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Shalimar Wires Industries Ltd.

BSE: 532455 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE655D01025
BSE 15:41 | 30 Oct 3.41 -0.17
(-4.75%)
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3.81

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3.81

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3.32

NSE 05:30 | 01 Jan Shalimar Wires Industries Ltd
OPEN 3.81
PREVIOUS CLOSE 3.58
VOLUME 231
52-Week high 6.78
52-Week low 3.25
P/E
Mkt Cap.(Rs cr) 15
Buy Price 3.41
Buy Qty 91.00
Sell Price 3.64
Sell Qty 777.00
OPEN 3.81
CLOSE 3.58
VOLUME 231
52-Week high 6.78
52-Week low 3.25
P/E
Mkt Cap.(Rs cr) 15
Buy Price 3.41
Buy Qty 91.00
Sell Price 3.64
Sell Qty 777.00

Shalimar Wires Industries Ltd. (SHALIMARWIRES) - Auditors Report

Company auditors report

TO THE MEMBERS OF SHALIMAR WIRES INDUSTRIES LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the Standalone Financial Statements of Shalimar Wire IndustriesLimited ("the Company") which comprise the Balance Sheet as at 31st March2019 and the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year then endedand notes to the financial statements including a summary of significant accountingpolicies and other explanatory information (hereinafter referred to as "theStandalone Financial Statements").

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 ("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("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2019 and loss for the year changes inequity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance withStandards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013.Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (ICAI) together with the independent requirements thatare relevant to our audit of the Standalone Financial Statements under the provisions ofthe Companies Act 2013 and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Standalone Financial Statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Information other than the Standalone Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholders Information but does notinclude the Standalone Financial Statements and our Auditor's Report thereon.

Our opinion on the Standalone Financial Statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone Financial Statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Sectton134(5) of the Companies act 2013 ("the Act") with respect to the preparatton ofthese Standalone Financial Statements that give a true and fair view of the financialpositton financial performance total comprehensive income changes in equity and cashflows of the Company in accordance with the accounttng principles generally accepted inIndia including Indian Accounttng Standards (Ind AS) prescribed under Sectton 133 of theAct.

This responsibility also includes maintenance of adequate accounttng records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventtng and detecttng frauds and other irregularittes; selectton and applicatton ofappropriate accounttng policies; making judgements and esttmates that are reasonable andprudent; and design implementatton and maintenance of adequate internal financialcontrols that were operattng effectively for ensuring the accuracy and completeness ofthe accounttng records relevant to the preparatton and presentatton of the StandaloneFinancial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Standalone Financial Statements management is responsible forassessing the Company's ability to conttnue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounttng unlessmanagement either intends to liquidate the Company or to cease operattons or has norealisttc alternattve but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtained reasonable assurance about whether the FinancialStatements as a whole are free from material misstatement whether due o fraud or errorand o issue and auditor's report that includes our opinion. Reasonable assurance is a highlabel of assurance but is no a guarantee that an audit conducted in accordance with SAswith always detect a material misstatement when it exist. Misstatement can arise fromfraud or error and the considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial 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 controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting 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 significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

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

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

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

i) As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Sub-section (11) of Section 143of the Act we enclose in the Annexure - A a statement on the matters specified inthe said Order to the extent applicable to the Company.

ii) As required by Section 143(3) of the Act based on our audit we report that

a) We have sought and except for the matters described in the Basis for QualifiedOpinion paragraph obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;

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

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement Cash Flows dealt with by thisReport are in agreement with the books of account;

d) In our opinion the aforesaid Standalone Financial Statements comply with the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014;

e) On the basis of written representations received from the Directors as on 31stMarch 2019 taken on record by the Board of Directors none of the Director isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164(2) of the Act.

f) With respect to the adequacy of the Internal Financial Controls over FinancialReporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure - B. Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

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

h) With respect to the other matters to be included in the Auditor's Report inaccordance with amended Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended 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 on its financialposition wherever ascertainable - Refer Note No. 32.

ii) The Company did not have any long-term contracts including derivative contracts forwhich there was any material foreseeable loss.

iii) Since the Sick Industrial Companies Act has been repealed by the Government ofIndia the exemption granted to the Company by the erstwhile BIFR from transferring anyamount to the Investor Education and Protection Fund is no longer available andaccordingly the Company is taking necessary steps for transferring the unclaimed amountsto Investor Education and Protection Fund.

For Khandelwal Ray & Co.

Chartered Accountant

FR No. 302035E
P. Sarkar
Kolkata

Partner

Date : 27th May 2019 (Membership No. 051449)

Annexure 'A' to the Independent Auditors' Report

The Annexure referred to in our report to the members of Shalimar Wires IndustriesLimited for the year ended 31st March 2019.

