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Shahlon Silk Industries Ltd.

BSE: 542862 Sector: Industrials
NSE: N.A. ISIN Code: INE052001026
BSE 09:30 | 01 Feb 14.45 0.25
(1.76%)
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13.75

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14.45

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NSE 05:30 | 01 Jan Shahlon Silk Industries Ltd
OPEN 13.75
PREVIOUS CLOSE 14.20
VOLUME 63
52-Week high 25.00
52-Week low 11.35
P/E 180.63
Mkt Cap.(Rs cr) 129
Buy Price 13.80
Buy Qty 50.00
Sell Price 14.45
Sell Qty 37.00
OPEN 13.75
CLOSE 14.20
VOLUME 63
52-Week high 25.00
52-Week low 11.35
P/E 180.63
Mkt Cap.(Rs cr) 129
Buy Price 13.80
Buy Qty 50.00
Sell Price 14.45
Sell Qty 37.00

Shahlon Silk Industries Ltd. (SHAHLONSILK) - Auditors Report

Company auditors report

TO THE MEMBERS OF SHAHLON SILK INDUSTRIES LIMITED

Report on the Audit of the Financial Statements

Opinion:

We have audited the accompanying Financial Statements of SHAHLONSILK INDUSTRIES LIMITED (“the Company”) which comprises the Balance Sheetas at March 31 2022 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of changes in Equity and the Cash Flow statement for the year endedon that date and a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as “Financial Statements”).

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Financial Statements give the information requiredby the Companies Act2013 (“the Act”) in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended (“Ind AS”) and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2022 and its profit including othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion:

We conducted our audit of the Financial Statements in accordance withthe Standards on Auditing specified under section 143(10) of the Act. Our responsibilitiesunder those Standards are further described in the Auditor?s Responsibility for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe Financial Statements under the provision of the Act and Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI?s Code of Ethics. We believe that the audit evidence we have obtainedare sufficient and appropriate to provide a basis for our audit opinion on the FinancialStatements.

Key Audit Matters:

Key audit matters are those matters that in our professionaljudgement were of most significant in our audit of the Financial Statements of thecurrent period. These matters were addressed in the context of our audit of the FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. In the audit of the current period we do not haveobserved any key audit matters required to be reported separately.

Information Other than the Financial Statements and Auditor?sReport Thereon:

The Company?s Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board?s Report includingAnnexures to Board?s Report Business Responsibility Report Corporate Governance andShareholder?s Information but does not include the Financial Statements and ourauditor?s report thereon.

Our opinion on the Financial Statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Financial Statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management?s Responsibility for the Financial Statements:

The Company?s Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 (“the Act”) with respect tothe preparation of these Financial Statements that give a true and fair view of thefinancial position financial performance including other comprehensive income changes inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 and theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes the maintenance of adequate accounting records in accordance with the provisionof the Act for safeguarding of the assets of the Company and for preventing and detectingthe frauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the Financial Statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

In preparing the Financial Statements the management is responsiblefor assessing the Company?s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing theCompany?s financial reporting process.

Auditor?s Responsibility for the Audit of the FinancialStatements:

Our objectives are to obtain reasonable assurance about whether theFinancial 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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs 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 Financial Statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism 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 financial control relevant tothe audit in order to design audit procedures that are appropriate in the circumstances.Under section 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

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

Conclude on the appropriateness of management?s use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company?s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor?sreport to the related disclosures in the Financial Statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor?s report. However future events or conditionsmay cause the Company to 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.

Materiality is the magnitude of misstatements in the 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 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.

Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor?s Report) Order 2020(“the Order”) issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the “Annexure A” a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. (A) As required by section 143(3) of the Act based on ouraudit 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 have beenkept by the company so far as appears from our examination of those books;

c) The balance sheet the statement of Profit and Loss including OtherComprehensive Income the statement of Changes in Equity and the statement of Cash Flowdealt with by this Report are in agreement with the books of accounts.

d) In our opinion the aforesaid Financial Statements comply with theInd AS specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 Companies (Indian Accounting Standards) Rules 2015 as amended.

e) On the basis of written representations received from the directorsas on March 31 2022 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2022 from being appointed as a director in terms of section164(2) of the Act.

