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PPAP Automotive Ltd.

BSE: 532934 Sector: Auto
NSE: PPAP ISIN Code: INE095I01015
BSE 00:00 | 02 Dec 215.65 -0.15
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213.05

NSE 00:00 | 02 Dec 216.15 -0.60
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OPEN 219.80
PREVIOUS CLOSE 215.80
VOLUME 817
52-Week high 251.95
52-Week low 168.70
P/E 28.38
Mkt Cap.(Rs cr) 302
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 219.80
CLOSE 215.80
VOLUME 817
52-Week high 251.95
52-Week low 168.70
P/E 28.38
Mkt Cap.(Rs cr) 302
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

PPAP Automotive Ltd. (PPAP) - Auditors Report

Company auditors report

TO THE MEMBERS OF PPAP AUTOMOTIVE LIMITED

Report on the Audit of IND AS Financial Statements

Opinion

We have audited the accompanying IND AS financial statements of PPAPAUTOMOTIVE LIMITED ("the Company") which comprise the Balance Sheet as at 31March 2022 the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended andnotes to the financial statements including a summary of the significant accountingpolicies and other explanatory information (hereinafter referred to as "the IND ASfinancial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid IND AS 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 Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended ("IND AS") and other accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2022 the profit andtotal comprehensive income changes in equity and its cash flows for the year ended onthat date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of theIND AS financial statements under the provisions of the Companies Act 2013 and the Rulesissued there under and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the ICAI's Code of Ethics.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Key audit matter How our audit addressed the key audit matter
Recoverable value assessment of property plant and equipment Our audit procedures included but were not restricted to:
The Company had considered possible effects that may result from the pandemic relating to COVID 19 and made detailed assessment of likely impact of the same on the recoverable value of property plant and equipment in the previous year. • Evaluating the design and implementation and testing the operating effectiveness of the relevant controls over determination of recoverable value of property plant and equipment.
During the current year the Company re-assessed the carrying amount of property plant and equipment to determine whether there is any indication that those assets have suffered an impairment loss. • Re-assessing the accuracy and completeness of the information shared with the independent expert engaged by the management.
Where the carrying amount exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount. An impairment loss (if any) is recognised in the statement of profit and loss. • Re-evaluating the reasonableness of the valuation provided by the independent expert by challenging the significant assumptions used and estimates and judgements made in deriving the valuation with the help of internal fair value specialist.
While assessing the recoverable amount the Company used the discounted cash flow approach including various significant estimates and assumptions such as forecast of future revenue operating margins growth rate and selection of the discount rates. (Refer note no. 57 to the standalone financial statements) • Assessing the competence and independence of the valuation expert engaged by the Company for determining the replacement cost of property plant and equipment.
• Verification of accounting implications if any and appropriateness of disclosures in the financial statements.
Audit Conclusion:
Our procedures did not identify any requirement for impairment in value of property plant and equipment.

We have determined that there are no other key audit matters tocommunicate in our report.

Information other than the Financial Statements and Auditor'sReport thereon

The Company's Board of Directors/ management is responsible forthe other information. The other information comprises the information included in theAnnual Report but does not include the financial statements and our auditor's reportthereon.

Our opinion on the financial statements does not cover the otherinformation and we will not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information identified above when it becomes availableand in doing so consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the IND AS financial Statements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these IND AS financial statements that give a true and fair view of thestate of affairs (financial position) profit or loss (financial performance includingother comprehensive income) cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (IND AS) prescribed under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate 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 IND AS financial statements that give a true and fairview 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/Management are responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the IND AS financialStatements

Our objectives are to obtain reasonable assurance about whether the INDAS financial statements as a whole are free from material misstatement whether due tofraud 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 IND AS financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also:

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

2. Obtain an understanding of internal controls relevant to the auditin order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

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

4. 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 IND AS 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.

5. Evaluate the overall presentation structure and content of the INDAS financial statements including the disclosures and whether the IND AS financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the interim condensedstandalone financial statements that individually or in aggregate makes it probable thatthe economic decisions of a reasonably knowledgeable user of the financial statements maybe influenced. We consider quantitative materiality and qualitative factors in (i)planning the scope of our audit work and in evaluating the results of our work; and (ii)to evaluate 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 tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Act based on our audit wereport that:

(a) We have sought and obtained all the information and explanationswhich to the best of 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 beenkept by the Company so far as appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss (including theOther Comprehensive income) the Cash Flow Statement and the Statement of Changes inEquity dealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid IND AS Financial Statements complywith 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 none of thedirectors is disqualified as on 31st March 2022 from being appointed as adirector in terms of Section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure I". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting.

(g) Due to inadequate annual profit excess remuneration of '7648021/- each was paid to Mr. Ajay Kumar Jain Chairman and Managing Director and Mr.Abhishek Jain Chief Executive Officer and Managing Director of the Company in terms ofsection 197 read with Schedule V of Companies Act 2013 and Company is proposing to takeapproval from shareholders on waiver of excess remuneration paid as per the provisions ofSection 197 (10) of the Companies Act 2013 within prescribed time period. Theremuneration paid to Mr. Ajay Kumar Jain Chairman and Managing Director and Mr. AbhishekJain Chief Executive Officer and Managing Director of the Company were within the limitsapproved by the shareholders.