We report that :

(i) (a) Whether the company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets; (i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.
(b) Whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of account; (b) The fixed assets have been physically verified under a phased program of physical verification. To the best of our knowledge no material discrepancies were noticed on such verification.
(c) Whether the title deeds of immovable properties are held in the name of the company. If not provide the details thereof; (c) According to the information and explanations given to us and on the basis of our examination of the records of the Company the title deeds of immovable properties are held in the name of the Company subject to charges created in favour of the lenders of the Company.
(ii) Whether physical verification of inventory has been conducted at reasonable intervals by the management and whether any material discrepancies were noticed and if so whether they have been properly dealt with in the books of account; (ii) The Inventories have been physically verified by the management at reasonable intervals during the year and discrepancies noticed on such physical verification which were not material have been properly dealt with in the books of account.
(iii) Whether the company has granted any loans secured or unsecured to companies firms Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act 2013. If so (iii) During the year the Company has not granted any loans secured or unsecured to companies firms Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act 2013.
(a) whether the terms and conditions of the grant of such loans are not prejudicial to the company's interest; (a) Not applicable
(b) whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular; (b) Not applicable
(c) if the amount is overdue state the total amount overdue for more than ninety days and whether reasonable steps have been taken by the company for recovery of the principal and interest; (c) Not applicable
(iv) In respect of loans investments guarantees and security whether provisions of section 185 and 186 of the Companies Act 2013 have been complied with. If not provide the details thereof. (iv) The Company has not given any loan within the meaning of Section 185 of the Act. In our opinion and according to the information and explanations given to us the company has complied with the provisions of Section 186 of the Act with regard to investments made.
(v) In case the company has accepted deposits whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act2013 and the rules framed there under where applicable have been complied with? if not the nature of such contraventions be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not? (v) The Company has not accepted any deposit within the meaning of Section 73 of the Companies Act.
(vi) Where maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act 2013 and whether such accounts and records have been so made and maintained. (vi) The Central Government has specified maintenance of cost records under Section 148 (1) of the Companies Act 2013 for Metal Wire Cloth manufactured by the Company. We have broadly reviewed such accounts and records and we are of the opinion that the accounts and records have been made and maintained by the Company. However we have not made any detailed examination of such records in order to ascertain whether those are complete and accurate.
(vii) (a) Whether the company is regular in depositing undisputed statutory dues including provident fund employees' state insurance income-tax sales-tax service tax duty of customs duty of excise value added tax cess and any other statutory dues to the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as on the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated; (vii) (a) According to the records the Company is generally regular in depositing undisputed statutory dues including Provident Fund Employees' State Insurance Income Tax Goods and Service Tax Sales Tax Custom Duty other statutory dues with appropriate authorities. As explained to us the Company does not have any dues in respect of Wealth Tax Service Tax and Cess.

(b) Where dues of income tax or sales tax or service tax or duty of customs or duty ofexcise or value added tax have not been deposited on account of any dispute then theamounts involved and the forum where dispute is pending shall be mentioned. (A mererepresentation to the concerned Department shall not be treated as a dispute)

(b) The disputed statutory dues aggregating to Rs 434.21 Lacs (inclusive of amounts notprovided in financial statement) that have not been deposited on account of matterspending before appropriate authorities are as under:

Nature of dues Amount (Rs in Lacs) Year which it relates Forum
Vat & Penalty 0.34 1980-81 The Additional Commissioner of Commercial Taxes Kolkata
Vat 0.54 1993-94 The Additional Commissioner of Commercial Taxes Kolkata
Tax Penalty & Interest 1.22 1988-89 The West Bengal Commercial Taxes Appellate & Revision Board Kolkata
Tax & Penalty 31.92 2000-01 to 2006-07 The West Bengal Taxation Tribunal
Tax & Penalty 0.44 2011-12 2012-13 The West Bengal Commercial Taxes Appellate & Revision Board Kolkata
CST Interest & Penalty 178.95 1995-96 to 2012-13 The Sr.Joint Commissioner of Commercial Taxes
VAT Interest & Panealty 26.69 2014-15 The Sr.Joint Commissioner of Commercial Taxes
Central Excise Tax & Penalty 70.66 1992 1994 1996 2003 2004 Commissioner (Appeals) Central Excise Kolkata-IV
Central Excise Tax & Penalty 31.07 2006 2009 2010 2011 2012 2013 Commissioner (Appeals) Central Excise Kolkata-IV
Central Excise Tax & Penalty 92.38 2014 to 2016 Commissioner (Appeals) Central Excise Kolkata-IV

 

