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Sasken Technologies Ltd.

BSE: 532663 Sector: IT
NSE: SASKEN ISIN Code: INE231F01020
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OPEN 1099.55
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VOLUME 429
52-Week high 1528.95
52-Week low 685.00
P/E 13.35
Mkt Cap.(Rs cr) 1,656
Buy Price 0.00
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Sell Price 0.00
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OPEN 1099.55
CLOSE 1089.25
VOLUME 429
52-Week high 1528.95
52-Week low 685.00
P/E 13.35
Mkt Cap.(Rs cr) 1,656
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sasken Technologies Ltd. (SASKEN) - Auditors Report

Company auditors report

To the Members of

Sasken Technologies Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of SaskenTechnologies Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2021 and the Statement of Profit and Loss Statement of Changes in Equity andStatement of Cash Flows for the year then ended and notes to the standalone financialstatements including a summary of significant accounting policies and other explanatoryinformation.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under Section 133 of the Act read with Companies (Indian Accounting Standards)Rules 2015 as amended and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 and profit changes in equity andits cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit ofthe Standalone Financial Statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute ofChartered Accountants of India (ICAI) together with the ethical requirements that arerelevant to our audit of the standalone financial statements under the provisions of theAct and the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Key Audit Matter How the Key Audit Matter was addressed in our audit
Revenue recognition from fixed price contracts
Revenue from fixed price contracts is recognized using percentage of completion method ("POC") where performance obligations are satisfied over time. The POC method involves computation of actual cost incurred till date and estimation of total future cost to be incurred towards remaining performance obligations which involves following factors: Our audit procedures related to estimation of total cost to complete the contract for fixed price contracts included following among others:
i. there is an inherent uncertainty around the estimation of total cost to complete the contract given the customized nature of the contracts. i. Obtained an understanding of the systems processes and controls implemented by the Company with respect to estimation of future cost to completion estimation of provision for onerous contract measurement of unbilled revenue unearned revenue and the total contract revenue on its completion.
ii. the estimation of total cost to complete the contract involves significant judgement throughout the period of contract and is subject to revision as the contract progresses based on latest available information and also involves critical estimates to make provision for onerous contract if any; ii. Tested the operating effectiveness of key internal controls over approval and recording of revenues in respect of samples selected of fixed price contracts.
iii. At year end a significant amount of contract assets (unbilled revenue) and contract liabilities (unearned revenue) related to each contract is to be identified iii. Evaluated the governance process and review controls over estimation of future cost to complete the contracts.
. In respect of fixed price contracts the estimation of total cost to complete the contract is a critical estimate and hence this has been identified as a key audit matter. iv. Involved information technology (‘IT') specialists to assess the design and operating effectiveness of key application controls relating to revenue recognition wherein testing of application controls include testing of automated controls system generated reports and system reconciliations.
v. We performed below substantive audit procedures for samples selected of fixed price contracts:
a. Evaluated the contractual terms to identify the performance obligation and assessed the basis of revenue recognition;
b. Checked the approval for estimates of cost to completion by authorised personnel of the Company;
c. Compared the status of delivery of the milestones and customer acceptances with the agreed timelines as per the contract to identify possible delays in achieving the milestones which require changes in estimated cost to complete the contract.
d. Performed inquiries with delivery/project managers to corroborate the status of project.
e. Carried out a retrospective assessment of costs incurred with estimated costs to identify any significant variation and checked whether those variations have been considered in estimating the remaining costs to complete the contract.
f. Checked the mathematical accuracy of the calculation of revenue using the ratio of actual costs incurred to estimated costs.
g. Verified the accuracy of the actual cost incurred in respect of fixed price contracts.
h. Ensured that the revenue in foreign currency is recognised applying the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.
i. Checked the adequacy of provision in respect of onerous contracts.
Impairment of investment in Subsidiaries
The carrying value of investment in wholly owned subsidiaries in the standalone financial statements amounting to INR 2047 lakhs has been assessed for impairment in accordance with Ind AS 36 - Impairment of assets on account of identification of impairment indicators. Refer Our audit procedures included the following among others:
Note 6 to the standalone financial statements. i. We understood the Company's process for identification of indicators for impairment and evaluated the Company's internal controls over its impairment assessment of investment in subsidiaries. We understood the key assumptions applied by the management such as revenue growth operating margins discount rates and terminal growth rates in determining impairment;
To assess if there is impairment in the investment management conducted impairment tests annually or whenever changes in circumstances or events indicate that the carrying amount of such investment may not be recoverable. An impairment loss is recognized if the recoverable amount is lower than the carrying value. The recoverable amount is estimated by calculating the value in use basis valuation conducted by management factoring future business plans and such valuation report / future business plans which are reviewed and approved by the Audit Committee / Board of Directors of the Company. The estimation of recoverable amount is subjective due to the inherent uncertainty and high level of judgement involved in the use of key assumptions such as projected revenue growth operating margins discount rates and terminal growth etc. ii. We involved valuation specialists for evaluating and testing the key assumptions and methodologies used by the management in their valuation workings; and
In view of the above and based on materiality considerations the above has been identified as a key audit matter. iii. We assessed the appropriateness and adequacy of disclosures made in the standalone financial statements.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in theCompany's Annual Report but does not include the standalone financial statements andour auditor's report thereon.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; 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 statement that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements the Board ofDirectors is responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the Board of Directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. 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 standalone financial statements.We give in "Annexure A" a detailed description of Auditor'sresponsibilities for Audit of the Standalone Financial Statements.