With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in “Annexure B”;

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

a) The Financial Statements disclose the impact of pending litigationsas at March 31 2022 on the financial position of the Company.

b) The company did not have any long-term contracts includingderivative contracts for which they were any material foreseeable losses under theapplicable law or accounting standards.

c) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the company.

d) The Board of Directors at their Meeting held on June 29 2021approved the sub-division of each Equity Shares of Rs. 10/- fully paid up into 5 EquityShares of face value of Rs. 2/- each fully paid up. The same had been approved by theMembers at the Annual General Meeting (AGM) held on September 30 2021. Equity Shares ofthe Company have been subdivided from face value of Rs. 10/- each to Rs. 2/- each fromrecord date November 12 2021.

Accordingly Equity Shares and Earning Per Share (EPS) have beenadjusted for share split in accordance with IND AS 33 ‘Earning Per Share? forpreceding previous year also e) (i). The management has represented that to the best ofit?s knowledge and belief other than as disclosed in the notes to the accounts nofunds have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the company to or in any other person(s)or entity(ies) including foreign entities (“Intermediaries”) with theunderstanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the company (“Ultimate Beneficiaries”)or provide any guarantee security or the like on behalf of the Ultimate Beneficiaries;

(ii). The management has represented that to the best of it?sknowledge and belief other than as disclosed in the notes to the accounts no funds havebeen received by the company from any person(s) or entity(ies) including foreign entities(“Funding Parties”) with the understanding whether recorded in writing orotherwise that the company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party (“Ultimate Beneficiaries”) or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries; and

(iii). Based on such audit procedures that have been consideredreasonable and appropriate in the circumstances nothing has come to our notice that hasbeen caused us to believe that the representations under sub-clause (i) and (ii) of Rule11(e) as provided in (i) and (ii) above contain any material misstatement.

f) The dividend declared and paid during the year by the company is incompliance with section 123 of the Companies Act 2013.

(C) With respect to the other matters to be included in theAuditor?s Report in accordance with the requirements of section 197(16) of the Actas amended:

In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act

For Rasesh Shah & Associates
Chartered Accountants
Firm Reg. No.: .: 0108671W
(Rasesh B. Shah)
Partner
Place : Surat Membership No.: 034217
Date : 30th May 2022 UDIN : 22034217ALIVNW3149

The Annexure-A referred to in Independent Auditor?s Report to themembers of the Company on the Financial Statements of the Company for the year ended March31 2022 we report that:

(i) (a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant and Equipmentand relevant details of right-to-use assets.

(B) The Company has maintained proper records showing full particularsof intangible assets.

(b) According to information and explanations given to us PropertyPlant and Equipment and relevant details of right-to-use assets have been physicallyverified by the management during the year. There is a regular program of verificationwhich in our opinion is reasonable having regard to the size of the company and thenature of its assets. No material discrepancies were noticed on such verification.

(c) According to information and explanations given to us the title inrespect of self-constructed buildings and title deeds of all other immovable properties(other than properties where the company is the lessee and the lease agreements are dulyexecuted in favour of the lessee) disclosed in the financial statements included underProperty Plant and Equipment are held in the name of the Company as at the balance sheetdate.

(d) According to the information and explanations given to us thecompany has not revalued any of its Property Plant and Equipment (including right-to-useassets) and intangible assets during the year.

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

(ii) (a) According to information and explanations given to us themanagement of the Company has conducted physical verification at reasonable intervals ofinventories during the period and the procedure of physical verification of inventoriesfollowed by the management is reasonable and adequate in relation to nature and size ofthe Company and no discrepancies of 10% or more in the aggregate for each class ofinventory have been noticed during such verification.

(b) During the year under consideration the company has beensanctioned working capital limits in excess of five crore rupees in aggregate from banksor financial institutions on the basis of security of current assets; and the quarterlyreturns or statements filed by the company with such banks or financial institutions arein agreement with the books of account of the Company.

(iii) In our opinion and according to the information and explanationgiven to us during the year the Company has not made any fresh investment in thecompanies firms. LLPs or any other parties during the year under consideration. Howeverthe company has granted advances in the nature of loans secured or unsecured during theyear.

