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Restile Ceramics Ltd.

BSE: 515085 Sector: Consumer
NSE: N.A. ISIN Code: INE298E01022
BSE 00:00 | 30 Nov 2.67 -0.09
(-3.26%)
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2.75

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2.76

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NSE 05:30 | 01 Jan Restile Ceramics Ltd
OPEN 2.75
PREVIOUS CLOSE 2.76
VOLUME 7591
52-Week high 5.19
52-Week low 2.44
P/E
Mkt Cap.(Rs cr) 26
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2.75
CLOSE 2.76
VOLUME 7591
52-Week high 5.19
52-Week low 2.44
P/E
Mkt Cap.(Rs cr) 26
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Restile Ceramics Ltd. (RESTILECERAMICS) - Auditors Report

Company auditors report

REPORT TO THE MEMBERS OF RESTILE CERAMICS LIMITED

Report on the audit of the Financial Statements Qualified Opinion

We have audited the accompanying Financial Statements of RESTILE CERAMICS LIMITED ("theCompany") which comprise the Balance Sheet as at March 31 2022 the Statement ofProfit and Loss Statement of Changes in Equity and Statement of Cash flows for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effect of the matters described in the Basis for qualifiedopinion paragraph the aforesaid Ind AS financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theIndian Accounting Standards prescribed under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended ("Ind AS") andother Accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2022 the loss and total comprehensive income changes in equityand its cash flows for the year ended on that date.

Basis for Qualified Opinion

(i)The Company has generated negative operating cash flows incurred substantialoperating losses and significant deterioration in value of assets used to generate cashflows all of which indicate existence of material uncertainty in the Company's ability tocontinue as a going concern for a reasonable period of time. The attached financialstatements do not include any adjustments that might result had the above uncertaintiesbeen known.

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our qualified opinion

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current year. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report

Key Audit Matter Description Response to Key Audit Matter
A. Revenue Recognition Reference may be made to note 1B.6 of significant accounting policies and note 38 to the financial statements of the Company. Principal Audit Procedures Audit procedures relating to revenue comprised of test of controls and substantive procedures including the following:
Revenue recognition is inherently an area of audit risk which we have substantially focused on mainly covering the aspects of cut off. Considering the impact of Ind AS 115 and cut-off are key audit matters i. We performed procedures to assess the design and internal controls established by the management and tested the operating effectiveness of relevant controls related to the recognition of revenue.
B. Inventory valuation ii. Selected a sample of continuing and new contracts and tested the operating effectiveness of the internal control relating to identification of the distinct performance obligations and determination of transaction price. We carried out a combination of procedures involving enquiry and observation reperformance and inspection of evidence in respect of operation of these controls.
Reference may be made to note 1C of significant accounting policies and note 22 to the financial statements of the Company. iii. We have tested on a sample basis whether specific revenue transactions around the reporting date has been recognised in the appropriate period by comparing the transactions selected with relevant underlying documentation including goods delivery notes customer acknowledgement/proof of acceptance and the terms of sales.
• Under Ind AS 2 Inventories materials and other supplies held for use in production are not written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost. The valuation of raw material and other supplies held for production have been an area of our focus in view of loss incurred and the inability to have operating margins. The valuation of finished goods has also been focused upon in view of the production of goods having ceased and the passage of time that has lapsed. iv. We have also validated subsequent credit notes and sales returns up to the date of this Report to ensure the appropriateness and accuracy of the revenue recognition.
Considering the above risks valuation of Inventory in accordance with Ind AS 2 has thus been considered as a key audit matter. v. We have tested journal entries on a sample basis to identify any unusual or irregular items.
C. Impairment of Property Plant and Equipment vi. We also considered the adequacy of the disclosures in Company's financial statements in relation to Ind AS 115 and were satisfied they meet the disclosure requirements.
The recoverable value of the Property Plant and Equipment requires significant judgment of the management and hence considered to be a significant matter.
D. Non-Payment/belated payment of Statutory Dues Conclusion
Company has not paid/paid belatedly various Undisputed Statutory dues including Income Tax and applicable Value Added Tax. Based on the procedures performed above we did not find any material exceptions with regards to timing of revenue recognition and were satisfied they meet the disclosure requirements of Ind AS 115 Revenue From contracts with Customer.
Payment of statutory dues regularly and within time reflects on the health of the company apart from the need for us to report on issues of non-compliance to members. Principal Audit Procedures
We have therefore considered payment of statutory dues as a key audit matter. Our audit procedures comprised of the following:
1. We performed procedures to assess the design and internal controls established by the management and tested the operating effectiveness of relevant controls related to the valuation of inventory.
2. We have selected a sample of items of Raw materials and other supplies held for production to check whether the rate per unit adopted for valuation is reflective of the last purchase rate (Realizable price). Similarly the rate per unit of various finished goods have been checked on a sample basis as to whether they reflect the net sale price (Realizable price).
3. Also obtained management's assessment of impairment in the value of inventory carried in the books of accounts.
Conclusion:
Based on the procedures performed above we have concluded that management has complied with the measurement and disclosure requirements of IND AS 2 "Inventories".
Principal Audit Procedures
We have performed the following list of audit procedures
1. Evaluated the design and effectiveness of internal controls established by the Company relating to assessment of the impairment
2. Obtained and evaluated the management's assessment of impairment.
3. Obtained the valuation report obtained by the Company.
Conclusion:
Based on the procedures performed above we have concluded that management has complied with the measurement and disclosure requirements of IND AS 16.
Principal Audit Procedures
We have performed the following list of audit procedures.
1. Evaluated the design and effectiveness of internal controls established by the Company relating to compliance with statutory dues.
2. Obtained details of payment of various statutory dues to be paid by company.
3. Verified that whether company has been regular in payment of statutory dues.
Conclusion:
Based on the above procedures performed we noted that
The payment of statutory dues depended upon availability of funds and is being paid with applicable interest and delays noted are disclosed elsewhere in this report.

