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Satin Creditcare Network Ltd.

BSE: 539404 Sector: Financials
NSE: SATIN ISIN Code: INE836B01017
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VOLUME 115100
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OPEN 75.05
CLOSE 74.35
VOLUME 115100
52-Week high 112.65
52-Week low 66.70
P/E
Mkt Cap.(Rs cr) 575
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Satin Creditcare Network Ltd. (SATIN) - Auditors Report

Company auditors report

To the Members of Satin Creditcare Network limited

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

Opinion

1) We have audited the accompanying standalone financial statements of SatinCreditcare Network Limited (‘the Company') which comprise the Balance Sheet asat 31 March 2021 the Statement of Profitand Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of the explanatory significant information. uncertainties

2) In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (‘Act') in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India includingIndian Accounting Standards (‘Ind AS') specified under section 133 of the Act of thestate of affairs of the Company as at 31 March 2021 and its loss (including othercomprehensive income) its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

3) We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (‘the ICAI')together with the ethical requirements that are relevant to our audit of the theprovisions of the Act and the rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Emphasis of Matter COVID 19

4) We draw attention to Note 54 to the accompanying Statement which describessignificant due to the outbreak of COVID-19 pandemic. The impact of the pandemic on theoperations of the Company and its financial measurement of expected credit losses on theloan assets are significantly dependent on uncertain future economic conditions. Ouropinion is not modified in respect of this matter.

