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Parnax Lab Ltd.

BSE: 506128 Sector: Health care
NSE: N.A. ISIN Code: INE383L01019
BSE 15:13 | 07 Dec 74.00 -1.55
(-2.05%)
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NSE 05:30 | 01 Jan Parnax Lab Ltd
OPEN 77.00
PREVIOUS CLOSE 75.55
VOLUME 13533
52-Week high 169.90
52-Week low 34.00
P/E 176.19
Mkt Cap.(Rs cr) 85
Buy Price 74.00
Buy Qty 2.00
Sell Price 74.55
Sell Qty 7.00
OPEN 77.00
CLOSE 75.55
VOLUME 13533
52-Week high 169.90
52-Week low 34.00
P/E 176.19
Mkt Cap.(Rs cr) 85
Buy Price 74.00
Buy Qty 2.00
Sell Price 74.55
Sell Qty 7.00

Parnax Lab Ltd. (PARNAXLAB) - Auditors Report

Company auditors report

To The Members of Parnax Lab Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying Standalone financial statements ofParnax Lab Limited ("the Company"] which comprises the Balance Sheet as atMarch 31 2022 and the Statement of Profit and Loss (Including Other ComprehensiveIncome] the Cash Flow Statement and the Statement of Change in Equity for the year thenended and notes to the standalone financial statements including a summary ofsignificant accounting policies and other explanatory information.

2. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("Act"] in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandard] Rules 2015 as amended ("Ind AS"] and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022and its profit total comprehensive income its cash flows and the Statement of Change inEquity for the year ended on that date

Basis of Opinion

3. 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 Audit of theFinancial 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 thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion on the standalonefinancial statements.

Key Audit Matters

4. Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statements ofthe current period. 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 matter to be communicated in our report.

5. The Key Audit Matter How was the matter addressed in our audit
Revenue is recognised when control of the products being sold has been transferred to the customer. The timing of revenue recognition is relevant to the reported performance of the Company. In view of significance of the matter we applied following audit procedures in this area among others to obtain sufficient and appropriate audit evidence:
We identified revenue recognition as a key audit matter because there is presumed fraud risk of revenue being overstated at period end by recognising certain transactions as revenue though control over those goods may not have transferred to the customers as at year- end by changing the timing of transfer of control. • Evaluated compliance of the revenue recognition accounting policies by comparing with Ind AS 115 "Revenue from Contracts with Customers".
• Tested the design implementation and operating effectiveness of the Company?s general IT controls and manual controls over the Company?s systems which governs recording of revenue creation of new customers and key controls over revenue cut-off in the general ledger.
• Performed substantive testing by selecting statistical samples of revenue transactions recorded during the year and year-end cut-off testing by verifying the underlying documents which include testing contractual terms of sale contracts / invoices shipping documents and proof of delivery to test evidence for transfer of control.
• Evaluated adequacy of disclosures in relation to revenue in the standalone financial statements.

Information other than the financial statements and auditors' reportthereon

6. The Company?s Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board's Report including Annexures toBoard?s Report Business Responsibility Report Corporate Governance andShareholder?s Information but does not include the standalone financial statementsand our auditor?s report thereon. The Annual report is expected to be made availableto us after the date of this auditor?s report.

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

8. 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. When we read the Annual Report if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance.

Management's Responsibility for the Standalone Financial Statements

9. The Company?s management and Board of Directors are responsiblefor the matters stated in section 134(5) of 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 cash flows and theStatement of Change in Equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate implementation and maintenance of accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

10. In preparing the standalone financial statements management andBoard of Directors are responsible for assessing the Company?s ability to continue asa going concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management 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 Standalone FinancialStatements

11. 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.

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

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

• Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(I) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

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

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

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

13. Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the standalone 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) to evaluatethe effect of any identified misstatements in the standalone financial statements.

14. 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.

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

16. From the matters communicated with those charged with governancewe determine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor?s report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on other Legal and Regulatory Requirements

17. 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 Order to the extent applicable.

18. As required by section 143(3) of the Act we report that:

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

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

c) The Balance Sheet the Statement of Profit and Loss (including othercomprehensive income) Cash Flow Statement and the Statement of Change in Equity dealtwith by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.

e) On the basis of written representations received from the directorsas on 31st March 2022 taken on record by the Board of Directors none of the directorsis disqualified as on 31st March 2022 from being appointed as a director in terms ofSection 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in 'Annexure B".

g) With respect to the other matters to be included in theAuditor?s Report in accordance with the requirements of section 197(16) of the Actas amended.

