You are here » Home » Companies » Company Overview » Salzer Electronics Ltd

Salzer Electronics Ltd.

BSE: 517059 Sector: Engineering
NSE: SALZERELEC ISIN Code: INE457F01013
BSE 00:00 | 05 Mar 119.05 -3.00
(-2.46%)
OPEN

123.00

HIGH

126.35

LOW

118.35

NSE 00:00 | 05 Mar 119.00 -3.40
(-2.78%)
OPEN

122.35

HIGH

123.10

LOW

118.50

OPEN 123.00
PREVIOUS CLOSE 122.05
VOLUME 2372
52-Week high 153.70
52-Week low 47.30
P/E 8.34
Mkt Cap.(Rs cr) 190
Buy Price 118.00
Buy Qty 1.00
Sell Price 126.30
Sell Qty 215.00
OPEN 123.00
CLOSE 122.05
VOLUME 2372
52-Week high 153.70
52-Week low 47.30
P/E 8.34
Mkt Cap.(Rs cr) 190
Buy Price 118.00
Buy Qty 1.00
Sell Price 126.30
Sell Qty 215.00

Salzer Electronics Ltd. (SALZERELEC) - Auditors Report

Company auditors report

To

The Members of

SALZER ELCTRONICS LIMITED

Report on the Standalone Ind AS Financial Statements

Opinion

We have audited accompanying standalone Ind AS financial statements of SalzerElectronics Limited ("the Company"] which comprise of the balance sheetas at March 31 2020 the statement of Profit and Loss (Including other comprehensiveincome] the Statement of changes in Equity and the Statement of Cash Flows for the yearended on that date and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by The Companies Act 2013 ("The Act'] in the manner so required and give atrue and fair view in conformity with the Indian Accounting Standards prescribed undersection 133 of the Act read with the Companies (Indian Accounting Standards] Rules 2015as amended ("Ind AS"] and other accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2020 profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis of Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards

on Auditing (SAs] specified under section 143(10] of the Companies Act 2013. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements section ofour report. We are independent of the Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India (ICAI] together with the independentrequirement that are relevant to our audit of the standalone Ind AS financial statementsunder the provisions of the Act and the rules made there under and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the ICAI's Codeof Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone Ind AS financialstatements.

Key audit matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements of the currentperiod. These matters were addressed in the context of our audit of the standalone Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report

Sr.No Key Audit Matter Auditor's Response
1. Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 "Revenue from Contracts with Customers" Principal Audit Procedures
The application of this revenue accounting standard involves certain key judgements relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognized over a period. We assessed the Company's process to identify the impact of adoption of the revenue accounting standard.
Additionally this revenue accounting standard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:.
- Evaluated the design of internal controls relating to implementation of the new revenue accounting standard.
- It is observed that transaction price charged is ex works price and revenue is booked at the time of dispatch of the goods.
- The above method followed by the Company is in line with the provisions of Ind AS 115-'Revenue from contracts with customers'
Conclusion:
We agree with the management's evaluation.
Principal Audit Procedures
Accuracy of revenues and onerous obligations in respect of fixed price contracts. In the process of verifying the accuracy of recognition of revenues of fixed price contracts we have undertaken the following audit approach
• Understood evaluated and tested the key controls over the recognition of revenue from fixed price contracts. We selected a sample of transactions and
- Agreed the applied tariff to the respective terms in the contract.
- Tested revenue calculations and agreed the revenue recognized to the underlying accounting records.
Conclusion:
We agree with the management's evaluation.
Assessment of carrying value of investments Our procedures in relation to assessing the carrying value of investments include the following observations.
The Company has invested in listed equity instruments. We consider this a key audit matter given the relative significance of the value of investments. - The equity investments are carried at fair value as on 31st March 2020.
- Due to market fluctuation there has been significant value reduction in the equity investments.
- The Company has also invested in equity oriented mutual funds and the same has also been recognized at fair market value as on 31st March 2020.
Conclusion:
We agree with the management's evaluation
Impairment assessment of carrying value of Investment in Kaycee Industries limited Our audit procedures included the following:
The Company's investment in Kaycee Industries Limited a subsidiary of the Company aggregates to Rs. 1662.16 Lakhs as at March 31 2020. - Understanding and evaluating the design and testing the operating effectiveness of key controls in relation to the impairment testing Model.
Kaycee Industries Limited is engaged in the business of manufacture and sale of Industrial Switchgears. - Assessing the Model and evaluating the independence competence capabilities and objectivity of the management's valuer.
The carrying value of investment is greater than the net worth of the subsidiary as at March 312020 which is an indicator of potential impairment of this investment and accordingly an impairment assessment has been performed by the Management. - Assessing the historical accuracy of the Company's forecasts by comparing the forecasts used in the prior year models with the actual performance in the current year.
This is a key audit matter as the investment is significant to the financial statements and Management judgement is required in certain key areas such as discount and growth rates in estimating future cash flows prepared by the Company (the Model) along with the Management's valuer to support the carrying value of its investment. - Testing the mathematical accuracy of the underlying calculations and agreeing the forecasts for the ensuing year with the latest Board approved budgets.
- Evaluating along with the auditor's experts the key assumptions such as discount rate and growth rate used in the Model.
- Performing sensitivity tests on the Model for a range of certain assumptions such as discount rate and growth rate.
- Evaluating adequacy of the disclosures made in the financial statements.
Based on the procedure performed we did not identify any material exceptions in the impairment assessment carried out by the management in respect of the carrying value of its investment in Kaycee Industries Limited.
Conclusion:
We agree with the management's evaluation
Allowance for credit losses
The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Company considered current and anticipated future economic conditions relating to industries the Company deals with and the countries where it operates. In calculating expected credit loss the Company has also considered credit reports and other related credit information for its customers to estimate the probability of default in future and has taken into account estimates of possible effect from the pandemic relating to COVID-19. We identified allowance for credit losses as a key audit matter because the Company exercises significant judgment in calculating the expected credit losses. Our audit procedures related to the allowance for credit losses for trade receivables and unbilled revenue included the following among others: We tested the effectiveness of controls over the (1) development of the methodology for the allowance for credit losses including consideration of the current and estimated future economic conditions (2) completeness and accuracy of information used in the estimation of probability of default and (3) computation of the allowance for credit losses. For a sample of customers: We tested the input data such as credit reports and other credit related information used in estimating the probability of default by comparing them to external and internal sources of information. We tested the mathematical accuracy and computation of the allowances by using the same input data used by the Company.
Conclusion:
Refer Note No: 1 (vii) to the Standalone Ind AS financial statements We agree with the management's evaluation

