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Shreyans Industries Ltd.

BSE: 516016 Sector: Industrials
NSE: SHREYANIND ISIN Code: INE231C01019
BSE 00:00 | 23 Sep 130.00 -1.10
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NSE 00:00 | 23 Sep 128.40 -2.90
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OPEN 128.90
PREVIOUS CLOSE 131.10
VOLUME 2476
52-Week high 146.75
52-Week low 79.10
P/E 19.46
Mkt Cap.(Rs cr) 180
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 128.90
CLOSE 131.10
VOLUME 2476
52-Week high 146.75
52-Week low 79.10
P/E 19.46
Mkt Cap.(Rs cr) 180
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shreyans Industries Ltd. (SHREYANIND) - Auditors Report

Company auditors report

To

The Members

Shreyans Industries Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of ShreyansIndustries Limited ('the Company') which comprise the Balance Sheet as at 31st March2022 and the Statement of Profit and Loss (including Other Comprehensive Income)theStatement of Changes in Equity Statement of Cash flows for the year then ended and notesto the financial statements including a summary of the significant accounting policiesand other explanatory information (hereinafter referred to as "the financialStatements").

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 2015asamended("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2022 the profit and othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the financial statements in accordance withthe Standards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities 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 together with the ethical requirements that are relevantto our audit of the Financial Statements under the provisions of the Act and the Rulesthere under and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.We have determined that there are no key audit matters to communicate in our report.

Information Other than the Financial Statements and Auditor's ReportThereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the Corporate Governance report (but does notinclude the financial statements and our auditor's report thereon) which we obtained atthe time of issue of this auditor's report and the Directors' Report including annexuresif any thereon which is expected to be made available to us after that date.

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

In connection with our audit of the financial statements ourresponsibility is to read the other information identified above and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

If based on the work we have performed on the other information weconclude that there is a material misstatement of this other information we are requiredto report that fact. We have nothing to report in this regard.

When we read the Director's report including annexures if anythereon if we conclude that there is material misstatement therein we are required tocommunicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance forthe Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance total comprehensive income changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) specified under section 133 ofthe Act. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

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. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these financial statements.

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

• Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the Financial Statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theFinancial Statements including the disclosures and whether the Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

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 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

1. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government in terms of sub section (11) ofsection 143 of the Act we give in "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act based on our audit wereport 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 it appears from our examination of those books;

c. The Balance sheet the statement of profit and loss (including othercomprehensive income) statement of changes in equity and the statement of cash flowsdealt with by this Report are in agreement with the books of account;

d. In our opinion the aforesaid financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended.

e. On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of directors none of thedirectors is disqualified as on 31stMarch 2022 from being appointed as a Director in termsof Section 164(2) of the Act;

f. 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". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrol over financial reporting.

g. With respect to the other matters to be included in the

Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014as amended in our opinion and to the best of our information andaccording to the explanations given to us:

(i) The company has disclosed the impact of pending litigations on itsfinancial position in its Financial Statements. Refer Note 39 to the financial statements.

(ii) The company did not have any long term contracts includingderivative contracts for which there were any material foreseeable losses and

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

(iv) (i) The management has represented that to the best of itsknowledge and belief no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the Company toor in any other person or entity including foreign entities ("Intermediaries")with the understanding whether recorded in writing or otherwise that the Intermediaryshall whether directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever by or on behalf of the Company ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries;

(ii) The management has represented that to the best of its knowledgeand belief no funds have been received by the Company from any person or entityincluding foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the Company shall whether directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Party ("Ultimate Beneficiaries") or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries;

(iii) Based on such audit procedures that we considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) above contain any materialmisstatement.

(v) (a) The final dividend proposed in the previous year declared andpaid by the company during the current year is in accordance with section 123 of the Actto the extent it applies to payment of dividend.

