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Restaurant Brands Asia Ltd.

BSE: 543248 Sector: Services
NSE: RBA ISIN Code: INE07T201019
BSE 12:42 | 25 May 93.20 -1.80
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NSE 12:29 | 25 May 93.05 -2.00
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OPEN 96.30
PREVIOUS CLOSE 95.00
VOLUME 87875
52-Week high 189.95
52-Week low 86.60
P/E
Mkt Cap.(Rs cr) 4,597
Buy Price 93.10
Buy Qty 403.00
Sell Price 93.25
Sell Qty 760.00
OPEN 96.30
CLOSE 95.00
VOLUME 87875
52-Week high 189.95
52-Week low 86.60
P/E
Mkt Cap.(Rs cr) 4,597
Buy Price 93.10
Buy Qty 403.00
Sell Price 93.25
Sell Qty 760.00

Restaurant Brands Asia Ltd. (RBA) - Auditors Report

Company auditors report

To

The Members of Burger King India Limited

Report on the Audit of the Ind AS Financial Statements Opinion

We have audited the accompanying Ind AS financial statements of BurgerKing India Limited ("the Company") which comprise the Balance sheet as at March31 2021 the Statement of Profit and Loss including the statement of Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and notes to the Ind AS financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Ind AS financial statements give the informationrequired by the Companies Act 2013 as amended ("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 2021its loss including other comprehensive income its cash flows and the changes in equity forthe year ended on that date.

Basis for Opinion

We conducted our audit of the Ind AS financial statements in accordancewith the Standards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the ‘Auditor'sResponsibilities for the Audit of the Ind AS Financial Statements' section of ourreport. We are independent of the Company in accordance with the ‘Code ofEthics' issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the Ind AS financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Ind AS financial statements for thefinancial year ended March 31 2021. These matters were addressed in the context of ouraudit of the Ind AS financial statements as a whole and in forming our opinion thereonand we do not provide a separate opinion on these matters. For each matter below ourdescription of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor's responsibilities for the audit of the Ind AS financial statementssection of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the Ind AS financial statements. The results of our auditprocedures including the procedures performed to address the matters below provide thebasis for our audit opinion on the accompanying Ind AS financial statements.

Key audit matters How our audit addressed the key audit matter
(a) Significant estimates and judgment related to Leases (as described in Note 42 of the Ind AS financial statements)
Pursuant to requirement of Ind AS 116 the Company recorded the lease liability at the present value of the remaining lease payments discounted at the incremental borrowing rate and the Right of Use asset at its carrying amount which is amortized on straight line basis over the lease term. Our audit procedures included amongst others the following:
The Company identifies lease term based on the executed agreements along with any amendment agreements/ Term Sheets including lock in period for lessee exercise of optional extensions of lease term legal enforceability etc. • Obtained understanding of the leases accounting process evaluated the design implementation and tested the operative effectiveness of key internal financial controls with respect to the leases in relation to assessment of the terms and conditions of lease contracts for determining the lease term discount rate.
• Evaluated management's assumptions and estimates for the lease arrangement is in accordance with Ind AS 116 and verified the lease terms and supporting documentation for samples selected.
As at March 31 2021 the Company has ' 5131.28 Million (March 31 2020 ' 5379.50 Million) of Right of Use (ROU) assets. • Evaluated the appropriateness of discount rate applied on the leases.
During the current financial year there was new practical expedient with respect to rent concessions occurring as a direct consequence of the Covid-19 pandemic accounting of which requires significant judgement in implementation. • We Selected samples and recomputed lease liability and right of use asset balances as at the year-end.
Application of lease Accounting requires significant judgement and estimate based on terms of the underlying lease agreements discounting rate and Initial direct cost hence we have considered this as a key audit matter considering the significance of amounts involved • Evaluated the applicability of practical expedient to different lease arrangements and verified the lease concession accounting applied by the Company in accordance with the guidance issued under Ind AS 116.
• Verified the accuracy of the underlying lease data to original contract or other supporting information and verified the arithmetic accuracy of the Ind AS 116 calculations for the sample selected.
• Assessed the disclosures in the Ind AS financial statements pertaining to Leases including key assumptions in line with requirements of Ind AS 116.

 

Revenue Recognition (as described in Note 24 of the Ind AS financial statements)
The Company's primary source of revenue is from sale of foods beverages from chain of quick service restaurants (QSR) stores or through online ordering and delivery. Our audit procedures included among others the following:
Revenue comprises high volume of individually small transactions which increases the risk of revenue being recognized inappropriately and which highlights the criticality of sound internal processes of summarizing and recording sales revenue and deposit of cash collected into bank accounts to mitigate error and fraud risk. • Obtained an understanding of revenue recognition process evaluated the design implementation and tested the operative effectiveness of key internal financial controls including segregation of duties with respect to the revenue recognition and deposit of cash collected into banks including those related to the reconciliation of sales records to cash / credit card / online receipts preparation posting and approval of journal entries on the test basis.
In view of the above and since revenue is a key performance indicator of the Company we have identified revenue recognition as an area of audit risk and has therefore been identified as a key audit matter. • We selected samples and tested controls with respect to revenue recognition including segregation of duties and deposit of cash collected into banks including those related to the reconciliation of sales records to cash / credit card / online receipts preparation posting and approval of journal entries.
• Performed cash counts/ checked management's cash count verification for samples selected at selected stores and examined whether the cash balances are in agreement with the cash receipts reported in the daily collection report.
• Performed analytical procedures on sales performance of individually significant stores including day wise and month wise sales analysis. Enquired explanation for any major variances if any.

