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Perfect Infraengineers Ltd.

BSE: 532595 Sector: Engineering
NSE: PERFECT ISIN Code: INE925S01012
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Perfect Infraengineers Ltd. (PERFECT) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

PERFECT INFRAENGINEERS LIMITED

Report on the Audit of the Standalone Financial Statements

Qualified Opinion:

We have audited the standalone financial statements of PERFECT INFRAENGINEERSLIMITED ("the Company") which comprise the Balance sheet as at 31st March2022 and the statement of Profit and Loss and statement of cash flows for the year thenended and notes to the financial statements including a summary of significantaccounting policies (hereinafter referred to as "the financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter(s) described in the Basis for QualifiedOpinion Section the aforesaid standalone financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2022 and its statementof Profit & loss of the loss and its cash flows for the year ended on that date.

Basis for Qualified Opinion:

We draw attention to the matters described in note no.8 (e) of financial statementwhereby the company has outstanding bank OD from ICICI bank. During the year the companynot provided the interest of Rs 62.10 lacs on OD in the books of accounts due to whichexpenses are understated to that extent.

We draw attention to the note no.30(3)(B) whereby out of the total outstanding debtorsa few debtors having outstanding debtors of Rs.10774102 company has written offRs.594245 as bad debts during the year. Since the recovery proceedings are pendingbefore NCLT in our view provisions amount is shorter than what is required. To the extentof such lower booking of provisions loss for the year is understated.

We draw attention to the note no.16 whereas the company has closing stock of Rs.7.88crore. As per management approximate 30% of the inventory are slow moving items.Alsomanagement have not carried out physical verification of inventory. We performed alternateaudit procedures but the correctness of carrying value could not be derived. We are unableto obtain the sufficient audit evidence to express our audit opinion on its carryingvalue.

The loan recalled by TDB has been not classified as Current Liabilities but shown asNon Current.

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. 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 thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on thestandalone financial statements.

Emphasis of Matter:

We draw your attention to Note 34 to the Statement which describes the uncertaintycaused by Covid-19 pandemic and the assessment made by the management on its business andfinancials. This assessment and the outcome of the pandemic is as made by the managementand is highly dependent on the circumstances as they evolve in the subsequent periods.

We draw your attention to Note 4.1(e) and 8 to the Statement whereby the company hasbeen in litigation with TDB & ICICI Bank on existing facilities which can impactfuture liquidity.

We would like to draw your attention towards non/slow moving current assets likeCapital advance Retention with customer advance to suppliers and WIP Contract assets.Since the amounts are material any diminution in its carrying value can impact thefinancials.

The balances in Trade Receivables and Trade Payables are subject to confirmations.

We draw your attention towards segment reporting whereas the segment wise results arenot prepared because the segment wise cost bifurcation is not available.

Our opinion is not modified in respect of this matter.

Key Audit Matters:

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial Statements of the current year.These matters were addressed in the context of our audit of the Standalone FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

Litigations-Contingencies:

The Company has ongoing litigations with various authorities and third parties whichcould have significant impact on the results if the potential exposures were tomaterialize. Claims against the company not acknowledgment as debt are disclosed in thefinancial statement by way of note. The outcome of such litigation is uncertain and theposition taken by the management involves significant judgment and estimates to determinethe likelihood and timing of cash flows. Refer note no:30 to the notes to account.

How our Audit addressed the key audit matter:

Our audit procedure included the following:

• Obtained and read the company's accounting policies in respect of claimsprovisions and contingent liabilities to assess the compliance with accounting standards.

• Supporting documents were tested for the positions taken by the management.

• Assessed in accordance with the accounting standards the provisions in respectof litigations and assessed disclosures relating thereto including those forcontingencies.

Information other than the Financial Statements and Auditor's report thereon:

The Company's Management and Board of Directors are responsible for the preparation ofthe other information. The other information comprises the information included in theDirectors' Report including Annexures to Director's Report but does not include theFinancial Statements and our Auditors' 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 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 Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the accounting Standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statement that give a true and fair view andare 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 is also responsible for overseeing the Company's financialreporting process

Auditor's Responsibilities for the Audit of the Financial Statements:

Our 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has 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 we are required to modifyour opinion. Our conclusions are based on the audit evidence obtained up to the date ofour auditor's report. However future events or conditions may cause the Company to ceaseto continue as a 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.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report.

Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure-A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable

2. As required 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 purpose 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 and the Statement of Profit and Loss dealt with by this Report arein agreement with the books of account.

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

e) We have received the mail confirmation from the company that none of the directorsare 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure- B".

g) With respect to the matters to be included in the Auditor's report under section197(16) of the act in our opinion and according to the information and explanations givento us the remuneration paid by the company to its directors during the current year is inaccordance with the provisions of section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under 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 in our opinionand to the best of our information and according to the explanations given to us:

a. We are not aware about any other pending litigation which would impact its financialposition except those mentioned in notes to accounts to the financial statement.

