You are here » Home » Companies ยป Company Overview » Safari Industries (India) Ltd

Safari Industries (India) Ltd.

BSE: 523025 Sector: Consumer
NSE: SAFARI ISIN Code: INE429E01023
BSE 00:00 | 25 Jan 1770.60 -38.40
(-2.12%)
OPEN

1817.90

HIGH

1820.00

LOW

1754.00

NSE 00:00 | 25 Jan 1776.25 -24.45
(-1.36%)
OPEN

1802.20

HIGH

1809.90

LOW

1754.55

OPEN 1817.90
PREVIOUS CLOSE 1809.00
VOLUME 1736
52-Week high 1975.25
52-Week low 781.00
P/E 62.68
Mkt Cap.(Rs cr) 4,196
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1817.90
CLOSE 1809.00
VOLUME 1736
52-Week high 1975.25
52-Week low 781.00
P/E 62.68
Mkt Cap.(Rs cr) 4,196
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Safari Industries (India) Ltd. (SAFARI) - Auditors Report

Company auditors report

To

The Members

SAFARI INDUSTRIES (INDIA) LIMITED.

Report on the Audit of StandaloneFinancial Statements

Opinion

We have audited the accompanying standalone financial statements of Safari Industries(India) Limited ("the Company") which comprises of Balance Sheet as at March31 2022 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flow for the year then ended andnotes to the standalone financial statements including a summary of significant accountingpolicies and other explanatory information.

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 and fairview in conformity with the Indian Accounting Standards prescribed under Section 133 ofthe Act read with Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2022its profit (including othercomprehensive income) changes in equity and its cash flows for the year ended on thatdate.

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 Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial 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.

Sr. No. Key Audit Matters Auditor's response
1. Inventory - valuation Audit procedures performed:
As at March 31 2022 the Company held inventories of Rs 14607.16 lakhs. [Also refer Note no. 11 of the standalone financial statements] We have performed following alternative audit procedures over inventory valuations:
Inventories valuation was an audit focus area because of nationwide lockdown imposed by the Government of India in view of pandemic coronavirus (COVID 19). (a) Ensuring the effectiveness of the design implementation and maintenance of controls over changes in inventory to determine whether the inventory valuation is in accordance with applicable accounting standard and verification of net realizable value.
Future selling prices are dependent on market conditions which can be difficult to predict due to COVID 19. (b) We considered the inventory provision for obsolescence and items to be sold at less than cost through evaluating:
There is an element of judgement relating to provisions which are based on historical evidence and the current economic conditions. The changing trends and economic environment require judgements in respect of provisions to be reassessed at each reporting date. • historical inventory and sales data;
In view of the above the matter has been determined to be a key audit matter. • management's latest forecasts; and
• selling prices realised subsequent to the year end.
(c) Performing substantive analytical procedures to test the correctness of inventory valuation.
The procedures performed gave us a sufficient evidence to conclude about the inventory valuation.
2. Trade receivables-collectability and certainty Audit procedures performed:
As at March 31 2022 the Company held trade receivables of Rs 11488.37 lakhs. [Also refer Note no. 12 of the standalone financial statements] We have performed following alternative audit procedures over trade receivables :
Trade receivables collectability and certainty was an audit focus area because of nationwide lockdown imposed by the Government of India in view of pandemic coronavirus (COVID 19). (a) Performing procedures to ensure that the changes in trade receivables between the last confirmation receipt and date of the Balance sheet are properly recorded (Roll forward procedures)
As explained by the Management due to COVID 19 related restrictions on account of nationwide lockdown resulted in non-receipt of most of the direct confirmations from the customers and reconciliations whereof with the books of account of the Company. (b) Performing substantive analytical procedures to test the correctness of receivables valuation
In view of the above the matter has been determined to be a key audit matter. (c) Testing of accuracy of trade receivables reconciliations with the general ledgers during the year including test of reconciling items
(d) We obtained a list of long outstanding receivables and assessed the recoverability of these through inquiry with management.
The procedures performed gave us a sufficient evidence to conclude about the collectability and certainty of trade receivables.

