To the Members of
RTS Power Corporation Limited
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of RTS PowerCorporation Limited (the Company') which comprise the Balance Sheet as at March 312020 and the Statement of Profit and Loss (Including Other Comprehensive Income)Statement of Changes in Equity and Statement of Cash Flows for the year then ended andNotes to the Standalone Financial Statements including a summary of significantaccounting policies and Other Explanatory Notes for the year ended on that date(hereinafter referred to as Standalone Financial Statements').
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 (the Act') in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended(Ind AS') and the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2020 and its profit total comprehensive incomechanges in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) as specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditors' Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the Standalone 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.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial Statements of the current period.These matters were addressed in the context of our audit of the Standalone FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have considered the matters described below to bethe Key Audit Matters for incorporation in our Report.
|Key Audit Matters ||Addressing the Key Audit Matters |
|Verification of Inventories and Valuation thereof ||Our audit procedures based on which we arrived at the conclusion regarding reasonableness of determination of year-end inventory and valuation thereof include the following: |
|As at March 31 2020 the Company has Rs. 2329.06 Lakhs of Inventories || |
|(Note No. 12 of the Standalone Financial Statements). Given the size of the Inventory relative to the total assets of the Company and the estimates and judgements described below the determination and valuation of Inventory required significant audit attention. || Ensuring the effectiveness of the design implementation and maintenance of controls over changes in inventory to determine whether the conduct of physical inventory verification at a date other than the date of the financial statement is appropriate and testing of those controls whether those have operated effectively. |
|As disclosed in Note 3.11 Inventories are held at lower of cost or Net Realizable Value determined using the First in First Out/ Weighted Average cost method. || Verification of Inventories in all units have been undertaken on a subsequent date of Balance Sheet by the management. Inventories at all locations were verified by the management. |
|At year end valuation of Inventories is reviewed by the management and the cost of Inventory is reduced in cases where the Net Realizable value is lower. || We have obtained and reviewed necessary evidences working papers and documents for the physical verification carried out as above. We have put reliance on the documents and working papers submitted to us by the management; |
|Management reviews the Ageing reports together with historical trends to estimate the likely future saleability of slow moving and older inventory items and performed a line-by-line analysis to ensure that it is stated at the lower of cost or net realizable value . || |
|Inventories existence and valuation was an audit focus area because of nationwide lockdown imposed by the Government of India in view of pandemic coronavirus (COVID 19). || We have applied alternative methods of verification for arriving at Inventories as at the year-end by applying principles of roll back by carrying out relevant adjustments for receipt and issues. We performed procedures to ensure that necessary control checks were applied in this respect and the changes in inventory between the verification date and date of the Balance sheet are properly recorded (Roll back principles); |
|As explained by the Management due to COVID 19 related restriction on account of nationwide lockdown the physical verification of the inventories could not be carried out and/or observed by us due to lockdown restrictions at the year end. || We have verified the adjustments made for receipt and consumption to arrive at the physical stock as on March 31 2020. Materiality for variations discrepancies were duly adjusted; and |
| || We have examined the valuation process/ methodology and checks being performed at multiple levels to ensure that the valuation is consistent with and as per the policy followed in this respect. |
|Trade Receivables || |
|Gross Trade Receivable of the Company is Rs. 3994.43 Lakhs as on 31st March 2020. This includes significant amounts which have fallen due for payment and are lying outstanding for a considerable period of time. (Note No. 14 of the Standalone Financial Statements) ||Our audit procedures based on which we arrived at the conclusion regarding the carrying amount of Trade Receivables include the following: |
| || We obtained an understanding from the Management assessed and tested the design and operating effectiveness of the Company's key controls over the recoveries against the outstanding amounts and resultant impairment assessment of material Trade Receivables; |
|The Company evaluates whether there is any objective evidence that trade receivables are impaired and determines the amount of impairment allowance as a result of the inability of the customers to make required payments. The Company bases the estimates on the ageing of the trade receivables balance creditworthiness of the trade receivables and historical write-off experience. || We reviewed Management's assessment and evaluation on the credit worthiness of the major trade receivables and historical trends and current dealing with the customers; |
