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Orient Green Power Company Ltd.

BSE: 533263 Sector: Infrastructure
NSE: GREENPOWER ISIN Code: INE999K01014
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VOLUME 316148
52-Week high 28.75
52-Week low 3.00
P/E
Mkt Cap.(Rs cr) 637
Buy Price 8.47
Buy Qty 2561.00
Sell Price 8.49
Sell Qty 246.00
OPEN 8.32
CLOSE 8.50
VOLUME 316148
52-Week high 28.75
52-Week low 3.00
P/E
Mkt Cap.(Rs cr) 637
Buy Price 8.47
Buy Qty 2561.00
Sell Price 8.49
Sell Qty 246.00

Orient Green Power Company Ltd. (GREENPOWER) - Auditors Report

Company auditors report

To The Members of

Orient Green Power Company Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements ofOrient Green Power Company Limited ("the Company") which comprise theStandalone Balance Sheet as at March 31 2022 the Standalone Statement of Profit and Loss(including Other Comprehensive Income) Standalone Statement of Changes in Equity andStandalone Statement of Cash Flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as "the standalone financial statements").

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 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022and its loss and total comprehensive loss changes in equity and its cash flows for theyear 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 Act. Our responsibilities under thoseStandards are further described in the ‘Auditor's Responsibilities for the Auditof the Standalone Financial Statements' section of our report. We are independent ofthe Company in accordance with the ‘Code of Ethics' issued by the Institute ofChartered Accountants of India (‘the ICAI') together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion on the standalone Financial Statements.

Emphasis of Matter

We draw attention to the following matters in the Notes to thestandalone financial statements: i. Considering the restrictive covenants by consortiumbanks on the subsidiary viz. Beta Wind Farm Private Limited the company has on a prudentbasis not recognized the finance income of Rs. 4454 Lakhs during the year ended March 312022 (cumulative Rs. 31592 lakhs upto March 31 2022) on loan measured at amortized costconsequent to fair valuation of investment in preference shares. Had the companyrecognized the finance income the loss for the year would have been lower by Rs. 4454Lakhs (cumulative Rs. 31592 Lakhs up to March 31 2022) and the loan to subsidiary wouldhave been higher by Rs. 31592 Lakhs. Our opinion is not modified in respect of thismatters.

Key Audit Matters

Key audit matters are those matters that in our professionaljudgement were of most significance in our audit of the standalone financial statementsof the current year. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. We have determined the matter describedbelow to be the key audit matters to be communicated in our report:

Sr. No. Key Audit Matter Auditors Response
1 Impairment testing of Company's investments in and loans to subsidiaries The audit procedures that were performed were as under:
As at March 31 2022 the Company has gross investments in subsidiaries/associate amounting to Rs. 75980 lakhs and loans and advances amounting to Rs. 44028 lakhs. Considering the materiality and management judgement involved audit of impairment testing of Company's investments and provision for expected credit losses on loans to subsidiaries was determined to be a key audit matter. • We have considered and reviewed Company's policy for impairment testing for investments and loans to subsidiaries.
• We reviewed the adequacy of the impairment provisions/ credit losses estimated by the company for its Investments and Loans based on the net-worth of the subsidiaries/other companies the operating/cashprofitsthe net present value of cash flows on the basis of the projected financial statements approved by the Board of Directors and the valuation reports from Independent External Valuers. We have reviewed the reasonableness of the projected revenues expenses and the net present value of the cash flows (NPV) of the company and the discount rate involved. We have also compared the NPV with the carrying amounts of the assets in order to ascertain the adequacy of the provisions. According to the information and explanations given to us by the management of the company we have also considered the long gestation and the pay-back period involved in the Wind Power Projects while estimating the amount and the timing of the provisions/credit losses against the investments and the loans.
• We have obtained and reviewed the reports on the valuations of the Windmills which was carried out by the company by engaging Independent Valuer.
• Our procedures did not reveal any material concerns on the provision for impairment and credit losses as considered in the financial statements.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis the report of the Board of Directors and the report on theCorporate Governance but does not include the standalone financial statements and ourauditor's report thereon.

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 and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in Section 134 (5) of the Act with respect to the preparation of these StandaloneFinancial Statements that give a true and fair view of the financial position financialperformance including total comprehensive loss changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (IND AS) specified under Section 133 of the Actread with the Company's (Indian Accounting Standards) Rules2015 as amended includingthe Companies (Indian Accounting Standards) Amendment Rules 2019. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatementswhether due to fraud or error. In preparing the standalone financial Statementsmanagement is responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the Board of Directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so. The Board ofDirectors is also responsible for overseeing the Company's financial reportingprocess.

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 standalone 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 the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit 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 concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

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 we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards. From the matters communicatedwith those charged with governance we determine those matters that were of mostsignificance in the audit of the standalone financial statements of the current period andare therefore the key audit matters. We describe these matters in our auditor'sreport unless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

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 Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the said Order to the extent applicable. Asrequired by Section 143 (3) of the Act 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 the Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards specified under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended including the (Companies AccountingStandards) Amendment Rules 2019.