Information Other than the Standalone Financial Statements and Auditor's report thereon

The Company's Board of Directors is responsible for the preparation of otherinformation.The Other information comprises the information included in the Board's Reportincluding Annexures to the Board report but does not include the standalone financialstatements and our auditor's report thereon.

Our opinion on the standalonefinancial 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 havenothingto report in this regard.

Management responsibilities for the Standalone Financial 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 financial position financial performance (includingother comprehensive income) changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material 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.

The Board of Directors are 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 system in place and the operating effectiveness ofsuch controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the 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 entity'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe 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 ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalonefinancialstatements 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Other matters

We draw your attention to the Note 31 (D) to the standalone financial statementsregarding the assessment made by the management relating to impact of COVID-19 pandemic onthe operations of the Company.

Report on Other Legal and Regulatory Requirements

1. Pursuant to the Companies (Auditor's Report) Order 2020 ("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 and records.

(c) The Balance sheet the Statement of Profit & Loss (including othercomprehensive income) Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are inagreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015.

(e) On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 from being appointed as a Director in terms of Section 164(2) of theAct.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure "B".

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of Section 197(16) of the Act in our opinion and to thebest of our information and according to the explanations given to us the remunerationpaid by the Company to its directors during the year is in accordance with the provisionsof Section 197 of the Act.

(h) With respect to the matters to be included in the Auditor's report in accordancewith the Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and tothe best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialperformance in its standalone financial statements. [Refer note no35to standalonefinancial statements]

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

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

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

(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representation under sub clause (i) and (ii) of Rule 11(e) of The Companies (Audit andAuditors) Rules 2014 as provided under (a) and (b) above contains any materialmisstatement.(Refer Note no.46 (v) & (vi) to the standalone financial statements)

v. As stated in Note 32 (b) to the standalone financial statements the Board ofDirectors of the Company has proposed final dividend for the year which is subject to theapproval of the members at the ensuing Annual General Meeting. The dividend proposed is inaccordance with Section 123 of the Act as applicable.

ANNEXURE A

Annexure "A" referred to in "Report on Other Legal and RegulatoryRequirements" section of our report to the members of Safari Industries(India) Limitedfor the year ended 31st March 2022:

i. a. In respect of Company's Property Plant and Equipment (PPE) and IntangibleAssets:

A. The Company has maintained proper records showing full particularsincludingquantitative details and situation of PPE and relevant details of right-to-use assets.

B. The Company has maintained proper records showing full particulars includingquantitative details of intangible assets.

b. As explained to us and on the basis of the our examination of the records of theCompany the Company has a phased program for physical verification of all the PPE over aperiod of three years. In our opinion the frequency of verification is reasonableconsidering the size of the Company and nature of its PPE. Pursuant to the program of thephysical verification of PPE physical verification of certain PPE has been carried outduring the year and no material discrepancies were noticed on such verification.

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable propertiesdisclosed in the standalone financial statements included under PPE are held in the nameof the Company

d. The Company has not revalued any of its PPE (including right- of-use assets) andintangible assets during the year. Hence reporting under Clause 3(i)(d) of the Order isnot applicable to the Company.

e. According to the information and explanations given to us and on the basis of ourexamination of the books and records of the Company neither any proceedings have beeninitiated during the year nor are pending as at March 31 2022 for holding any benamiproperty under the Benami Transactions (Prohibition) Act 1988 as amended and rules madethere under and hence reporting under Clause 3(i)(e) of the Order is not applicable tothe Company. (Refer Note no. 46 (i) to the standalone financial statements)

ii. (a) The inventories have been physically verified by the management at reasonableintervals during the year except for goods in transit. The coverage and procedures ofphysical verification of the inventories followed by the management are reasonable andadequate in relation to the size of the Company and nature of it's business. Goods intransit have been verified by way of subsequent receipt/ confirmations. As per theinformation and explanations given to us and on the basis of examination of records of theCompany no discrepancies of 10% or more in the aggregate for each class of inventory wasnoticed on physical verification of inventories as compared to book records.