Other Matter

The standalone financial statements of the Company for the year endedMarch 31 2020 were audited by another auditor whose report dated April 27 2020expressed an unmodified opinion on those statements.

Our opinion is not modified in respect of above matter.

Report on Other Legal and Regulatory Requirements

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

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss the Statementof Changes in Equity and the Statement of Cash Flow dealt with by this Report are inagreement with the books of account.

(d) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014.

(e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors are disqualified as on March 31 2021 from being appointed as a director interms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controlswith reference to standalone financial statements of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure C".

(g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations as atMarch 31 2021 on its financial position in its standalone financial statements –Refer Note 33 to the standalone financial statements;

ii. The Company did not have any long term contracts includingderivative contracts for which there were any material foreseeable losses during the yearended March 31 2021.

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company during the yearended March 31 2021.

3. As required by The Companies (Amendment) Act 2017 in our opinionaccording to information explanations given to us the remuneration paid by the Companyto its directors is within the limits laid prescribed under Section 197 of the Act and therules thereunder.

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF SASKEN TECHNOLOGIES LIMITED

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thefinancial 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 theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3X0 of the Act we are also responsible for expressing our opinion on whetherthe company has internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany'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 the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the 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 publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

ANNEXURE B TO INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF SASKEN TECHNOLOGIES LIMITED FOR THE YEAR ENDED MARCH31 2021

[Referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements' in the Independent Auditor's Report] i. In respect offixed assets: (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of itsfixed assets by which all fixed assets are verified once in a period of three years. Inour opinion this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets. During the current year no materialdiscrepancies were noticed on such verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

ii. The Company is involved in the business of rendering services.Accordingly the provisions stated in paragraph 3(ii) of the Order are not applicable tothe Company.

iii. The Company has granted unsecured loans to two parties covered inthe register maintained under Section 189 of the Act.

(a) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the rate of interest and otherterms and conditions on which the loans have been granted to the parties listed in theregister maintained under Section 189 of the Act are not prima facie prejudicial to theinterest of the Company.

(b) In case of the loans granted to the parties listed in the registermaintained under Section 189 of the Act schedule of repayment of principal and payment ofinterest have been stipulated and the borrowers have been regular in the payment of theprincipal and interest.

(c) There are no amounts overdue for more than ninety days in respectof the loans granted to parties listed in the register maintained under Section 189 of theAct.

iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theAct in respect of loans investments guarantees and security made.

v. In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits from the public within the meaningof Sections 73 74 75 and 76 of the Act and the rules framed there under.

vi. The provisions of sub-section (1) of Section 148 of the Act are notapplicable to the Company as the Central Government of India has not specified themaintenance of cost records for any of the business activities of the Company.Accordingly the provisions stated in paragraph 3(vi) of the Order are not applicable tothe Company.

vii. In respect of statutory dues:

(a) According to the information and explanations given to us and therecords of the Company examined by us in our opinion the Company is regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees' state insurance income-tax goods and service tax duty of customs cessand any other statutory dues applicable to it.

(b) According to the information and explanations given to us noundisputed dues in respect of provident fund employees' state insurance income-taxgoods and service tax duty of custom cess and other statutory dues which wereoutstanding at the year end for a period of more than six months from the date theybecame payable.

(c) According to the information and explanation given to us andexamination of records of the Company there are no dues of provident fund employeesstate insurance goods and service tax duty of customs and other statutory dues whichhave not been deposited on account of any dispute. The outstanding dues of income-tax andservice tax which have not been deposited on account of any dispute are as follows:

Name of the statute Nature of dues Amount (Rs.In lakhs) Period to which the amount relates Forum where dispute is pending Remarks if any
Income tax Act 1961 Income Taxes and Interest 3.05 AY 2004-05 Income tax Appellate Not applicable
Income tax Act 1961 Income Taxes and Interest 80.23 AY 2009-10 Tribunal Commissioner of Income Tax (Appeals) Not applicable
Income tax Act 1961 Income Taxes and Interest 856.66 AY 2011-12 Not applicable Order giving effects pending with Assessing officer
Income tax Act 1961 Income Taxes and Interest 34.00 AY 2011-12 Commissioner of Income Tax (Appeals) Not applicable
Income tax Act 1961 Income Taxes and Interest 2727.42 AY 2011-12 Commissioner of Income Tax (Appeals) Not applicable
Income tax Act 1961 Income Taxes and Interest 203.39 AY 2012-13 Income tax Appellate Tribunal Not applicable
Income tax Act 1961 Income Taxes and Interest 450.49 AY 2013-14 Income tax Appellate Tribunal Not applicable
Income tax Act 1961 Income Taxes and Interest 72.91 AY 2013-14 Commissioner of Income Tax (Appeals) Not applicable
Income tax Act 1961 Income Taxes and Interest 202.17 AY 2014-15 Commissioner of Income Tax (Appeals) Not applicable
Income tax Act 1961 Income Taxes and Interest 6627.95 AY 2016-17 Income tax Appellate Tribunal Not applicable
Income tax Act 1961 Income Taxes and Interest 1406.42 AY 2017-18 Commissioner of Income Tax (Appeals) Not applicable
Income tax Act 1961 Income Taxes and Interest 108.57 AY 2017-18 Commissioner of Income Tax (Appeals) Not applicable
Income tax Act 1961 Income Taxes and Interest 1275.73 AY 2018-19 Commissioner of Income Tax (Appeals) Not applicable
Income tax Act 1961 Income Taxes and Interest 56.11 AY 2018-19 High Court Not applicable
Income tax Act 1961 Income Taxes and Interest 32.52 AY 2018-19 Commissioner of Income Tax (Appeals) Not applicable
Income tax Act 1961 Income Taxes and Interest 47.57 AY 2019-20 High Court Not applicable
Service Tax Rules 1994 Service Tax and Penalty 2467.94 FY 2005-07 The Customs Excise and Service Tax Appellate Tribunal Not applicable
Service Tax Rules 1994 Service Tax and Penalty 114.60 FY 2007-09 The Customs Excise and Service Tax Appellate Tribunal Not applicable
Service Tax Rules 1994 Service Tax and Penalty 123.84 FY 2009-11 The Customs Excise and Service Tax Appellate Tribunal Not applicable
Service Tax Rules 1994 Service Tax and Penalty 15.51 FY 2009-14 The Customs Excise and Service Tax Appellate Tribunal Not applicable
Service Tax Rules 1994 Service Tax and Penalty 131.97 FY 2014-15 The Customs Excise and Service Tax Appellate Tribunal Not applicable
Service Tax Rules 1994 Service Tax and Penalty 6725.02 FY 2015-17 Commissioner of Central tax Not applicable

viii. The Company does not have any loans or borrowings from anyfinancial institution banks government or debenture holders during the year.Accordingly the provision stated in paragraph 3(viii) of the Order is not applicable tothe Company.

ix. The Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loans during the year.Accordingly the provisions stated in paragraph 3 (ix) of the Order are not applicable tothe Company.

x. During the course of our audit examination of the books and recordsof the Company carried out in accordance with the generally accepted auditing practicesin India and according to the information and explanations given to us we have neithercome across any instance of material fraud by the Company or on the Company by itsofficers or employees.

xi. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has paid / provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company. Accordingly the provisions stated inparagraph 3(xii) of the Order are not applicable to the Company.

xiii. According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with Sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

xiv. According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly the provisions stated in paragraph 3 (xiv) of theOrder are not applicable to the Company.

xv. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordinglyprovisions stated in paragraph 3(xv) of the Order are not applicable to the Company.

xvi. In our opinion the Company is not required to be registered underSection 45 IA of the Reserve Bank of India Act 1934 and accordingly the provisionsstated in paragraph clause 3 (xvi) of the Order are not applicable to the Company.

Annexure C to the Independent Auditor's Report

ANNEXURE C TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF SASKEN TECHNOLOGIES LIMITED

[Referred to in paragraph 2(f) under ‘Report on Other Legal andRegulatory Requirements' in the Independent Auditor's Report]

Report on the Internal Financial Controls under Clause (i) ofsub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls with reference tostandalone financial statements of Sasken Technologies Limited ("the Company")as of March 31 2021 in conjunction with our audit of the standalone financial statementsof the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing andmaintaining internal financial controls based on the internal control with reference tostandalone financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India (ICAI) (the "Guidance Note"). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to standalone financial statements based on our audit.We conducted our audit in accordance with the Guidance Note and the Standards on Auditingissued by ICAI and deemed to be prescribed under Section 143(10) of the Act to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether internal financial controls with reference tostandalone financial statements was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe internal financial controls with reference to standalone financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tostandalone financial statements included obtaining an understanding of internal financialcontrols with reference to standalone financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the standalone financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls with reference to standalone financial statements.

Meaning of Internal Financial Controls with Reference to StandaloneFinancial Statements

A Company's internal financial control with reference to standalonefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of standalone financial statementsfor external purposes in accordance with generally accepted accounting principles. ACompany's internal financial control with reference to standalone financial statementsincludes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of standalone financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with Reference toStandalone Financial Statements

Because of the inherent limitations of internal financial controls withreference to standalone financial statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial control with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects internalfinancial controls with reference to standalone financial statements and such internalfinancial controls with reference to standalone financial statements were operatingeffectively as at March 31 2021 based on the internal control with reference tostandalone financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note.

For MSKA & Associates
Chartered Accountants
ICAI Firm Registration No.105047W
Debashis Dasgupta
Partner
Membership No. 053681
UDIN: 21053681AAAAAG8360
Place: Bengaluru
Date: April 22 2021

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