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Royal Orchid Hotels Ltd.

BSE: 532699 Sector: Services
NSE: ROHLTD ISIN Code: INE283H01019
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VOLUME 9837
52-Week high 153.35
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Mkt Cap.(Rs cr) 342
Buy Price 0.00
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OPEN 120.00
CLOSE 118.30
VOLUME 9837
52-Week high 153.35
52-Week low 66.75
P/E
Mkt Cap.(Rs cr) 342
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Royal Orchid Hotels Ltd. (ROHLTD) - Auditors Report

Company auditors report

To the Members of Royal Orchid Hotels Limited

Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements ofRoyal Orchid Hotels Limited ('the Company') which comprise the Balance Sheet as at 31March 2021 the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.

2. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ('Act') in the manner so required and givea true and fair view in conformity with the accounting principles generally accepted inIndia including Indian Accounting Standards ('Ind AS') specified under Section 133 of theAct of the state of affairs of the Company as at 31 March 2021 its loss (including othercomprehensive income) its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Our responsibilities under those standards arefurther described in the Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ('ICAI') together with the ethical requirements that are relevant to our audit ofthe standalone financial statements under the provisions of the Act and the rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

Impact of COVID-19 on operations of the Company

4. We draw attention to Note 2 (b) (ii) to the accompanying standalonefinancial statements which describes the effects of uncertainties relating to theoutbreak of COVID-19 pandemic and management's evaluation of its impact on the businessoperations of the Company and accompanying standalone financial results as at reportingdate the extent of which is significantly dependent on future developments. Our opinionis not modified in respect of this matter.

Key Audit Matters

5. Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statements ofthe current period. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters.

Key audit matters How our audit addressed the key audit matters
Impairment assessment of investments in subsidiary company.
As disclosed in note 4 5 6 8 10 14 16 and 37 the standalone financial statements of the Company as at 31 March 2021 includes Investments of 10483.82 lakhs Assets held for sale of 3676.38 lakhs (net of impairment of 2228.15 lakhs) Loans (including interest accrued thereon) of 3052.30 lakhs and Other current / non-current financial assets of 1642.81 lakhs invested in / recoverable from its subsidiaries. Our audit procedures included but were not limited to the following:
In the current year ended 31 March 2021 on account of reported losses by certain subsidiaries impact of COVID-19 pandemic on the operations of such companies and management's intention to dispose assets in subsidiaries the management has identified that indicators exist that requires the management to test the carrying value of such investments and receivables for possible impairment in accordance with the requirements of Ind AS 36 Impairment of Assets (‘Ind AS 36'). 1. Obtained an understanding of the management process for identification of possible impairment indicators and process performed by the management for impairment testing;
Management's assessment of the recoverable amount of investments in and loans and other assets given to these subsidiary companies requires estimation and judgement around assumptions used in the Discounted Cash Flow valuation model adopted by the Company for the purpose primarily around expected revival of business from the pandemic estimated growth in the operations in the form of occupancy rate and room rates to assess ability to generate cash profits in the future the discount rates applied in the model and fair value of immovable properties. Changes to such assumptions could lead to material changes in estimated recoverable amounts resulting in impairment of the investment in subsidiary companies. 2. Evaluated the design and implementation of relevant controls and tested the operating effectiveness of such internal controls which inter-alia include controls around the reasonableness of input data considered and assumptions made in determining the recoverable value of investments;
Considering the significance of the amounts involved and auditor attention required to test the appropriateness of accounting estimate that involves high estimation uncertainty and significant management judgement this matter has been determined to be a key audit matter for the current year audit. 3. Obtained the impairment assessment prepared by the Management for the investments and performed the following procedures:
• Held discussions with the Company/Subsidiaries' personnel to identify additional factors if any which in our professional judgement should have been considered in determination of recoverable value.
• Assessed the competence independence and objectivity of the management's experts involved in determining recoverable value of the investments as applicable.
• Involved our internal valuation specialists to assess the appropriateness of the methodology applied in determining the recoverable amount and test the key valuation assumptions considered by the Management in such models.
• Tested the mathematical accuracy of the management computations of cash flows and sensitivity analysis.
• Reconciled the cash flows to the business plans approved by the respective Board of Directors of the identified investee companies.
• Evaluated key assumptions in management's valuation models used to determine recoverable amount including assumptions of projected adjusted EBITDA growth rate and assessed the forecasts considering our understanding of the business and industry based on internal and external sources of information including the impact of COVID-19 on such assumptions.
• Performed independent sensitivity analysis of aforesaid key assumptions to assess the effect of reasonably possible variations on the current estimated recoverable amount for respective subsidiaries to evaluate sufficiency of headroom between recoverable value and carrying amounts.
4. Evaluated the appropriateness and adequacy of the disclosures made in the standalone financial statements in respect of aforesaid matter in accordance with the requirements of the accounting standards.

