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Saint-Gobain Sekurit India Ltd.

BSE: 515043 Sector: Industrials
NSE: N.A. ISIN Code: INE068B01017
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NSE 05:30 | 01 Jan Saint-Gobain Sekurit India Ltd
OPEN 92.65
PREVIOUS CLOSE 92.05
VOLUME 34832
52-Week high 114.30
52-Week low 67.30
P/E 31.06
Mkt Cap.(Rs cr) 838
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 92.65
CLOSE 92.05
VOLUME 34832
52-Week high 114.30
52-Week low 67.30
P/E 31.06
Mkt Cap.(Rs cr) 838
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Saint-Gobain Sekurit India Ltd. (SAINTGOBSEKUR) - Auditors Report

Company auditors report

To The Members of Saint-Gobain Sekurit India Limited Report on the Audit of the Ind-ASFinancial Statements

Opinion

We have audited the accompanying Ind-AS financial statements of SAINT-GOBAIN SEKURITINDIA LIMITED ("the Company") which comprise the Balance Sheet as at March31 2022 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity the Statement of Cash Flows for the year then ended andthe Notes to the Ind-AS financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind-AS financial statements give the information required bythe Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (India Accounting Standards) Rules 2015 asamended (Ind-AS) and with other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2022 the profit total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Ind-AS financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor’sResponsibilities for the Audit of the Ind-AS Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the Ind-AS financial statements under theprovisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind-AS financial statements of the current period. Thesematters were addressed in the context of our audit of the Ind-AS financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

We have determined the matters described below to be the key audit matters to becommunicated in our report.

Key audit matter description How the scope of our audit addressed the key audit matter
1. Revenue recognition and measurement Our procedures included:
Refer to Note 2 (Accounting policies) for revenue recognition and measurement Note 25 of the Financial Statements for aggregate revenue from sale of products recognised as required by the applicable Ind AS. For the year ended March 31 2022 the Company recognised revenues aggregating to 15128.65 lakhs. Accounting policies: Assessing the Company’s revenue recognition policies including those related to discounts rebates and returns by comparing with the applicable Ind AS.
The Company recognises revenue from sale of goods when the amount of revenue can be reliably measured it is probable that future economic benefits will flow to the entity and the products have been delivered to the customer. Tests of controls: Evaluating the design and testing the operating effectiveness of controls over the accuracy of discounts and rebates and correct timing of revenue recognition.
Amounts disclosed as revenue are net of customer returns trade allowance rebates goods and services tax and amount collected on behalf of third parties. Tests of details:
Revenue is recognised when control of the underlying goods is transferred to the customer. There may be a risk of revenue being overstated due to pressure from Management to achieve performance targets at the reporting period end. - Verified the supporting documentation for determining that the revenue was recognised in the correct accounting period (cut- off testing).
We have therefore identified Revenue Recognition and Measurement as a key audit matter. - Comparing the discounts and rebates with the prior year and where relevant performed further inquiries and testing.
- Verifying the manual journals posted to revenue to identify unusual or irregular items.
- To assess the recoverability of trade receivables our procedures included an assessment of whether the provision against or write off of impacted our view as to the initial recognition of the related revenue.
Performing substantive analytical procedures:
Developing an expectation of the current year revenue based on trend analysis and recent market conditions and growth of the Company and compared the same with the actuals accompanied with further inquiries and testing where we have nothing adverse to report on.
We also assessed as to whether the disclosures in respect of revenue were adequate.
2. Existence and Valuation of Investments Our procedures included:
Refer to Note 2 (Accounting policies) for classification and measurement Note 8 of the Financial Statements for Investment recognised as required by the applicable Ind AS. Accounting policies: Assessed the appropriateness of the relevant accounting policies of the Company including those relating to recognition and measurement of financial instrument by comparing with the applicable accounting standards.
For the year ended March 31 2022 the Company recognised Current Investment aggregating to Rs.13262.54 lakhs. Tests of controls:
The Company’s investment portfolio represents a significant portion of the Company’s total assets which primarily consists of Mutual Fund. For investments in mutual fund the Company has opted to account the mutual funds at the fair value through profit or loss. Evaluating the design and testing the operating effectiveness of controls over the booking on deals and the timing of recognition.
We have therefore identified Existence and Valuation of Investments as a key audit matter. Tests of details:
We compared the carrying values of the investment for which direct confirmations were available with their respective net asset values. We have also examined the realised gain / loss on redemption and unrealised gain / loss on fair value of the mutual fund.
We also assessed as to whether the disclosures in respect of Investments were adequate and as required by the Accounting Standards.

Information Other than the Ind-AS Financial Statements and Auditor’s ReportThereon

The Company’s Board of Directors is responsible for the other information. Theother information comprises the Director’s Report and Report on Corporate Governancebut does not include the Ind-AS financial statements and our auditor’s report thereonwhich we obtained prior to the date of this auditor’s report.

