TO THE MEMBERS OF SIMBHAOLI SUGARS LIMITED
Report on the audit of the Standalone financial statements Qualified Opinion
1. We have audited the accompanying standalone Ind AS financial statements of SimbhaoliSugars Limited ("the Company") which comprise the Balance Sheet as at March 312021 and the Statement of Profitand Loss (including Other Comprehensive Income) Statementof Changes in Equity and Statement of Cash Flows for the year then ended and notes to thestandalone financial statements including a summary of significant accounting policiesand other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the basis for qualifiedopinion paragraph below the aforesaid Standalone Ind AS financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs (financial position) of the Companyas at March 31 2021 and total comprehensive loss (comprising of loss and othercomprehensive income) its cash flowsand the changes in equity for the year then ended.
Basis for Qualified opinion
i) We draw attention to Note No.4 of the standalone financial statement regarding nonprovisions for impairment in the carrying value of property plant and equipment. We arenot made available of appropriate impairment assessment carried out by the management andaccordingly we are unable to comment on the same including compliance with the Ind AS-36(Impairment of Assets) and any consequential adjustments that may arise inthis regard in these financial statement.
ii) We draw attention to Note No.10 of the standalone financial statements regardingnon-provision of interest expense amounting Rs.15461.02Lakhs (Previous year Rs.13146.17Lakhs) on certain borrowings for the year ended March 31 2021 for the reasonsstated in the said note. The total amount of interest expense not provided for in theaccounts aggregates to Rs. 52915.64Lakhs till March 312021 (Previous year Rs.37454.23Lakhs). Had the aforesaid interest expense been provided for the FinanceCostNet Loss after tax and Total Comprehensive Loss for the year ended March 31 2021would have been increased by Rs. 15461.02 Lakhs (P.Y. Rs. 13146.17Lakhs) the CurrentFinancial Liability as at March 31 2021 would have been increased and shareholdersfunds as at March 31 2021 would have been decreased by Rs. 52915.64 Lakhs (P.Y.37454.23Lakhs)
iii) We draw attention to Note No.23 of the standalone financial statement regardingnon provision of difference in the value of bagasse sold to and of certain claims made bySimbhaoli Power Private Limited a subsidiary company amounting to Rs. 716.33 Lakhs ( P.Y.Rs. 253.13 Lakhs) for the reasons stated in the said note. Consequently the revenue forthe year has been overstated; Net loss and total comprehensive Income for the year hasbeen understated; Receivables and total equity as at March 31 2021 has been overstated bythe aforesaid amount.
iv) We draw attention to Note No 6 of the standalone financial statements regardingnon-provision of interest liability in respect of delayed payment of sugarcane price forthe reasons stated in the said note. The amount of interest not provided for in the bookshas not been ascertained.
Our report is qualified in respect of above matters.
We conducted our audit in accordance with Standards on Auditing (SAs) specified undersection 143(10) of the Companies Act 2013. Our responsibilities under those Standards arefurther described in the Auditors Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Companies Act 2013 and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAIs Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our qualified opinions.
Material Uncertainty related to Going Concern:
i) As stated in Note No.4 the standalone financial statement of the company has beenprepared on going concern basis. Events or conditions as set forth in Note No.4 indicatethat a material uncertainty exists that may cast significant doubt on the companysability to continue as going concern. The ability of the Company to continue as goingconcern depends on the decision of National Company Law Tribunal under the Insolvency andBankruptcy Code 2016 the companys ability to get its borrowings restructured asstated in the said note and turnaround of the sugar and distilleries operation onsustainable basis.
