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Ramco Industries Ltd.

BSE: 532369 Sector: Industrials
NSE: RAMCOIND ISIN Code: INE614A01028
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OPEN 253.15
PREVIOUS CLOSE 253.60
VOLUME 1258
52-Week high 272.70
52-Week low 104.00
P/E 22.92
Mkt Cap.(Rs cr) 2,188
Buy Price 251.00
Buy Qty 120.00
Sell Price 258.50
Sell Qty 25.00
OPEN 253.15
CLOSE 253.60
VOLUME 1258
52-Week high 272.70
52-Week low 104.00
P/E 22.92
Mkt Cap.(Rs cr) 2,188
Buy Price 251.00
Buy Qty 120.00
Sell Price 258.50
Sell Qty 25.00

Ramco Industries Ltd. (RAMCOIND) - Auditors Report

Company auditors report

To the Members of RAMCO INDUSTRIES LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the Standalone financial statements of RAMCO INDUSTRIESLIMITED (“the Company”) which comprise the Balance Sheet as at 31stMarch 2020 and the Statement of Profit and Loss the Statement of changes in Equity andthe Statement of cash flows for the year ended on that date and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation (herein after referred to as “the Standalone Financial Statements”)

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone financial statements give theinformation required by the Companies Act 2013 (“the Act”) in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2020and the profit and total comprehensive income 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) 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 Standalone Financial Statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the Standalone financial statements under the provisions of the Companies Act 2013 andthe Rules there under 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

We draw attention to Note No. 49 to the Standalone financial statementwhich describes the uncertainties and the impact of the COVID-19 pandemic on thecompany's operations and results as assessed by the management. The Management hasassessed that there is no material impact on the financial statements due to lockdown andrelated restrictions imposed towards controlling the COVID 19 pandemic. Our opinion is notmodified in respect of this matter.

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. We have determined the matters described below to bethe key audit matters to be communicated in our report.

