To The Members of PTC India Financial Services Limited
Report on the Audit of the Standalone Financial Statements
We have audited the standalone financial statements of PTC India Financial ServicesLimited ("the Company") which comprise the balance sheet as at March 31 2020and the statement of Profit and Loss statement of changes in equity and statement of CashFlows for the year then ended and notes to the standalone financial statements includinga summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013("the Act') in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with Companies (Indian Accounting Standards) Rules 2015 as amended andother accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2020 and profit changes in equity and its cash flows forthe year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the standalone financialstatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI)together with the ethical requirements that are relevant to our audit of the standalonefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Emphasis of Matter
We draw your attention to Note 52 to the accompanying standalone financial statementswhich explains the uncertainties and the management's assessment of the impact due to thelock-downs and other restrictions/ conditions related to Covid-19 pandemic situation onCompany's operations financial performance and position as at and for the year endedMarch 31 2020 including measurement of expected credit loss (ECL) allowance on loans(financial assets) and assessment of liquidity position in context of moratorium grantedto the Company's borrowers with availability of high quality liquid assets and undrawncommitted lines from banks/financial institutions to meet its financial obligations inforeseeable future. The extent of COVID-19 impact will depend on future developmentswhich are highly uncertain.
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 period.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.
|Sr. No Key Audit Matter ||How the Key Audit Matter was addressed in our audit |
|1 Expected Credit Losses (ECL) model ||Principal Audit Procedures |
|As described in the notes to the financial statements the impairment losses have been determined in accordance with Ind AS 109 Financial ||We assessed the appropriateness of the Company's policy on Expected Credit Loss recognition on financial instruments with reference to the applicable accounting standards and prudential norms laid down by RBI. |
|Instruments requiring considerable judgment and interpretation in its implementation which also involved significant judgement by management in measuring the expected credit losses. Key areas of judgment included: ||Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing: |
| ||We evaluated and tested the design and tested the operating effectiveness of Company's controls over the data used to determine the impairment reserve internal credit quality assessments external credit ratings and methodology followed for computation of ECL. |
|Determining the criteria for a significant in- crease in credit risk (`SICR') ||For Expected Credit Losses computed by the management we performed the following procedures: |
|Techniques used to determine the Probabil- ity of Default (TD') and Loss Given Default (`LGD') ||(a) Assessed the reasonableness of assumptions and judgement made by management on model adoption and parameters selection; |
|Assumptions used in the expected credit loss model such as the financial condition of the counterparty expected future cash flows etc. ||(b) Examined the key data inputs (valuation of collateral the timing of cash flows and realisations) to the ECL model on a sample basis to assess their accuracy and completeness; |
|Refer Notes 2 (g) 2 (q) 7 and 44A.2 to the standalone financial statements. ||(c) Evaluated and tested on sample basis the appropriateness of staging including determination of significant increase in credit risk. |
| ||(d) Assessed the Company's methodology for ECL provisioning Classification and Measurement with the assistance of our internal experts; |
| ||(e) Assessed accuracy and completeness of disclosures made as required by relevant accounting standards |
|2 Impairment of loans to customers ||Principal Audit Procedures |
|Allowance for impairment losses on loans to customers involves significant judgement by management to determine the timing and amount of the asset to be impaired. ||We assessed the appropriateness of the Company's impairment review and provisioning policy by comparing with the RBI prudential norms and applicable accounting standards ; |
|Refer Notes 2 (g) 2 (q) 7 and 44A.2 to the standalone financial statements ||Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing: |
| ||We evaluated and tested the design and operating effectiveness of the relevant controls over the impairment assessments and impairment allowance computations for loans and advances to customers. |
| ||We tested the management assumptions estimates and judgements which could give rise to material misstatement: |
| ||a. The completeness and timing of recognition of loss events; |
| ||b. The measurement of provisions for individual instances of loans which is dependent on the valuation of security provided and the collaterals against each loan the timing of cash flows and realisations; |
| ||c. We discussed with management and scrutinised the appropriateness of those key assumptions applied in management's impairment assessment and compared them with available external evidence where necessary. |
| ||d. The measurement of modelled provisions which is dependent upon key assumptions relating to probability of default loss given default and expected future recoveries; |
| ||e. Performed procedures to obtain comfort on the accuracy of the impairment calculation process through recalculation of the provision charge based on inputs; |
| ||f. Assessed accuracy and completeness of disclosures made as required by relevant accounting standards. |
|3 Revenue Recognition ||Principal Audit Procedures |
|Revenue recognition - Interest income on stressed loans assets involves significant management estimates and assumptions in determining both timing and expected realisation from them. ||We assessed the appropriateness of the Company's revenue recognition policy by comparing with applicable accounting standards and prudential norms laid down by RBI. |
|Refer Note 2 (c) 22 and 23 to the standalone financial statements. ||Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing: |
| || Evaluated and tested the design of internal controls relating to revenue recognition on stressed loans and advances. |