The Company has not paid any remuneration to its directors during theyear. Hence the provisions of the section 197 of the Act is not applicable.

h) With respect to the other matters to be included in theAuditor?s Report in accordance with Rule 11 of Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us:

i) The Company has disclosed the impact of pending litigations if anyon its financial position in note no. 33 of its standalone financial statements;

ii) The Company did not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses;

iii) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company;

iv) a) The management has represented that to the best of itsknowledge and belief no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the Company toor in any other person(s) or entity(ies) including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother 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 knowledgeand belief no funds have been received by the Company from any person(s) or entity(ies)including foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the Company shall whether directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Party ("Ultimate Beneficiaries") or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries; and

c) Based on such audit procedures performed that have been consideredreasonable and appropriate in the circumstances nothing has come to our notice that hascaused us to believe that the representations under subclause (i) and (ii) of Rule 11(e)as provided under (a) and (b) above contain any material misstatement.

v) No dividend has been declared or paid during the year by theCompany.

Annexure A to Independent Auditor's Report

Referred to as 'Annexure A' in paragraph 17 of the IndependentAuditors? Report of even date to the members of Parnax Lab Limited on the standalonefinancial statements for the year ended on 31st March 2022.

In terms of the information and explanations sought by us and given bythe company and the books of account and records examined by us in the normal course ofaudit and to the best of our knowledge and belief we state that:

i. In respect of the Company?s Property Plant and Equipment andIntangible Assets:

(a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant and Equipmentand relevant details of right-of-use assets.

(B) The Company has maintained proper records showing full particularsof intangible assets.

(b) The Company has a program of physical verification of PropertyPlant and Equipment and right-of-use assets in our opinion the frequency of verificationis reasonable considering to the size of the Company and the nature of its assets.Physical verification of the assets has been carried out during the year pursuant to theprogramme in that respect. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification.

(c) Based on the examination of the registered sale deed / transferdeed / conveyance deed property tax receipts and lease agreement provided to us we reportthat the title deeds of all the immovable properties (other than those that have beentaken on lease) disclosed in the financial statements included in property plantequipment are held in the name of the Company as at the balance sheet date. In respect ofimmovable properties that have been taken on lease and disclosed in the financialstatements as non current assets held for sale as at the balance sheet date the leaseagreements are duly executed in favour of the Company except for the following:

Description of property As at the Balance sheet date Held in the name of Whether promoter director or their relative or employee Period held Reason for not being held in name of Company *
Gross carrying value Net carrying value </td>
Plot No 74 Govt. Industrial Estate Masat Silvassa 1947330 1947330 Parnax Lab Private Limited NA The Company holds possession from date of Merger Parnax Lab Private Limited and Naxpar Lab Private Limited merged with the Company vide merger order dated December 2 2011 still not transferred in the name of Company
Plot No 121 Govt. Industrial Estate Masat Silvassa 2107400 2107400 Parnax Lab Private Limited NA The Company holds possession from date of Merger
Plot No 120 Govt. Industrial Estate Masat Silvassa 1516180 1516180 Naxpar Lab Private Limited NA The Company holds possession from date of Merger

(d) The Company has not revalued any of its Property Plant andEquipment (including right of-use assets) and intangible assets during the year.

(e) In our opinion and according to the information and explanationsgiven to us neither any proceedings have been initiated during the year nor are pendingas at March 31 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 as amended and rules made thereunder. Accordingly theprovisions of clause 3(i)(e) of the Order are not applicable to the Company.

ii. (a) The inventories were physically verified during the year by theManagement at reasonable intervals. In our opinion and according to the information andexplanations given to us the coverage and procedure of such verification by theManagement is appropriate having regard to the size of the Company and the nature of itsoperations. No discrepancies of 10% or more in the aggregate for each class of inventorieswere noticed on such physical verification of inventories when compared with books ofaccount.