S. No. Key Audit Matter Auditor's Response
1 Adoption of Ind AS 116 Leases Principal Audit Procedures
The Company has adopted Ind As 116 with effect from 1st April 2019 using Modified Retrospective Approach. The application and transition to this new accounting standard is complex and involves significant judgment and estimates made by the management which includes measuring of liability for all leases. Our Audit procedures involved review of the company's Ind AS 116 implementation process and key judgments made by management evaluation of lease agreements/arrangements on sample basis and comparison of the same with management's evaluation and assessment. We also evaluated the computation of lease liabilities and the discount rates adopted.
The company has adopted the Modified Retrospective Approach method for transition to Ind AS 116 consequently comparative figures for the previous years have not been restated and continue to report under Ind AS 17. (Refer to Note No. 4.6 to the Standalone Financial Statements) Our tests on sample basis focused on reviewing the key terms and conditions of the lease agreements and obtaining evidence for the estimated useful live of right of use assets. Furthermore we assessed the adequacy and appropriateness of the disclosures the Standalone financial statements.
2 Recognition and measurement of deferred taxes Principal Audit Procedures
The recognition and measurement of deferred tax items requires determination of differences between the recognition and the measurement of assets liabilities income and expenses in accordance with the Income Tax Act and other applicable tax laws including application of ICDS and financial reporting in accordance with Ind AS. The key matter was addressed by performing audit procedures which involved assessment of underlying process and evaluation of internal financial controls with respect to measurement of deferred tax and assessment of the items leading to recognition of deferred tax in light of prevailing tax laws and applicable financial reporting standards.
Assessment of Deferred Tax Assets is done by the management at the close of each financial year taking into account forecasts of future taxable results. Furthermore we assessed the adequacy and appropriateness of the disclosures in the Standalone financial statements.
We have considered the assessment of deferred tax liabilities and assets as a key matter due to the importance of management's estimation and judgment and the materiality of amounts. (Refer to Note No. 4.4.4 4.4.5 and 4.4.6 to the Standalone Financial Statements)
3 Evaluation of uncertain Tax Position/ Other contingent liabilities Principal Audit Procedures
The Audit addressed this Key Audit Matter by assessing the adequacy of tax Provisions by reviewing the management's underlying assumptions in estimating the tax provisions and the possible outcome of the disputes.
The Company has material uncertain tax position in respect of possible or actual taxation disputes litigations and claims. The provisions are estimated using a significant degree of management judgment in interpreting the various relevant rules regulations and practices and in considering precedents in various legal forums.
We reviewed the significant litigations and claims and discussed with the Company's legal counsel external advisors about their views regarding the likely outcome and magnitude of and exposure to relevant litigation and claims.
(Refer to Note No. 39 to the Standalone Financial Statements)
We also reviewed the relevant judgements and the opinions given by the company's advisers which were relied on by the management for such claims.
Furthermore we assessed the adequacy and appropriateness of the disclosures in the Standalone financial statements.
4 Existence and impairment of Trade Receivables Principal Audit Procedures
Trade Receivables are significant to the Company's financial statements. The Collectability of trade receivables is a key element of the company's working capital management which is managed on an ongoing basis by its management. Due to the nature of the Business the requirements of customers and various contract terms are in place there is a risk that the carrying values may not reflective of their recoverable amounts as at the reporting date which would require an impairment provision. Where there are indicators of impairment the company undertakes assessment of the recoverability of the amounts. Given the magnitude and inherent uncertainty involved in the judgement in estimating impairment assessment of trade receivables we have identified this as a key audit matter. We performed audit procedures on the assessment of trade receivables which included substantive testing of revenue transactions obtaining trade receivable external confirmations and testing the subsequent payments received. Assessing the impact of impairment on trade receivables requires judgement and we evaluated management's assumptions in determining the provision for impairment of trade receivables by analyzing the ageing of receivables assessing significant overdue individual trade receivables and specific local risks combined with the legal documentations where applicable.
We also reviewed the system of obtaining monthly confirmation from the customers which are kept in electronic mode by the company.We tested the timing of revenue and trade receivables recognition based on the terms agreed with the customers. We also reviewed on a sample basis terms of the contract with the customers invoices raised etc. as a part of our audit procedures.
(Refer to Note No. 12 to the Standalone Financial Statements)
Furthermore we assessed the adequacy and appropriateness of the disclosures in the Standalone financial statements.

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 Standalone FinancialStatements

The Company's Management and Board of Directors are responsiblefor the matters stated in section 134(5) of the Act with respect to the preparation ofthese Standalone financial statements that give a true and fair view of the state ofaffairs profit or loss including other comprehensive income changes in equity and cashflows of the Company in accordance with the Indian Accounting Standards (Ind AS)prescribed under Section 133 of Companies Act 2013 read with relevant rules issued thereunder and accounting principles generally accepted in India. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgements and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the Standalone financial statements Management and Boardof Directors are responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

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

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether theStandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone financial statements.

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

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

• Obtain an understanding of internal controls 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 adequate internal financial controls with reference toStandalone financial statements 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 thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the Standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

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

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 Standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (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 Standalone financialstatements.

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.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the Standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare

circumstances we determine that a matter should not be communicated inour report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

Other Matters

The Standalone Financial Statements includes financial performance of aforeign branch which reflects total assets of Rs 200.01 Lakhs total revenue of Rs 112.89Lakhs and net cash inflow amounting to Rs 21.21 Lakhs for the year ended on 31stMarch 2020 which was audited by independent auditors in accordance with the regulationsof that country and whose report has been furnished to us and has been considered in theStandalone financial statements solely based on such audited financial statements.