| ||We further discussed with the Management the adequacy of the impairment as recognised and reviewed the supporting documents provided in relation to such assessment. |
|Provisions and Contingencies || |
|Recognition of provision and/or disclosure for contingencies are based on estimates requiring application of judgement with respect to existing facts and circumstances which are subject to variation on actual crystallization. ||Our audit procedures based on which we arrived at the conclusion regarding reasonableness of the Contingent Liabilities include the following: |
| || We tested the effectiveness of controls for estimating the possible effect of matters keeping in view the provisions of the relevant laws and regulations; |
|The Company has certain outstanding matters involving direct and indirect taxes which are pending before appropriate authorities. (Note 42 of Standalone Financial Statements) || We discussed with management the recent developments and the status of the matters having significant application; |
| || We reviewed Management's judgements relating to the estimates keeping in view the expected outcome thereof; |
|Management judgment for estimating the possible outflow of resources if any in respect of contingencies/claim/litigations/ against the Company is essential as it is not possible to predict the outcome of pending matters with accuracy. || Due consideration has been given to experts' view and opinion on the matters of significance; |
| || Reviewed the appropriateness and adequacy of amounts involved as required in terms of the requirement of IND AS 37 "Provisions Contingent Liabilities and Contingent Assets". |
Information other than the Standalone Financial Statements and Auditors' Report Thereon
The Company's Board of Directors is responsible for the other infotmation. The otherinformation comprises the Information included in the Board's Report including Annexuresto Directors' Report Management Discussion and Analysis Report Business ResponsibilityReport and Report on Corporate Governance but does not include the Standalone FinancialStatements and our auditors' report thereon.
Our opinion on the Standalone Financial Statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone Financial Statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the state of affairs (financial position) Profit orLoss (financial performance including other comprehensive income) changes in equity andcash flows of the Company in accordance with the accounting principles generally acceptedin India including the Indian accounting Standards specified under section 133 of theAct.
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 Standalone Financial Statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the Standalone Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditors' Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditors' report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith Standard on Auditing (SAs) will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol;
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Companyhasadequate internal financial controls system with reference to Standalone FinancialStatements in place and the operating effectiveness of such controls;
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management;
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditors' report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditors' report. However future events or conditions may cause the Company to cease tocontinue as a going concern; and
Evaluate the overall presentation structure and content of the StandaloneFinancial Statements including the disclosures and whether the Standalone FinancialStatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Standalone Financial Statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the Standalone 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 Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors' report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 (the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the Annexure A" a statement on the matters specified inparagraphs 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 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 the aforesaid Standalone Financial Statements comply with the IndianAccounting Standards specified under Section 133 of the Act;
e) On the basis of the written representations received from the directors as on March31 2020 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312020 from being appointed as a director in terms of Section164 (2) of the Act;
f) With respect to the adequacy of the internal financial controls with reference toStandalone Financial Statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in Annexure B". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company's internalcontrol with reference to Standalone Financial Statements; and
g) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Financial Statements - Refer Note 42 of the StandaloneFinancial Statements;
ii. The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferredto theInvestor Education and Protection Fund by the Company.
3. With respect to the reporting under Section 197 (16) of the Act to be included inthe Auditors' Report in our opinion and according to the information and explanationsgiven to us the Remuneration (including Sitting fees) paid by the Company to itsDirectors during the current year is in accordance with the provisions of Section 197 ofthe Act and is not in excess of the limit laid down therein.