(a) according to the information and explanation given to us thecompany has provided loans as follows :

Particulars Aggregate amount during the year ended 31st March 2022 Balance outstanding as at the Balance sheet date - 31st March 2022
Subsidiaries - -
Others (Loans to Staff) 11.91 6.71

(b) According to the information and explanations given to us and basedon the audit procedures conducted by us in our opinion the terms and conditions of thegrant of secured or unsecured loans are prima facie not prejudicial to the interest ofthe company.

(c) According to the information and explanations given to us in thecase of secured or unsecured loans given the repayment of principal and payment ofinterest has not been stipulated. We are therefore unable to make specific comments onthe regularity of repayment of principal and payment of interest.

(d) According to the information and explanations given to us there isno overdue amount for more than ninety days in respect of secured or unsecured loansgiven.

(e) According to the information and explanations given to us there isno loan granted which has fallen due during the year which has been renewed or extendedor fresh loans granted to settle the over dues of existing loans given to same parties.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has not advanced any loan under section 185 and 186 of the Act.However the Company has complied with the provisions of section 185 and 186 of theCompanies Act 2013 with respect to investments made guarantee given and securityprovided.

(v) The Company has not accepted deposits or amounts which are deemedto be deposits during the year and does not have any unclaimed deposits as at March 312022 as per the directives issued by the Reserve Bank of India and the provisions ofsections 73 to 76 or any other relevant provisions of the Companies Act 2013 and therules framed thereunder and therefore the provisions of the paragraph (v) of the Orderare not applicable to the Company.

(vi) We have broadly reviewed the cost records maintained by theCompany pursuant to the Companies (Cost Accounting Records) Rules 2014 prescribed by theCentral Government under section 148(1) of the Companies Act 2013 and are of the opinionthat prima facie the prescribed cost records have been made and maintained. We havehowever not made a detailed examination of the cost records with a view to determinewhether they are accurate or complete.

(vii) (a) According to the information and explanation given to us andon the basis of our examination of the records of the Company the Company is regular indepositing undisputed statutory dues including Goods and Service Tax Provident FundEmployees State Insurance Income Tax Sales Tax Service Tax Custom duty Excise dutyVAT Cess and any other Statutory dues to the appropriate authorities. And no undisputedamounts payable in respect of said statutory dues were in arrears as at 31st March 2022for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us dues ofIncome Tax Customs and Excise Duty have not been deposited as at March 31 2022 onaccount of any dispute are given below:

Nature of Dues Period to which dispute relates Forum where dispute is pending Amount under dispute
Excise Duty AY 2017-18 Central Excise & Service Tax Appellate Tribunal 33.32 Lakhs
Excise Duty AY 2018-19 Central Excise & Service Tax Appellate Tribunal 9.61 Lakhs
Customs AY 2015-16 Commissioner of Customs (Appeal) 2.58 Lakhs
Income Tax AY 2012-13 Commissioner of Income Tax (Appeals) 23.59 Lakhs
Income Tax AY 2020-21 Commissioner of Income Tax (Appeals) 116.51 Lakhs

(viii) There were no transaction relating to previously unrecordedincome that have been surrendered or disclosed as income during the year in taxassessments under the Income Tax Act 1961 (43 of 1961).

(ix) (a) The Company has not defaulted in repayment of any loans orborrowings or in the payment of interest thereon to any lenders during the year.

(b) According to the information and explanations given to us thecompany not been declared wilful defaulter by any bank or financial institution or otherlender.

(c) In our opinion and according to the information and explanationsgiven to us term loans were applied for the purpose for which the loans were obtained.

(d) In our opinion and according to the information and explanationsgiven to us funds raised on short-term basis have prima facie not been used during theyear for long-term purposes by the company.

(e) According to the information and explanations given to us thecompany has not taken any funds from any entity or person on account of or to meet theobligation of its subsidiaries associates or joint ventures.

(f) In our opinion and according to the information and explanationsgiven to us the company has not raised loans during the year on the pledge of thesecurities held in its subsidiaries joint ventures or associate companies.

(x) (a) The Company did not raise any money by way of Initial PublicOffer (IPO) or Further Public Offer (FPO) (including debt instruments) during the year.Accordingly paragraph (x)(a) of Order is not applicable.

