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Polyspin Exports Ltd.

BSE: 539354 Sector: Industrials
NSE: N.A. ISIN Code: INE914G01029
BSE 15:31 | 20 Mar 53.50 -0.36
(-0.67%)
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55.79

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55.79

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NSE 05:30 | 01 Jan Polyspin Exports Ltd
OPEN 55.79
PREVIOUS CLOSE 53.86
VOLUME 1202
52-Week high 72.00
52-Week low 50.00
P/E 15.60
Mkt Cap.(Rs cr) 54
Buy Price 0.00
Buy Qty 0.00
Sell Price 53.50
Sell Qty 423.00
OPEN 55.79
CLOSE 53.86
VOLUME 1202
52-Week high 72.00
52-Week low 50.00
P/E 15.60
Mkt Cap.(Rs cr) 54
Buy Price 0.00
Buy Qty 0.00
Sell Price 53.50
Sell Qty 423.00

Polyspin Exports Ltd. (POLYSPINEXPORTS) - Auditors Report

Company auditors report

To the Members of M/s. Polyspin Exports Limited Report on theStandalone IND AS Financial Statements Opinion

We have audited the accompanying Standalone IND AS financial statementsof M/s. Polyspin Exports Limited ("the Company") which comprises the BalanceSheet as at March 31 2022 the Statement of Profit and Loss (including OtherComprehensive Income) Statement of Changes in Equity and statement of cash flows for theyear then ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone IND AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the IND AS and accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2022 and profit total comprehensiveincome the changes in equity and its cash flows for the year 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 Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance 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 IND AS financial statements under the provisions of the Companies Act 2013 andthe Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Emphasis of Matter

a. We draw attention to Note No.36.7 to the standalone financialstatements which describes the status of confirmation of balance of Trade Debtors TradeCreditors and other Parties.

b. We draw attention to Note No.37.3 to the standalone financialstatements which describes pending satisfaction of charge with ROC.

Our opinion is not modified in respect of these matters. Key AuditMatters :

Key Audit Matters are those matters that in our professionaljudgement were of most significance in our audit of the standalone IND AS financialstatements of the current period.

These matters were addressed in the context of our audit of theStandalone IND AS financial statements as a whole and informing our opinion thereon andwe do not provide a separate opinion on these matters. We have determined the mattersdescribed below to be the key audit matters to be communicated in our Report .

SJ- Key Audit Matter Auditor's Response
1. Evaluation of uncertain tax positions Principal Audit Procedures
Obtained details of completed tax assessments and demands for the year ended March 31 2022 from management. We involved our expertise to challenge the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. Our internal experts also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions. Additionally we considered the effect of new information in respect of uncertain tax positions as at April 1 2021 to evaluate whether any change was required to management's position on these uncertainties
The Company has material uncertain tax positions including matters under dispute which involves significant judgement to determine the possible outcome of these disputes.
Refer Note No.36.3 to the Standalone Financial Statements
2. Recoverability of Indirect tax receivables Principal Audit Procedures
As at March 31 2022 other current assets in respect of withholding tax GST and CESAT appeal Duty of Rs. 26.73 lakhs which are pending adjudication. We have involved our expertise to review the nature of the amounts recoverable the sustainability and the likelihood of recoverability upon final resolution.
Refer Note No. 12 to the Standalone Financial Statements.
3. Assessment of the Company's litigations and related disclosure of contingent liabilities Our procedures included the following:
Refer to Note No. 36.3 to the Standalone Financial Statements - "Contingent liabilities not provided for" Note No: 36.3 to the Standalone Financial Satements. • We understood assessed and tested the design and operating effectiveness of the Company's key controls surrounding assessment of litigations relating to the relevant laws and regulations;
As at March 31 2022 the Company has exposures towards litigations relating to the matter as included in the aforesaid Notes. Significant management judgement is required to assess such matter to determine the probability of occurrence of material outflow of economic resources and whether a provision should be recognised or a disclosure should be made. The management judgement is also supported with legal advice in certain cases as considered • We discussed with management the recent developments and the status of the material litigations which were reviewed and noted by the Company's audit committee;
• We performed our assessment on a test basis on the underlying calculations supporting the contingent liabilities made in relation to the Company's Standalone Financial Statements;
• We used auditor's experts to gain an understanding and to evaluate the disputed tax matters;
• We considered external legal opinions where relevant obtained by management;
No. Key Audit Matter Auditor's Response
appropriate. As the ultimate outcome of the matter is uncertain and the position taken by the management are based on the application of their best judgement related legal advice including those relating to interpretation of laws/regulations it is considered to be a Key Audit Matter. • Wemetwith the Company's external legal counsel to understand the interpretation of laws/regulations considered by the management in their assessment relating to a material litigation;
• We evaluated management's assessments by understanding precedents set in similar cases and assessed the reliability of the management's past estimates / judgements;
• We evaluated management's assessment around those matters that are not disclosed or not considered as contingent liability as the probability of material outflow is considered to be remote by the management;
• We assessed the adequacy of the disclosures.
•Based on the above work performed management's assessment in respect of the Company's litigations and related disclosures relating to contingent liabilities in the Standalone Financial Statements are considered to be reasonable.