Our opinion on the Ind-AS financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind-AS financial statements our responsibility isto read the other information identified above and in doing so consider whether theother information is materially inconsistent with the Ind-AS financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed on the other information that we obtained prior to the dateof this auditor’s report we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

Management’s Responsibilities for the Ind-AS Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Ind-AS financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Ind-AS financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

In preparing the Ind-AS financial statements Management is responsible for assessingthe 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 is also responsible for overseeing the Company’s financialreporting process.

Auditor’s Responsibilities for the Audit of the Ind-AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind-AS financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Ind-AS 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 financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by Management.

Conclude on the appropriateness of Management’s use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the

Company’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However future events or conditions may cause theCompany to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of the usersof the financial statements may be influenced. We consider quantitative materiality andqualitative factors in (i) planning the scope of our audit work and in evaluating theresults of our work; and (ii) to evaluate the effect of any identified misstatements inthe Ind-AS 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 Ind-AS financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor’s 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

As required by the Companies (Auditor’s Report) Order 2020 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the said Order to the extentapplicable.

As required by section143(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 purpose of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid Ind-AS financial statements comply with the AccountingStandards specified under section 133 of the Act read with relevant rule issuedthereunder.

e) On the basis of the written representations received from the Directors of theCompany as on March 31 2022 and taken on record by the Board of Directors none of theDirectors of the Company are disqualified as on March 31 2022 from being appointed as aDirector in terms of section 164(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".

g) According to information and explanations given to us and based on our examinationof the records of the Company the Company has paid / provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 of theAct.

h) With respect to the other matters to be included in the Auditor’s 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 Ind-AS financial statements - Refer Note 37 to the Ind-AS financialstatements.

ii) The Company has made provision as required under the applicable laws or AccountingStandards for material foreseeable losses if any on long term contracts includingderivative contracts. Refer Notes 2(f) and Note 33 to the Ind-AS financial statements.

iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 31 2022.

iv) The Management has represented that:

a) to the best of its knowledge and belief other than as disclosed in the Ind-ASfinancial statements no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the Company toor in any other person or entity including foreign entity ("Intermediaries")with the understanding whether recorded in writing or otherwise that the Intermediaryshall whether directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever by or on behalf of the Company ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries;

b) to the best of its knowledge and belief other than as disclosed in the Ind-ASfinancial statements no funds have been received by the Company from any person orentity including foreign entity ("Funding Parties") with the understandingwhether recorded in writing or otherwise that the Company shall whether directly orindirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries;

Based on such audit procedures performed by us which is considered reasonable andappropriate in the circumstances nothing has come to their notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder a) and (b) contain any material misstatement.

v) As per information and explanation represented by Management and based on therecords of the Company the dividend proposed in the previous year declared and paid bythe Company during the year is in accordance with Section 123 of the Act as applicable.

The Board of Directors of the Company have proposed final dividend for the year whichis subject to the approval of the members at the ensuing Annual General Meeting. Theamount of dividend proposed is in accordance with section 123 of the Act as applicable.

For Kalyaniwalla & Mistry LLP Chartered Accountants
Firm Reg. No.: 104607W / W100166
Daraius Z. Fraser
Partner
Place - Chennai M. No.: 42454
Date - May 20 2022 UDIN: 22042454AJHITU8912

Annexure A to the Independent Auditor’s Report

The Annexure referred to in paragraph 1 ‘Report on Other Legal and RegulatoryRequirements’ in our Independent Auditors’ Report to the members of the Companyon the Ind-AS financial statements for the year ended March 31 2022:

Statement on Matters specified in paragraphs 3 and 4 of the Companies (Auditor’sReport) Order 2020: i) Property Plant and Equipment:

a) (A) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(B) The Company has maintained proper records showing full particulars of intangibleassets.

b) The Company has program of physical of Property Plant and Equipment by which theproperty plant and equipment are verified by the Management according to a phasedprogramme designed to cover all the items over a period of three years. In our opinionthis periodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets. In accordance with the policy the Company hasphysically verified certain property plant and equipment during the year and no materialdiscrepancies were noticed in respect of assets verified during the year.

c) According to the information and explanations given to us and on the basis of therecords of the Company examined by us the title deeds of immovable properties are held inthe name of the Company or in the erstwhile name of the Company.

d) The Company has not revalued any of its Property Plant and Equipment (includingright-of-use assets) and intangible assets during the year.

e) According to the information and explanations given to us representation obtainedfrom Management and on the basis of our examination of the records of the Company noproceedings have been initiated during the year or are pending against the Company as atMarch 31 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (45 of 1988) (as amended in 2016) and rules made thereunder.

