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Nitiraj Engineers Ltd.

BSE: 538407 Sector: Engineering
NSE: NITIRAJ ISIN Code: INE439T01012
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Nitiraj Engineers Ltd. (NITIRAJ) - Auditors Report

Company auditors report

To

The Members

Nitiraj Engineers Limited

Mumbai

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying Standalone financial statements of Nitiraj EngineersLimited (''the Company") which comprises the standalone Balance Sheet as at March 312022 the Standalone Statement of Profit and Loss (including other comprehensive income)Standalone statement of changes in equity and Standalone statement of cash flows for theyear then ended and notes to the Standalone financial statements including a summary ofsignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2022 and Loss changes in equity andits cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with Standards on Auditing (SAs) specified undersection 143(10) of the Companies Act 2013. Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and we have fulfilledour other ethical responsibilities in accordance with these requirements and the ICAI'sCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the 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.

1) Testing recognition & measurement of impairment on intangible asset:

Key audit matter How the matter was addressed in our audit
As disclosed in notes to the standalone financial statements the company has tested and charged for impairment of Intangible assets under development. Our audit procedures in respect of impairment testing of Intangible assets under development included the following:
We identified the annual impairment assessment of Intangible assets under development as a key audit matter because the assessment process is complex and judgmental by nature and is based on assumptions on: • Testing operating effectiveness of controls over determination of the recoverable amounts of cash generating units. Cash generating units for this purpose are those to which the Intangible asset under development is allocated;
- projected future cash inflows - expected growth rate and • Challenging the significant assumptions and judgements used in impairment analysis such as forecast revenue margins long term growth and discount rates in comparison to economic and industry forecasts;
profitability - perpetuity value based on long term growth rate • Performing sensitivity analysis of the key assumptions such as future revenue growth rates future gross margins and the discount rate used in determining the recoverable value;
- sensitivity analysis - discount rate Recognition & measurement of impairment loss: - determination of recoverable amount - ascertaining of carrying amount of intangible asset - computing impairment loss - accounting treatment of impairment loss • Evaluating the accounting treatment used to give effect of impairment loss on an individual asset;
• Evaluating the adequacy of disclosures including disclosures of judgements and sensitivities.

2) Capitalisation of intangible assets under development:

Key audit matter How the matter was addressed in our audit
As disclosed in notes to the standalone financial statements the company has capitalised intangible assets under development during the year. Our audit procedures in respect of recognition of Intangible assets under development included the following:
We identified capitalisation of intangible assets under development as a key audit matter because it is difficult to assess whether an internally generated intangible asset qualifies for recognition due to problems in: • Evaluating the model for measurement
- Identifying whether there is an identifiable asset that will generate expected future economic benefit • Evaluating the useful life as determined for amortization of intangible asset
- Determining the cost of asset reliably and • Assessing the reasonableness of useful life of intangible asset.
- Measurement after recognition • Evaluating stability of the industry in which it operates
• Performing sensitivity analysis
• Evaluating the adequacy of disclosures including disclosures of judgments and sensitivities.

3) Recognition and measurement of Deferred tax assets

Key audit matter How the matter was addressed in our audit
As disclosed in notes to the standalone financial statements the company has recognised deferred tax asset during the year. In respect of deferred tax assets we assessed recognition and measurement by performing the following procedures:
Recognition and measurement of such deferred tax assets has been identified as a key audit matter because the assessment process involves significant judgement regarding the forecasts of future income tax. The assessment process is based • Evaluating the design implementation and operating effectiveness of the relevant internal controls over recognition and measurement of deferred tax assets and underlying data;
on assumptions affected by expected future market or economic conditions. • Obtaining the approved business plans projected profitability statements;
• Challenging the assumptions used regarding future business plans and taxable profit in light of fiscal developments current economic environment and prior performance in determining the recoverability of business losses recognized within the period available under applicable Income tax laws;
• Performing sensitivity analysis
• Testing the computation of amounts recognized as deferred tax assets on business losses;
• Focusing on the disclosures on deferred tax asset and assumptions used.