(viii) Whether the company has defaulted in repayment of loans or borrowing to a financial institution bank Government or dues to debenture holders? If yes the period and the amount of default to be reported (in case of defaults to banks financial institutions and Government lender wise details to be provided). (viii) The Company has made defaults in repayment of dues to Debenture Holders which have been set out in Footnotes No (ii) of Note No 14 to Financial Statements.
(ix) Whether moneys raised by way of initial public offer or further public offer (including debt instruments) and term loans were applied for the purposes for which those are raised. If not the details together with delays or default and subsequent rectification if any as may be applicable be reported; (ix) The Company did not raise any money by way of initial public offer of further public offer (including debt instruments) during the year. According to the information and explanations given to us the Term Loan raised during the year had been applied for the purposes for which the same was raised.
(x) Whether any fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year; If yes the nature and the amount involved is to be indicated; (x) Based upon the audit procedure performed and the information and explanation given by the Company we report that no fraud on or by the Company has been noticed or reported during the year that causes the financial statements materially misstated.
(xi) Whether managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act? If not state the amount involved and steps taken by the company for securing refund of the same; (xi) According to the information and explanations given to us and based on our examination of the records of the Company the Company has paid/provided for managerial remuneration in accordance with the requisite approval mandated by the provisions of Section 197 read with Schedule V of the Act.
(xii) Whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1: 20 to meet out the liability and whether the Nidhi Company is maintaining ten per cent unencumbered term deposits as specified in the Nidhi Rules 2014 to meet out the liability; (xii) In our opinion and according to the information and explanations given to us the Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is not applicable.
(xiii) Whether all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards; (xiii) According to the information and explanations given to us and based on our examination of the records of the Company transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) Whether the company has made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and if so as to whether the requirement of section 42 of the Companies Act 2013 have been complied with and the amount raised have been used for the purposes for which the funds were raised. If not provide the details in respect of the amount involved and nature of non-compliance; (xiv) According to the information and explanations given to us and based on our examination of the records of the Company the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) Whether the company has entered into any non-cash transactions with directors or persons connected with him and if so whether the provisions of section 192 of Companies Act 2013 have been complied with; (xv) According to the information and explanations given to us and based on our examination of the records of the Company the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly paragraph 3(xv) of the Order is not applicable.
(xvi) Whether the company is required to be registered under section 45-IA of the Reserve Bank of India Act 1934 and if so whether the registration has been obtained. (xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

 

For Khandelwal Ray & Co.

Chartered Accountant

FR No. 302035E
P. Sarkar
Kolkata

Partner

Date : 27th May 2019 (Membership No. 051449)

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

We have audited the internal financial controls over financial reporting of ShalimarWires Industries Limited ("the Company") as of 31 March 2019 in conjunction withour audit of the Financial Statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). 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 assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Khandelwal Ray & Co.

Chartered Accountant

FR No. 302035E
P. Sarkar
Kolkata

Partner

Date : 27th May 2019 (Membership No. 051449)

The Board of Directors Shalimar Wire Industries Limited

Independent Auditor's Report on the Statement of Financial Results

We have audited the accompanying Statement containing the annual audited financialresults of Shalimar Wire Industries Limited (the "Company") for the year ended31st March 2019 together with the notes thereon (hereinafter referred to as the"Statement") which we have signed under reference to this report.

Management's Responsibility for the Financial Results

Management is responsible for the preparation of the accompanying Statement. TheManagement is also responsible for the preparation of the annual statutory financialstatements in accordance with the Accounting Standards specified under Section 133 of theCompanies Act 2013 (the "accounting principles generally accepted in India")basis which the above Statement containing the annual audited financial results has beenprepared. The responsibility includes the design implementation and maintenance ofinternal control relevant to the preparation of the Statement that is free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility for the Financial Results

Our responsibility is to express an opinion on the Statement based on our audit. Weconducted our audit in accordance with the Standards on Auditing specified under Section143(10) of the Companies Act 2013 ("the Act") and other applicableauthoritative pronouncements issued by the Institute of Chartered Accountants of India.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Statement. The procedures selected depend on the auditors' judgmentincluding the assessment of the risks of material misstatement of the Statement whetherdue to fraud or error. In making those risk assessments the auditors consider internalcontrol relevant to the entity's preparation and fair presentation of the Statement inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof accounting estimates made by Management as well as evaluating the overall presentationof the Statement.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

Subject to the following in our opinion and to the best of our information andaccording to the explanations given to us:

(i) the Statement together with the notes thereon are presented in the formatprescribed under Regulation 33 of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 in this regard; and

(ii) the Annual audited financial results for the year ended 31st March 2019 as setout in the Statement gives a true and fair view of the total comprehensive income(comprising of loss and other comprehensive income) and other financial information ofthe Company for the year ended 31st March 2019 in accordance with the accountingprinciples generally accepted in India.

Emphasis of Matter

(i) We draw your attention to Note 6 of the Statement regarding the figures for thequarter ended 31st March 2019 which are the balancing figures between audited figures inrespect of the full financial year and the published year-to-date figures upto the thirdquarter of the current financial year. Our opinion is not qualified in respect of thismatter.

(ii) The Statement dealt with by this report has been prepared for the express purposeof filing with stock exchanges on which the Company's shares are listed. This Statement isbased on and should be read with the audited Financial Statements of the Company for theyear ended 31st March 2019 on which we issued an unmodified audit opinion vide our reportdated 27th May 2019

Restriction on Use

This report is addressed to the Board of Directors of the Company and has been preparedfor and only for the purposes set out in paragraph (ii) above of Emphasis of Matter. Thisreport should not be otherwise used by any other party for any other purpose.

For Khandelwal Ray & Co.

Chartered Accountant

FR No. 302035E
Pinaki Sarkar
Kolkata

Partner

Date: 27th May 2019 (Membership No. 051449)

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