(e) On the basis of the written representations received from the directors as on March31 2022 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 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" to this report.

(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 (16) 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 standalone financial statements – Refer Note 37 to the financialstatements.

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

iii. According to the information and explanations given to us Company is not requiredto transfer any amount to the Investor Education and Protection Fund (IEPF) during theyear ended March 31 2022

iv. a. The management has represented that to the best of its knowledge or belief 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 personsor entities including foreign entities (intermediaries) with the understanding whetherrecorded in writing or otherwise that the intermediary shall whether directly orindirectly lend or invest in other persons or entities identified in any manner whatsoeverby or on behalf of the company (ultimate beneficiaries) or provide any guarantee securityor the like on behalf of the Ultimate Beneficiaries;

b. The management has represented that to the best of its knowledge or belief no fundshave been received by the company to or in any other persons or entities including foreignentities (funding parties) with the understanding whether recorded in writing orotherwise that the company shall whether directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the fundingparty (ultimate beneficiaries) or provide any guarantee security or the like on behalf ofthe Ultimate Beneficiaries;

c. Based on the audit procedures considered reasonable and appropriate in thecircumstances carried out by us nothing has come to our notice that has caused us tobelieve that the representation under clause (iv-a) & (iv-b) contain any materialmisstatements

v. The Company has not declared and paid dividend during the year.

For G. D. Apte & Co.
Chartered Accountants
Firm Registration Number: 100 515W
UDIN: 22113053AJHWMG1734
Umesh S. Abhyankar
Pune Partner
May 20 2022 Membership Number: 113053

ANNEXURE ‘A' TO THE AUDITORS' REPORT

Referred to in paragraph under the heading ‘Report on Other Legaland Regulatory Requirements' of our report of even date to the members of the Companyfor the year ended March 31 2022)

i. (a) A. The company has maintained proper records showing full particulars ofproperty plant and equipment including quantitative details and situation of assets.

B. The company is maintaining proper records showing full particulars of intangibleassets.

(b) All items of Property Plant & Equipment were physically verified during theyear by the Management in accordance with a programme of verification which in ouropinion provides for physical verification of all the fixed assets at reasonableintervals. According to the information and explanation given to us no materialdiscrepancies were noticed on such verification.

(c) According to the information and explanations given to us and based on the recordsexamined by us we report that the title deeds comprising all the immovable properties ofland and buildings are held in the name of the Company as at the balance sheet date.

(d) According to the information and explanations given to us the company has notcarried out revaluation of property plant equipment or intangible assets during the year.Accordingly reporting under clause 3(i)(d) of the Order is not applicable to the Company.

(e) According to the information and explanations given to us and based on ourexamination we report that there are no proceedings initiated or pending under thesection 45 of Benami Transactions (Prohibition) Act 1988 and rules made thereunder.

ii. (a) The Company did not hold any inventories during the year. Accordinglyreporting under sub-clause (a) of clause 3(ii) of the order is not applicable to company.

(b) According to information provided to us during any point of time of the year thecompany has not been sanctioned working capital limits in excess of five crore rupees inaggregate from banks or financial institutions on the basis of security of currentassets.

iii. Based on the audit procedures conducted by us and according to the information andexplanations provided to us during the year the company has not made any investments inor has not provided any guarantee or security or has not granted any loans or advances inthe nature of loans secured or unsecured to companies firms Limited LiabilityPartnerships or any other parties. As such requirements under paragraph 3 (iii) (a) to(f) of the Order are not applicable to the Company.

iv. Based on the audit procedures conducted by us and according to the information andexplanations given to us we are of the opinion that the provisions of section 185 of theAct have been complied with by the Company and the provisions of section 186 of the Actexcept sub-section 1 are not applicable to the Company being company providinginfrastructural facilities as specified in Schedule VI to the Act. We further report thatprovisions of sub-section 1 of section 186 are complied with.

v. The Company has not accepted any deposits or amounts which are deemed deposits fromthe public within the meaning of Sections 73 74 75 and 76 of the Act and the Rulesframed there under. According to the information and explanations given to us no orderhas been passed by Company Law Board or National Company Law Tribunal or Reserve Bank ofIndia or any court or any other tribunal.

vi. The Company is not required to maintain cost records under sub-section (1) ofsection 148 of the companies Act 2013.

vii. (a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident fund Employees' State Insurance Income tax Goods and ServicesTax Custom Duty Cess and other material statutory dues applicable to it with appropriateauthorities except certain delays in case of income tax deducted at source. There were noundisputed amounts payable in respect of Provident fund Employees' State InsuranceIncome-tax Goods and Services Tax Cess and other material statutory dues in arrears asat March 31 2022 for a period of more than six months from the date they became payable.

(b) According to information and explanations given to us and based on the auditprocedures carried out by us there are no dues of Provident fund Employees' StateInsurance Income tax Goods and Services Tax Custom Duty Cess and other materialstatutory dues as on March 31 2022 which were not deposited on account of disputes.

viii. According to the information and explanations given to us and based on the auditprocedures performed by us we report that no amount has been surrendered or disclosed asincome during the year in the tax assessments under the Income Tax Act 1961 (43 of 1961)

ix. (a) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings and interest thereonpayable to any banks and other lenders. The company does not have any borrowings fromfinancial institutions or government.