"Annexure A" to the Independent Auditor's Report of Even Date:
The Statement referred to in paragraph 1 with the heading Report on other legaland regulatory requirements' of our Report of even date to the members of RTS PowerCorporation Limited on the Standalone Financial Statements of the Company for the yearended 31st March 2020 we report that:
i) a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b. There is a phased programme of verification of such assets based on which physicalverification of fixed assets is being carried out by the management. Discrepancies inrespect of fixed assets verified during the year were not material.
c. Based on verification of title deeds/lease deeds produced to us by the managementand according to the information and explanations given to us in our opinion the titledeeds/lease deeds of immovable properties are held in the name of the company.
ii) The inventories of the Company have been physically verified by the management atregular intervals. However such verification at the year-end could not be carried out dueto lock-down amidst COVID-19 pandemic. Verification of Inventories have therefore beenundertaken on a subsequent date. Inventories at all locations were verified by themanagement. The Inventories as on March 31 2020 have been arrived at by rolling back thestock so physically verified on a subsequent date. Due to COVID-19 we could not attend theverification so carried out and have placed reliance on the details documents and reportsreceived in this respect. As far as ascertained discrepancies noticed on verificationbetween the physical stocks and the book records were not material and the same has beenproperly dealt with in the books of account.
iii) According to the information and explanations given to us the Company has grantedunsecured loans to subsidiary company which is covered in the register maintained underSection 189 of the Act.
In respect of the loans so granted by the Company there is a stipulations with respectto repayment of principal amount.
As informed to us there are no overdue amounts outstanding in respect of such loansand interest thereon where applicable and the terms and conditions thereof as such primafacie are not prejudicial to the interest of the Company.
iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 186 of the Act with respect to theinvestments made. The Company has neither issued any guarantee given any loan nor hasprovided any security on behalf of any party. Further according to the information andexplanations given to us the company has not entered into any transactions as referred toin section 185 of the Act.
v) The Company has not accepted any deposits. Consequently the directives issued bythe Reserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act and the rules framed there under are not applicable tothe Company.
vi) We have broadly reviewed the books of account maintained by the company pursuant tothe Rules made by the Central Government for the maintenance of cost records under Section148 (1) of the Act in respect of the Company's products to which the said rules are madeapplicable and are of the opinion that prima facie the prescribed records have beenmaintained. We have however not made a detailed examination of the said records with aview to determine whether they are accurate or complete.
vii) a. According to the information and explanations given to us during the year theCompany has generallybeen regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Employees' State Insurance Income Tax SalesTax Goods and Services Tax Service Tax Duty of Custom Duty of Excise Value Added TaxCess and other material statutory dues as applicable to it. According to the informationand explanations given to us there is no undisputed amounts payable in respect of thesewhich were in arrears as on March 31 2020 for a period of more than six months from thedate they became payable.
"Annexure A" to the Independent Auditor's Report of Even Date:
b. According to the information and explanations given to us the details of disputeddues of income tax sales tax service tax custom duty excise duty and Value added Taxif any as at March 31 2020 not deposited on account of any dispute are as follows:
|Name of the Statute ||Nature of Dues ||Period to which the Amount relates ||Amount (Rupees in Lakhs) ||Forum Where dispute is Pending |
|Value Added Tax and Central Sales Tax Act 1956 ||VAT CST including interest thereon on Freight and Insurance ||2007-08 ||14.99 ||Revision pending before Tax Board Rajasthan |
| || ||2008-09 ||20.84 || |
| || ||2009-10 ||19.44 || |
| || ||2010-11 ||24.13 || |
| || ||2011-12 ||49.73 || |
|The Central Excise Act 1944 ||Duty on Commission on sale ||Apr-15 to Jan-16 ||1.67 ||Revision pending before Commissioner Appeals |
|The Central Excise Act 1944 ||Duty on Freight Charges ||Feb-16 to June-17 ||32.02 ||Revision pending before Commissioner Appeals |
|The Central Excise Act 1944 ||Duty on Freight Charges ||Apr-14 to Sept-16 ||20.90 ||Revision pending before |
| || || || ||Commissioner Appeals |
|The Central Excise Act 1944 ||Duty on Freight Charges ||Oct-16 to June-17 ||5.01 ||Revision pending before Deputy Commissioner |
|West Bengal Value Added Tax Act 2003 ||Value Added Tax ||2009-10 ||40.46 ||Revision pending before Appellate Authority of Sales Tax |
|The Central Excise Act 1944 ||Service Tax ||2010-11 to 2013-14 ||51.83 ||Revision pending before Customs Excise and Service Tax Appellate Tribunal (CESTAT) |
|West Bengal Value Added Tax Act 2003 ||Central Sales Tax ||2016 - 17 ||1.88 ||Revision pending before Appellate Authority of Sales Tax |
|The Central Excise Act 1944 ||Service Tax ||2014 - 15 & 2015 - 16 ||7.20 ||Assistant Commissioner Circle - V Central tax Audit |
|The Central Excise Act 1944 ||Excise Duty ||2014 - 15 & 2015 - 16 ||18.63 ||Assistant Commissioner Circle - V Central tax Audit |
|West Bengal Value Added Tax Act 2003 ||VAT ||2016 - 17 ||0.62 ||West Bengal Taxation Tribunal |
viii) In our opinion and on the basis of information and explanations given to us bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to banks. As explained the company does not have any loan or borrowings from anyfinancial institution governments or any dues to debenture holders.
ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments). In our opinion and according to the informationand explanations given to us the term loans have been applied for the purpose for whichthey were raised.
x) During the course of our examination of books of account carried out in accordancewith generally accepted auditing practices in India we have neither come across anyincidence of material fraud by the Company or material fraud on the Company by itsofficers or employees nor have we been informed of any such cases by the management.
xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V of the Act.
xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Standalone Financial Statements as required by theapplicable accounting standards.
xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3(xiv) of the Order is not applicable.
xv) According to the information and explanations given to us the Company has notentered into non-cash transactions with directors / persons connected with the Directorsas referred to in Section 192 of the Act. Accordingly paragraph 3(xv) of the Order is notapplicable.
xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 2 (f) under Report on Other Legal and RegulatoryRequirements' of our report of even date)
Report on the Internal Financial Controls with reference to Standalone FinancialStatementsunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act").
We have audited the internal financial controls with reference to the StandaloneFinancial Statements of RTS Power Corporation Limited ("the Company') as at March 312020 in conjunction with our audit of the Standalone Financial Statements of the Companyfor 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 financial controls with reference to StandaloneFinancial Statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting (the "Guidance Note") issued by the Instituteof Chartered Accountants of India. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to Company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to Standalone Financial Statements based on our audit. Weconducted our audit in accordance with the Guidance Note issued by the Institute ofChartered Accountants of India and the Standards on Auditing prescribed under Section143(10) of the Act to the extent applicable to an audit of internal financial controlswith reference to the Standalone Financial Statements. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial control withreference to Standalone Financial Statements were established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to Standalone Financial Statements andtheir operating effectiveness. Our audit of internal financial controls with reference toStandalone Financial Statements included obtaining an understanding of such internalfinancial controls with reference to Standalone Financial Statements assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors' judgement including the assessment of the risks of materialmisstatement of the Standalone Financial Statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls withreference to Standalone Financial Statements.
Meaning of Internal Financial Controls with reference to Standalone FinancialStatements
A Company's internal financial control with reference to Standalone FinancialStatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of Standalone Financial Statements for externalpurposes in accordance with generally accepted accounting principles. A Company's internalfinancial control with reference to Standalone Financial Statements includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly refiect the transactions and dispositions of the assets ofthe Company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of Standalone Financial Statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorisations of management and directors of theCompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the Standalone Financial Statements.
Inherent Limitations of Internal Financial Controls with reference to StandaloneFinancial Statements
Because of the inherent limitations of internal financial controls with reference toStandalone Financial Statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to Standalone Financial Statements to future periods are subjectto the risk that the internal financial control with reference to Standalone FinancialStatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlswith reference to Standalone Financial Statements and such internal financial controlswith reference to Standalone Financial Statements were operating effectively as at March312020 based on the internal financial controls with reference to Standalone FinancialStatements criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note issued by the Institute of CharteredAccountants of India.
| ||For Lodha & Co. |
| || |
| ||Firm's ICAI Registration No. 301051E |
| ||H K Verma |
| || |
|Place: Kolkata ||Membership Number: 055104 |
|Date: 31st July 2020 ||UDIN: 20055104AAAABZ4780 |