 

Key audit matters How our audit addressed the key audit matters
Evaluation of Management's Assessment of appropriateness of going concern assumption:
As disclosed in note 2(b)(ii) to the standalone financial statements the COVID-19 pandemic has severely impacted the operations of the Company leading to low occupancies and shutdown of some of the hotels of the Company across India for certain periods of time during the year to comply with the restriction guidelines issued by the Central/State governments in this respect. Our procedures included but were not limited to the following in relation to evaluation of Management's assessment of the appropriateness of going concern basis of accounting:
On account of aforesaid impact of the pandemic the Company has suffered a loss before tax of 3896.30 lakhs during the current year as at 31 March 2021. Such events and conditions require the management to do a detailed assessment of the Company's ability to continue as a going concern for the foreseeable future as per the requirements of Ind AS 1 Presentation of Financial Statements. 1. Obtained an understanding of the process followed by the Management to identify all the factors that impact the going concern evaluation which includes preparation of cash flow projections and liquidity analysis etc.;
The assessment of appropriateness of use of going concern basis of accounting for preparation of the financial statements by the Management as mentioned above involves significant judgement in terms of expected revival of the business and estimation of key input variables such as average occupancy rate average room rate future business plans and expected sources of funding to meet the fixed costs of maintaining such establishments in running conditions amongst other estimates. 2. Evaluated the design and implementation of relevant controls and tested the operating effectiveness of such controls relating to above process which inter-alia includes controls around reasonableness of the input data and assumptions used in preparing the cash flow projections for the foreseeable future;
The management based on their assessment of expected availability of cash flows and future business plans has concluded that use of going concern basis of accounting for preparation of accompanying financial statements is appropriate and no material uncertainty exists in this respect basis the mitigating factors as explained in the said note. 3. Obtained the cash flow projections prepared by the Management and performed the following procedures:
The auditing standard SA 570 Going Concern also casts a responsibility on the auditors to assess the aforesaid assessment made by the management and to verify whether the disclosures made by the management in the financial statements in this respect meet the requirements of applicable financial reporting framework. • Traced such cash flow projections to the future business plans approved by the Board of Directors of the Company.
Considering the significant judgements and estimates with high estimation uncertainty involved as above and the pervasive impact of the matter on the financial statements we have considered the assessment of management's evaluation of going concern basis of accounting for preparation of the accompanying standalone financial statements as a key audit matter in the current year audit since this matter required significant efforts and attention from us during the audit. • Tested the appropriateness and reasonableness of inputs and assumptions used in the cash flow projections with reference to historical
performance internal and external sources of information about the hospitality industry and the Company's strategy including various measures undertaken by the Company under the prevalent conditions of the COVID-19 pandemic.
• Performed sensitivity analysis on the key input variables used in cash flow projections to assess the
impact of change on the overall cash flows to identify the estimation uncertainty involved in relation to such estimates.
• Tested the arithmetical accuracy of the calculations including those related to sensitivity analysis performed by the management.
4. Evaluated the appropriateness and adequacy of the disclosures made in the standalone financial statements in respect of going concern as required under the applicable accounting standards.

6. We have determined the matter described below to be the key auditmatters to be communicated in our report.

Information other than the Standalone Financial Statements andAuditor's Report thereon

7. The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the AnnualReport but does not include the standalone financial statements and our auditor's reportthereon.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements

8. The accompanying standalone financial statements have been approvedby the Company's Board of Directors. The Company's Board of Directors is responsible forthe matters stated in Section 134(5) of the Act with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Ind AS specified under Section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments 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.

9. In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

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

Auditor's Responsibilities for the Audit of the Standalone FinancialStatements

11. 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 Standards on Auditing will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesestandalone financial statements.

12. As part of an audit in accordance with Standards on Auditing weexercise professional judgment 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 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 standalonefinancial 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 the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone 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 conditions maycause the Company to cease to continue as a going concern; and

• 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.

13. 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.

14. We also provide those charged with governance with a statement thatwe have 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.