 

Non-Recognition of Deferred Tax Assets (as described in Note 31 of the Ind AS financial statements)
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carried forward unabsorbed depreciation and business losses can be utilised. Our audit procedures included amongst others the following:
The Company's ability to recognise previously un-recognised deferred tax assets is assessed by the management at the end of each reporting period taking into account forecasts of future taxable profits future reversals of existing taxable temporary differences and ongoing tax planning strategies. • Evaluated the Company's accounting policies with respect to recognition of deferred taxes in accordance with Ind AS 12 "Income Taxes".
The Company has unrecognised deferred tax asset amounting to ' 925.78 million on carried forward unabsorbed depreciation and business losses for the year ended March 31 2021. • Evaluated the Company's assumptions and commitment to continue to invest in stores capitalization by evaluating the availability of capital that collectively used to decide on reasonable certainty of the unrecognised deferred tax assets.
Deferred tax assets is a key audit matter as its recognition requires reasonable certainty of its utilization involves estimate of the financial projections utilisation of future profits against available unabsorbed depreciation and business loss • Evaluated the consistency of financial projections used by management in assessing non recognition of deferred tax assets with the financial budgets approved by senior management and board of directors of the Company based on current market and economic conditions arising from the impact of COVID 19 pandemic.
• Assessed the disclosures in the Ind AS financial statements.

 

Impairment of Non - Financial assets (as described in Note 2(j) of the Ind AS financial statements)
In accordance with the requirements of Ind AS 36 Impairment of Assets the company performs an impairment assessment of the cash generating units to determine whether the recoverable value is below the carrying amount as at March 31 2021. Our audit procedures included amongst others the following:
Discounted cash flow model has significant judgment and estimation in respect of cash flow forecasts and discount rate. Changes in certain methodologies and assumptions can lead to significant changes in the assessment of the recoverable value. • Obtained an understanding of impairment of non-financial assets process evaluated the design implementation and tested the operative effectiveness of key internal financial controls followed by the management to determine indicators of impairment and the recoverable amounts of cash generating units
The assessment of the recoverable amount requires significant judgment in particular relating to estimated cash flow projections and discount rates. Due to the level of judgments involved impact of COVID-19 on QSR Industry and significance to the Company's financial position this is considered to be a key audit matter. • Evaluated appropriateness of the model used in determining the value in use of the cash generating units • Assessed the data used to calculate the recoverable amount with the financial budgets approved by management of the Company
• Analysed the performance of the cash generating units and evaluated the reasonableness of the assumptions used in computation of value in use as at March 31 2021 including understanding of management's estimate of business impact based on current market and economic conditions arising from the COVID 19 pandemic
• Tested the arithmetical accuracy of the computation of recoverable amounts of cash generating units.
• Obtained understanding of the key assumptions considered for assessment of future cash flows and the discounting factor considered.
• We involved valuation specialist to assist in evaluating the methodology used and significant assumptions used to determine the recoverable value.
• Assessed the disclosures in the Ind AS financial statement in accordance with Ind AS 36.

Other Information

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Board reportbut does not include the Ind AS financial statements and our auditor's reportthereon.

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

In connection with our audit of the Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the Ind AS financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management for the Ind AS Financial Statements:

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these Ind ASfinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud 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.

Those Board of Directors are also 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 skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of theInd AS 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 control relevant to theaudit in 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 with reference to financialstatements in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of 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 financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

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

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 Ind ASfinancial statements for the financial year ended March 31 2021 and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

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 of the Act we give in the "Annexure 1" a statement on thematters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss including theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity 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 Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlswith reference to Ind AS financial statements and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure 2" to this report;

(g) In our opinion the managerial remuneration for the year endedMarch 31 2021 has been paid / provided by the Company to its directors in accordance withthe provisions of section 197 read with Schedule V to the Act;

(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 as amended in our opinion and to the best of our information and according tothe explanations given to us:

i. The Company does not have any pending litigations which would impactits financial position;

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

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003 per Ravi Bansal
Partner
Membership Number: 49365
UDIN: 21049365AAAABJ7891
Place of Signature: Mumbai
Date: May 26 2021

Annexure 1 to the Independent Auditor's Report of even date on theInd as Financial Statements of Burger King India Limited

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) Fixed assts have not been physically verified by the managementduring the year but there is a planned programme of verifying them once in three yearswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given by themanagement and audit procedures performed by us there are no immovable propertiesincluded in property plant and equipment of the company and accordingly the requirementsunder paragraph 3(i)(c) of the Order are not applicable to the Company.

(ii) The management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies were noticed on suchphysical verification.