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 Board's Report including Annexures to the Board's Report butdoes not include the 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 financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedin the audit or otherwise appears to be materially misstated. If based on the work wehave performed we conclude that there is a material misstatement of this otherinformation. We are required to report that fact. We have nothing to report in thisregard.

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 the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the accounting Standards specified under section 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate implementation and maintenance of 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 statement that give a true and fair view andare free from material misstatement whether due 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 also responsible for overseeing the company's financialreporting process.

Auditor's Responsibility 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has an adequate internal financial controls system with reference tostandalone financial statements in place and the operating effectiveness of such controls.

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

• 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa 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 standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone 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 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 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 ofthe Companies Act 2013 we give (in the Annexure A) a statement on the matters specifiedin 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 Standalone Balance Sheet the Standalone Statement of Profit and Loss includingother comprehensive income Standalone statement of changes in Equity and the StandaloneCash Flow Statement dealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with the IndAS specified under Section 133 of the Act.

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

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(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 read with schedule v of the Act.

(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 in our opinionand to the best of our information and according to the explanations given to us:

i. As explained to us company does not have any pending litigations which would impactits financial position;

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

iii. There were no amounts which were required to be transferred to the InvestorEducation 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.

Annexure A to the Independent Auditors Report

The Annexure referred to in our Independent Auditors' Report to the members of

Nitiraj Engineers Limited on the standalone financial statements for the year ended 31stMarch 2022 we report that:

(i) (a) (A) In our opinion the Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant and Equipmentand relevant details of right to-us- assets.

(B) The Company has maintained proper records showing full particulars of Intangibleassets.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has a program of physicalverification of Property Plant and Equipment and right-of-use assets so to cover all theassets once every three years which in our opinion is reasonable having regard to thesize of the Company and the nature of its assets. Pursuant to the program certainProperty Plant and Equipment were due for verification during the year and werephysically verified by the Management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us the title deeds of theImmovable properties are held in the name of the company.

(d) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company. The Company has not revalued any of itsProperty Plant and Equipment (including right-of-use assets) and intangible assets duringthe year.

(e) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no proceedings initiated or pendingagainst the Company for holding any benami property under the Prohibition of BenamiProperty Transactions Act 1988 and rules made thereunder.

(ii) (a) As explained to us the inventory has been physically verified by themanagement during the year at reasonable intervals. In our opinion the frequency of suchverification is reasonable. No material discrepancies noticed on physical verification ofinventories as compared to the book record that were more than 10% in the aggregate ofeach class of inventory.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has been sanctioned working capitallimits in excess of five crore rupees in aggregate from banks on the basis of securityof current assets. In our opinion the quarterly returns or statements filed by theCompany after reconciliation with such banks are in agreement with the books of account ofthe Company.

(iii) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not

provided any security or granted any advances in the nature of loans secured orunsecured to companies firms limited liability partnership or any other parties duringthe year. The Company has made investments in granted unsecured loan other parties inrespect of which the requisite information is provided in clause (a) to (f) as below tothe extent applicable.

(a) Based on the audit procedures carried on by us and as per the information andexplanations given to us the Company has granted unsecured loan as below:

Particulars Amount (in lacs)
Aggregate amount during the year
- Loans to Employees 97.12
Balance outstanding as at balance sheet date
- Loans to Employees 98.91

(b) According to the information and explanations given to us and based on the auditprocedures conducted by us in our opinion the investments made the terms and conditionsof the grant of loans and guarantees provided during the year are prima facie notprejudicial to the interest of the Company.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company in the case of loans given in our opinion therepayment of principal and payment of interest has been stipulated and the repayments orreceipts have been regular. Further the Company has not given any advance in the natureof loan to any party during the year.

(d) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there is no overdue amount for more than ninetydays in respect of loans given. Further the Company has not given any advances in thenature of loans to any party during the year.

(e) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there is no loan or advance in the nature ofloan granted falling due during the year which has been renewed or extended or freshloans granted to settle the overdues of existing loans given to same parties.