(b) According to the information and explanations given to us at anypoint of time of the year the Company has not been sanctioned any working capitalfacility from banks or financial institutions and hence reporting under clause (ii)(b) ofthe Order is not applicable.

iii. In respect of Investment in provided any guarantee or security orgranted any loans or advances in the nature of loans secured or unsecured to companiesfirms Limited Liability Partnerships or any other parties:

(a) The Company has not provided any loans or advances in the nature ofloans or stood guarantee or provided security to any other entity during the year andhence reporting under clause 3(iii)(a) of the Order is not applicable.

(b) According to the information and explanations given to us theinvestment made are in the ordinary course of business and accordingly not prejudicial tothe Company?s interest.

(c) The Company has not granted any loans or advances in the nature ofloans during the year. Accordingly clauses 3(iii)(c)

(d) (e) and (f) of the Order are not applicable to the Company.

Iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 to the extent applicable. The Company has not made investmentprovided any loans guarantee and security during the year

v. According to the information and explanations given to us theCompany has not any accepted any deposit or amounts which are deemed to be deposits withinthe meaning of section 73 to 76 or any relevant provision of the Companies Act 2013.Hence reporting under clause 3(v) of the Order is not applicable.

vi. The Company is required to maintain cost records as per theprovision of section 148(1) of the Companies Act 2013 for the business activities carriedout by the Company. Thus reporting under clause 3(vi) of the order is not applicable tothe Company.

vii. In respect of statutory dues:

(a) In our opinion the Company has generally been regular indepositing undisputed statutory dues including Goods and Services tax Provident FundEmployees? State Insurance Income Tax Sales Tax Service Tax duty of Custom dutyof Excise Value Added Tax Cess and other material statutory dues applicable to it withthe appropriate authorities. There were no undisputed amounts payable in respect of Goodsand Service tax Provident Fund Employees? State Insurance Income Tax Sales TaxService Tax duty of Custom duty of Excise Value Added Tax Cess and other materialstatutory dues in arrears as at March 31 2022 for a period of more than six months fromthe date they became payable. *

(b) Details of statutory dues referred to in sub-clause (a) above whichhave not been deposited as on March 31 2022 on account of disputes are given below:

Name of Statute Nature of the dues Amount (in Lacs) Period for which the amount relates (Assessment Year) Forum where dispute is pending
Central Excise Act 1944 Excise Duty & Penalty 5.50 April 2003 to March 2005 Commissioner (Appeals)
Central Excise Act 1944 Excise Duty & Penalty 0.26 April 2003 to Jan. 2006 Commissioner (Appeals)
Central Excise Act 1944 Excise Duty & Penalty 0.43 Oct. 2001 to Oct. 2003 Custom Excise Service Tax Appellate Tribunal
Central Excise Act 1944 Excise Duty & Penalty 0.82 June 2001 to Feb 2003 Commissioner (Appeals)
Central Excise Act 1944 Excise Duty & Penalty 56.16 Jan. 2005 to Dec. 2006 Commissioner (Appeals)

* includes interest and penalty as per demand orders.

Viii. According to the information and explanations given to us. therewere no transactions relating to previously unrecorded income that have been surrenderedor disclosed as income during the year in the tax assessments under the Income Tax Act1961 (43 of 1961). Accordingly the provisions of clause 3(viii) of the order is notapplicable to the Company.

ix. (a) Based on our audit procedures and on the basis of informationand explanations given to us we are of the opinion that the Company has not defaulted inthe repayment of loans or other borrowings or in the repayment of interest thereon to thelenders. Accordingly the provisions of clause 3(ix) of the order is not applicable to theCompany.

(b) On the basis of information and explanations given to us theCompany has not been declared as willful defaulter by any bank or financial institution orother lender.

(c) The Company has not taken any term loan during the year and thereare no unutilised term loans at the beginning of the year and hence reporting underclause (ix)(C) of the Order is not applicable.

(d) On an overall examination of the financial statements of theCompany funds raised on short term basis have prima facie not been used during the yearfor long-term purposes by the Company.

(e) The Company has not made any investment in or given any new loan oradvances to any of its subsidiaries associates or joint ventures during the year andhence reporting under clause (ix)(e) of the Order is not applicable.

(f) The Company has not raised any loans during the year and hencereporting on clause 3(ix)(f) of the Order is not applicable.

x. (a) The Company has not raised moneys by way of initial public offeror further public offer (including debt instruments) during the year and hence reportingunder clause 3(x)(a) of the Order is not applicable.