Our attendance at the physical inventory verification done by themanagement was impracticable under the current lockdown restrictions imposed by thegovernment. Consequently we have performed alternative procedures to audit on theexistence and condition of inventory at year end as per the guidance provided in SA-501“Audit Evidence - Specific considerations for selected items” and have obtainedsufficient audit evidence to issue our un-modified opinion on these Standalone financialresults.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016(“the Order”) issued by the Central Government of India in terms of subsection(11) of section 143 of the Companies Act 2013 we give in the Annexure A a statement onthe matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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) I n our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books

(c) The reports on the accounts of the branch offices of the Companyaudited under Section 143(8) of the Act by branch auditors have been sent to us and havebeen properly dealt with by us in preparing this report.

(d) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income the Statement of changes in equity and the statement of Cash Flowdealt with by this Report are in agreement with the books of account.

(e) In our opinion the aforesaid Standalone financial statementscomply with the Indian Accounting Standards specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.

(f) On the basis of the written representations received from thedirectors as on 31st March 2020 taken on record by the Board of Directorsnone of the directors is disqualified as on 31st March 2020 from beingappointed as a director in terms of Section 164 (2) of the Act.

(g) 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 B”. Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the company's internalfinancial control over financial reporting.

(h) With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of Section 197(16) of the Actas amended:

In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

(i) 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 details of the pending litigations andits impact on the financial position in its Standalone financial statements have beendisclosed in Note No. 39.2.1 to 39.2.10 of the Disclosures forming part of the StandaloneFinancial Statements for the year ended 31st March 2020;

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 to the Investor Education and Protection Fund by the Company.

For M/s. S.R.S.V. & Associates For M/s. Ramakrishna Raja and Co.
Chartered Accountants Chartered Accountants
Firm Registration No.: 015041S Firm Registration No.: 005333S
G. CHELLA KRISHNA C. KESAVAN
Partner Partner
Membership No.: 210474 Membership No.: 227833
Place: Chennai
Date: 19th June 2020

“ANNEXURE A” TO THE INDEPENDENTAUDITOR'S REPORT

With reference to the Annexure A referred to in the IndependentAuditor's Report to the members of company on the Standalone financial statements forthe year ended 31st March 2020 we report the following:

i. Fixed Assets

a) The company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

b) As explained to us all the fixed assets have been physicallyverified by the management in a phased periodical manner which in our opinion isreasonable having regard to the size of the Company and nature of its assets. Accordingto the information and explanations given to us no material discrepancies were noticed onsuch physical verification.

c) According to the information and explanation given to us and on thebasis of the verification of the records of the company the title deeds of immovableproperties of the Company are held in the name of the Company.

In respect of immovable properties taken on lease and disclosed asright of use assets in the Standalone financial statements the lease agreements are inthe name of company.

ii. Inventory

a) The management has conducted the physical verification of inventoryat reasonable intervals.

b) The discrepancies noticed on verification between the physicalstocks and the books records were properly dealt with in the books of accounts and werenot material.

iii. The company has granted loan to a party listed in the registermaintained under Section 189 of the Act. The maximum outstanding at any time during theyear was Rs 421.99 Lakhs (Previous year Rs 471.15 Lakhs) and the amount outstanding as on31st March 2020 is Rs 281.77 Lakhs (Previous year Rs 411.57 Lakhs)

a) In our opinion the terms and conditions on which the loan has beengranted to the party listed in the register maintained under section 189 of the Act arenot prejudicial to the interest of the Company.

b) The payment of the principal and the interest wherever applicableare regular.

c) There are no overdue amounts in respect of the loan granted to aparty listed in the register maintained under section 189 of the Act.

iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Section 185 and 186 of theCompanies Act 2013 in respect of loans investments guarantees and security.

v. In our opinion and according to the information and explanationsgiven to us the company has not accepted any deposits during the year. Accordinglyreporting under this clause does not arise.

vi. The Company is maintaining the cost records which have beenspecified by the Central Government under section 148 (1) of the Companies Act 2013.

vii. Undisputed and disputed taxes and duties

a) According to the records of the Company and information andexplanations given to us the company is regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax duty of customsgoods and services tax cess and any other statutory dues with the appropriateauthorities. No undisputed amounts payable in respect of the above were in arrear as at 31stMarch 2020 for a period of more than six months from the date they become payable.