Information other than the Standalone Financial Statements andAuditor's Report thereon

The Company's Board of Directors are responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including annexures to Board's Report CorporateGovernance and Shareholder's Information but does not include the standalone financialstatements and our auditor'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 in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard. Responsibilities of Management and those charged with Governance for theStandalone IND AS Financial Statement

The Company's Board of Directors are responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone IND AS financial statements that give a true and fair viewof the financial position financial performance including other comprehensive incomechanges in equity and cash flows of the Company in accordance with accounting principlesgenerally accepted in India including Indian Accounting Standards (IND AS) prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate implementation and maintenance of accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone IND AS financial statement that give a trueand fair view and are free from material misstatement whether due to fraud or error.

In preparing the IND AS financial statements management is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of Standalone IND AS FinancialStatement

Our objectives are to obtain reasonable assurance about whether theStandalone IND AS financial statements as a whole are free from material misstatementwhether due 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 IND AS financialstatements.

A further description of the auditor's responsibilities for the auditof the standalone IND AS financial statements is included in Annexure A. This descriptionforms part of 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 of the Companies Act 2013 we give in the Annexure B a statement onthe matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

A) 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 and the CashFlow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone IND AS financial statementscomply with the Indian Accounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directors noneof the directors is disqualified as on 31st March 2022 from being appointed asa director in terms of Section 164 (2) of the Act.

f) With respect to the adequacy of the Internal Financial Control withreference to Financial Statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure C"

B) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

i) The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone IND AS financial statements - Refer Note No.36.3 tothe Standalone IND AS financial statements;

ii) The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts - Refer Note No. 30.2 to the IND AS financialstatements;

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 (which are material either individually or in theaggregate) 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 orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries.

(b) The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether 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;

(c) Based on the audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material misstatement.

v) As stated in Note No. 37.8 to the standalone financial statements

(a) The final dividend proposed in the previous year declared and paidby the Company during the year is in accordance with Section 123 of the Act asapplicable.

(b) The Company has not declared any interim dividend during the year.

(c) The Board of Directors of the Company have proposed final dividendfor the year which is subject to the approval of the members at the ensuing Annual GeneralMeeting. The amount of dividend proposed is in accordance with section 123 of the Act asapplicable

C) With respect to the matter to be included in the Auditors' Reportunder section 197(16) of the Act as amended:

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.

ANNEXURE-A

Responsibilities for Audit of Standalone IND AS Financial Statement Aspart of an audit in accordance with SAs we exercise professional judgement and maintainprofessional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone IND AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate 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 control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the Company has internal financial controls with reference to FinancialStatements in place 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 the goingconcern basis 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 IND AS financial statements or if such disclosuresare inadequate 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 conditions maycause the Company to cease to continue as a going concern. Evaluate the overallpresentation structure and content of the standalone IND AS financial statementsincluding the disclosures and whether the standalone IND AS financial statementsrepresent 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 wehave complied 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 communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalone INDAS financial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

ANNEXURE -B TO INDEPENDENT AUDITOR'S REPORT Annexure referred to inparagraph 1 of our Independent Auditor's Report of even date to the members of M/s.Polyspin Exports Limited on the accounts of the Company for the year ended 31stMarch 2022 In terms of Companies (Auditor's Report) Order 2020 issued by CentralGovernment of India in terms of Section 143(11) of the Companies Act 2013 we furtherreport on the matters specified in paragraph 3 and 4 of the said order that:-