(b) According to the information and explanations given to us the company is notdeclared as wilful defaulter by any bank or other lenders.

(c) The company has not obtained any term loans during the year. Further there were noterm loans which were unutilised at the beginning of the year. As such reporting undersub-clause (c) of clause 3(ix) is not applicable to the company.

(d) According to the information and explanations given to us and the proceduresperformed by us we report that the company has not used funds raised on short term forlong-term purposes.

(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 associates or joint ventures.

(f) According to the information and explanations given to us and the proceduresperformed we report that company has not raised loan during the year on the pledge ofsecurities held in its subsidiaries joint ventures or associate companies.

x. (a) During the year the company has not raised money by way of further public offer(including debt instrument). Accordingly reporting under sub-clause (a) of clause 3(x) ofthe order is not applicable to the company.

(b) In our opinion and according to the information and explanations given to uscompany has not made any preferential allotment or private placement of shares orconvertible debentures (fully partially or optionally convertible) during the year.Accordingly reporting under sub clause (b) of clause 3(x) of the order is not applicableto the company.

xi. (a) Based on the audit procedures performed for the purpose of reporting the trueand fair view of the Financial Statements and as per the information and explanationsgiven by the management we report that no fraud by the Company or any fraud on theCompany has been noticed or reported during the year.

(b) During the year no report under sub-section (12) of section 143 of the CompaniesAct has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies(Audit and Auditors) Rules 2014 with the Central Government.

(c) According to the information and explanations given to us and procedures performedby us we report that no whistle-blower complaints were received during the year by thecompany.

xii. The company is not nidhi company pursuant to the provisions of section 406 of theCompanies Act 2013. Accordingly reporting under sub-clause (a) to (c) of the clause3(xii) of the order is not applicable to the company.

xiii. Based upon the audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and as per the information and explanationsgiven to us we report that the transactions with the related parties are in compliancewith sections 177 and 188 of the Act where applicable and the details as required by theapplicable accounting standards have been disclosed in the standalone financialStatements.

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

(b) The internal audit reports of the company have been considered by us during thecourse of our audit.

xv. Based upon the audit procedures performed and as per the information andexplanations given to us we report that the company has not entered into any non-cashtransactions of the nature as described in section 192 (1) of the Act. Accordinglyreporting under this clause will not be applicable.

xvi. (a) The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934..

(b) Based on audit procedures performed we report that the company has not conductedany non- banking financial or housing finance activities during the year.

(c) According to the information and explanations given to us and based on auditprocedures performed we report that the Company would not be classified as a CoreInvestment Company (CIC). (d) According to the information and explanations given to uswe report that the Group does not have any CIC.

xvii. The Company has incurred cash losses of Rs. 1739 Lakhs in the current financialyear i.e. FY 2021-22 and cash losses of Rs. 591 Lakhs during immediately precedingfinancial year i.e. FY 2020-21.

xviii. There has been no resignation of statutory auditors during the year. Accordinglyreporting under clause 3(xviii) of the order will not be applicable to the company.

xix. According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities other information accompanying the financial statements ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatcompany is not capable of meeting its liabilities existing at the date of balance sheet asand when they fall due within a period of one year from the balance sheet date. Wehowever state that this is not an assurance as to the future viability of the company. Wefurther state that our reporting is based on the facts up to the date of the audit reportand we neither give any guarantee nor any assurance that all liabilities falling duewithin a period of one year from the balance sheet date will get discharged by thecompany as and when they fall due. xx. In our opinion and according to information andexplanation provided to us the Company is not required to incur expenditure on CorporateSocial Responsibility under section 135 of the Companies Act 2013 in view of losses undersection 198 mainly on account of adjustment of losses pertaining to earlier years as persection 198(4)(l) of the Act.

For G. D. Apte & Co.
Chartered Accountants
Firm Registration Number: 100 515W
UDIN: 22113053AJHWMG1734
Umesh S. Abhyankar
Pune Partner
May 20 2022 Membership Number: 113053

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph (f) under the heading ‘Report on otherlegal and regulatory requirements' of our report on even date on the InternalFinancial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act") to the members of the Company for the year ended March 312022) To The Members of Orient Green Power Company Limited

We have audited the internal financial controls over financialreporting of Orient Green Power Company Limited ("the Company") as ofMarch 31 2022 in conjunction with our audit of the standalone financial statements of theCompany for the year 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 the 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 Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing asspecified under section 143(10) of the Companies Act 2013 to the extent applicable to anaudit of internal financial controls both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures 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 appropriateto provide a basis for our audit opinion on the company's internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only inaccordancewithauthorisationsofmanagementanddirectors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorised acquisitionuse or disposition of the company's assets that could have a material effect on thefinancial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For G. D. Apte & Co.
Chartered Accountants
Firm Registration Number: 100 515W
UDIN: 22113053AJHWMG1734
Umesh S. Abhyankar
Pune Partner
May 20 2022 Membership Number: 113053

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