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Nivaka Fashions Ltd.

BSE: 542206 Sector: Others
NSE: N.A. ISIN Code: INE139E01028
BSE 00:00 | 27 Jan 3.55 0.04
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NSE 05:30 | 01 Jan Nivaka Fashions Ltd
OPEN 3.48
PREVIOUS CLOSE 3.51
VOLUME 6080
52-Week high 14.46
52-Week low 2.86
P/E 355.00
Mkt Cap.(Rs cr) 36
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.48
CLOSE 3.51
VOLUME 6080
52-Week high 14.46
52-Week low 2.86
P/E 355.00
Mkt Cap.(Rs cr) 36
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Nivaka Fashions Ltd. (NIVAKAFASHIONS) - Auditors Report

Company auditors report

To

The Members of

NIVAKA FASHIONS LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of NIVAKA FASHION LIMITED ("theCompany") which comprise the Balance Sheet as at March 31 2022 the Statement ofProfit and Loss (including other comprehensive income) Statement of Changes in Equity andStatement of Cash Flows for the year ended and notes to the financial statement includinga summary of the significant 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 financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 312022 the profit & Loss statement 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 (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial 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 (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.

Key Audit Matters

Key audit matters ('KAM') are those matters that in our professional judgment were ofmost significance in our audit of the financial statements of the current period. Thesematters were addressed in the context of our audit of the financial statements as a wholeand in forming our opinion thereon and we do not provide a separate opinion on thesematters. We have determined that there all no kay audit matters to communicate in thisreport.

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

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

Our opinion on the financial statements does not cover the other information and we donot 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 financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a no materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind AS andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; 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 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 responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Financial Statements

TOur 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 skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement 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.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty 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 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.

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 in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

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 Flow dealt with by thisReport are in agreement with the relevant books of account.

(d) In our opinion the aforesaid financial statements comply with the AS specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 from being appointed as a director in terms of Section 164 (2) of theAct.

(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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 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 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 financial statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv (a) The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been advanced orloaned 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;

(a) 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;;

(a) 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 materialmisstatement.

(Referred to in our report to the member of NIVAKA FASHION LIMITED of even date)

To the best of our knowledge and information according to the explanations provided tous by the Company the audit procedures followed by us and examination of the books ofaccount and records examined by us in the normal course of audit we state that:

(i) (a)(A) The Company has maintained proper records showing full particulars includingQuantitative details and Situation of Property Plant and Equipment.

(B) The company has no intangible assets.

b) According to the information and explanations given to us as on the basis of ourexamination of the records of the company the company has a regular programme of physicalverification of its property Plants and Equipment by which all property plantsequipment are verified in a phased manner over the period of three years. In accordancewith this programme certain property plants equipment were verified during the year. Inour opinion this of physical verifications is reasonable having regards the size ofcompany and nature of its assets. No material discrepancies were noticed on suchverifications.

c) According to information and explanation given to us the records examined by us andbased on examination of the documents provided to us we report that as at the BalanceSheet date in respect of Leasehold Land The Lease Agreement stands in the Name of theCompany. The Company does not own any other Immovable property in respect of which titledeeds are required to be held by the Company.

d) According to the information and explanation given to us and the basis of ourexamination of the records of the company the company has not revalued its propertyplants and equipment (including right to use assets) or intangible assets or both duringthe year hence sub-clause 3(i) (d) of the Companies (Auditors Report) Order 2020 is notapplicable to the company.

e) No proceedings have been initiated or are pending against the Company for holdingany benami property under the Benami Transactions (Prohibition) Act 1988 as Amended andrules made thereunder hence sub-clause 3(i)

(e) of the Companies (Auditors Report) Order 2020 is not applicable to the company.

(ii) a) As explained to us the inventories have been physically verified by themanagement during the year at reasonable intervals.in our opinion the frequency of suchverification is reasonable and procedures and coverage as followed by management wereappropriate. No discrepancies were noticed on verification between the physical stocks andthe book records that were 10% or more in the aggregate for each class of inventory.

b) According to information and explanation given to us the records examined by us andbased on examination of the documents provided to us The Company has been not sanctionsworking capital limits in excess of five crore rupees in aggregate from bank on thebasis of security of current assets. In our opinion the quarterly returns or statementfiled by the company with such banks are in agreement with the books of account of thecompany.