(f) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not granted any loans oradvances in the nature of loans either repayable on demand or without specifying any termsor period of repayment.

(iv) In our opinion and according to the information and explanations given to us andon the basis of our examination of the records of the Company the Company has not grantedloans as specified under Section 185 of the Act during the year. The Company has compliedwith the provisions of Section 186 of the Act in respect of loans granted to the partiescovered under Section 186 of the Act. The Company has not provided any guarantees orsecurity to the parties covered under Section 186 of the Act.

(v) The Company has not accepted any deposits or amounts which are deemed to bedeposits from the public. Accordingly clause 3(v) of the Order is not applicable to theCompany.

(vi) The maintenance of cost records has not been specified by the Central Governmentunder sub-section (1) of section 148 of the Companies Act 2013 for the businessactivities carried out by the Company. Hence reporting under clause (vi) of the Order isnot applicable to the Company.

(vii) (a) According to the information and explanations given to us the Company isgenerally regular in depositing with appropriate authorities undisputed statutory duesincluding Provident fund Income-tax Goods and Services tax Duty of Custom Duty ofExcise and Other Statutory Dues applicable to it. And no undisputed amounts payable inrespect of Provident fund Income-tax Goods and Service tax Duty of custom Duty ofexcise Cess and Other Statutory Dues were outstanding at the year end for a period ofmore than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofGST Provident fund Income-tax Duty of Customs Cess or other statutory dues which havenot been deposited by the Company on account of disputes.

(viii) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has not surrendered ordisclosed any transactions previously unrecorded as income in the books of account inthe tax assessments under the Income-tax Act 1961 as income during the year.

(ix) (a) According to the information and explanations given to us 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 the Company has not beendeclared wilful defaulter by any bank or financial institution or government or anygovernment authority.

(c) According to the information and explanations given to us by the management theCompany has not obtained any term loans during the year. Accordingly clause 3(ix)(c) ofthe Order is not applicable.

(d) According to the information and explanations given to us and on an overallexamination of the balance sheet of the Company we report that no funds raised onshort-term basis have been used for long-term purposes 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 from any entity or person on account of or to meet the obligations of itssubsidiaries as defined under the Companies Act 2013. Accordingly clause 3(ix)(e) of theOrder 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 as defined under the Companies Act 2013. Accordinglyclause 3(ix)(f) of the Order is not applicable

(x) (a) The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments). Accordingly clause 3(x)(a) of the Order is notapplicable.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly clause 3(x)(b) of the Order is not applicable.

(xi) (a) Based on examination of the books and records of the Company and according tothe information and explanations given to us considering the principles of materialityoutlined in Standards on Auditing we report that no fraud by the Company or on theCompany has been noticed or reported during the course of the audit.

(b) According to the information and explanations given to us no report undersubsection (12) of Section 143 of the Companies Act 2013 has been filed by the auditorsin Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government.

(c) As represented to us by the management there are no whistle blower complaintsreceived by the company during the year.

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

(xiii) In our opinion and according to the information and explanations given to usthe transactions with related parties are in compliance with Sections 177 and 188 of theCompanies Act 2013 where applicable and the details of the related party transactionshave been disclosed in the standalone financial statements as required by the applicableIndian Accounting Standards.

(xiv) (a) Based on information and explanations provided to us in our opinion the

Company has an adequate internal audit system commensurate with the size and the natureof its business.

(b) We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date in determining the nature timing and extent ofour audit procedures.

(xv) In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with its directors or personsconnected to its directors and hence provisions of Section 192 of the Companies Act 2013are not applicable to the Company.

(xvi) (a) In our opinion and according to the information and explanations given to usthe

Company is not required to be registered under Section 45-IA of the Reserve Bank ofIndia Act 1934. Accordingly clause 3(xvi)(a) of the Order is not applicable.

(b) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly clause 3(xvi)(b) of the Order is not applicable.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of the Order is notapplicable.