Key Audit Matters

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

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

Key audit matter How our audit addressed the key audit matter
Use of information processing system for accounting and financial reporting Our key audit procedures on this matter included but were not limited to the following:
The Company relies upon information processing systems for recording processing classifying and presenting the large volume of transactions entered into by the Company. The Company has put in place IT General Controls and automated IT Controls to ensure that the information produced by the Company is reliable. Also during the current year the management carried out changes to the IT infrastructure and accounting system to implement moratorium relief extended during the year to the customers. Among other things the management also uses the information produced by the entity's information processing systems for accounting and the preparation and presentation of the financial statements. (a) obtained an understanding of the Company's information processing systems IT General Controls and automated IT controls for applications databases and operating systems relevant to our audit;
The Company's accounting and financial reporting processes are dependent on automated controls enabled by IT systems which impacts key financial accounting and reporting items such as loans interest income impairment on loans amongst others. The controls implemented by the Company in its IT environment determine the integrity accuracy completeness and validity of data that is processed by the applications and is ultimately used for financial reporting. Since our audit strategy included focus on entity's information processing systems relevant to our audit due to their pervasive impact on the standalone financial statements we have determined the use of information processing system for accounting and financial reporting as a key audit matter for the current year audit. (b) Also obtained an understanding of the changes that were made to the IT applications during the audit period on account of moratorium relief extended to its customers;
(c) involved IT specialists (auditor's expert) for performance of the following procedures:
(i) tested the IT General Controls around user access management changes to IT environment and segregation of duties around program maintenance security administration and over key financial accounting and reporting processes;
(ii) tested the Company's periodic review of access rights. We also tested requests of changes to systems for approval and authorization; and
(iii) tested the automated controls like interfaces configurations and information generated by the entity's information processing systems for loans interest income and other significant financial statement items.
(d) obtained written representations from management and those charged with governance on whether IT general controls and automated IT controls are designed and were operating effectively during the period covered by our audit.
Expected Credit losses on loans and implementation of COVID-19 relief measures
[Refer Note 3(k) for the accounting policy and Note 43 for the related disclosures] Our audit focused on assessing the appropriateness of management's judgment and estimates used in the impairment analysis through the following procedures but were not limited to the following procedures:
As at 31 March 2021 the Company has financial assets (loans) amounting to Rs.551496.23 lakh including loans which are carried at fair value through other comprehensive income amounting to Rs.505504.25 lakh. As per Ind AS 109- Financial Instruments the Company is required to recognize allowance for expected credit losses on financial assets. a) performed a walkthrough of the impairment loss allowance process and assessed the design effectiveness of controls;
Expected credit loss cannot be measured precisely but can only be estimated through use of statistics. The calculation of expected credit losses is complex and requires exercise of judgment around both the timing of recognition of impairment provisions and estimation of the amount of provisions required in relation to loss events. b) obtained an understanding of the model adopted by the Company including key inputs and assumptions for calculation of expected credit losses including the impact of COVID 19 on the assumptions and how management calculated the expected credit losses and the appropriateness data on which the calculation is based;
The expected credit loss is calculated using the percentage of probability of default (PD) loss given default (LGD) and exposure at default (EAD) for each of the stages of loan portfolio. c) Obtained the reports of the management's expert and assessed the expert's professional competence independence and objectivity in developing the ECL model;
The Expected Credit Loss ("ECL") is measured at 12-month ECL for Stage 1 loan assets and at lifetime ECL for Stage 2 and Stage 3 loan assets. Significant and assumptions involved in measuring ECL is required with respect to: d) obtained the policy on moratorium of loans approved by the Board of Directors pursuant to the RBI circulars and ensured such policy is in compliant with the requirements of the RBI circular;
credit determining the criteria for a significant e) evaluated the appropriateness of the Company's determination of significant accordance with the applicable accounting standard considering the impact of COVID-19 on account of benefit extended by the Company to select borrowers and the basis for classification of various exposures into various stages;
risk factoring in future economic assumptions increase in credit risk in techniques used to determine probability of default loss given default and exposure at default. f) as modeling assumptions and parameters are based on historical data we assessed whether historical
These parameters are derived from the Company's internally developed statistical models with the help of management's experts and other historical data. experience was representative of current circumstances and was relevant in view of the recent impairment losses incurred within the portfolios;
COVID-19 During the current year RBI announced various relief measures for the borrowers which were implemented by the Company such as "COVID 19 Regulatory Package- Asset Classification and Provisioning" announced by the RBI on 17 April 2020 and RBI circular on "Asset Classification and Income Recognitiong) following the expiry of Covid-19 regulatory package" dated 7 April 2021 (collectively referred to as ‘the RBI circulars') and "Resolution Framework for COVID-19 related Stress" (the ‘Resolution Framework') dated on 6 August 2020 which have been collectively considered by the management in identification classification and provisioning of loan assets for impairment. tested the design and operating effectiveness of the key controls over completeness and accuracy of the key inputs and assumptions considered for calculation recording and monitoring of the impairment loss recognized;
The management has considered the impact of COVID-19 on arriving at the provisions as at the balance sheet date on account of significant given additional support by the Company which were impacted due to COVID-19. h) tested the accuracy of inputs through substantive procedures and assessed the reasonableness of the assumptions used;
The basis of estimates and assumptions involved in arriving at the provisions during the year were monitored by the Company periodically and significantly depend on future developments in the economy due to COVID-19 including any new relief measures' announcements by the RBI. i) developed a point estimate by making reference to the expected credit losses recognized by entities that carry comparable financial assets;
Considering the significance of the above matter to the standalone financial statements and since the matter required our significant assumptions used in calculation of expected credit losses we have identified this as a key audit matter for current year audit. j) tested the arithmetical calculation of the expected credit losses;
We also draw attention to Note 54 of the accompanying standalone financial statements regarding uncertainties involved due to outbreak of COVID-19 pandemic with respect to the measurement of expected credit loss on such loan assets which are significantly dependent on uncertain future developments as the same is fundamental to the understanding of the users of financial statements. k) assessed the appropriateness and adequacy of the related presentation and disclosures in the accompanying financial statements in accordance with the applicable accounting standards and related RBI circulars and Resolution Framework; and
l) obtained written representations from management and those charged with governance whether they believe significant credit losses are reasonable.

NFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITOR'S REPORT THEREON

7) The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe standalone financial statements and our auditor's report thereon. The Annual Report isexpected to be made available to us after the date of this auditor's report.

Our opinion on the standalone financial statements does not cover the other informationand we will not express any form of assurance conclusion thereon. In connection with ouraudit of the standalone financial statements our responsibility is to read the otherinformation identifiedabove when it becomes available and in doing so consider whetherthe other information is materially inconsistent with the standalone financial statementsor our knowledge obtained in the audit or otherwise appears to be materially misstated.When we read the Annual Report if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance.