ii) Inventory:

a) The Management has conducted physical of inventories at reasonable intervals. In ouropinion this periodicity of physical is reasonable having regard to the size of theCompany and the nature of its operations. The verification discrepancies noticedsuch physical of inventories between physical stock and book records is less than

10% in the aggregate for each class of inventories and have been properly dealt with inthe books of account. b) According to the information and explanations given to us by theManagement and books and records maintained the Company has not been sanctioned workingcapital limits in excess of Rs.5 crore in aggregate during the year from banks orfinancial institutions on the basis of security of current assets of the Company.Therefore the provisions of sub-clause

(b) of paragraph 3 (ii) of the Order is not applicable.

iii) The Company has not made investments in provided any guarantee or security orgranted any loans or advances in the nature of loans secured or unsecured to companiesfirms Limited Liability Partnerships or any other parties. Therefore the provisions ofsub-clause (a) (b) (c) (d) (e) and (f) of paragraph 3 (iii) of the Order are notapplicable.

iv) According to the information and explanations given to us the Company has notadvanced any loans or given guarantee or provided any security to parties covered undersection 185 of the Companies Act 2013. In our opinion and according to the informationand explanations given to us and records examined by us the provisions of section 186 ofthe Companies Act 2013 in respect of investments made have been complied with by theCompany.

v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of sections 73 to76 or any other relevant provisions of the Companies Act 2013 and the rules framedthereunder. No order has been passed by the Company Law Board or National Company LawTribunal or Reserve Bank of India or any Court or any other Tribunal.

vi) We have broadly reviewed the books of account and records maintained by the Companyin respect of the product covered under the Rules prescribed by the Central Government forthe maintenance of cost records under sub section (1) of Section 148 of the CompaniesAct 2013 and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. We have however not made a detailed examination of thecost records with a view to determine whether they are accurate or complete.

vii) Statutory Dues:

a) According to the information and explanations given to us and on the basis of therecords examined by us the Company is regular in depositing undisputed statutory duesincluding Goods and Service tax Provident Fund Employees’ State

Insurance Income-tax Sales Tax Service Tax duty of Custom duty of Excise ValueAdded Tax cess and other material applicable statutory dues during the year. We have beeninformed that there are no undisputed dues which have remained 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 details of statutory duesreferred to in sub-clause (a) above which have not been deposited as on March 31 2022 onaccount of disputes are given below:

Name of Statute Nature of Dues Amount (Rs.) Period to which the amount relates Forum where dispute is pending
Central Excise Act 1944. Excise Duty and Penalty (Refer 2593035 1989-90 Custom Excise and Service Tax Appellate Tribunal
The Andhra Pradesh General Sales Tax Act 1957. Note below) Sales Tax 24290338 278462 2003-04 and 2004-05 2000-01 (CESTAT) Commissioner of Commercial Taxes Hyderabad.
Central Sales Tax Act 1956 & Value Added Tax Act. Value Added tax Input Tax credit disallowances. 913244 2006-07 Commissioner of Sales Tax (Appeals) Chakan.
Value Added tax Input Tax credit disallowances 595216 2014-15 Joint Commissioner of Sales Tax (Appeals) Chakan.
Value Added tax Input Tax credit disallowances 425822 2015-16 Joint Commissioner of Sales Tax (Appeals) Chakan.
Central Sales Tax Act 1956 & Value Disallowance of C Form 57424377 2016-17 Joint Commissioner of Sales Tax (Appeals) Chakan.
Added Tax Act. Value Added tax Input Tax credit disallowances 2718219 2016-17 Joint Commissioner of Sales Tax (Appeals) Chakan.
Disallowance of C Form 33575343 2017-18 Joint Commissioner of Sales Tax (Appeals) Chakan.
Value Added tax Input Tax credit disallowances 501186 2017-18 Joint Commissioner of Sales Tax (Appeals) Chakan.

Note: The amount does not include the amount of interest in respect of certain mattersas the same has not been quantified in the order from the Department. viii) According tothe information and explanations given to us and on the basis of the records examined byus there were no transactions relating to previously unrecorded income that have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (43 of 1961). ix) Borrowings:

a) In our opinion and according to the information and explanations given to us andrepresentation obtained from Management the Company has not availed any loans or otherborrowings during the year hence the question of repayment of loans or other borrowingsor payment of interest thereon to any lender does not arise.

b) In our opinion and according to the information and explanations given to us andrepresentation obtained from Management the Company has not been declared wilfuldefaulter by any bank or financial institution or Government or any Government authority.

c) In our opinion and according to the information and explanations given to us andrepresentation obtained from Management the Company has not availed term loans during theyear.

d) In our opinion and according to the information and explanations given to us andrepresentation obtained from Management on an overall examination of the standaloneInd-AS financial statements of the Company funds raised on short-term basis have not beenused during the year for long-term purposes by the Company.

e) According to the information and explanations given to us representation obtainedfrom Management and on an overall examination of the financial statements of the Companythe Company does not have any subsidiaries associates or joint ventures and hencereporting on clause 3(ix)(e) and (f) of the Order are also not applicable.

x) Allotment of Shares

(a) According to the information and explanations given to us representation obtainedfrom Management the Company has not raised moneys by way of initial public offer orfurther public offer (including debt instruments) during the year and hence reportingunder clause 3(x)(a) of the Order is not applicable.