(b) The Board of Directors of the Company have proposed final dividendfor the year which is subject to the approval of the members at the ensuing Annual GeneralMeeting. The dividend declared is in accordance with section 123 of the Act to the extentit applies to declaration of dividend.

h. With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended. Inour opinion and to the best of our information and according to the explanations given tous the managerial remuneration paid/ provided by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

FOR K.C. KHANNA & CO.
Chartered Accountants
(Firm Reg. No. 000481N)
Place : Ludhiana (Abhishek Goel)
Dated : 20th May 2022 Partner
UDIN : 22521575AJHGRJ2565 M. No. 521575

Annexure- "A" to the Independent Auditors' Report

(Referred to in paragraph 1 under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Shreyans Industries Limited of evendate)

(i) In respect of the Company's Property Plant and Equipment andIntangible Assets:

a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant and Equipmentand relevant details of Right of use Assets.

(B) The Company has maintained proper records showing full particularsof Intangible Assets.

b) According to the information and explanations given to us theCompany has adopted a policy of physical verification of Property Plant and Equipmentonce in block of every three years. The last verification of entire block of PropertyPlant and Equipment was done in the year ended 31st March 2021. Further in our opinionthe frequency of physical verification of the Property Plant and Equipment is reasonablehaving regard to the size of the Company and nature of its assets. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.

c) Based on our examination of the registered sale deed / transfer deed/ conveyance deed provided to us. We report that the title deeds of all the immovableproperties (other than properties where the company is the lessee and the lease agreementsare duly executed in favour of the lessee) disclosed in the financial statements includedunder Property Plant and Equipment are held in the name of the company as at the date ofbalance sheet.

d) The Company has not revalued any of its Property Plant andEquipments (including right of use assets) and intangible assets during the year.

e) Based on the information and explanations given to us NoProceedings have been initiated during the year or are pending against the company as at31st March 2022 for holding any benami property under Benami Transactions (Prohibition)Act 1988 (as amended in 2016) and rules made thereunder.

(ii) a) According to the information and explanations given to us theinventories have been physically verified by the management at the reasonable intervalsduring the year. In our opinion the coverage and procedure of such verification by themanagement is appropriate. No discrepancies of 10% or more in the aggregate for each classof inventory have been noticed on physical verification of inventories when compared withbooks of account.

b) According to the information and explanations given to us theCompany has been sanctioned working capital limits in excess of Rs 5 crores in aggregatefrom banks during the year on the basis of security of current assets of the Company.Based on our verification quarterly returns or statements filed by the Company with suchbanks are in agreement with the books of accounts.

(iii) According to the information and explanations given to us wereport that the Company has not made any investments in provided any guarantee orsecurity or granted any loans or advances in the nature of loans secured or unsecured tocompanies firms Limited Liability Partnerships or any other parties during the year.Therefore reporting under clause 3(iii) of the Order is not applicable to the Company.

(iv) According to the information and explanations given to us wereport that the Company has not made any investments provided any loan guarantee orsecurity as specified under section 185 and 186 of the Act. Therefore reporting underclause 3(iv) of the Order is not applicable to the Company.

(v) According to the information and explanations given to us theCompany has complied with the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed thereunder. According to theinformation and explanation given to us no order under its aforesaid sections has beenpassed by Company Law Board or National Company Law Tribunal or Reserve Bank of India orany Court or any other Tribunal on the Company.

(vi) We have broadly reviewed the cost records maintained by thecompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148(1) of the Act and are of the opinion that prima facie theprescribed cost records have been made and maintained. We have however not made adetailed examination of such records with a view to determine whether they are accurate orcomplete.

(vii) (a) According to the information and explanations given to us andon the basis of the records of the Company examined by us in our opinion the Company hasbeen regular in depositing undisputed statutory dues including provident fund employees'state insurance income tax duty of custom value added tax sales tax cess goods andservice tax and other applicable statutory dues with the appropriate authorities.

According to the information and explanations given to us there wereno undisputed amounts payable in respect of provident fund employees' state insuranceincome tax duty of custom value added tax sales tax cess goods and service tax andany other statutory dues as on the last day of the financial year concerned for a periodof more than six months from the date they became payable.