RESPONSIBIlITIES OF MANAGEMENT AND THOSE

CHARGED WITH GOVERNANCE FOR THE STANDALONE FINANCIAL STATEMENTS

8) The accompanying standalone financial statements have been approved by the Company'sBoard of

Directors. The Company's Board of Directors is responsible for the matters stated insection 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financial includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the Ind AS specifiedunder 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 statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

9) In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

10) Those Board of Directors is also responsible for overseeing theCompany'sfinancialreportingprocess. doubt on the Company's ability

AUDITOR'S RESPONSIBIlITIES FOR THE AUDIT OF THE

STANDALONE FINANCIAL STATEMENTS

11) Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith Standards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone financial statements 12) As part of anaudit in accordance with Standards on Auditing we exercise professional judgment auditandmaintain professional skepticismthroughouttheaudit. deficiencies in internal

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 theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls;

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management;

Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast to significant continue as a goingconcern. If we conclude that a material uncertainty exists we are required to drawattention in our auditor's report to the related disclosures in the financial statementsor if such disclosures are inadequate to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of our auditor's report. However futureevents or conditions may cause the Company to cease to continue as a going concern; and

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.

. 13) We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant including any significant thatwe identify during our audit.

14) We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

15) From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the standalone 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.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

16) As required by section 197(16) of the Act based on our audit we report that theCompany has paid remuneration to its directors during the year in accordance with theprovisions of and limits laid down under section 197 read with Schedule V to the Act.

17) As required by the Companies (Auditor's Report) Order 2016 (‘the Order')issued by the Central Government of India in terms of section 143(11) of the Act we givein in the Annexure A a statement on the matters specified paragraphs 3 and 4 of theOrder.

18) Further to our comments in Annexure A as required by section 143(3) of the Actbased on our audit we report to the extent applicable 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 of theaccompanying standalone financial statements;

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

c) the standalone financial statements dealt with by this report are in agreement withthe books of account;

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

e) on the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualifiedas on 31 March 2021from being appointed as a director in terms of section 164(2) of the Act;

f) we have also audited the internal financial controls with reference to standalonefinancial statements of the Company as on 31 March 2021 in conjunction with our audit ofthe standalone for the financial year ended on that date and our report dated 14 June 2021as per Annexure B expressed unmodified opinion; and

g) 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 as detailed in note 51 to the standalone financial statements hasdisclosed the impact of pending litigation(s) on its financial position as at 31 March2021;

ii) the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as at 31 March 2021;

iii) there were no amounts that were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended 31 March 2021; and

iv) the disclosure requirements relating to holdings as well as dealings in specifiedbank notes were applicable for the period from 8 November 2016 to 30 December 2016 whichare not relevant to these standalone financial statements. Hence reporting under thisclause is not applicable.

Annexure A to the Independent Auditor's Report of even date to the members of SatinCreditcare Network limited on the standalone financial statements for the year ended 31March 2021

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that: (i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of property plant andequipment.

(b) TheCompanyhas verificationof its property plant and equipment under whichfixed regularprogram physical assets are verified in a phased manner over a period of 3years which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets. In accordance with this program certain fixed assets wereverified during the year and nomaterialdiscrepancieswerenoticedonsuchverification.

(c) The title deeds of all the immovable properties (which are included under the head‘Property plant and equipment') are held in the name of the Company except for thefollowing property which was transferred as a result of an amalgamation of companies asstated in the Note 14 to the Standalone Financial Statements wherein the title deeds arein the name of the erstwhile Company:

Nature of property Total number of cases Whether leasehold / freehold Gross block as on 31 March 2021 Net block as on 31 March 2021 Remarks
Building 1 Freehold 292.00 149.02 The said property is in the name of Satin Intellicomm Limited an erstwhile Company that merged with the Company.

(ii) The Company does not have any inventory. Accordingly the provisions of Clause3(ii) of the Order are not applicable. (iii) The Company has granted secured and unsecuredloans to companies covered in the register maintained under Section 189 of the Act; andwith respect to the same: a) in our opinion the terms and conditions of grant of suchloans are not prima facie prejudicial to the Company's interest; b) the scheduleof repayment of principal and payment of interest has been stipulated and in our opinionrepayments/ receipts of the principal amount and the interest are regular; and c) there isno overdue amount in respect of loans granted to such companies.

(iv) In our opinion the Company has complied with the provisions of Sections 185 and186 of the Act in respect of loans investments guarantees and security.

(v) In our opinion the Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of Clause 3(v) of the Order are not applicable.

(vi) The Central Government has not specified maintenance of cost records undersub-section (1) of Section 148 of the Act in respect of Company's services. Accordinglythe provisions of Clause 3(vi) of the Order are not applicable.