b) As at 31st March 2020 according to the records of theCompany the following are the particulars of the disputed dues on account of sales taxincome tax customs duty wealth tax service tax and cess which have not been depositedon account of dispute:

SI. No Name of the Statute Forum where dispute is pending As at 31-03-2020 As at 31-03-2019
1 Income Tax Act Deputy Commissioner 372.47 313.72
Commissioner Appeal 803.88 657.71
High Court 944.06 1026.71
Appellate Tribunal - 19.07
2 Sales Tax
CST Appellate Authority - 14.16
Assistant/Deputy/Joint Commissioner Appeal 11.31 11.22
Entry Tax Assistant/Deputy/Joint Commissioner Appeal 9.41 9.51
Sales Tax Act Appellate Authority 175.46 72.45
VAT Act Assistant/Deputy/Joint Commissioner Appeal 59.87 102.69
3 Central Excise Act and Cenvat Credit Rules Appellate Authority - 61.43
Commissioner Appeal - 73.03
4 Electricity Act High Court 491.92 414.33
Total 2868.37 2776.03

viii. Based on our audit procedures and according to the informationand explanations given to us by the management we are of the opinion that the company hasnot defaulted in repayment of loans or borrowings to a financial institution bankGovernment or debenture holders.

ix. The company has not raised money by way of initial public offer orfurther public offer during the Current year. The Company has raised term loans frombanks/institutions during the year and the proceeds have been applied for the purposes forwhich they were raised. The Company has not issued any debenture during the year.

x. In our opinion and according to the information and explanationsgiven to us we report that no fraud by the company or on the company by its officers oremployees has been noticed or reported during the year.

xi. In our opinion the managerial remuneration has been paid orprovided in accordance with the requisite approvals mandated by the provisions of Section197 read with Schedule V to the Companies Act 2013.

xii. In our opinion the Company is not a Nidhi Company. Accordinglyclause (xii) of Para 3 of the Order 2016 is not applicable to the Company.

xiii. I n our opinion and according to the information and explanationgiven to us all transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 where applicable and the details have been disclosed in theStandalone Financial Statements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us theCompany has not made a preferential allotment or private placement sharesor fully orpartly convertible debentures during the year under review. Accordingly the provisions ofclause (xiv) of Para 3 of the Order are not applicable to the Company.

xv. ln our opinion and according to the information and explanationsgiven to us the Company has not entered into any non - cash transactions with directorsor persons connected with the Directors. Accordingly provisions of clause (xv) of Para 3of the Order are not applicable to the Company.

xvi. In our opinion and according to the information and explanationsgiven to us the Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly the provision of clause (xv') of Para 3 ofthe Order 2016 is not applicable to the Company

For M/s. S.R.S.V. & Associates For M/s. Ramakrishna Raja and Co.
Chartered Accountants Chartered Accountants
Firm Registration No.: 015041S Firm Registration No.: 005333S
G. CHELLA KRISHNA C. KESAVAN
Partner Partner
Membership No.: 210474 Membership No.: 227833
Place: Chennai
Date: 19th June 2020

“ANNEXURE B” TO THE INDEPENDENTAUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS PREPARED INACCORDANCE WITH THE INDIAN ACCOUNTING STANDARDS OF RAMCO INDUSTRIES LIMITED.

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

We have audited the internal financial controls over financialreporting of M/s. RAMCO INDUSTRIES LIMITED (“the Company”) as of March 31 2020in conjunction with our audit of the Standalone financial statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the “Guidance Note”) and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. 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 was 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 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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that 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 and to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31st 2020based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For M/s. S.R.S.V. & Associates For M/s. Ramakrishna Raja and Co.
Chartered Accountants Chartered Accountants
Firm Registration No.: 015041S Firm Registration No.: 005333S
G. CHELLA KRISHNA C. KESAVAN
Partner Partner
Membership No.: 210474 Membership No.: 227833
Place: Chennai
Date: 19th June 2020

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