Information other than the Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual report but does not includethe financial statements and our report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact.

We have nothing to report in this regard.

Responsibilities of Management for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance total comprehensive income changes in equity and cash flows of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand 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 financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process. Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls systems in place and theoperating 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (I) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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.

Report on Other Legal and Regulatory Requirements

1. As required by Section143 (3) of the Companies Act 2013 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 including other Comprehensiveincome the Statement of Changes in Equity and the Statement of Cash Flows dealt with bythis report are in agreement with the books of account.

(d) In our opinion except for matters described in the Basis of Qualified OpinionParagraph the aforesaid Financial Statements comply with the Indian Accounting Standardsprescribed under Section 133 of the Act read with the relevant rules issued thereunder.

(e) The matters described in the Basis for Qualified Opinion paragraph above in ouropinion may have an adverse effect on the functioning of the Company.

(f) On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312022 from being appointed as a director in terms of Section164(2) of theCompanies Act 2013.

(g) With respect to the adequacy of the Internal Financial Controls Over FinancialReporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure "A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with requirements of section 197(16) of the Act as amended in our opinion andto the best of our information and according to the explanations given to us noremuneration other than applicable sitting fees has been paid by the Company to itsdirectors during the year and hence the compliance with the provisions of the section 197does not arise.

(i) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditor's) Rules 2014 in our opinionand to the best of our information and according to the explanation given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Financial Statements. (Refer Note 35)

ii. The company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as at March 312022.

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

iv. (a) The Management has represented that to the best of its knowledge and beliefno funds (which are material either individually or in the aggregate) have been advancedor loaned or invested (either from borrowed funds or any other sources or kind of funds)by the Company to or in any other person or entity including foreign entity("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries.

(b) The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries.

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

v. There was no dividend declared / paid during the year by the company.

2. As required by the Companies (Auditor's Report) Order2020 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(g) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date to the Members of Restile CeramicsLimited)

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

We have audited the internal financial controls over financial reporting of RestileCeramics Limited ("the Company") as of March 31 2022 in conjunction withour audit of the 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 and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the 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 systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting 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 financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the Company has maintained in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as of March 31 2022 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date on the accounts of RESTILE CERAMICS LIMITED ("theCompany") for the year ended March 31 2022)

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

(a) (i) The company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment. The same howeverneeds to be updated.

(ii) The company does not have intangible assets.

(b) Property Plant and Equipment were physically verified by management during theyear. According to the information and the explanations given to us no materialdiscrepancies were noticed during the year on such verification.

(c) On the basis of documents of title produced to us and the information andexplanations produced to us we are of the opinion that the title deeds of immovableproperties of the Company are held in its name.

d) The Company has not revalued its Property Plant and Equipment during the year.

e) No proceedings have been initiated during the year or are pending against thecompany as on March 31 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

2. a) As explained to us the inventories have been physically verified by themanagement at the end of the year and the discrepancies noticed on such verification werenot material and have been appropriately dealt with in the books of accounts.

b) The company has not been sanctioned any working capital during the year from banksor financial institutions.

3. The Company has not made investments in or provided any guarantee or security orgranted any loans or advances in the nature of loans secured or unsecured to companiesfirms Limited Liability Partnerships or any other parties.

4. According to the information and explanation given to us the Company has notgranted during the year any loans secured or unsecured nor made investments furnishedguarantees or provided security to any party covered by provisions of sections 185 and 186of the Companies Act 2013. Hence reporting on whether there is a compliance with the saidprovisions does not arise.

5. According to information and explanations given to us the Company has not acceptedany deposits during the year and there are no unclaimed deposits as at March 31 2022 towhich the provisions of section 73 and section 76 or any other relevant provisions of theCompanies Act are applicable. Accordingly the provisions of clause (v) of paragraph 3 ofthe Order are not applicable to the Company.