(b) The Company has made preferential allotment of warrants /sharesduring the year. For such allotment of warrants / shares the Company has complied withthe requirements of Section 42 and 62 of the Companies Act 2013 and the funds raisedhave been prima facie applied by the Company during the year for the purposes for whichthe funds were raised other than temporary deployment pending application. The Companyhas not made any preferential allotment or private placement of (fully or partly oroptionally) convertible debentures during the year.

xi. (a) To the best of our knowledge and according to the informationand explanation given to us no fraud by the Company and no material fraud on the Companyhas been noticed or reported during the year.

(b) To the best of our knowledge no report under sub-section (12) ofsection 143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13of Companies (Audit and Auditors) Rules 2014 with the Central Government during the yearand upto the date of this report.

(c) Based on our audit procedure performed and according to theinformation and explanations given to us no whistle blower complaints were received bythe Company during the year. Accordingly the provisions of clause 3(xi)(d) of the Orderare not applicable to the Company.

xii. The Company is not a Nidhi Company and hence reporting underclause (xii) of the Order is not applicable.

xiii. In our opinion the Company is in compliance with Section 177 and188 of the Companies Act 2013 with respect to applicable transactions with the relatedparties and the details of related party transactions have been disclosed in thestandalone financial statements as required by the applicable accounting standards.

xiv. (a) In our opinion and based on our examination the company hasan adequate internal audit system commensurate with the size and nature of its business.

(b) We have considered the internal audit reports issued to theCompany till the date of the audit report.

xv. In our opinion during the year the Company has not entered into anynon-cash transactions with its Directors or persons connected with its directors and henceprovisions of section 192 of the Companies Act 2013 are not applicable to the Company.

xvi. (a) In our opinion the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934.

Hence reporting under clause 3(xvi)(a) (b) and (c) of the Order isnot applicable.

(b) In our opinion there is no core investment company within theGroup (as defined in the Core Investment Companies (Reserve Bank) Directions 2016) andaccordingly reporting under clause 3(xvi)(d) of the Order is not applicable.

xvii. The Company has not incurred any cash losses in the financialyear covered by our audit but had incurred cash losses amounting to Rs. 120.97 Lakhs inthe immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors of theCompany during the year. Accordingly reporting under clause 3(xviii) of the Order is notapplicable to the Company

xix. According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the financialstatements and our knowledge of the Board of Directors and Management plans and based onour examination of the evidence supporting the assumptions nothing has come to ourattention which causes us to believe that any material uncertainty exists as on the dateof the audit report indicating that 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. The Company was not having net worth of rupees five hundred croreor more or turnover of rupees one thousand crore or more or a net profit of rupees fivecrore or more during the immediately preceding financial year and hence provisions ofSection 135 of the Act are not applicable to the Company during the year. Accordinglyreporting under clause 3(xx) of the Order is not applicable for the year.

Annexure B to Independent Auditor's Report

Referred to as 'Annexure B? in paragraph 18(f) of the IndependentAuditors' Report of even date to the members of Parnax Lab

Limited on the standalone financial statements for the year ended on 31stMarch 2022.

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

1. We have audited the internal financial controls over financialreporting of Parnax Lab Limited ("the Company") as on 31st March 2022 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended and as on that date.

Management's Responsibility for Internal Financial Controls

2. 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 ("theGuidance Note"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany?s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

3. 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 and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls over financial reporting.Those Standards and the Guidance Note require that we comply with the ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system over financial reporting andtheir operating effectiveness. Our audit of internal financial controls over financialreporting 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 includingthe assessment of the risks of material misstatement of the standalone Ind AS financialstatements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company?s internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

6. A company's internal financial control over financial reporting is aprocess 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 control overfinancial 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 standaloneInd AS financial statements in accordance with generally accepted accounting principlesand that receipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the standaloneInd AS financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

7. Because of the inherent limitations of internal financial controlsover financial 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

8. 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 31st March 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For C. N. Patel & Co.
Chartered Accountants
Firm?s Registration No. : 112552W
Sd/-
CA Manish Mandhana
Partner
M. No. : 112026
Place : Mumbai
Dated : 30th May 2022
UDIN : 22112026AJXHFU1308

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