| || Tested the operating effectiveness of the Company's controls through combination of procedures involving enquiry and observation reperformance and inspection of evidence in respect of operations of these controls. |
| || We have performed tests of details on a sample basis to review the case contracts entered into with the customers to assess whether interest income recorded is as per the contract terms. |
| || Performed recalculation of interest accrual and tested input data such as principal amounts contractual interest rates etc. through substantive testing and tracing to source documents. We also took cognizance of the events arose subsequent to the end of the financial year from them. |
| || Ensured compliance with RBI regulation on revenue recognition for each case. |
|4 Evaluation of uncertain tax positions for Income taxes ||Principal Audit Procedures |
|The Company has material uncertain tax positions relating to matters under litigation for Income taxes. ||We obtained details of completed income tax assessments during the year ended March 31 2020 from the management. We involved our internal experts to challenge the management's underlying assumptions in estimating the tax provisions 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 relating to Income taxes. |
|These matters involve significant management judgement to determine the possible outcome of disputes. ||Additionally we considered the effect of new information in respect of uncertain tax positions to evaluate whether any change was required to management's position on these uncertainties. |
|Refer Note 2 (j) 2 (q) and 33 to the standalone financial statements. || |
Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Company'sDirectors' report Report on Corporate Governance and Management discussion and analysisreport but does not include the standalone financial statements and our auditor's reportthereon. The Directors' report Report on Corporate Governance and Management discussionand analysis report is expected to be made available to us after the date of thisauditor's report. Our opinion on the standalone financial statements does not cover theother information and will not express any form of assurance conclusion thereon. Inconnection with our audit of the standalone financial statements our responsibility is toread the other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated. When we read the Directors' report Report onCorporate Governance and Management discussion and analysis report if we conclude thatthere is a material misstatement therein we are required to communicate the matter tothose charged with governance as required under SA 720 The Auditor'sresponsibilities Relating to Other Information'.
Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance changesin equity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under section133 of the Act. This responsibility also includes 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 accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statement that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the standalone financial statements the Board of Directors 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 the Board of Directors either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements. We give in "AnnexureA" a detailed description of Auditor's responsibilities for Audit of the StandaloneFinancial Statements.
The standalone financial statements of the Company for the year ended March 31 2019were audited by another firm of chartered accountants whose report dated May 4 2019expressed an unmodified opinion on those financial statements.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in "Annexure B" a statement on the matters specified inparagraphs 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 purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss the Statement of Changes inEquity and the Statement of Cash Flow dealt with by this Report are in agreement with thebooks of account.
(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 from being appointed as a director in terms of Section 164 (2) of theAct.
(f) With respect to the adequacy of the internal financial controls with reference tostandalone financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure C".
(g) 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:
i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements Refer Note 33 to the standalonefinancial statements;
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts Refer Note 49 to the standalone financial statements;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company Refer Note 50 to thestandalone financial statements.
3. As required by The Companies (Amendment) Act 2017 in our opinion according toinformation explanations given to us the remuneration paid by the Company to itsdirectors is within the limits laid prescribed under Section 197 of the Act and the rulesthereunder.
ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT ON EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF PTC INDIA FINANCIAL SERVICES LIMITED
Auditor's Responsibilities for the Audit of the Standalone 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 standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasinternal financial controls with reference to standalone financial statements in place andthe operating effectiveness 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the stand-alone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
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 unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
ANNEXURE B TO INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF PTC INDIA FINANCIAL SERVICES LIMITED FOR THE YEAR ENDED MARCH 31 2020
[Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report] i. In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets (Property Plant and Equipment).
(b) All the fixed assets (Property Plant and Equipment) were physically verified bythe management during the year in accordance with a planned program of verifying them oncein every year which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. According to the information and explanations givento us no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company. In respect of immovable property of building that hasbeen taken on lease and leasehold improvements thereon disclosed as fixed asset in thestandalone financial statements the lease agreements are in the name of the Companywhere the Company is the lessee in the agreement. ii. The Company is involved in thebusiness of rendering services. Accordingly the provisions stated in paragraph 3(ii) ofthe Order are not applicable to the Company. iii. The Company has granted secured loan toa Company covered in the register maintained under section 189 of the Act.