(b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally convertible)and hence reporting under clause (x)(b) of the Order is not applicable to the Company.

xi) Frauds (a) According to the information and explanations given to us on the basisof the records examined by us and representation from Management no fraud by the Companyor any fraud on the Company has been noticed or reported during the year.

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

(c) According to the information and explanations given to us and representation fromManagement no whistle-blower complaints has been received by the Company during the year.xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company Company hence reporting under clause (xii) (a) (b) and(c) of the Order are not applicable to the Company. xiii) According to the information andexplanations given to us and based on our examination of the records of the Companytransactions with the related parties are in compliance with sections 177 and 188 of theAct with respect to applicable transactions with the related parties and details of suchtransactions have been disclosed in the Financial Statements as required by the applicableaccounting standards.

xiv) Internal Audit System

(a) In our opinion the Company has an adequate internal audit system commensurate withthe size and the 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 the nature timing and extent ofour audit procedures. xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intoany non-cash transactions with Directors or persons connected with its directors. andhence provisions of section 192 of the Companies Act 2013 are not applicable to theCompany.

xvi) (a) In our opinion according to the information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934 and has also not conducted any Non-Banking Financial or Housing Financeactivities. Hence reporting under clause 3(xvi)(a) and (b) of the Order are notapplicable.

(b) Neither the Company nor any company in the Group is a part of the Core InvestmentCompany (CIC) as defined in the regulations made by the Reserve Bank of India. Hencereporting under clause 3(xvi)(c) and (d) of the Order are not applicable.

xvii) According to the information and explanations given to us and based on ourexamination of the financial statements of the Company the Company has not incurred cashlosses during the current financial year and the immediately preceding financial year.

xviii)There has been no resignation of the statutory auditor of the Company during theyear.

xix) On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of 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 representation from Management. Our reportdoes not give any assurance that all liabilities falling due within a period of one yearfrom the balance sheet date will get discharged by the Company as and when they fall due.

xx) Corporate Social Responsibility There are no unspent amounts towards CorporateSocial Responsibility (CSR) as at March 31 2022. Accordingly reporting under clause3(xx)(a) and 3(xx)(b) of the Order is not applicable for the year.

For Kalyaniwalla & Mistry LLP Chartered Accountants
Firm Reg. No.: 104607W / W100166
Daraius Z. Fraser
Partner
Place - Chennai M. No.: 42454
Date - May 20 2022 UDIN: 22042454AJHITU8912

Independent Auditor’s report on the Internal Financial Controls with reference tofinancial statements under Clause (i) of Sub-section 3 of Section 143 of the CompaniesAct 2013 ("the Act")

We have audited the internal financial controls with reference to financial statementsof SAINT-GOBAIN SEKURIT INDIA LIMITED ("the Company") as of March 312022 in conjunction with our audit of the Ind-AS financial statements of the Company forthe year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s Management is responsible for establishing and maintaining internalfinancial controls based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India (ICAI). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company’spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timely preparationof reliable financial information as required under the Companies Act 2013 (the"Act" or the "Companies 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 on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both issued by the ICAI.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to financial statements was established and maintainedand 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 with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weakness existsand testing and evaluating the design and operating effectiveness of internal controlbased on the assessed risk. The procedures selected depend on the auditor’s judgmentincluding the assessment of the risks of material misstatement of the financialstatements 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 controlssystem with reference to financial statements.

Meaning of Internal Financial Controls with reference to Ind-AS Financial Statements

A Company’s internal financial control with reference to Ind-AS financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company’s internalfinancial control with reference to financial statements includes those policies andprocedures 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 financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea material effect on the financial statements.

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 control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion to the best of our knowledge and according to the explanations given tous the Company has in all material respects an adequate internal financial controlssystem with reference to financial statements and such internal financial controls withreference to financial statements were operating effectively as at March 31 2022 basedon the internal control with reference to financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote issued by the Institute of Chartered Accountants of India.

For Kalyaniwalla & Mistry LLP Chartered Accountants
Firm Reg. No.: 104607W / W100166
Daraius Z. Fraser
Partner
Place - Chennai M. No.: 42454
Date - May 20 2022 UDIN: 22042454AJHITU8912

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