes except for the following:

Statute Financial Year Dispute Forum Amount (Rs in Lakhs)
Income Tax 2016-17 Commissioner of Income Tax Appeals-CIT- Appeal) 1.36
Sales Tax 2003-04 Deputy Commissioner of Sales Tax (Appeal) 68.79

(viii) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has notsurrendered or disclosed any transactions previously unrecorded as income in the books ofaccount in the tax assessments under the Income-tax Act 1961 as income during the year.

(ix) (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company the Company has notdefaulted in repayment of loans or other borrowings or in the payment of interest thereonto any lender.

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not beendeclared a wilful defaulter by any bank or financial institution or government orgovernment authority.

(c) According to the information and explanations given to us by themanagement the term loans taken by the Company were applied for the purpose for which theloans were taken.

(d) According to the information and explanations given to us wereport that funds raised on short-term basis have not been utilised for long term purposesby the Company.

(e) According to the information and explanation given to us theCompany does not hold any investment in any subsidiary associate or joint venture (asdefined under the Companies Act 2013) during the year ended 31 March 2022. Accordinglyclause 3(ix)(e) is not applicable.

(f) According to the information and explanation given to us theCompany does not hold any investment in any subsidiary associate or joint venture (asdefined under the Companies Act 2013) during the year ended 31 March 2022. Accordinglyclause 3(ix)(f) of the Order is not applicable.

(x) (a) The Company has not raised any moneys by way of initial publicoffer or further

Public offer (including debt instruments) during the year. Accordinglyclause (x)(a) of the Order is not applicable.

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly clause (x)(b) of the Order is not applicable.

(xi) (a) According to the information and explanation given to us nofraud by the Company and no fraud on the Company has been noticed or reported during theyear.

(b) According to the information and explanations given to us noreport under sub-section (12) of Section 143 of the Companies Act 2013 has been filed bythe auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors)Rules 2014 with the Central Government.

(c) There were no whistle blower complaints received by the Companyduring the year.

(xii) According to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly clause 3(xii) of the Order is not applicable.

(xiii) In our opinion and according to the information and explanationsgiven to us the transactions with related parties are in compliance with Sections 177 and188 of the Companies Act 2013 where applicable and the details of the related partytransactions have been disclosed in the standalone financial statements as required by theapplicable Indian Accounting Standards.

(xiv) (a) Based on information and explanations provided to us and ouraudit procedures in our opinion the Company has an internal audit system commensuratewith the size and nature of its business. (b) Internal auditor?s reports for theperiod under audit have been considered by us.

(xv) In our opinion and according to the information and explanationsgiven to us the Company has not entered into any non-cash transactions with its directorsor persons connected to its directors and hence provisions of Section 192 of theCompanies Act 2013 are not applicable to the Company.

(xvi) (a) The Company is not required to be registered under Section45-IA of the Reserve Bank of India 1934. Accordingly clause 3(xvi) (a) of the Order isnot applicable. (b) The Company is not required to be registered under Section 45-IA ofthe Reserve Bank of India 1934. Accordingly clause 3(xvi) (a) of the Order is notapplicable.

(c) The Company is not a Core Investment Company (CIC) as defined inthe regulations made by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of theOrder is not applicable. (d) According to the information and explanations provided to usduring the course of audit the Group does not have any CIC. Accordingly the requirementsof clause 3(xvi) (d) are not applicable.

(xvii) The Company has not incurred cash losses in the current andimmediately preceding financial year.

(xviii) There has been no resignation of the statutory auditor duringthe year. Accordingly clause (xviii) of the Order is not applicable.

(xix) According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the financialstatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of auditreport that the Company is not capable of meeting its liabilities existing at the date ofbalance sheet as and when they fall due within a period of one year from the balancesheet date. We however state that our reporting is not an assurance on the futureviability of the Company. We further state that our reporting is based on the facts uptothe date of the audit report and we neither give any guarantee nor any assurance that allthe liabilities falling due within a period of one year from the balance sheet date willget discharged by the Company as and when they fall due.

(xx) In our opinion and according to the information and explanationsgiven to us there is no amount unspent under sub section (5) of Section 135 of theCompanies Act 2013 pursuant to any project. Accordingly clauses 3(xx)(a) and 3(xx)(b) ofthe Order are not applicable.

For PPV & CO
Chartered Accountants
Firm Registration No.153929W
Priyanshi Vakharia
Proprietor
Membership No.: 181834
UDIN: 22181834AJMZBR1043
Mumbai
21st May 2022

Annexure B

Referred to in paragraph 2(A)(f) under ‘Report on Other Legal andRegulatory Requirements? section of our Independent Auditors? Report of evendate to the members of Nikhil Adhesives Limited on the standalone financial statements forthe year ended March 31 2022.

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

We have audited the internal financial controls over financialreporting of Nikhil Adhesives Limited ("the Company") as at March 31 2022 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management?s Responsibility for Internal Financial Controls

The Company?s management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and 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 Act.

Auditors? Responsibility

Our responsibility is to express an opinion on the Company?sinternal financial controls over financial reporting with reference to the standalonefinancial statements based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (‘theGuidance Note?) and the Standards on Auditing deemed to be prescribed under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by the ICAI.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting withreference to the standalone financial statements 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 andappropriate to provide a basis for our audit opinion on the Company?s internalfinancial controls over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting withreference to the Standalone Financial Statements

A Company?s internal financial control over financial reportingwith reference to the standalone financial statements is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally acceptedaccounting principles. A Company?s internal financial control over financialreporting with reference to the standalone financial statements includes those policiesand procedures that:

(a) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;

(b) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorizations of management and directors of theCompany; and

(c) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company?s assetsthat could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting with reference to the Standalone Financial Statements

Because of the inherent limitations of internal financial controls withreference to standalone financial statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and 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 over financial reporting with reference tothe standalone financial statements may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls over financial reporting with reference to the standalonefinancial statements and such internal financial controls with reference to the standalonefinancial statements were operating effectively as at March 31 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theInstitute of Chartered Accountants of India.

For PPV & CO
Chartered Accountants
Firm Registration No.153929W
Priyanshi Vakharia
Proprietor
Membership No.: 181834
UDIN: 22181834AJMZBR1043
Mumbai
21 May 2022

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