(h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 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 IND AS financial statements.

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to betransferred during the year 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. The dividend declared or paid during the year by the Company is incompliance with the Section 123 of the Act.

2. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of Section143(11) of the Act and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in "Annexure II" a statement on the matters specified inparagraphs 3 and 4 of the said Order to the extent applicable.

For O P Bagla & Co LLP
Chartered Accountants
FRN No. 000018N / N500091
Place: New Delhi Sanjeev Agarwal
Date: 13th May 2022 Partner
M No.408316
UDIN: 22408316AIWZQS9803

ANNEXURE-I TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date) Report on the InternalFinancial Controls Over Financial Reporting under Clause (i) of subsection 3 of Section143 of the Companies Act 2013 (the "Act")

We have audited the internal financial controls over financialreporting of PPAP AUTOMOTIVE LIMITED ("the Company") as of 31st March2022 in conjunction with our audit of the IND AS financial statements of the Company forthe year ended on that date. Management's Responsibility for Internal FinancialControls

The Management of the Company 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 (the"ICAI"). 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

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") issued by the ICAI andthe Standards on Auditing prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate 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

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) 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

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assetsthat could 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 managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the company has 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 on "Audit of Internal Financial Controls Over Financial Reporting" issuedby the Institute of Chartered Accountants of India.

For O P Bagla & Co LLP
Chartered Accountants
FRN No. 000018N / N500091
Place: New Delhi Sanjeev Agarwal
Date: 13th May 2022 Partner
M No.408316
UDIN: 22408316AIWZQS9803

ANNEXURE- II TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date)

Based on the audit procedures performed for the purpose of reporting atrue and fair view on the financial statements of the Company and taking intoconsideration the information and explanations given to us and the books of account andother records examined by us in the normal course of audit and to the best of ourknowledge and belief we report 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 andEquipment.

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

b) The Property Plant and Equipment have been physically verified bythe management in a phased manner designed to cover all the items over a period of threeyears which in our opinion is reasonable having regard to the size of the company andnature of its business. Pursuant to the program a portion of the fixed assets has beenphysically verified by the management during the year and no material discrepancies werenoticed on such verification.

c) According to the information and explanations given by themanagement the title deeds of immoveable properties included in property plant andequipment are held in the name of the Company.

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

e) Based on audit procedures performed and the representation obtainedfrom the management no proceedings have been initiated during the year or are pendingagainst the Company as at March 312022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

ii. a) As explained to us inventories have been physically verifiedduring the year by the management at reasonable intervals. In our opinion the proceduresof physical verification of inventory followed by the management are reasonable andadequate in relation to the size of the company and the nature of its business. We areexplained that no material discrepancies have been noticed on physical verification.

b) During the year the Company has been sanctioned working capitallimits in excess of Rs 5 crore by banks based on the security of Current Assets. There areno material variations between the quarterly statement of current assets filed during theyear with the banks and the books of accounts.

iii. a) The Company has provided loans or advances in the nature ofloans to its wholly owned subsidiary. The details of the same are given below:

Particulars Loans
Aggregate amount during the year
- Subsidiary 3255.67
Balance outstanding as at balance sheet date
- Subsidiary 750.51

b) The investments made guarantees provided security given and termsand conditions of the grant of all loans and advances in the nature of loans andguarantees provided are not prima facie prejudicial to the Company's interest.

c) In respect of loans and advances in the nature of loans granted bythe Company the schedule of repayment of principal and the payment of the interest hasnot been stipulated.

d) There is no amount which is overdue for more than 90 days in respectof loans or advances in the nature of loans granted to subsidiary company.

e) The Company has not granted any loan or advance in the nature ofloan which has fallen due during the year. Further no fresh loans were granted to anyparty to settle the overdue loans/advances in nature of loan.

f) The Company has granted loan or advance in the nature of loan whichare repayable on demand or without specifying any terms or period of repayment as perdetails below

Particulars All Parties Promoters Related Parties
Aggregate of loans/advances in nature of loan
- Repayable on demand (A)
- Agreement does not specify any terms or period of repayment (B) 750.51 - 750.51
Total (A+B) 750.51 - 750.51
Percentage of loans/advances in nature of loan to the total loans 100% 100%

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 theAct in respect of loans investments guarantees and security as applicable.

v. According to the information and explanations given to us theCompany has not accepted any deposit or amounts which are deemed to be deposits. Hencereporting under clause 3(v) of the Order is not applicable.

vi. Maintenance of Cost records has been specified by the CentralGovernment. We have broadly reviewed such records and are of the opinion that prescribedaccounts and records have been maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.