Information other than the Standalone Ind AS Financial Statements and Auditor's ReportThereon

The Company's Board of Directors are responsible for the preparation of the otherinformation. The other information comprises of the information included in the ManagementDiscussion and Analysis Board's report including Annexures to Boards Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone Ind AS financial statements and our auditor's report thereon.

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

In connection with our audit of the standalone Ind AS financial statement ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone Ind AS financialstatements or other information obtained during the course of our audit or otherwiseappearto 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 havenothing to report in this regard.

Responsibilities of Management and those charged with governance for the Standalone IndAS Financial Statements

The Company's Board of Directors are responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance total comprehensive income changes in equityand cash flows of the Company in accordance with the Ind AS and other accountingprinciples generally accepted in India including the accounting Standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Standalone Ind AS financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error

In preparing the standalone Ind AS 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 responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial 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 Ind AS financial statements.

A further description of the auditor's responsibilities for the audit of the standaloneInd AS financial statements is included in Annexure "A". This description formspart of our auditor's report.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our Audit we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

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

c) The Balance Sheet the Statement of Profit and Loss including other comprehensiveincome the statement of change in equity and the Cash Flow Statement dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theInd AS specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 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 C". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

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 as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of Section 197 of the Act.

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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS 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.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure "C" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

In Terms Of Our Report Of Even Date
For. JDS ASSOCIATES
Chartered Accountants
FRN:008735S
Place: Coimbatore
?ate : June 182020 B. JAYARAM
Partner
UDIN NO.: 20028346AAAAEG5469 Memb.No. 028346

ANNEXURE "A"

TO THE INDEPENDENT AUDITOR'S REPORT RESPONSIBILITIES FOR AUDIT OF STANDALONE IND ASFINANCIAL STATEMENTS

As pant of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism through- out the audit. We also:

> Identify and assess the risks of material misstatement of the standalone Ind ASfinancial 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 controls relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3Ki)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company 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'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 Ind AS 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 the Companyto cease to continue as a going concern.

