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S H Kelkar & Company Ltd.

BSE: 539450 Sector: Industrials
NSE: SHK ISIN Code: INE500L01026
BSE 00:00 | 23 Jul 161.85 -2.60
(-1.58%)
OPEN

163.20

HIGH

165.85

LOW

161.00

NSE 00:00 | 23 Jul 161.45 -3.00
(-1.82%)
OPEN

165.30

HIGH

165.70

LOW

160.90

OPEN 163.20
PREVIOUS CLOSE 164.45
VOLUME 13751
52-Week high 189.80
52-Week low 68.20
P/E 28.60
Mkt Cap.(Rs cr) 2,287
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 163.20
CLOSE 164.45
VOLUME 13751
52-Week high 189.80
52-Week low 68.20
P/E 28.60
Mkt Cap.(Rs cr) 2,287
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

S H Kelkar & Company Ltd. (SHK) - Auditors Report

Company auditors report

To the Members of

S H Kelkar and Company Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of S H Kelkar and Company Limited(“the Company”) which comprise the Standalone Balance Sheet as at 31 March2020 and the Standalone Statement of Profit and Loss (including Other ComprehensiveIncome) the Standalone Statement of Changes in equity and Standalone Statement of CashFlows for the year then ended and notes to the standalone financial statements includinga summary of the significant accounting policies and other explanatory information(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 (“Act”) in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2020 and profit and other comprehensiveincome changes 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) specifiedunder section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's 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 and the evidence obtained by the otherauditors in terms of their report referred to in the “Other Matters” paragraphbelow is sufficient and appropriate to provide a basis for our opinion on the Standalonefinancial statements.

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.

Description of Key Audit Matter Loss allowance on trade receivables

The key audit matter How the matter was addressed in our audit
The Company generates revenue from sales of its products to customers in fragrance segment and different jurisdictions within India. The carrying amount of trade receivables totaled to ` 145.34 crores as at 31 March 2020 representing 15.26% of the total assets of the Company. • Testing the design implementation and operating effectiveness of key controls over processes of credit control collection of trade receivables and follow up of overdue balances;
There are significant large number of customers including traders and distributors. Customers in different jurisdictions are subject to their independent business and other risks. • Assessing the Company's accounting policy for making loss allowances on trade receivables with reference to the requirements of the applicable accounting standards;
The Company assesses the expected credit loss (ECL) allowance for these customers resulting from all possible defaults over the expected life of the receivables. These are generally expected to be recognized before a trade receivable becomes past due. • Using our inhouse IT specialists to assess and obtain comfort over ageing report of days past due;
• Checking appropriateness and challenging the reasonableness of the key data and assumptions used by the Company for computing ECL on trade receivables.
• Assessing assumptions includes historical default rate expected collections and other related factors; and
The measurement of ECL involves significant Company's judgements and assumptions including: • Circulating and Obtaining independent customers confirmations on the outstanding balances on sample (using statistical sampling) basis. Agreed the balances obtained from customer with balance in the books along with applicable reconciling items. Checking subsequent bank receipts from customers and other relevant documents relating to closing trade receivable balances at 31 March 2020 when confirmations are not received.
- Loss rate depending on days past due;
- credit risk of customers
- historical experience adjusted for certain future economic conditions
For measuring ECL the Company applied significant estimates and judgements. In addition the exposure of the trade receivables involved significant amount. Accordingly we identified the assessment of ECL on trade receivables as a key audit matter.

 

Impairment of Investment in Subsidiaries and joint ventures

The Key Audit Matter How the matter was addressed in our audit
As of 31 March 2020 the carrying amount of investment in subsidiaries and joint venture amounted to Rs 302.63 crores representing 31.78 % of the total assets of the Company. • Testing the design implementation and operating effectiveness of key controls over management's assessment of identifying indicators of impairment of investments in subsidiaries and joint venture;
The Company has considered incurring losses and underperformance compared to expectations in some of its subsidiaries and joint ventures providing indication that the investment in the subsidiaries and joint venture needs to be tested for impairment. • Comparing the carrying amount of investments in subsidiaries and joint ventures with their audited balance sheet to identify whether their net assets were in excess of their carrying amount and assessing whether those subsidiaries have historically been profit-making;
Impairment testing of investment in in subsidiaries and joint venture will require the Company to estimate the recoverable value of the investment applying appropriate valuation models including Discounted Cash_ow (DCF). The valuation process is complex and involves significant judgment in considering various forward-looking assumptions and estimates. • For those subsidiaries and joint venture with indicators of impairment identified obtaining Company's assessment of the recoverable value of the investment;
Considering the complexity the magnitude of potential impact • Involving valuation expert to test the appropriateness of valuation methodology and key parameters such as discount rate cost of capital etc. considered by the Company;
and the judgement necessary to estimate the amount of impairment this is identified as a key audit matter
• Assessing and challenging the key assumptions used by management such as revenue growth rate gross margins sustainability of the working capital based on historical results current developments and future-plan of the business as approved by the Board of directors of the respective entities;
• Performing sensitivity analysis around the key assumptions to ascertain the extent to which adverse changes both individually and in aggregate could impact the analysis.