Our report is not modified in respect of the above
i) We draw your attention to Note No.4 to the standalone financial statement whichdescribes the Managements assessment of the impact of COVID -19 pandemic and theresultant lock-down on the significant uncertainties involved in preparing the financialstatements. Based on the information available on this date Management believes that nofurther adjustments are required to the financial statement. However in view of veryuncertain economic environment a definitive assessment of the impact is highly dependentupon circumstances as they evolve in future and actual results may differ estimated as atthe date of approval of these 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 matter:
|Key Audit Matters ||Auditors Response |
|1. Impact of government policies/ notifications on recognition of grant/subsidy claims and their recoverability ||Principal Audit Procedures |
|During the year the Company has recognized grant/subsidy claims amounting to Rs. 4058.92 Lakhs (P.Y. 5915.84 Lakhs). As at March 31 2021 the Company has receivables of Rs. 7991.96 Lakhs relating to such claims which is significant financial statements. ||We understood and tested the design and operating effectiveness of controls as established by management in recognition and assessment of the recoverability of the claims. |
|We consider this as key audit matters because recognition of grant/subsidy claims and assessment of recoverability of the claims is subject to significant judgment of the management. The area of judgment includes certainty around the satisfaction of conditions specified in the notifications/policies collections provisions thereof likelihood of variation in the related computation rates and basis for determination of grant/subsidy claims. ||W e e v a l u a t e d t h e managements assessment regarding reasonable certainty for complying with the relevant conditions as specified in the notifications/policies and collections. |
|For details: - Refer Note No.19 t o t h e S t a n d a l o n e F i n a n c i a l Statement. ||We considered the relevant notifications/policies issued by various authorities to ascertain the appropriateness of the recognition of accruals/ claims adjustments to claims already recognized pursuant to changes in the rates and basis for determination of claims. |
| ||We tested the ageing analysis and assessed the information used by the management to determine the recoverability of the claims by considering claim collection against historical trends. |
| ||Based on the fulfilment of the conditions as precedent i n r e l e v a n t n o ti fi c a ti o n management is reasonably certain about the recoverability of the claims. |
| ||B a s e d o n t h e a b o v e procedures performed the managements estimates related to recognition of grant/ subsidy claims and their recoverability is considered to be reasonable. |
|2. Valuation and determination of inventory ||Principal Audit Procedures |
|As on March 31 2021 the Company has inventory of sugar with the carrying value Rs. 36921.52 Lakhs which forms major part of the total assets of the company. The inventory of sugar is valued at the lower of cost and net realizable value. ||We understood and tested the design and operating effectiveness of controls a s e s t a b l i s h e d b y t h e management for valuation of inventory of sugar. |
|The Physical Verification could not be observed by us due to lock-down restrictions at the year-end. ||We considered various factors including the actual selling price prevailing around and subsequent to the year- end minimum selling price & monthly quota and other notifications of the Government of India initiatives taken by the Government with respect to sugar industry as a whole. |
|We considered the value of the inventory of sugar as a key audit matter given the relative size of the balance in the financial statements and significant judgment involved in the consideration of factors such as minimum sale price monthly quota fluctuation in selling prices and the related notifications of the Government in determination of net realizable value. ||B a s e d o n t h e a b o v e procedures performed the managements determination of the net realizable value of the inventory of sugar as at the year ends and comparison with cost for valuation of inventory is considered to be reasonable. |
| ||The Company has procedure of physical verification of inventories at regular intervals. |
| ||Physical Verification of finished goods By products across all units were carried out during the month of April 2021 in the presence of independent firm of Chartered Accountants who have been entrusted with the responsibilities of observing and participating in such verification. |
| ||We h a v e r e v i e w e d t h e credentials technical and o t h e r e x p e r t i s e o f t h e professional firm deployed for carrying amount and observing verification. |
| ||We received the report and certificate submitted by Chartered Accountants Firm. |
| ||W e a p p l i e d a l t e r n a t e procedures to audit the existence of inventory as per guidance provided in SA 501 "Audit Evidence-. |
| ||Specific Considerations for Selected Items" which include inspection of supporting d o c u m e n t a t i o n r e l a t i n g topurchases production consumption and sales results of cyclical count performed by the management through the year and such other third party evidences as applicable. |
| ||While necessary review and other corroborative evidence were obtained and verified reliance has been placed on professional experts report and conclusion drawn by them on the matter. |
Information other than the Standalone Financial Statements and Auditors Reportthereon
The Companys Board of Directors is responsible for the other information. Theother information comprises the information included in the annual report but does notinclude the standalone financial statements and our auditors report thereon. Ouropinion on the standalone financial statements does not cover the other information and wedo not express any form of assurance conclusion thereon. Of inventory
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 in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation; we are required to report that fact. We have nothing to report in thisregard.
Responsibilities of management and those charged with governance for the financialstatements
The Companys Board of Directors is responsible for the matters stated in section134(5) of the companies act 2013("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of the stateof affairs(financial position) profit or loss (financial including other comprehensiveincome) changes in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards(Ind AS)specified under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial 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 Companys 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.
Those Board of Directors are also responsible for overseeing the Companysfinancial reporting process.
Auditors responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditors report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are 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 scepticism throughout the audit. We also:
? Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
? Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.
? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
? Conclude on the appropriateness of managements 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 theCompanys ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditors report to therelated disclosures in the standalone 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 auditors 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 the financial statementsincluding the disclosures and whether the standalone financial statements represent theunderlying transactions and events in manner that achieves fair presentation.
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 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 of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors 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 benefitsof such communication.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditors Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable ;
2. With respect to the other matters to be included in the Auditors Report inaccordance with the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act and not in excess of the limits laid downtherein.
3. As required by Section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.
(b) Except for the effects of the matter described in the Basis for Qualified Opinionparagraph above in our opinion proper books of account as required by law have been keptby the company so far as it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit (including other comprehensive income)the Statement of Changes in Equity and Cash Flow Statement dealt with by this Report arein agreement with the books of account.
(d) Except for the effects of the matter described in the Basis for Qualified Opinionparagraph above in our opinion the aforesaid standalone financial statements comply withthe Accounting Standards specified under Section 133 of the Act.
(e) The qualifications relating to the maintenance of accounts and other mattersconnected therewith are as stated in the Basis for Qualified Opinion paragraph above.
(f) On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164 (2) of theAct.
(g) With respect to the adequacy of the internal financial of the controls withreference to financial Company and the operating effectiveness of such controls refer toour separate Report in "Annexure B".
(h) With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in standalone financial statements. Refer Note No. 6 to the standalone financialstatement. and Loss
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
| ||For MITTAL GUPTA & CO. |
| ||Chartered Accountants |
| ||(Firms Registration No. 01874C) |
| ||(B. L. Gupta) |
| ||Partner |
|Place of Signature : Kanpur ||(Membership No. 073794) |
|Date : June 30 2021 ||UDIN: 21073794AAAADY5488 |
Annexure - A to the Independent Auditors Report
(The "Annexure A" referred to in our Independent Auditors Report ofeven date to the members of the Company on the standalone financial statements for theyear ended 31st March 2021.)
i. In respect of companys Property Plant and Equipment:
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant & equipment.
b) The Company has a phased program of physical verification of its property plant& equipment which in our opinion is reasonable having regard to the size of thecompany and the nature of its assets. Pursuant to the program certain property plant&equipment were physically verified by the management during the year.
According to the information and explanations given to us no material discrepancieswere noticed on such verification.
c) The title deeds of all immovable properties as disclosed in the standalonefinancial statements except in case of an immovable properties situated at Brijnathpurhaving carrying amount of Rs. 8.62 Lakhsare held in the name of the company
ii. The inventories (other than lying with third parties) have been physically verifiedby the management at reasonable interval during the year. In our opinion and according tothe information and explanations given to us the frequency of such verification isreasonable. As explained to us no material discrepancies were noticed on physicalverification of inventories as compared to book records.
iii. According to the information and explanations given to us and based on ourexaminations of the records in our opinion the Company has not granted any secured orunsecured loan to the companies firms limited liability partnership and other partiescovered in the register maintained under section 189 of the Companies Act 2013.Accordingly paragraph 3(iii) of the said order is not applicable to the company.
iv. According to the information and explanations given to us and based on ourexaminations of the records in our opinion the company has complied with the provisionsof the Section 185 and 186 of the Companies Act 2013 in respect to loans andinvestments made guarantee and securities provided by it.
v. According to the information and explanations given to us in our opinion theCompany has not accepted any deposit in contravention of the directives issued by theReserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Act and rules framed there under. As informed to us no order has beenpassed by the Company Law Board or National Company Law Tribunal or Reserve Bank of Indiaor any court or any other Tribunal in this connection.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost records and Audit) Rules 2014 under section 148 of the Companies Act andare of the opinion that prima facie the prescribed cost record have been made andmaintained. We have however not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.
vii. In respect of statutory dues:
a) According to the information and explanations given to us and based on ourexaminations of the records in our opinion the Company has generally been regular indepositing undisputed statutory dues in respect of provident fund investor education andprotection fund employees state insurance income tax sales tax services taxcustoms duty excise duty value added tax cess goods and services tax and othermaterial statutory dues as applicable with the appropriate authorities though there hasbeen slight delay in few cases. There are no undisputed statutory dues as referred toabove as at March 312021 outstanding for a period of more than six months from the datethey become payable except for the following: (Amount in Lakhs.)