vii. a) As per information and explanations given to us the company isgenerally regular in depositing undisputed statutory dues including provident fundemployees' state insurance income-tax sales-tax service tax duty of customs dutyof excise value added tax goods and service tax cess and other statutory dues with theappropriate authorities. As informed to us there are no outstanding statutory dues inarrears as at the last day of the financial year concerned for a period of more than sixmonths from the date they became payable.

b) We have been informed that following disputed demands in respect ofVAT excise duty and income tax have not been deposited on account of pending appeals:

Particular's Period Amount Forum where appeal is pending
Sales Tax / VAT 2004-2005 45441 Joint Commissioner of Sales Tax (Appeals)
Sales Tax / VAT 2011-12 524112 Commercial Tax Tribunal (Noida UP)
Sales Tax / VAT 2012-13 3559469 Commercial Tax Tribunal (Noida UP)
Excise Duty May 2004 to July 2004 211792 Appellate Tribunal (CESTAT) Delhi
Excise Duty April 2015 to March 2016 7072000 Appellate Tribunal (CESTAT) Delhi
Excise Duty April 2013 to June 2017 41005000 Joint Commissioner Greater Noida / Alwar
Income Tax A.Y 2017-2018 4137000 Commissioner (Appeals)Delhi

viii. Based on our audit procedures and on the basis of information andexplanations given to us by the management there were no transactions relating topreviously unrecorded income that have been surrendered or disclosed as income during theyear in the tax assessments under the Income Tax Act 1961 (43 of 1961).

ix. a) In our opinion and according to the information and explanationsgiven by the management the Company has not defaulted in repayment of loans or borrowingsor in the payment of interest thereon to any bank or financial institution or governmentor any other lender during the year. The Company did not have any outstanding debenturesduring the year.

b) According to the information and explanations given to us and on thebasis of our audit procedures we report that the company has not been declared wilfuldefaulter by any bank or financial institution or government or any government authority.

c) In our opinion and according to the information and explanationsgiven by the management the Company has utilized the monies raised by way of term loansfor the purposes for which they were raised.

d) According to the information and explanations given to us and theprocedures performed by us and on an overall examination of the financial statements ofthe company we report that no funds raised on short-term basis have prima facie beenused for long-term purposes by the company.

e) According to the information and explanations given to us and on anoverall examination of the financial statements of the Company the Company has not takenany funds from any entity or person on account of or to meet the obligations of itssubsidiaries associates or joint ventures.

f) According to the information and explanations given to us theCompany has not raised any loans during the year on the pledge of securities held in itssubsidiaries joint ventures or associate companies.

x. a) Based upon the audit procedures performed and the information andexplanations given by the management the company has not raised moneys by way of initialpublic offer or further public offer including debt instruments and term Loans during theyear. Accordingly the provisions of clause 3 (x) of the Order are not applicable to theCompany and hence not commented upon.

b) The company has not made preferential allotment/private placement ofshares or fully or partly or optionally convertible debentures during the year coveredunder the provisions of Section 42 and 62 of Companies Act 2013 during the year underreview.

xi. a) Based upon the audit procedures performed and the informationand explanations given by the management we report that no fraud by the company and nomaterial fraud on the Company has been noticed or reported during the year. b) We reportthat no report under sub-section (12) of section 143 of the Companies Act has been filedby the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government.

xii. The Company is not a Nidhi company and therefore clause 3(xii) ofthe Order related to such companies is not applicable to the Company.

xiii. According to information and explanations given to us we are ofthe opinion that all related party transactions are in compliance with the Section 177 and188 of Companies Act 2013. Necessary disclosures have been made in the financialstatements as required by the applicable accounting standards.

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

b) We have considered the internal audit reports of the company issuedtill date in determining the nature timing and extent of our audit procedures.

xv. Based upon the audit procedures performed and the information andexplanations given by the management the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly the provisions ofclause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.

xvi. In our opinion in view of its business activities the Company isnot required to be registered under Section 45IA of Reserve Bank of India Act 1934.Hence reporting under clause 3(xvi)(a) (b) and (c) of the Order is not applicable.

xvii. The company has not incurred cash losses in the financial yearand in the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors duringthe year and accordingly clause 3(xviii) of the Order is not applicable.

xix. 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 our knowledge of the Board of Directors andmanagement plans we are of the opinion that no material uncertainty exists as on the dateof the audit report that company is capable of meeting its liabilities existing at thedate of balance sheet as and when they fall due within a period of one year from thebalance sheet date.

xx. According to the information and explanations given to us theCompany does not have any unspent amount in respect of any ongoing or other than ongoingproject as at the expiry of the financial year. Accordingly reporting under clause 3(xx)of the Order is not applicable to the Company.

xxi. The reporting under clause 3(xxi) is not applicable in respect ofaudit of standalone financial statements of the Company. Accordingly no comment has beenincluded in respect of said clause under this report.

For O P Bagla & Co LLP
Chartered Accountants
FRN No. 000018N / N500091
Place: New Delhi Sanjeev Agarwal
Date: 13th May 2022 Partner
M No.408316
UDIN: 22408316AIWZQS9803

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