(b) The Company has been sanctioned working capital limits in excess of Rs 5 crores inaggregate at points of time during the year from banks on the basis of security ofcurrent assets. According to the information and explanations given to us and on thebasis of our examination of the books and records of the Companythe quarterly returns orstatements comprising stock and book debt statements filed by the Company with such banksare in agreement with the books of account of the Company of the respective quarters. TheCompany has not been sanctioned any working capital facility from financialinstitutions.(Refer Note no. 46 (ix) to the standalone financial statements)

iii. (a) The Company has made investments and granted loans or advances in the natureof loans unsecured and the details of which are given below:

(Rs in lakhs)

Particulars Investments Loans Guarantees
Aggregate amount granted/ provided during the year
-Whollyowned subsidiary 2000 1183.37 -
Balance outstanding as at balance sheet date in respect of above cases:
-Wholly owned subsidiary 2000 1183.37 -

Refer note no. 837 and 38 to the standalone financial statements

(b) We are of the opinion that the terms and conditions of the above mentioned loansgranted are prima facie not prejudicial to the interest of the Company.

(c) The Company has granted interest bearing loans aggregating Rs 1183.37 lakhs to awholly owned subsidiary which is payable on demand. The Company has not demanded anyrepayment during the year. Having regard to the same in our opinion the repayments ofprincipal amounts and interest receipts are regular. There are no advances in the natureof loan.

(Refer note no. 837 and 38 to the standalone financial statements)

(d) According to information and explanations given to us and based on the auditprocedures performed in respect of loan granted by the Company there is no overdueamount remaining outstanding as at the balance sheet date.

(e) There is no loan given falling due during the year which has been renewed orextended or fresh loans given to settle the overdues of existing loans given to the sameparty.

(f) The Company has granted interest bearing loan to wholly owned subsidiary which isrepayable on demand and details are as follows:

Particulars Rs in lakhs
Aggregate amount of loans granted during the year* 1183.37
Percentage of loans granted to the total loans granted during the year 100%

* Balance outstanding as at the year end is Rs 1183.37lakhs

iv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has complied with the provisions ofSection 185 and186 of the Act with respect to the investments made and loan given duringthe year. The Company has not provided any guarantees and security during the year.

v. According to the information and explanations given to usand on the basis ofexamination of records no deposits or amounts which are deemed to be deposits have beenaccepted by the Company within the meaning of Section 73 to 76 or any other relevantprovisions of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Hence reporting under Clause 3(v) of the Order is not applicable to the Company.

vi. We have broadly reviewed the books of account maintained by the Company pursuant torules made by the Central Government for the maintenance of cost records under sub section1 of Section 148 of the Act in respect of company's products and are of the opinion thatprima facie the prescribed accounts and records have been made and maintained. Howeverwe have not made a detailed examination of the cost records with a view to determinewhether they are accurate and complete.

vii. (a) According to the information and explanations given to us and on the basis ofour examination of the records the Company is generally regular in depositing undisputedstatutory dues including goods and services tax provident fund employees' stateinsurance income tax sales tax custom duty duty of excise value added tax cess andother statutory dues during the year with the appropriate authorities. No undisputedamounts payable in respect of the aforesaid statutory dues were outstanding as at the lastday of the financial year for a period of more than six months from the date they becamepayable.

(b) According to the information and explanations given to us there are no statutorydues mentioned in Clause vii (a) which have not been deposited on account of any disputeexcept the following:

Name of the Statute Nature of the dues Rs in lakhs Period to which the amount relates Forum where dispute is pending
Uttar Pradesh Value Added Tax 2008 Value Added Tax 2.36 2014-15 Commercial Tax Dept. Uttar Pradesh
Bihar Value Added Tax Act 2005 Value Added Tax 4.49 2013-14 Commissioner appeal Bihar
Telangana Commercial Taxes CST 1.20 2006-07 to 2014-15

viii. According to the information and explanations given to us and based on ourexamination of records of the Company there were no amounts to be recorded in the booksof account that have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961). Hence reporting under Clause3(viii) of the Order is not applicable to the Company.

ix. (a) Based on our audit procedures and on the basis of information and explanationsgiven to us the Company has not defaulted in the repayment of loan or other borrowings orin the payment of interest thereon to any lender.

(b) On the basis of information and explanations given to us the Company has not beendeclared as willful defaulter by any bank or financial institution or other lender.