Other Information

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditors' reportthereon.

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 in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Management's and Board of Directors' Responsibility for the Standalone FinancialStatements

The Company's Management and Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the state of affairs profit/loss including(other comprehensive income) changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring accuracy and completeness of the accounting recordsrelevant to the preparation and presentation of the standalone financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the standalone financial statements the Management and Board of Directorsare responsible 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 the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities 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 auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken 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 company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures in the standalone financial statementsmade by the Management and Board of Directors.

• Conclude on the appropriateness of the Management and Board of Directors use ofthe going concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor's report tothe related 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.

• 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.

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 (Auditors' Report) Order 2016 (“the Order”)issued by the Central Government in terms of section 143 (11) of the Act we give in the“Annexure A” a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

2. (A) 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 Standalone Balance sheet the Standalone Statement of Profit and Loss (includingother comprehensive income) the Standalone Statement of changes in Equity and theStandalone Statement of Cash Flows dealt with by this Report are in agreement with thebooks of account and with the returns received from the Trust not visited by us.

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31March 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2020 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 tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in “Annexure B”.

(B) 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 as at 31 March 2020 onits financial position in its standalone financial statements - Refer Note 40 to thestandalone financial statements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts - Refer Note 23 to the standalone financial statements

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

iv. The disclosures in the standalone financial statements regarding holdings as wellas dealings in specified bank notes during the period from 8 November 2016 to 30 December2016 have not been made in these financial statements since they do not pertain to thefinancial year ended 31 March 2020.

(C) With respect to the matter to be included in the Auditors' Report under section197(16):

In our opinion and according to the information and explanations given to us theremuneration paid by the company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Balajirao Pothana
Partner
Mumbai Membership No: 122632
26 May 2020 UDIN: 20122632AAAAAN7554

Annexure A to the Independent Auditors' Report – 31 March 2020

With reference to the Annexure A referred to in the Independent Auditors' Report to themembers of the Company on the standalone financial statements for the year ended 31 March2020 we report the following:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assetsby which all fixed assets are verified over a period of three years. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets. In accordance with the above programme the Companyhas verified certain fixed assets and no material discrepancies were noticed in respect ofassets verified during the year and have been properly dealt with in the books ofaccounts.

(c) According to the information and explanations given to us and on the basis of ourexamination of records of the Company the title deeds of immovable properties are held inthe name of the Company. In respect of immovable properties taken on lease and disclosedas right-of-use assets in the standalone financial statements the lease agreements are inthe name of the Company.

(ii) The inventory except for goods-in-transit and stocks lying with third partieshas been physically verified by the management during the year. In our opinion thefrequency of such verification is reasonable. For stocks lying with third parties atyear-end written confirmations have been obtained. The discrepancies noticed onverification between the physical stocks and the book records were not material and havebeen properly dealt with in the books of account.

(iii) (a) The Company has granted unsecured loans to three companies covered in theregister maintained under Section 189 of the Companies Act 2013 (‘the Act'). TheCompany has not granted any loans secured or unsecured to other body corporates firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Act. In our opinion the rate of interest and other terms andconditions on which the unsecured loans have been granted to the companies listed in theregister maintained under Section 189 of the Act are not prima facie prejudicial to theinterest of the Company.

(b) The unsecured loans granted to companies covered in the register maintained underSection 189 of the Act are repayable on demand. The repayment of the loans was notdemanded during the year. The borrowers have been regular in the payment of principal andinterest as demanded.