(b) During the year the Company has not made any preferentialallotment or private placement of shares or convertible debentures (fully or partially oroptionally convertible) and hence reporting under paragraph (x)(b) of order is notapplicable.

(xi) (a) According to the information and explanation given to us nofraud by the Company or on the Company has been noticed or reported during the year.

(b) No report under sub-section (12) of section 143 of the CompaniesAct has been filed in the Form ADT-4 as prescribed under rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government during the year and upto the date ofthis report.

(c) According to the information and explanation given to us nowhistle blower complaints have been received during the year by the company.

(xii) In our opinion and according to the information and explanationgiven to us the Company is not a Nidhi Company in terms of section 406 of the CompaniesAct 2013. Accordingly paragraph 3(xii) of the order is not applicable.

(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 (AS).

(xiv) (a) According to the information and explanations given to usthe Company has an adequate internal audit system commensurate with the size and nature ofthe business.

(b) We have considered the internal audit reports for the year underaudit issued to the company during the year and till date in determining the naturetiming and extent of our audit procedures.

(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with them covered u/s. 192 ofthe Act. Accordingly paragraph (xv) of the Order is not applicable.

(xvi) According to the information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934: the Company has not conducted any Non-banking Financial or Housing Financeactivities during the year; the Company is not a Core Investment Company (CIC) as definedin the regulations made by the Reserve Bank of India. Accordingly reporting underparagraph (xvi)(a) to (xvi)(d) of the order is not applicable.

(xvii) The Company has not incurred cash losses during the financialyear covered under by our audit and immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors of theCompany during the year.

(xix) On the basis of the financial ratios ageing and expected datesof realization of financial assets and payment of financial liabilities other informationaccompanying the financial statements the auditor?s knowledge of the Board ofDirectors and management plans and based on our examination of the evidence supporting theassumption nothing has come to our attention which causes us to believe that anymaterial uncertainty exists as on the date of the audit report that company is not capableof meeting its liabilities existing at the date of balance sheet as and when they fall duewithin a period of one year from the balance sheet date. We however state that this isnot an assurance as to the future viability of the company. We further state that ourreporting is based on the facts upto the date of the audit report and we neither give anyguarantee not any assurance that all liabilities falling within the period of one yearfrom the balance sheet date will get discharged by the company as and when they fall due.

(xx) The company does not fall under the purview of Section 135 of theCompanies Act 2013 and accordingly reporting under paragraph (xx)(a) to (xx)(b) of theorder is not applicable.

(xxi) The reporting under paragraph (xxi) of the Order is notapplicable in respect of audit of Standalone Financial Statements. Accordingly no commentin respect of the said clause has been included in this report.

For Rasesh Shah & Associates
Chartered Accountants
Firm Reg. No.: .: 0108671W
(Rasesh B. Shah)
Partner
Place : Surat Membership No.: 034217
Date : 30th May 2022 UDIN : 22034217ALIVNW3149

Annexure B to the Independent Auditor?s Report:

(Referred to in paragraph 2 (f) under ‘Report on Other Legal andRegulatory Requirements? section of our report to the Members of Shahlon SilkIndustries Limited of even date)

Report on the Internal Financial Controls over financial reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (“theAct”)

Opinion

We have audited the internal financial controls over financialreporting of SHAHLON SILK INDUSTRIES LIMITED (“the Company”) as of March31 2022 in conjunction with our audit of the Financial Statements of the Company for theyear ended on that date.

In our opinion to the best of our information and according to theexplanations given to us 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 2022 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.

Management?s Responsibility for Internal Financial Controls:

The Company?s management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI?). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany?s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors? Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the “Guidance Note”) and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting 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 of therisks of material misstatement of the Financial Statements whether due to fraud or error.

We believe that the audit evidences we have obtained are sufficientand appropriate to provide a basis for our audit opinion on the Company?s internalfinancial controls system over financial reporting of the company.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Financial Statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of FinancialStatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

For Rasesh Shah & Associates
Chartered Accountants
Firm Reg. No.: .: 0108671W
(Rasesh B. Shah)
Partner
Place : Surat Membership No.: 034217
Date : 30th May 2022 UDIN : 22034217ALIVNW3149

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