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

c. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

d. (i) The management has represented that to the best of its knowledge and 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 person(s)or entity(ies) including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shalldirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries;

(ii) The management has represented that to the best of its knowledge and belief nofunds have been received by the Company from any person(s) or entity(ies) includingforeign entities ("Funding Parties") with the understanding whether recordedin writing or otherwise that the Company shall directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;

Based on such audit procedures as considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (d) (i) and (d) (ii) contain any material misstatement.

e. No dividend has been declared or paid during the year by the Company.

f. The requirement to the use of accounting software for maintaining Company's books ofaccount which has a feature of recording audit trail (edit log) facility is deferred tofinancial years commencing on or after April 1 2023 wide MCA notification G.S.R. 235Edated 31st March 2022. Therefore reporting under Rule 11(g) of Companies (Audit &Auditor) Rules 2014 is not applicable for financial year ended on March 31 2022.

For JCR & Co Chartered

Accountants

FRN- 105270W

Mitesh Chheda Partner

Mem. No. 160688

Date: 30th May 2022

Place: Mumbai

UDIN: 22160688ALPRTY5288

"ANNEXURE A" TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph 1 of our Report of even date to the Members of PERFECTINFRAENGINEERS LIMITED on the Standalone Financial Statements of the Company for the yearended 31st March 2022.

i. (a) (A) The Company is maintaining proper records showing full particularsincluding quantitative details and situation of Property Plant & Equipment. Howeverthe asset tagging is not there and need to be done as part of improvement and demarcation.

(B) The Company is maintaining proper records showing full particulars of intangibleassets;

(b) We do not have information about the Fixed Assets been physically verified by themanagement at reasonable interval and hence cannot comment if any material discrepancieswere noticed on such verification.

(c) According to the information and explanation given to us and records examined by usand based on the examination of the title deeds comprising the immovable properties areheld in the name of the company. However we could verify only the photocopies as originaltitle deeds for properties were lying with the bank as collateral securities. Out of twoproperties photocopies of title deed of Lavasa property are verified by us as otherproperty details not provided by management.

(d) The Company has not revalued its Property Plant and Equipment (including Right ofUse assets) or intangible assets during the year.

(e) According to the information and explanations provided to us there are noproceedings have been initiated or are pending against the company for holding any benamiproperty under the Prohibition of Benami Property Transactions Act 1988 and rules madethereunder. Hence reporting under clause 3(i) (e) of the order is not applicable.

ii. (a) We do not have information about the Inventory physically verified by themanagement at reasonable intervals. Please refer to basis of qualified matter Para. inmain audit report.

(b) According to the information and explanations provided to us and on the basis ofour examination of the records of the company the Company has not been sanctioned anyworking capital limits in excess of five crore rupees in aggregate from banks orfinancial institution on the basis of security of current assets at any point of time ofthe year. Accordingly clause 3(ii)(b) of the Order is not applicable to the Company.

iii. According to the information and explanations provided to us and on the basis ofour examination of the records of the company the company has not made any investmentprovided guarantee or security or granted any loans or advances in the nature of loanssecured or unsecured to companies firms limited liability partnerships or any otherparties during the year.

iv. According to the information and explanations provided to us and on the basis ofour examination of the records of the company the Company has not granted any loans ormade any investments or provided any guarantees or security to the parties covered underSection 185 and 186. Therefore the provisions of Clause 3(iv) of the said Order are notapplicable to the Company and hence not commented upon.

v. The Company has not accepted any deposits or amounts which are deemed to be depositsfrom the public within the meaning of Section 73 74 75 and 76 of the Act and the Rulesframed thereunder to the extent notified. Therefore the provision of Clause 3(v) of thesaid Order is not applicable to the Company and hence not commented upon.

vi. According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under Section 148(1) of the Act for theproducts manufactured by it. Accordingly clause 3(vi) of the Order is not applicable.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us except for Rs.779685/- due towards TDS PT PF and ESIC(Details provided below) the Company is regular in depositing the undisputed statutorydues including Goods and Service Tax provident fund employees' state insurance incometax sales tax service tax duty of customs duty of excise value added tax cess andother material statutory dues as applicable with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of statutory dues including Goods and Service Tax provident fundemployees' state insurance income tax sales tax service tax duty of customs duty ofexcise value added tax cess and other material statutory dues as applicable wereoutstanding at the year end for a period of more than six months from the date theybecame payable.