To the best of our information and according to the explanationsprovided to us by the Company and the books of account and records examined by us in thenormal course of audit we state that:

1. In respect of the Company's Property Plant and Equipment andIntangible Assets:

a) i) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant &Equipment and Intangible Assets and relevant details of right-of-use assets.

ii) 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 so to cover all the assets once in every threeyears which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets. Pursuant to the program certain Property Plant and Equipmentwere due for verification during the year and were physically verified by the Managementduring the year. According to the information and explanations given to us no materialdiscrepancies were noticed on such verification.

c) Based on our examination of the property tax receipts and leaseagreement for land on which building is constructed registered sale deed / transfer deed/ conveyance deed provided to us we report that the title in respect of self-constructedbuildings and title deeds of all other immovable properties (other than properties wherethe company is the lessee and the lease agreements are duly executed in favour of thelessee) disclosed in the financial statements included under Property Plant andEquipment are held in the name of the Company as at the balance sheet date.

d) The Company has not revalued its Property Plant & Equipment orIntangible assets or both during the year.

e) No proceedings have been initiated or are pending against theCompany as at 31st March 2022 for holding benami property under The BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

2. INVENTORIES

i. Physical verification of inventory or has been conducted atreasonable intervals by management. In our opinion the coverage and procedure by themanagement is appropriate. The aggregate of discrepancies of 10% or more in each class ofinventory noticed have been properly dealt with in the books of account.

ii. The quarterly returns/statements filed by the Company with banksare in agreement with the books of the Company.

3. LOANS TO PARTIES LISTED U/S 189 OF THE ACT

The Company has made investments in companies and has not grantedunsecured loans to other parties during the year in respect of which

(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) In our opinion the investments made are prima facie notprejudicial to the Company's interest.

(c) The Company has not granted any loans or advances in the nature ofloans. Hence reporting under clause 3(iii)(c) to clause 3(iii)(f) is not applicable.

(d) The Company has not provided any guarantee or security or grantedany advances in the nature of loans secured or unsecured to Companies Firms LimitedLiability Partnerships or any other parties.

4. COMPLIANCE WITH SECTIONS 185 & 186 OF THE ACT

The Company has complied with the provisions of Sections 185 and 186 ofthe Companies Act 2013 in respect of investments made as applicable.

5. DEPOSITS:

The company has not accepted any deposit or amounts which are deemed tobe deposits. Hence reporting under clause 3(v) of the Order is not applicable.

6. COST RECORDS:

The maintenance of cost records has not been specified by the CentralGovernment under sub section (1) of section 148 of the Companies Act 2013 for thebusiness activities carried out by the Company. Hence reporting under clause (vi) of theOrder is not applicable to the Company.

7. STATUTORY DUES

i. The Company has generally been regular in depositing undisputedstatutory dues including Goods and Services Tax Provident Fund Employees' StateInsurance Income Tax Duty of Excise Cess and other material statutory dues applicableto it with the appropriate authorities.

ii. There were no undisputed amounts payable in respect of Goods andService tax Provident Fund Employees' State Insurance Income Tax Duty of Excise Cessand other material statutory dues in arrears as at March 31 2022 for a period of morethan six months from the date they became payable.

iii. Details of statutory dues referred to in sub-clause

  1. above which have not been deposited as on March 31 2022 on account of disputes are given below:

(Rs.in Lakhs)