(d) According to the information and explanations provided to us during the course ofaudit the Group does not have any CIC. Accordingly the requirements of clause 3(xvi)(d)are not applicable

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

(xviii) There has been no resignation of the statutory auditors during the year.Accordingly 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 realisation of financial assets and paymentof financial liabilities other information accompanying the standalone 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 theaudit report that the Company is not capable of meeting its liabilities existing at thedate of balance sheet as and when they fall due within a period of one year from thebalance sheet date. We however state that this is not an assurance as to the futureviability of the Company. We further state that our reporting is based on the facts up tothe date of the audit report and we neither give any guarantee nor any assurance that allliabilities falling due within a period of one year from the balance sheet date will getdischarged by the Company as and when they fall due.

(xx) (a) In our opinion and according to the information and explanations given to usin respect of other than ongoing projects the company has not transferred unspent amountto fund specified in schedule VII to the companies act within a period of six months ofthe expiry of the financial year in compliance with second proviso to sub-section (5) ofsection 135 of the said act.

Financial Year Amount unspent on Amount transferred corporate social to fund specified n responsibility schedule VII within 6 activities "other than months from the end ongoing projects" of the financial year Amount transferred after the due date
2021-2022 3.23 lacs Nil N.A.

The company has not transferred the amount remaining unspent in respect of other thanongoing projects to a Fund specified in Schedule VII to the Companies Act 2013 till thedate of our report. However the time period for such transfer i.e. six months of theexpiry of the financial year as permitted under the second proviso to sub-section (5) ofsection 135 of the Act has not elapsed till the date of our report.

(b) In our opinion and according to the information and explanations given to us thereis ongoing project in compliance with provision of sub-section (6) of section 135 of thesaid act.

Financial Year Amount unspent on Corporate Social Responsibility activities for "Ongoing Projects" Amount Transferred to Special Account within 30 days from the end of the Financial Year Amount Transferred after the due date
2020-2021 16.38 lacs Nil Nil

The amendments to section 135 of the Act by inclusion of sub-section (6) through theintroduction of the Companies (Amendment) Act 2019 is yet to be notified and as suchprovisions of this clause are not yet applicable to the company.

Annexure "B" to the Independent Auditors Report

Report on the Internal Financial Controls with reference to the aforesaid standalonefinancial statements under Clause (i) of Sub-section 3 of section 143 of the CompaniesAct 2013 ("the Act")

Opinion

We have audited the internal financial controls over financial reporting of NitirajEngineers Limited as of 31st March 2022 in conjunction with our audit of the standalonefinancial statements of the Company for the year ended on that date.

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these Standalone Financial Statementsand such internal financial controls over financial reporting with reference to theseStandalone Financial Statements were operating effectively as at March 31 2022 based onthe internal 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 Institute ofChartered Accountants of India (the "Guidance Note").

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls with reference to standalone financial statements based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the institute of CharteredAccountants of India ("ICAI"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to standalone financial statements basedon our audit. We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting (the "Guidance Note") andthe Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act2013 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 Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting with reference tostandalone financial statements and their operating effectiveness. Our audit of internalfinancial controls over financial reporting with reference to standalone financial

statements included obtaining an understanding of internal financial controls overfinancial reporting assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the standalone financial statementswhether 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 standalone financial statements.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control with reference to standalone financialstatements over financial reporting is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of standalonefinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over with reference tostandalone financial statements financial reporting includes those policies and proceduresthat (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) providereasonable assurance that transactions are recorded as necessary to permit preparation ofstandalone 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) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the company's assets that could have a material effect on thefinancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls with reference tostandalone financial statements over financial reporting including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting with reference to standalonefinancial statements to future periods are subject to the risk that the internal financialcontrol over financial reporting with reference to standalone financial statements maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedure may deteriorate.

For and on behalf of
P.D.Dalal & Co.
Chartered Accountants
Firm Registration No.102047W
(Aashish S. Kakaria)
Partner
Membership No.102915
UDIN: 22102915AIZVIC2409
Mumbai
12th May 2022

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