(iii) According to the information and explanations given to us the Company hasgranted loans secured or unsecured to two (2) Companies covered in the registermaintained under section 189 of the Companies Act 2013 having maximum outstanding balanceduring the year of Rs. 5464567 and balance as of 31 st March 2022 of Rs. 5209567.

a) According to information and explanations given to us and based on the auditprocedures performed by us the terms and conditions of the loans granted to the party areprejudicial to the Company's interest on account of the fact that the said loans interestfree;

b) No schedule of repayment of principal and payment of interest has been stipulated.Therefore we cannot comment on the same;

c) The amount is not overdue for more than 90 days since it is repayable on Demand.

c) In our opinion and according to the information and explanations given to us theCompany has complied in advancing loan to a Company in which the director is interested towhich the provisions of section 185 of the Companies Act 2013 is applicable.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

Name of Director Company to which the loan is Forward in which said Director is interested Maximum outstanding amount during the year (Rupees) Amount Outstanding as at the balance sheet date (Rupees)
Jigar Agarwal Just Connect Marketing Rs.731606 Rs.731606
Jigar Agarwal Jigar Agarwal Rs.1523139 Rs.1523139 Advance salary
Bhavin Jain Knowsys Consulting Private Limited Rs.3097624 Rs.2842624
Priyesh Jain Priyesh Jain Rs.112198 Rs.112198 Advance fees

(iv) In our opinion and according to the information and explanations given to us theCompany has complies with the provisions of sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

(v) The Company has not accepted deposits from the public or amounts which are deemedto be deposits from the public. Hence clause 3(v) of the Companies (Auditors Report) Order2020 is not applicable to the Company.

(vi) The maintenance of the cost records under the sub-section (1) of section 148 ofthe Companies Act 2013 has been prescribed and we are of the opinion facie theprescribed accounts and records have been made and maintained. We have not howevercarried out a detailed examination of the records to ascertain whether they accurate orcomplete.

vii) According to the information and explanations given to us in respect of StatutoryDues.

a) The Company has been generally regular in depositing undisputed statutory duesincluding Goods and Services Act Provident fund Employees State Insurance Income TaxSales Tax Service Tax duty of Customs duty of Excise Value Added Tax Cess and otherstatutory dues to the appropriate authorities during the year. According to theinformation and explanations given to us no undisputed amount payable in respect of theaforesaid dues were outstanding as at March 312022 for a period of more than six monthsfrom the date they became payable. Except the following.

Name of Status Nature of Dues Period to which amount relates Amount (in Rs.) Date Of Payment
Income tax Act 1961 TDS A.Y. 2022-23 19674 Unpaid
Income tax Act 1961 TDS A.Y. 2021-22 87313 Unpaid
Income tax Act 1961 TDS A.Y. 2020-21 159222 Unpaid
Income tax Act 1961 TDS A.Y. 2019-20 50462 Unpaid
Income tax Act 1961 TDS Prior years 269020 Unpaid
Income tax Act 1961 Interest on Income Tax demand A.Y. 2017-18 7392 Unpaid
Income tax Act 1961 Income Tax demand A.Y. 2017-18 52820 Unpaid
Income tax Act 1961 Interest on Income Tax demand A.Y. 2018-19 241808 Unpaid
Income tax Act 1961 Interest on Income Tax demand A.Y. 2019-20 594410 Unpaid

viii) There are no transactions that were not recorded in the books of account andwhich has been surrendered or disclosed as income during the year in the tax assessmentsunder the Income Tax Act 1961 (Section 43 of 1961) hence sub-clause 3(viii) of theCompanies (Auditors Report) Order 2020 is not applicable to the company.

ix) According to information and explanation given to us:

a) The records examined by us and based on examination of the documents provided to us.The company has not delayed in principle repayment of term loan.

b) According to information and explanation given to us the records examined by us andbased on examination of the documents provided to us. The company has not been declaredwilful defaulter by any bank or financial institution or government or any governmentauthority hence sub-clause 3(ix) (b) of the Companies (Auditors Report) Order 2020 isnot applicable to the company.

c) According to information and explanation given to us the records examined by us andbased on examination of the documents provided to us. The company has not borrowed anyterm loans during the year hence subclause 3(ix)(c) of the Companies (Auditors Report)Order 2020 is not applicable to the company.

d) On an overall examination of the financial statements of the company we report thatno funds raised on shortterm basis have been used for long-term purposes by the companyhence sub-clause 3(ix) (d) of the Companies (Auditors Report) Order 2020 is notapplicable to the company.

e) According to information and explanation given to us the records examined by us andbased on examination of the documents provided to us. The company has not taken any fundsfrom any entity or person on account of or to meet the obligations of its subsidiariesassociates or joint ventures hence sub-clause 3(ix)(e) of the Companies (Auditors Report)Order 2020 is not applicable to the company.

f) According to information and explanation given to us the records examined by us andbased on examination of the documents provided to us. The company has not raised loansduring the year on the pledge of securities held in its subsidiaries joint ventures orassociate companies hence sub-clause 3(ix)(f) of the Companies (Auditors Report) Order2020 is not applicable to the company.