(c) In our opinion and according to the information and explanations given to us theCompany has not taken any term loan during the year and hence reporting under Clause3(ix)(c) of the Order is not applicable to the Company.

(d) On an overall examination of the standalone financial statements in our opinionthe Company has not utilized funds raised on short term basis for long term purposes.

(e) Based on our audit procedures and on the basis of information and explanationsgiven to us the Company has not taken any funds from any entity or person on account ofor to meet the obligations of its subsidiaries. Accordingly the provisions of Clause3(ix)(e) of the Order is not applicable to the Company.

(f) Based on our audit procedures and on the basis of information and explanationsgiven to us during the year the Company has not raised any funds on the pledge ofsecurities held in its subsidiaries. Accordingly the provisions of Clause 3(ix)(f) of theOrder is not applicable to the Company.

x. (a) The Company has not raised any money by way of Initial public offer or furtherpublic offer (including debt instrument) during the year and hence reporting under Clause3(x) of the Order is not applicable to the Company.

(b) The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year or in the recent past and hencereporting under Clause 3(x)(b) of the Order is not applicable to the Company.

xi. (a) 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 fraud by or on the Company noticed or reported during the year nor have webeen informed of such case by the management.

(b) Since no fraud by the Company or any fraud on the Company has been noticed orreported during the year reporting under Clause 3 (xi)(b) is not applicable to theCompany.

(c) Based on our audit procedures performed and according to the information andexplanations given to us during the year no whistle blower complaint was received by theCompany and hence reporting under Clause 3(xi)(c) of the Order is not applicable to theCompany.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company and hence reporting under Clause 3(xii) of the Order isnot applicable to the Company.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company all the transactions with related parties arein compliance with Section 177 and 188 of the Act and all the details have been disclosedin the standalone financial statements as required by the applicable accounting standard.Refer note. 37 to the standalone financial statements.

xiv. (a) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company's internal audit system iscommensurate with the size and nature of its business.

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

xv. According to the information and explanations given to usand based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions prescribed under Section 192 of the Act with directors or persons connectedwith them during the year.

xvi. (a) The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Hence reporting under Clause 3(xvi) (a) (b) and (c) ofthe Order is not applicable to the Company.

(b) As per the information and explanations given to us and as per the definition ofGroup under Core Investment Companies (Reserve Bank) Directions 2016 there are no CoreInvestment companies forming part of the promoter group.

xvii. The Company has not incurred any cash losses during the current financial year.However Company has incurred cash losses of Rs 43.32 lakhs in the immediately precedingfinancial year.

xviii. There has been no resignation of the statutory auditors of the Company duringthe year. Hence reporting under Clause 3(xvi)(d) of the Order is not applicable to theCompany.

xix. According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realisation of financial assets and paymentof financial liabilities other information accompanying the standalonefinancialstatements and our knowledge of the Board of Directors and Management plans and based onour examination of the evidence supporting the assumptions nothing has come to ourattention which causes us to believe that any material uncertainty exists as on the dateof the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

xx. There are no unspent amounts towards Corporate Social Responsibility (CSR)requiring a transfer to a fund specified in Schedule VII to the Companies Act incompliance with the second proviso to sub-section (5) of Section 135 of the said act.Accordingly reporting under paragraph 3(xx) of the Order are not applicable to theCompany.

ANNEXURE B

Annexure "B" referred to in "Report on Other Legal and RegulatoryRequirements" section of our report to the members of Safari Industries (India)Limited for the year ended 31st March 2022:

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

We have audited the internal financial controls over financial reporting of the SafariIndustries (India) Limited ("the Company") as of March 31 2022inconjunction with our audit of the standalone financialstatements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential component of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI). 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 Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

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

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the entity are being madeonly in accordance with authorisations of management; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the entity's assets that could have amaterial effect on the standalone financial statements

(4) also provide reasonable assurance by the internal auditors through their internalaudit reports given to the entity from time to time.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

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

For LODHA & CO. Chartered Accountants
(Firm Regn. No. 301051E)
Mumbai R. P. Baradiya
Date : 13th May 2022 Partner
(Membership No. 044101)
UDIN 22044101AIXNIQ9109

.