(b) According to the information and explanations given to us and therecords of the company examined by us the details of statutory dues referred to in subclause (a) above which have not been deposited as on 31st March 2022 on account ofdisputes are given below:

Name of the Statute Nature of Dues Disputed Amount (Rs in lakhs) Amount deposited (Rs in lakhs) Amount Unpaid (Rs in lakhs) Period to which relates Forum where dispute is pending.
Central Excise Act 1944 Excise Duty 1.45 0.93 0.53 Various years from 1996-1997 to 2000-2001 Joint Commissioner Ludhiana
Central Excise Act 1944 Excise Duty 1.43 - 1.43 2004-2005 Assistant Commissioner Phagwara
Punjab VAT Act 2005 Sales Tax 4.00 1.00 3.00 2016-2017 VAT Tribunal
Central Excise Act 1944 Excise Duty 73.77 11.54 62.23 2003-2004 to 2008 to 2009 Commissioner Appeals Ludhiana
Central Excise Act 1944 Service Tax 2.63 0.20 2.43 2017-2018 Commissioner Appeals Ludhiana
Punjab VAT Act 2005 CST 17.39 4.35 13.04 2011-2012 VAT Tribunal Excise and Taxation Officer
Punjab VAT Act 2005 VAT 9.53 3.81 5.72 2012-2013 Ahmedgarh

(viii) According to the information and explanations given to us andrecords of the company examined by us there are no transactions relating to previouslyunrecorded income that have been surrendered or disclosed as income during the year in thetax assessments under the Income Tax Act 1961 (43 of 1961).

(ix) (a) According to the information and explanations given to us andrecords of the Company examined by us the Company has not defaulted in repayment of loansor borrowings or in payment of interest thereon to any lender. Therefore reporting underclause 3(ix)(a) of the Order is not applicable to the company.

(b) According to the information and explanations given to us and onthe basis of our audit procedure the Company has not been declared willful defaulter byany bank or financial institution or government or any government authority.

(c) According to the information and explanations given to us theCompany has not taken any term loan during the year. Therefore reporting under clause3(ix)(c)of the Order is not applicable to the company.

(d) On an overall examination of the financial statements of theCompany 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 there isno subsidiary associate or joint venture of the Company. Therefore reporting under clause3(ix)(e) of the Order is not applicable to the company.

(f) According to the information and explanations given to us there isno subsidiary associate or joint venture of the company. Therefore reporting under clause3(ix) (f) of the Order is not applicable.

(x) (a) In our opinion and according to the information andexplanations given to us and records of the company examined by us the Company has notraised moneys by way of initial public offer or further public offer(including debtinstruments) during the year. Therefore reporting under clause3 (x) (a) of the Order isnot applicable to the company.

(b) During the year the Company has not made any preferentialallotment or private placement of shares or convertible debentures (fully or partly oroptionally convertible). Therefore reporting under clause 3(x)(b) of the Order is notapplicable to the company.

(xi) (a) According to the information and explanations given to us nofraud by the Company and no fraud on the Company has been noticed or reported during theyear.

(b) No report under sub-section (12) of section 143 of the CompaniesAct has been filed in 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) The Company has not received whistle blower complaints during theyear. Therefore reporting under clause 3(xi)(c) of the Order is not applicable to thecompany.

(xii) According to the information and explanations given to us thecompany is not a Nidhi Company. Therefore reporting under clause 3(xii) of the order isnot applicable to the company.

(xiii) According to the information and explanations given to us andbased on our examinations of the records of the company transactions with the relatedparties are in compliance with section 177 and section 188 of the Act where applicableand the details of the transactions have been disclosed in the financial statements asrequired by the applicable accounting standards.

(xiv)(a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its 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 information and explanations given to us and basedon our examination of the records of the company the company has not entered intonon-cash transactions with its directors or persons connected with him. Thereforereporting under clause 3(xv) of the order is not applicable to the company.