(x) (a) The company has not raised any money by way of initial public offer / furtherpublic offer (including debt instruments) during the year and hence clause 3(x) (a) of theCompanies (Auditor's Report) Order 2020 is not applicable to the Company.

(b) The Company has not made any preferential allotment / private placement of shares /fully / partly / optionally convertible debentures during the year under review.

(xi) (a) According to information and explanation given to us the records examined byus and based on examination of the documents provided to us. No fraud by the Company orany fraud on the Company has been noticed or reported during the year hence sub-clause3(xi)(a) of the Companies (Auditors Report) Order 2020 is not applicable to the company.

(b) According to information and explanation given to us the records examined by usand based on examination of the documents provided to us. No report under sub-section (12)of section 143 of the Companies Act has been filed by us in Form ADT-4 as prescribed underrule 13 of Companies (Audit and Auditors) Rules 2014 with the Central Government andhence clause 3(xi)(b) of the Companies (Auditors Report) Order 2020 is not applicable tothe company.

(c) According to information and explanation given to us the records examined by usand based on examination of the documents provided to us. No whistle-blower complaintshave been received during the year by the company hence sub-clause 3(xi)(c) of theCompanies (Auditors Report) Order 2020 is not applicable to the company.

(xii) The Company is not a Nidhi Company and hence clauses 3(xii) of the Companies(Auditors Report) Order 2020 is not applicable to the Company.

(xiii) In our opinion and according to the information and explanations give 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 Standards.

(xiv) (a) In our opinion and based on our examination the company has an internalaudit system commensurate with the size and nature of its business.

(b) We have considered the internal audit reports of the company issued till date forthe period under audit.

(xv) In our opinion and based on our examination. The company has not entered into anynon-cash transactions with its directors or persons connected with its directors hencesub-clause 3(xv) of the Companies (Auditors Report) Order 2020 is not applicable to thecompany.

(xvi) (a) The nature of business and the activities of the Company are such that theCompany is not required to obtain registration under section 45-IA of the Reserve Bank ofIndia Act 1934 and hence sub-clause 3(xvi)(a) of the Companies (Auditors Report) Order2020 is not applicable to the company.

(b) The company is not required to be registered under section 45-IA of the reservebank of India Act 1934 hence clauses 3(xvi)(b) of the Companies (Auditors Report) Order2020 is not applicable to the Company.

(C) The company is not a Core investment company (CIC) as defined in the regulationmade by registered under section 45-IA of the reserve bank of India Act 1934 henceclauses 3(xvi)(c) of the Companies (Auditors Report) Order 2020 is not applicable to theCompany.

(xvii) On an examination of the Statement of Profit and Loss account we are of theopinion that the Company has not incurred cash losses during the current financial yearhence clauses 3(xvii) of the Companies (Auditors Report) Order 2020 is not applicable tothe Company.

(xviii) There was end of term of the previous statutory auditors during the year as persection 140 of company Act 2013 and new auditor is appointed as per under section 139 asper company Act 2013 Accordingly. Clause (3) (xviii) Companies (Auditors Report) Order2020 is not applicable to the Company.

(xix) On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements our knowledge of the Board of Directors and management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report that the company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the company as and when they fall due.

(xx) According to the information and explanations given to us although the Companyfulfilled the criteria as specified under section 135(1) of the Act read with theCompanies (Corporate Social Responsibility Policy) Rules 2014 however in the absence ofaverage net profits in the immediately three preceding years there is no requirement forthe Company to spend any amount under subsection (5) of section 135 of the Act.Accordingly reporting under clause 3(xx) of the Order is not applicable to the Company.

(Referred to in paragraph 2(f) under Report on Other Legal and Regulatory Requirementssection of our report to the members of NIVAKA FASHIONS LIMITED of even date)

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

We have audited the internal financial controls over financial reporting of The NIVAKAFASHION LIMITED ("the Company") as of March 312022 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls 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 about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk.

The procedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting of the Company.

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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.

Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion 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 March 31 2022 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For and on behalf of ADV & Associates

Chartered Accountants ICAI FRN: 128045W

Prakash Mandhaniya Partner

Membership No. 421679

Place: Mumbai Date: 28/05/2022

UDIN : 22421679ANMHHM4775

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