Details of Statutory Dues outstanding as on 31-3-2022:

Particulars Amount (Rs.)
TDS 748498
PF 25595
PT 375
ESIC 5218
Total 779685

(b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of statutory dues referred to in sub-clause (a) asat March 31 2022 which have not been deposited on account of a dispute are as follows:

Name of the statute Nature of dues Amount (Rs in Lakhs.) Period to which the amount relates Forum where the dispute is pending
Maharashtra VAT Act VAT/CST Rs.18.04 2013-14 Appeal filed before Maharashtra Sales Tax Tribunal Mumbai
Maharashtra VAT act VAT Rs.16.51 2015-16 Rectification Order
Maharashtra VAT Act CST Rs.4.74 2015-16 Rectification Order
Income Tax Act Income Tax Rs.174.55 2018-19 Appeal filed before CIT-A
Income Tax Act Income Tax Rs.67.01 2019-20 Rectification

viii. In terms of the information and explanations given to us and the books of accountand records examined by us the Company has not surrendered or disclosed as income duringthe year in the tax assessments under the Income Tax Act 1961. Hence reporting underclause 3(viii) of the order is not applicable.

ix. (a) The company had availed sanctioned loan soft loan of Rs.750 lakhs fromGovernment (Technology Development Board) out of which Rs.450 lakhs have been received.Also company has Bank OD from ICICI bank. As per agreement with TDB loan will be repaidin eight installments starting from March 2023 and thus first installment will due in themonth of March 2023 and has been recognized under current liabilities. Bank OD from ICICIbank Company has entered into agreement for onetime settlement in December- 2020. Duringthe year company had defaulted in repayment of bank OD. The dispute is pending beforecourt and therefore period wise bifurcation not available.

(b) According to the information and explanations given to us and on the basis of ouraudit procedures we report that the company has not been declared willful defaulter byany bank or financial institution or other lender.

(c) According to the information and explanations given to us and on the basis of ouraudit procedures the Company has not availed any term loan.

(d) According to the information and explanations given to us and on the basis of ouraudit procedures the Company has not raised any funds on short term basis.

(e) The company does not have any subsidiary associate or joint venture hencereporting under clause 3(ix)(e) of the order is not applicable.

(f) The company does not have any subsidiary associate or joint venture hencereporting under clause 3(ix)(f) of the order is not applicable.

x. (a) The Company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) during the year. Accordingly the provisions ofClause 3(ix) of the Order are not applicable to the Company.

(b) The Company has not made any preferential allotment or private placement of sharesor fully or partly or optionally convertible debentures during the year. Accordingly theprovisions of Clause 3(x)(b) of the Order are not applicable to the Company.

xi. (a) During the course of our examination of the books and records of the Companycarried out

in accordance with the generally accepted auditing practices in India and according tothe information and explanations given to us we have neither come across any instance offraud by the Company or on the Company noticed or reported during the year nor have webeen informed of any such case by the Management.

(b) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us report in the form ADT-4 asspecified under subsection (12) of section 143 of the Companies Act has not been filed.Accordingly reporting under clause 3(xi)(b) of the order is not applicable.

(c) According to the information and explanations given to us vigil mechanism notapplicable to the company as per Act or SEBI (Listing Obligations and DisclosureRequirements) Regulations and therefore clause not applicable.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it; the provisions of Clause 3(xii) of the Order are not applicable to the Company.

xiii. In our opinion and according to the information and explanations given to us thetransactions with related parties are in compliance with sections 177 and 188 of the Actwhere applicable and the details of the related party transactions have been disclosed inthe financial statements as required by the applicable AS.

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

xv The Company has not entered into any non-cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

xvii During the year company has incurred cash losses of Rs.5391205/-. Company havenot incurred cash losses during immediately preceding financial year.

xviii There has been no resignation by statutory auditors during the year hencereporting under clause 3(xviii) of the order is not applicable.

xix According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of 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.

We however state that this is not an assurance as to the future viability of thecompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the company as and when they fall due.

(xx) In our opinion and according to the information and explanations given to usprovision of section 135 are not applicable to the company and therefore there is nounspent amount under sub section (5) of section 135 of the Act pursuant to any project.Accordingly clause 3(xx)(a) and 3(xx)(b) of the Order are not applicable.

For JCR & Co

Chartered Accountants

FRN- 105270W

Mitesh Chheda

Partner

Mem. No. 160688

Date: 30th May 2022

Place: Mumbai

UDIN: 22160688ALPRTY5288

"ANNEXURE B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 (f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Perfect Infraengineers Limited ofeven 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 PERFECTINFRAENGINEERS LIMITED ("the Company") as of March 31 2022 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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.

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 respective company's policiesthe safeguarding 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 Act2013.

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 proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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

According to the information and explanations given to us and based on our audit thefollowing significant weakness has been identified as at 31st March 2022:

The control mechanism in respect of recording of transactions needs improvement

In our opinion except for the possible effects of the significant weakness describedabove on the achievement of the objectives of the control criteria the Company hasmaintained in all material respects adequate internal financials controls over financialreporting were operating effectively as of 31st March 2022 based on "The internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India".

For JCR & Co

Chartered Accountants

FRN- 105270W

Mitesh Chheda

Partner

Mem. No. 160688

Date: 30th May 2022

Place: Mumbai

UDIN: 22160688ALPRTY5288.

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