(xvi)(a) According to information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934. Therefore reporting under clause 3(xvi)(a) of the Order is not applicable tothe company.

(b) Based on information and explanation given to us the company hasnot conducted any Non-Banking Financial or Housing Finance activities without a validCertificate of Registration (CoR) from the Reserve Bank of India as per the Reserve Bankof India Act 1934; and therefore reporting under clause 3(xvi)(b) of the Order is notapplicable.

(c) Based on information and explanation given to us the company isnot a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bankof India and therefore reporting under clause 3(xvi)(c) of the Order is not applicable.

(d) In our opinion there is no core investment company within theGroup (as defined in the Core Investment Companies (Reserve Bank) Directions 2016) andtherefore reporting under clause 3(xvi)(d) of the Order is not applicable to the company.

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

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

(xix) According to information and explanations given to us and on thebasis of the financial ratios ageing and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the financialstatements and our knowledge of the Board of Directors and Management plans and based onour examination of the evidence supporting the assumptions nothing has come to ourattention which causes us to believe that any material uncertainty exists as on the dateof the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

(xx) (a) On the basis of examination of records of the company thereare no unspent amounts towards Corporate Social Responsibility (CSR) on other thanon-going projects requiring a transfer to a Fund specified in Schedule VII to theCompanies Act in compliance with second proviso to sub-section (5) of Section 135 of thesaid Act.

(b) In respect of on-going projects the Company has transferredunspent Corporate Social Responsibility (CSR) amount as at the end of the previousfinancial year to a Special account within a period of 30 days from the end of the saidfinancial year in compliance with the provision of section 135(6) of the Act.

According to information and explanations given to us there is nounspent amount in respect of on-going projects as at the end of current financial year.

(xxi) The consolidated financial statements are not applicable to thecompany. Accordingly reporting under clause 3(xxi) of the Order is not applicable.

FOR K.C. KHANNA & CO.
Chartered Accountants
(Firm Reg. No. 000481N)
Place : Ludhiana (Abhishek Goel)
Dated : 20th May 2022 Partner
UDIN : 22521575AJHGRJ2565 M. No. 521575

Annexure - "B" to the Independent Auditors' Report

(Referred to in paragraph 2(f) under 'Report on Other Legal andRegulatory Requirements' section of our report to the members of Shreyans IndustriesLimited 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")

We have audited the internal financial control over financial reportingof Shreyans Industries Limited ("the Company") as of 31st March 2022 inconjunction with our audit of financial statements of company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company Board of Directors 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 and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable 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 with reference to these financial statementsbased on our audit. We conducted our audit in accordance with the Guidance Note on Auditof Internal Financial Controls over Financial Reporting (the "Guidance Note")and the Standards on Auditing prescribed under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting with reference to these financial statements were established and maintained andif such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls over financial reporting with reference tothese financial statements and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting with reference to these financialstatements 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 evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting with reference to these financial statements.

Meaning of Internal Financial Controls over Financial Reporting withreference to these Financial Statements

A company's internal financial control over financial reporting withreference to these financial statements is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingwith reference to these financial statements includes those policies and procedures that:

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

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

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

Inherent Limitations of Internal Financial Controls Over FinancialReporting with reference to these financial statements

Because of the inherent limitations of internal financial controls overfinancial reporting with reference to these financial statements including the possibilityof collusion or improper management override of controls material misstatements due toerror or fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting with reference to these financialstatements to future periods are subject to the risk that the internal financial controlover financial reporting with reference to these financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls over financial reporting with reference to these financialstatements and such internal financial controls over financial reporting with reference tothese financial statements were operating effectively as at 31st March 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.

FOR K.C. KHANNA & CO.
Chartered Accountants
(Firm Reg. No. 000481N)
Place : Ludhiana (Abhishek Goel)
Dated : 20th May 2022 Partner
UDIN : 22521575AJHGRJ2565 M. No. 521575

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