(vii) a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and other material statutory dues asapplicable to the appropriate authorities. Further no undisputed amounts payable inrespect thereof were outstanding at the year-end for a period of more than six months fromthe date they become payable.

b) The dues outstanding in respect of income-tax sales-tax service-tax duty ofcustoms duty of excise and value added tax on account of any dispute are as follows:Statement of Disputed Dues

Name of the statute Nature of dues Amount (Rs.in lakhs) Amount paid under protest (Rs.in lakhs) Period to which the amount relates Forum where dispute is pending Remarks
Income-tax Act 1961 Income-tax 194.63 Nil Assessment year 2018-19 Deputy Commissioner of Income-tax CPC Subsequent to the balance sheet date the Company received demand notice under section 143(3) against which the Company is in process of filing appeal to National Faceless Appeal Center (NFAC)

(viii) The Company has not defaulted in repayment of loans or borrowings to any bank orfinancial institution or debenture holders during the year. The Company did not have anyoutstanding loans or borrowings payable to government during the year.

(ix) In our opinion and according to the information and explanations given to us theCompany has applied amount raised by way of right issue and term-loans for the purposesfor which these were raised other than temporary deployment pending application ofproceeds.

(x) No fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the period covered by our audit except for few instances ofmisappropriation of cash collected from customers and other forms of embezzlement of cashby the employees involving amounts aggregating Rs.117.47 lakhs as mentioned in Note 58.The Company has terminated the services of such employees and also initiated legal actionagainst them. The Company has recovered Rs.12.67 lakhs from 20 employees (xi) Managerialremuneration has been paid and provided by the Company in accordance with the requisiteapprovals mandated by the provisions of Section 197 of the Act read with Schedule V to theAct.

(xii) In our opinion the Company is not a Nidhi Company. Accordinglyprovisions of Clause 3(xii) of the Order are not applicable. (xiii) In our opinion alltransactions with the related parties are in compliance with Sections 177 and 188 of Actwhere applicable and the requisite details have been disclosed in the financialstatements etc. as required by the applicable Ind AS.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

(xv) In our opinion the Company has not entered into any non-cash transactions withthe directors or persons connected with them covered under Section 192 of the Act.

(xvi) The Company is required to be registered under Section 45-IA of the Reserve Bankof India Act 1934 and such registration has been obtained by the Company.

ANNEXURE B

Annexure B to the Independent Auditor's Report of even date to the members of SatinCreditcare Network limited on the standalonefinancialstatements for the year ended 31March 2021

Independent Auditor's Report on the Internal Financial

Controls with reference to the Standalone Financial Statements under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (‘the Act')

1) In conjunction with our audit of the Standalone Financial Statements of SatinCreditcare Network Limited (‘the Company') as at and for the year ended 31 March2021 we have audited the internal financial controls with reference to financialstatements of Company as at that date.

Responsibilities of Management and Those Charged with Governance for Internal FinancialControls

2) The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal financial controls with reference tofinancial statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting (the Guidance Note') issued by the Institute ofChartered Accountants of India (‘the ICAI'). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of the Company'sbusiness including adherence to the 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 for the Audit of the Internal Financial Controls withReference to Financial Statements

3) 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 Standards on Auditing issued by the ICAI prescribed under Section143(10) of the Act to the extent applicable to an audit of internal financial controlswith reference to financial statements and the Guidance Note issued by the ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to financial statements were established and maintainedand if such controls operated effectively in all material respects.

4) Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements includes obtaining an understanding of such internal financialcontrols assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment the of therisks of material misstatement of the financial statements whether due to fraud or error.

5) We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls withreference to financial statements.

Meaning of Internal Financial Controls with Reference to

Financial Statements

6) A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrols with reference to financial statements include those policies and procedures that(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation ofstandalone 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) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the company's assets that could have a material effect on thestandalone financial statements.

Inherent limitations of Internal Financial Controls with Reference to FinancialStatements

7) 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 financialcontrols 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

8) In our opinion the Company has in all material respects adequate internalfinancial controls with reference to financial statements and such controls were operatingeffectively as at 31 March 2021 based on the internal financial controls with referenceto financialstatements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the ICAI.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm Registration No.: 001076N/N500013

Manish Gujral

Partner

Membership No.: 105117

UDIN: 21105117AAAADK6866

Place: Mumbai

Date: 14 June 2021

.