(c) The unsecured loans granted to companies covered in the register maintained underSection 189 of the Act are repayable on demand. The loan was not demanded during the yearand there are no amounts which are overdue for more than ninety days in respect of suchloans.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act with respectto the guarantees given to body corporates loans and guarantees given to companies andinvestments made by the Company. The Company has not given any security under Section 185and 186 of the Act. Accordingly compliance under Section 185 and 186 of the Act inrespect of providing securities is not applicable to the Company.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits as per the directives issued by the Reserve Bank ofIndia under the provisions of Sections 73 to 76 or any other relevant provisions of theAct and the rules framed there under. Accordingly paragraph 3 (v) of the Order is notapplicable to the Company.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules prescribed by the Central Government for maintenance of cost records underSection 148 (1) of the Act and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. However we have not made a detailedexamination of the records.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Employees' StateInsurance Income tax Goods and service tax Profession tax Duty of customs Cess andother material statutory dues have been regularly deposited with the appropriateauthorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident fund Employees' State Insurance Income tax Goods andservice tax Professional tax Duty of customs Cess and other material statutory dueswere in arrears as at 31 March 2020 for a period of more than six months from the datethey became payable.

(b) According to the information and explanations given to us there are no dues ofGoods and service tax which have not been deposited with the appropriate authorities onaccount of any dispute. According to the information and explanations given to us thefollowing dues of Income-tax Sales tax Service tax and Duty of customs have not beendeposited as on 31 March 2020 by the Company on account of disputes:

(Currency : Indian Rupees in crores)
Name of the statute Nature of the dues Demand Amount deposited on account of demand Period to which the amount relates Forum where dispute is pending
Income tax Act 1961 Income-tax 0.90 0.76 2007-08 Income-tax Appellate Tribunal
2008-09
2010-11
Income tax Act 1961 Income-tax 14.88 14.08 2008-09 The Commissioner of Income-tax (appeals)
2009-10
2012-13
2016-17
2017-18
Income tax Act 1961 Income-tax 3.51 2.05 2008-09 High Court Mumbai
2011-12
Central Excise Act 1944 Service Tax 0.17 0.02 2011-12 Commissioner of Central Excise (Appeals)
Central Excise Act 1944 Service tax 11.27 2.63 2008-09 to CESTAT
2012-13
Central Excise Act 1944 Custom Duty 0.07 - 2008-09 to Additional Commissioner of Customs
2011-12 Appraising Gr.2 (A-F) JNCH
Central Excise Act 1944 Custom Duty 0.05 - 2011-12 Deputy Commissioner of Customs GR-II (A-B) NS-V JNCH

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowings to banks. The Companydid not have any outstanding dues to government financial institutions and debentureholders during the year.

(ix) In our opinion and according to the information and explanations given to us theCompany has not raised any moneys by way of initial public offer or further public offer(including debt instruments) and has not obtained any term loans during the year.Accordingly paragraph 3 (ix) of the Order is not applicable to the Company.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by themanagement.

(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 to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company and the Nidhi Rules 2014 are not applicable to it.Accordingly paragraph 3(xii) of the Order is not applicable to the Company.

(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 to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable to the Company.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.Accordingly paragraph 3(xvi) of the Order is not applicable to the Company.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Balajirao Pothana
Partner
Mumbai Membership No: 122632
26 May 2020 UDIN: 20122632AAAAAN7554

Annexure B to the Independent Auditors' report

On the standalone financial statements of S H Kelkar and Company Limited for the yearended 31 March 2020

Report on the internal financial controls with reference to the aforesaid standalonefinancial statements under Clause (i) of Sub-section 3 of Section 143 of the CompaniesAct 2013 (Referred to in paragraph A(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Opinion

We have audited the internal financial controls with reference to financial statementsof S H Kelkar and Company Limited (“the Company”) as of 31 March 2020 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to financial statements and such internal financial controls wereoperating effectively as at 31 March 2020 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 (the “Guidance Note”).

Management's Responsibility for Internal Financial Controls

The Company's management and the Board of Directors are responsible for establishingand maintaining 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. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013 (hereinafter referred to as“the Act”).

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing prescribed undersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols with reference to financial statements. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements were established and maintained and whether such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of such internal financial controlsassessing 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 judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

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 financial statements.

Meaning of Internal Financial controls with Reference to Financial Statements

A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements include those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial controls with Reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Balajirao Pothana
Partner
Mumbai Membership No: 122632
26 May 2020 UDIN: 20122632AAAAAN7554

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