(iii) According to the information and explanations given to us andaudit procedures performed by us the Company has not granted any loans secured orunsecured to companies firms limited liability partnerships or other parties covered inthe register maintained under section 189 of the Companies Act 2013. Accordingly theprovisions of clause 3(iii) (a) (b) and (c) of the Order are not applicable to theCompany and hence not commented upon.

(iv) In our opinion and according to the information and explanationsgiven to us there are no loans investments guarantees and securities given in respectof which provisions of section 185 and 186 of the Companies Act 2013 are applicable andhence not commented upon.

(v) The Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable tothe company.

(vi) To the best of our knowledge and as explained the CentralGovernment has not specified the maintenance of cost records under Section 148(1) of theCompanies Act 2013 for the products/services of the Company. Accordingly the provisionsof clause 3(vi) of the Order are not applicable to the company.

(vii) (a) The Company is regular in depositing with appropriateauthorities undisputed statutory dues including provident fund employees' stateinsurance income-tax duty of custom duty of excise value added tax goods and servicetax cess and other statutory dues applicable to it.

(b) According to the information and explanations given to us and auditprocedures performed by us and audit procedures no undisputed amount payable in respectof provident fund employees' state insurance income-tax duty of custom goods andservice tax cess and other statutory dues which were outstanding at the year end for aperiod of more than six months from the date they became payable.

(c) According to the information and explanations given to us thereare no dues of income tax Sales-tax service tax customs duty excise duty value addedtax and Goods and Services Tax customs duty and cess which have not been deposited onaccount of any dispute.

(viii) In our opinion and according to the information and explanationsgiven by the management the Company has not defaulted in repayment of loans or borrowingto a financial institution bank or government or dues to debenture holders.

(ix) In our opinion and according to information and explanations givenby the management and audit procedures performed by us monies raised by the company byway of initial public offer were applied for the purpose for which they were raisedthough idle/ surplus funds which were not required for immediate utilization have beengainfully invested in liquid investments payable on demand. The maximum amount ofidle/surplus funds invested during the year was ' 1854 million of which '1560 million was outstanding at the end of the year.

(x) Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the Ind AS financial statements and according to theinformation and explanations given by the management we report that no fraud by thecompany or no material fraud on the Company by the officers and employees of the Companyhas been noticed or reported during the year.

(xi) According to the information and explanations given by themanagement and audit procedures performed by us the managerial remuneration has been paid/ provided in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Companies Act 2013.

(xii) In our opinion the Company is not a Nidhi company. Thereforethe provisions of clause 3(xii) of the order are not applicable to the Company and hencenot commented upon.

(xiii) According to the information and explanations given by themanagement and audit procedures performed by us transactions with the related parties arein compliance with section 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the notes to the financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations given by themanagement the Company has complied with provisions of section 42 of the Companies Act2013 in respect of the preferential allotment / private placement of shares. There were nodebentures issued during the year. According to the information and explanations given bythe management we report that the amounts raised have been used for the purposes forwhich the funds were raised.

(xv) According to the information and explanations given by themanagement and audit procedures performed by us the Company has not entered into anynon-cash transactions with directors or persons connected with him as referred to insection 192 of Companies Act 2013.

(xvi) According to the information and explanations given to us theprovisions of section 45-IA of the Reserve Bank of India Act 1934 are not applicable tothe Company.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003 per Ravi Bansal
Partner
Membership Number: 49365
UDIN: 21049365AAAABJ7891
Place of Signature: Mumbai
Date: May 26 2021

Annexure 2 to the Independent Auditor's Report of even date on theInd As Financial Statements of Burger King India 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 of Burger King IndiaLimited ("the Company") as of March 31 2021 in conjunction with our audit ofthe Ind AS financial statements of the Company for the 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 the 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.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to these Ind AS financial statements based onour audit. We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting (the "Guidance Note") andthe Standards on Auditing as specified under section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tothese Ind AS financial statements was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to these Ind AS financialstatements and their operating effectiveness. Our audit of internal financial controlsincluded obtaining an understanding of internal financial controls with reference to theseInd AS financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgementincluding the assessment of the risks of material misstatement of the Ind AS financialstatements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlswith reference to these Ind AS financial statements.

MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THESE IND ASFINANCIAL STATEMENTS

A company's internal financial control with reference to these IndAS financial statements is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of Ind AS financial statementsfor external purposes in accordance with generally accepted accounting principles. Acompany's internal financial control with reference to these Ind AS financialstatements includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of Ind AS financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the Ind AS financialstatements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TOTHESE IND AS FINANCIAL STATEMENTS

Because of the inherent limitations of internal financial controls withreference to these Ind AS financial statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols with reference to these Ind AS financial statements to future periods are subjectto the risk that the internal financial control with reference to these Ind AS financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

OPINION

In our opinion the Company has in all material respects adequateinternal financial controls with reference to these Ind AS financial statements and suchinternal financial controls over financial reporting with reference to these Ind ASfinancial statements were operating effectively as at March 31 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Ravi Bansal
Partner
Membership Number: 49365
UDIN: 21049365AAAABJ7891
Place of Signature: Mumbai
Date: May 26 2021

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