(a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the rate of interest and other terms andconditions on which the loans have been granted to the Company listed in the registermaintained under Section 189 of the Act are not prima facie prejudicial to the interestof the Company.
(b) In case of the loans granted to the Company listed in the register maintained undersection 189 of the Act schedule of repayment of principal and payment of interest havebeen stipulated and the borrowers have been regular in the payment of the principal andinterest.
(c) There are no amounts overdue for more than ninety days in respect of the loangranted to Company listed in the register maintained under section 189 of the Act. iv. Inour opinion and according to the information and explanations given to us the Company hascomplied with the provisions of section 185 and 186 of the Act in respect of loansmaking investments providing guarantees and security made as applicable. The Companybeing a non-banking financial company nothing contained in Section 186 exceptsub-section (1) shall apply. v. In our opinion and according to the information andexplanations given to us the Company has not accepted any deposits from the public withinthe meaning of Sections 73 74 75 and 76 of the Act and the rules framed there under.Accordingly the provisions stated in paragraph 3 (v) of the Order are not applicable tothe Company. vi. Having regard to the nature of Company's business/ activities provisionsstated in paragraph 3 (vi) of the Order are not applicable to the Company. vii. In respectof statutory dues:
(a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion undisputed statutory dues including providentfund employees' state insurance income-tax sales-tax service tax duty of custom dutyof excise value added tax goods and service tax cess and other statutory dues asapplicable have generally been regularly deposited with the appropriate authorities.
(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax service taxsales-tax duty of custom duty of excise value added tax goods and service tax cessand other statutory dues as applicable were outstanding at the year end for a period ofmore than six months from the date they became payable.
(c) According to the information and explanation given to us and examination of recordsof the Company there are no disputed dues in respect of Sales Tax Service Tax and ValueAdded tax which have not been deposited. Details of dues of Income Tax which have not beendeposited as on March 31 2020 on account of disputes are given below.
|Name of the statute ||Nature of dues ||Amount Involved (Rs. In lakhs)* ||Amount unpaid (Rs. In lakhs) ||Period to which the amount relates ||Forum where dispute is pending |
|Income Tax Act 1961 ||Income Tax ||2413.15 ||1184.76 ||2012-2017 ||Income Tax Appellate Authority |
|Income Tax Act 1961 ||Income Tax ||750.00 ||750.00 ||2010-11 2014-15 2017-18 ||Upto Commissioner (Appeals) |
viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to the financial institution bank ordebenture holders. The Company has not taken any loans or borrowings from Government.
ix. In our opinion according to the information explanation provided to us moneyraised by way of term loans (including debt instruments) have been applied for the purposefor which they were raised. The Company has not raised any money by way of initial publicoffer or further public offer during the year.
x. During the course of our audit 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 we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employees.
xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act. xii. In our opinion and according to the information andexplanations given to us the Company is not a Nidhi Company. Accordingly the provisionsstated in paragraph 3(xii) of the Order are not applicable to the Company.
xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards.
xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly the provisions stated in paragraph 3 (xiv) of the Order are notapplicable to the Company.
xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly provisions statedin paragraph 3(xv) of the Order are not applicable to the Company.
xvi. The Company is required to be registered under section 45 IA of the Reserve Bankof India Act 1934 and it has obtained the registration.
ANNEXURE C TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF PTC INDIA FINANCIAL SERVICES LIMITED
[Referred to in paragraph 2(f) under Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report]
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls with reference to standalone financialstatements of PTC India Financial Services Limited ("the Company") as of March31 2020 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control with reference to standalone financialstatements criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI) (the"Guidance Note"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingissued by ICAI and deemed to be prescribed under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether internal financial controls with reference tostandalone financial statements was established and maintained and if such controlsoperated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the internalfinancial controls with reference to standalone financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to standalonefinancial statements included obtaining an understanding of internal financial controlswith reference to standalone financial statements assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgement including the assessment of the risks of material misstatement of thestandalone 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 Company's internal financial controls withreference to standalone financial statements.
Meaning of Internal Financial Controls With Reference to Standalone FinancialStatements
A Company's internal financial control with reference to standalone financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of standalone financial statements for externalpurposes in accordance with generally accepted accounting principles. A Company's internalfinancial control with reference to standalone financial statements includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of standalone financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; 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 standalone financial statements.
Inherent Limitations of Internal Financial Controls With Reference to StandaloneFinancial Statements
Because of the inherent limitations of internal financial controls with reference tostandalone financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial control with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects internal financial controlswith reference to standalone financial statements and such internal financial controlswith reference to standalone financial statements were operating effectively as at March31 2020 based on the internal control with reference to standalone financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note.