Name of the Statue Nature of Dues Amount Period with the amount relates Forum where the dispute is pending Amount paid under protest
Central Excise Act 1944 Excise Duty 71.71 June 2008 to March 2013 Commissioner of Central Excise Madurai. 71.71
Central Excise Act 1944 Excise Duty 129.11 Jan 2009 to March 2013 Commissioner of Central Excise M a d u rai . 129.11
Central Excise Act 1944 Excise Duty 3.69 April 2010 to March 2011 Assistant Commissioner of Central Excise Rajapalayam. 3.69
Central Excise Act 1944 Excise Duty 70.11 April 2013 to Dec 2014 Assistant Commissioner of Central Excise Rajapalayam. 70.11
Central Excise Act 1944 Excise Duty 30.04 April 2014 to Sep 2014 Assistant Commissioner of Central Excise Rajapalayam. 30.04
Central Excise Act 1944 Excise Duty 30.23 Oct 2014 to March 2015 Assistant Commissioner of Central Excise Rajapalayam. 30.23
Central Excise Act 1944 Excise Duty 25.24 April 2015 to Sep 2015 Assistant Commissioner of Central Excise Rajapalayam. 25.24
Central Excise Act 1944 Excise Duty 33.51 Oct 2015 to March 2016 Assistant Commissioner of Central Excise Rajapalayam. 33.51
Central Excise Act 1944 Excise Duty 94.08 April 2016 to March 2017 Commissioner of Central Excise Trichy. 94.08
TOTAL 487.72 TOTAL 487.72

8. There were no transactions relating to previously unrecorded incomethat have been surrendered or disclosed as income during the year in the tax assessmentsunder the Income Tax Act 1961;

9. i) The company has not defaulted in any repayment of loans orborrowings or in the payment of interest there on to any financial institution or bank.

ii) The company has not been declared as a wilful defaulter by any bankor financial institution or other lender.

iii) The term loans have not been utilized for the purposes for whichthey were obtained.

iv) On an overall examination of the final statements of the companyfunds raised on short term basis have prima facie not been used during the year for longterm purposes by the company.

v) The Company has not taken any funds from any entity or person onaccount of or to meet the obligations of its subsidiaries associates or joint ventures.

vi) The Company has not raised any loans during the year on the pledgeof securities held in its subsidiaries joint ventures or associate companies.

10. i) 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.

ii) During the year the Company has not made any preferentialallotment or private placement of shares or convertible debentures (fully or partly oroptionally) and hence reporting under clause 3(x)(b) of the Order is not applicable.

11. i) Based upon the audit procedures performed and information andexplanations given to us by the management we report that no fraud by the company or nomaterial fraud on the company have been noticed or reported during the year.

ii) No report under sub-Section (12) of Section 143 of the CompaniesAct has been filed in Form ADT-4 as prescribed under Rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government during the year and up to the date ofthis report.

iii) We have taken in to consideration the whistle blower complaintsreceived by the Company during the year (and up to the date of this report) whiledetermining the nature timing and extent of our audit procedures.

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

13. 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.

14. (a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports for the year underaudit issued to the Company during the year and till date in determining the naturetiming and extent of our audit procedures.

15. 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.

16. (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 clause3(xvi)(a) (b) and (c) of the Order is not 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.

17. The Company has not incurred cash losses during the financial yearcovered by our audit and the immediately preceding financial year.

18. There has been no resignation of the statutory auditors of theCompany during the year.

19. On the basis of the financial ratios ageing and expected dates ofrealisation of financial assets and payment of financial liabilities other informationaccompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examination of the evidence supporting the assumptionsnothing has come to our attention which causes us to believe that any materialuncertainty exists as on the date of the audit report indicating that Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the Company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the Company as and when they falldue.

20. In our opinion and according to the information and explanationsgiven to us there is no unspent amount under sub-section (5) of Section 135 of the Actpursuant to any project under CSR. Accordingly clauses 3(xx)(a) and 3 (xx)(b) of the Orderare not applicable.

ANNEXURE-C TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 2(g) under 'Report on Other Legal andRegulatory Requirements' in our Independent Auditor's Report of even date to the membersof the Company on the Standalone IND AS financial statements for the year ended 31stMarch 2022]

Report on the Internal Financial Controls over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of the Company as of 31st March 2022 in conjunction with our auditof the Standalone IND AS financial statements of the Company for the year ended on thatdate. MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The respective Board of Directors 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 (the "Guidance Note") issued by the Institute of CharteredAccountants of India ("ICAI"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to the respective Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note and the Standards on Auditing specified under Section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth issued by the ICAI. 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 were 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 of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrol system over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

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;

i) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;

ii) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorisations of management and directors of theCompany; and

iii) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the Company's assets thatcould have a material effect on the financial 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 management overrideof controls 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 controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion the Company in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March2022 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote issued by the ICAI.

.