> Evaluate the overall presentation structure and content of the standalone Ind ASfinancial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalone Ind AS financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone Ind AS financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

In Terms Of Our Report Of Even Date
For. JDS ASSOCIATES
Chartered Accountants
FRN:008735S
Place: Coimbatore
Date : June 182020 B. JAYARAM
Partner
UDIN NO.: 20028346AAAAEC 55469 Memb.No. 028346

ANNEXURE "B"

TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ONSTANDALONE IND AS STANDALONEFINANCIAL STATEMENTS OF M/s. SALZER ELECTRONICS LIMITED

(Referred to in paragraph 2 under the heading 'Report on Other Legal & RegulatoryRequirement' of our report of even date to the standalone Ind AS financial statements ofthe Company for the year ended March 31st 20201

(il In respect of its Fixed Assets

a. The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

b. These fixed assets of the Company have been physically verified in a phasedperiodical manner by the management which in our opinion is reasonable having regard tothe size of the Company and the nature of its assets. According to the information andexplanations given to us no material discrepancies were noticed on such verification

c. The title deeds of all the immovable properties of the Company Shown under PropertyPlant and Equipment are held in the name of the company.

(ii) According to the information and explanations given to us the Physicalverification of the inventory has been conducted by the management at reasonableintervals. The Company has maintained proper record of inventory and no materialdiscrepancies were noticed on physical verification of inventories as compared to thebooks of records.

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013 during the financial year.

Civ] The Company has not granted loans given guarantees and securities however madeinvestments during the year in compliance with the provisions of section 185 and 186 ofthe Companies Act 2013.

(v) The Company has not accepted any deposits during the year and therefore paragraph3(v) of the Order is not applicable to the Company

vi) The Central Government has prescribed the maintenance of cost records undersub-section (1] of section 148 of the Companies Act'2013. We have broadly reviewed theaccounts and records of the Company in this connection and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever carried out a detailed examination of the cost records with a view to determinewhether they are accurate and comnlete.

(vii) According to the records of the Company undisputed statutory dues includingProvident Fund Employee's State Insurance Income Tax Sales Tax Service Tax CustomsDuty Excise Duty Value Added Tax Cess Goods and Services Tax and other materialstatutory dues have been generally regularly deposited with the appropriate authorities.According to the information and explanations given to us no undisputed amounts payablein respect of the aforesaid dues were outstanding as at March 31 2020 for a period ofmore than six months from the date of being payable.

Details of dues of Income Tax Sales Tax Service Tax Customs Duty Excise Duty andValue Added Tax which have not been deposited as on March 31 2020 on account of disputesare given below

Name of the Statute Nature of Dues Amount Forum where the dispute is pending
Central Excise Act Customs/ Excise Duty Rs. 9768260 (out of which Rs. 1200000 was paid under protest) CESTAT- APPEAL
Income Tax Act Disputed Income Liability appeal Rs. 9164051 (out of which Rs. 1500000 was Deposited) CIT- APPEAL

(viii) The company has not borrowed loans from any financial institutions against issueof debentures.

(ix) The Company did not raise any money by way of initial Public offer or furtherpublic offer (including debt instruments]. However the Company has availed a term Loanand applied for the purpose for which the Loan obtained for.

(x) No fraud by the Company or fraud on the Company by its officers or employees hasbeen noticed or reported during the year.

(xi) In our Opinion the managerial remuneration has been paid in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act.

(xii) The Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order isnot applicable.

(xiii) In our opinion the transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details of suchtransactions have been disclosed in the Financial Statements etc. as required by theapplicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or PrivatePlacement of shares or fully or partly convertible debentures. Accordingly provisions ofclause 3(ivx) of the order is not applicable.

(xv) The company has not entered into any noncash transactions with directors orpersons connected with them. Accordingly clause 3(xv) of the order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

In Terms of our Report of Even Date
For. JDS ASSOCIATES
Chartered Accountants
FRN:008735S
Place: Coimbatore
Date : June 182020 B. JAYARAM
Partner
UDIN NO.: 20028346AAAAEC 35 4 6 9 Memb.No. 028346

ANNEXURE "C"

TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' of the Independent Auditors' Report to the members of the Company on theStandalone Ind AS Financial Statements for the year ended on 31st March 2020).

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SALZERELECTRONICS LIMITED ("the Company"] as of March 31 2020 in conjunctionwith our audit of the standalone Ind AS financial statements of the Company for the yearended 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 over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as requiredunderthe Companies Act 2013.

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 issued by ICAI and deemedto be prescribed under section 143(10] of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for my /our audit opinion on the Company's internal financial controlssystem over 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements

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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

In Terms of our Report of Even Date
For. JDS ASSOCIATES
Chartered Accountants
FRN:008735S
Place: Coimbatore
Date : June 182020 B. JAYARAM
Partner
UDIN NO.: 20028346AAAAEC 35 4 6 9 Memb.No. 028346

.