15. From the matters communicated with those charged with governancewe determine 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 precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Other Matter

16. The standalone financial statements of the Company for the yearended 31 March 2020 were audited by the predecessor auditor Deloitte Haskins & SellsLLP who have expressed an unmodified opinion on those standalone financial statementsvide their audit report dated 27 July 2020.

Report on Other Legal and Regulatory Requirements

17. As required by Section 197(16) of the Act based on our audit wereport that the Company has paid remuneration to its directors during the year inaccordance with the provisions of and limits laid down under Section 197 read withSchedule V to the Act.

18. As required by the Companies (Auditor's Report) Order 2016 ('theOrder') issued by the Central Government of India in terms of Section 143(11) of the Actwe give in the Annexure I a statement on the matters specified in paragraphs 3 and 4 ofthe Order.

19. Further to our comments in Annexure I as required by Section143(3) of the Act based on our audit we report to the extent applicable that:

a. we have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our auditof the accompanying standalone financial statements;

b. in our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;

c. the standalone financial statements dealt with by this report are inagreement with the books of account;

d. in our opinion the aforesaid standalone financial statements complywith Ind AS specified under Section 133 of the Act;

e. on the basis of the written representations received from thedirectors and taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 from being appointed as a director in terms of Section164(2) of the Act;

f. we have also audited the internal financial controls with referenceto financial statements of the Company as on 31 March 2021 in conjunction with our auditof the standalone financial statements of the Company for the year ended on that date andour report dated 17 June 2021 as per Annexure II expressed an unmodified opinion;

g. with respect to the other matters to be included in the Auditor'sReport in accordance with rule 11 of the Companies (Audit and Auditors) Rules 2014 (asamended) in our opinion and to the best of our information and according to theexplanations given to us:

a. the Company as detailed in note 44 to the standalone financialstatements has disclosed the impact of pending litigations on its financial position asat 31 March 2021;

b. the Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses as at 31 March2021;

c. there has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company during the yearended 31 March 2021; and

d. the disclosure requirements relating to holdings as well as dealingsin specified bank notes were applicable for the period from 8 November 2016 to 30 December2016 which are not relevant to these standalone financial statements. Hence reportingunder this clause is not applicable.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Aasheesh Arjun Singh
Partner
Membership No.: 210122
UDIN: 21210122AAAACW1872
Bengaluru
17 June 2021

Annexure I to the Independent Auditor's Report of even date to themembers of Royal Orchid Hotels Limited on the standalone financial statements for the yearended 31 March 2021

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

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

(b) All the fixed assets have not been physically verified by themanagement during the year however there is a regular program of verification once inthree years which in our opinion is reasonable having regard to the size of the Companyand the nature of its assets. No material discrepancies were noticed on such verification;

(c) The title deeds of all the immovable properties (which are includedunder the head 'Property plant and equipment') are held in the name of the Company.

ii. In our opinion the management has conducted physical verificationof inventory at reasonable intervals during the year and no material discrepancies betweenphysical inventory and book records were noticed on physical verification.

iii. The Company has granted unsecured loans to companies covered inthe register maintained under Section 189 of the Act; and with respect to the same:

a. in our opinion the terms and conditions of grant of such loans arenot prima facie prejudicial to the company's interest.

b. the schedule of repayment of the principal and the payment of theinterest has not been stipulated and hence we are unable to comment as to whetherrepayments/receipts of the principal amount and the interest are regular.

c. in the absence of stipulated schedule of repayment of principal andpayment of interest we are unable to comment as to whether there is any amount which isoverdue for more than 90 days and whether reasonable steps have been taken by the Companyfor recovery of the principal amount and interest..

iv. In our opinion the Company has not entered into any transactioncovered under Sections 185 and 186 of the Act. Accordingly the provisions of clause 3(iv)of the Order are not applicable.

v. In our opinion the Company has not accepted any deposits within themeaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules2014 (as amended). Accordingly the provisions of clause 3(v) of the Order are notapplicable.

vi. The Central Government has not specified maintenance of costrecords under sub-section (1) of Section 148 of the Act in respect of Company's products/services. Accordingly the provisions of clause 3(vi) of the Order are not applicable.

vii. Undisputed statutory dues including provident fund employees'state insurance income-tax sales- tax service tax duty of customs duty of excisevalue added tax cess goods and services tax and other material statutory dues asapplicable have not been regularly deposited to the appropriate authorities and therehave been significant delays in a large number of cases. Undisputed amounts payable inrespect thereof which were outstanding at the year-end for a period of more than sixmonths from the date they became payable are as follows:

Name of the statute Nature of the dues Amount (Rs. in lakhs) Period to which the amount relates Due Date Date of Payment Remarks if any
Income Tax Act 1961 TDS 94.19 AY 2019-20 to AY 2021-22 Various dates Not paid

(b) The dues outstanding in respect of income-tax sales-taxservice-tax goods and services tax duty of customs duty of excise and value added taxon account of any dispute are as follows:

Statement of Disputed Dues

Name of the statute Nature of dues Amount (Rs. in lakhs) Amount paid Under Protest (Rs.) Period to which the amount relates Forum where dispute is pending Remarks if any
Income Tax Act1961 Income Tax 227.46 AY 2009-10 Income Tax Appellate Tribunal
Income Tax 198.74

-

AY 2011-12 Income Tax Appellate Tribunal
Income Tax 78.79 AY 2018-19 Commissioner of Income Tax (Appeals)

(viii) The Company has not defaulted in repayment of loans orborrowings to any bank during the year. The Company did not have any outstandingdebentures loans or borrowings from financial institution or government and during theyear.

(ix) In our opinion the Company has applied moneys raised by way termloans for the purposes for which these were raised. The Company did not raise moneys byway of initial public offer/ further public offer (including debt instruments) during theyear.

(x) No fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the period covered by our audit.

(xi) Managerial remuneration has been paid and provided by the Companyin accordance with the requisite approvals mandated by the provisions of Section 197 ofthe Act read with Schedule V to the Act.

(xii) In our opinion the Company is not a Nidhi Company. Accordinglyprovisions of clause 3(xii) of the Order are not applicable.

(xiii) In our opinion all transactions with the related parties are incompliance with Sections 177 and 188 of Act where applicable and the requisite detailshave been disclosed in the standalone financial statements etc. as required by theapplicable Ind AS.

(xiv) During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures.

(xv) In our opinion the Company has not entered into any non-cashtransactions with the directors or persons connected with them covered under Section 192of the Act.

(xvi) The Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Aasheesh Arjun Singh
Partner
Membership No.: 210122
UDIN: 21210122AAAACW1872
Bengaluru
17 June 2021

Annexure II to the Independent Auditor's Report of even date to themembers of

Royal Orchid Hotels Limited on the standalone financial statements forthe year ended 31 March 2021

Independent Auditor's Report on the internal financial controls withreference to the standalone financial statements under Clause

(i) of Sub-section 3 of Section 143 of the Companies Act 2013 ('theAct')

1. In conjunction with our audit of the standalone financial statementsof Royal Orchid Hotels Limited ('the Company') as at and for the year ended 31 March 2021we have audited the internal financial controls with reference to standalone financialstatements of the Company as at that date.

Responsibilities of Management and Those Charged with Governance forInternal Financial Controls

2. The Company's Board of Directors is responsible for establishing andmaintaining internal financial controls based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of the Company's business including adherenceto the Company's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's Responsibility for the Audit of the Internal FinancialControls with Reference to Standalone Financial Statements

3. Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to standalone financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India ('ICAI') prescribed under Section 143(10) ofthe Act to the extent applicable to an audit of internal financial controls withreference to financial statements and the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting ('the Guidance Note') issued by the ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to standalone financial statements were established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls with reference to standalonefinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to standalone financial statements includes obtaining anunderstanding of such internal financial controls assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgement including the assessment of the risks of material misstatement of thestandalone financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls with reference to standalone financial statements.

Meaning of Internal Financial Controls with Reference to StandaloneFinancial Statements

6. A company's internal financial controls with reference to standalonefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of standalone financial statementsfor external purposes in accordance with generally accepted accounting principles. Acompany's internal financial controls with reference to standalone financial statementsinclude those policies and procedures that

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

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of standalone financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorisations of management and directorsof the company; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with Reference toStandalone Financial Statements

7. Because of the inherent limitations of internal financial controlswith reference to standalone financial statements including the possibility of collusionor improper management override of controls material misstatements due to error or fraudmay occur and not be detected. Also projections of any evaluation of the internalfinancial controls with reference to standalone financial statements to future periods aresubject to the risk that the internal financial controls with reference to standalonefinancial statements may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequateinternal financial controls with reference to standalone financial statements and suchcontrols were operating effectively as at 31 March 2021 based on the internal financialcontrols with reference to financial statements 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 Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Aasheesh Arjun Singh
Partner
Membership No.: 210122
UDIN: 21210122AAAACW1872
Bengaluru
17 June 2021

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