6. The maintenance of cost records for the year has not been specified by the CentralGovernment under section 148(1) of the Companies Act 2013 considering the turnover frombusiness activities carried out by the Company. Thus reporting under clause 3(vi) of theorder is not applicable to the Company.

7. According to the information and explanations given to us and the books of accountexamined by us in respect of statutory dues:

(a) The company is generally regular in depositing amounts of undisputed statutory duesincluding Goods and Services Tax Provident Fund Employees' State Insurance Income-taxSales-tax Service tax Goods and Service tax and other material statutory dues asapplicable to the appropriate authorities during the year. Except stated below there wereno material undisputed amounts payable in respect of the aforesaid statutory duesoutstanding as at March 31 2022 for a period of more than six months from the date theybecame payable.

Name of the Statute Nature of the dues Amount Rs in lakhs Period to which the amount relates to
Income Tax Act 1961 Interest on Income Tax demand 1.00 2009-10
Income Tax Act Tax and Interest thereon 2.01 2014-15

(b) There are no dues of service tax excise duty goods and services tax cess andcustoms duty which have not been deposited on account of any dispute.

8. As per the information and explanation given to us there were no transactions thatare previously not recorded in the books of account that have been surrendered ordisclosed as income during the year in the tax assessments under the Income Tax Act 1961

9. (a) According to information and explanation given to us the Company does not haveany borrowings from any bank or financial institution government or by way of Debentures.

(b) As per the information and explanation given to us the company has not beendeclared willful defaulter by any bank or financial institution or other lender.

(c) The Company has not raised any term loans during the year and hence reporting onthe application of such loans does not arise.

(d) On an overall examination of the financial statements of the company funds raisedon short term basis have prima facie not been used during the year for long-termpurposes by the company.

(e) The company does not have any subsidiaries joint ventures or associate companies.Accordingly the provisions of Clause 3(ix)(e) and 3(ix)(f) of the Order are notapplicable to the Company..

10. (a) The Company has not raised any money by way of initial public offer or furtherpublic offers (including debt instruments) or term loans during the year. Hence reportingon utilization of such money under clause 3(ix) of the Order does not arise.

(b) During the year the Company has not made any preferential allotment or privateplacement of shares (covered by section 42 and section 62 (1)c of the Companies Act 2013)or fully or partly convertible debentures and hence reporting under clause 3(x)(b) of theOrder is not applicable.

11. (a) No fraud by the company and no material fraud on the company has been noticedor reported during the year.

(b) No report under sub-section (12) of section 143 of the Companies Act has been filedby the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government during the year and up to the date ofthis report.

(c) As per the information and explanation given to us there are no whistle-blowercomplaints received during the year by the company up to the date of this report

12. The Company is not a Nidhi Company and hence reporting under clause (xii) ofParagraph 3 of the Order is not applicable to the Company

13. In our opinion and according to the information and explanations given to us alltransactions with the related parties are in compliance with sections 177 and 188 of theCompanies Act 2013 where applicable. The details of the transactions during the yearhave been disclosed in the financial statements as required by the applicable IndianAccounting Standards. (Refer note 33 to financial statements).

14. a) In our opinion the company has an internal audit system commensurate with thesize and nature of its business.

(b) We have considered the internal audit reports for the year under audit issued tothe Company during the year in determining the nature timing and extent of our auditprocedures.

15. In our opinion the Company has not entered into any non-cash transactions duringthe year with its Directors or persons connected with its directors and hence provisionsof section 192 of the Companies Act 2013 are not applicable to the Company.

16. a) The Company is not required to be registered under section 45 - IA of theReserve Bank of India Act 1934 and it is not a Core Investment Company. Accordingly theprovisions of Clause 3(xvi)(a) (b) and (c) of the Order are not applicable to theCompany.

17. The company has not incurred cash losses during the financial year covered by ouraudit and for the immediately preceding financial year.

18. There has been no resignation of the statutory auditors of the Company during theyear. Accordingly the provisions of Clause 3(xviii) of the Order are not applicable tothe Company.

19. According to the information and explanations given to us and on the basis of: (i)the financial ratios (ii) ageing and expected dates of realization of financial assetsand payment of financial liabilities (iii) other information accompanying the financialstatements (iv) our knowledge of the Board of Directors and management plans and (v)based on our examination of the evidence supporting the assumptions we believe that thereare indication of existence of material uncertainty as on the date of the audit reportindicating that company is not capable of meeting its liabilities existing at the date ofbalance sheet as and when they fall due within a period of one year from the balance sheetdate. We have accordingly qualified our report.

20. In our opinion and according to the information and explanations given to us theprovisions of section 135 not applicable to the Company. Accordingly the provisions ofClause 3(xx) of the order are not applicable to the Company.

For R. SUNDARARAJAN & ASSOCIATES
Chartered Accountants Firm Regn No: 08282S
S. Krishnan- Partner
Membership No: 26452
UDIN: 22026452AKTIZT1363
Date: May 21 2022
Place: Chennai

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