|Particulars ||Amount |
|Purchase Tax ||15.34 |
|Import Duty ||433.20 |
|TDS Demand ||46.42 |
|Vat Payable ||14.25 |
|Kerala Turnover Tax ||77.84 |
b) According to the information and explanations given to us the particulars of Incometax Service-tax Sales-tax Custom Duty Excise Duty Entry tax Value Added Tax
Goods and Service Tax as at March 312021 which have not been deposited on account ofany dispute are as reported in Note No. 15 to the accompanying standalone financialstatements.
viii. According to the information and explanations given to us and as per examinationof records the Company has defaulted in repayment of loans and borrowings to banks andGovernment. Details of defaults in respect of principal and interest dues to Governmentand banks are stated in Note No.10 to accompanying financial statements. The Company hasnot borrowed any money by way of issue of debentures.
ix. According to the information and explanations given to us and as per examination ofrecords and as per examination of records the company did not raise any money by way ofinitial public offer or further public offer (including debt or term loans during theyear. Accordingly paragraph 3(ix) of the order is not applicable to the company.
x. To the best of our knowledge and belief and according to the information andexplanations given to us no material fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the year.
xi. The Company has paid/ provided for managerial remuneration in accordance with therequisite approvals mandated by the provisionsof Section 197 read with Schedule V to theAct.
xii. The Company is not a Nidhi Company. Accordingly the paragraph 3 (xii) of the Orderis not applicable to the Company.
xiii. According to the information and explanations given to us all transactions withthe related partiesare in compliance with the provisions of sections 177 and 188 of theAct as applicable and the details of such related party transactions have been disclosedin the standalone financial statements under Note No. 11 as required by the applicableIndian Accounting Standard (IndAS) 24 Related Party Disclosures specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
xiv. According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares fully or partly convertibledebentures during the year under review. Accordingly the provisions of Clause 3(xiv) ofthe Order are not applicable to the Company.
xv. In our opinion and on the basis of information and explanation given to us theCompany has not entered into any non-cash transactions with its Directors or personsconnected to its directors and hence provisions of section 192 of the Companies Act 2013are not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provision of Clause 3(xvi) of the Order are notapplicable to the Company.
| ||For MITTAL GUPTA & CO |
| ||Chartered Accountants |
| ||(Firms Registration No. 01874C) |
| ||(B. L. Gupta) |
|Place of Signature : Kanpur ||Partner |
|Date : June 30 2021 ||(Membership No. 073794) |
Annexure - B to the Independent Auditors Report
(The Annexure B referred to in our Independent Auditors Reportto the members of the Company on the standalone financial statements for the year endedMarch 31 2021)
Report on the Internal Financial Control under clause (i) of sub-section 3 of section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls with reference to financial statementsof Simbhaoli Sugars Limited ("the Company") as of March 31 2021 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.
Managements Responsibility for internal Financial Controls
The Companys 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 orderly and efficient conduct of itsbusiness including adherence to Companys policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Companys internal financialcontrols with reference to financial statement based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe ICAI. 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 with reference to financial statement was establishedand maintained and if such controls operated effectively in all material respects. Ouraudit involves performing procedures to obtain audit evidence about the adequacy of theinternal financial control system with reference to financial statement and theiroperating effectiveness. Our audit of internal financial control with reference tocontrols system with reference to financial statement included obtaining anunderstanding of internal financial control with reference to financial statementassessing the risk that a material weakness exists and testing and evaluating the controlbased design and operating on the assessed risk. The procedures selected depend on theauditors judgement including the assessment of the risks of whether due materialmisstatement of the financial to fraud or error.
We believe that the audit evidence we have obtained is and appropriate to provide abasis for our audit opinion on the Companys internal financial controls system withreference to financial statement.
Meaning of Internal Financial Controls with reference to financial statement
A Companys internal financial control with reference to financial statement 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 Companys internal financial controlwith reference to financial statement includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the Company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Companys assets that could havea material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to financialstatement
Because of the inherent limitations of internal financial controls with reference tofinancial statement 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 with referenceto financial statement to future periods are subject to the risk that the internalfinancial controls over financial reporting may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.
In our opinion except for the matters described in the Basis for Qualified OpinionMaterial Uncertainty on Going Concern paragraph the Company has in all materialrespects an adequate internal financial statement and such internal financial controlswith reference to financial statement were operating effectively as at March 31 2021based on the internal controls with reference to financial statement criteria establishedby the Company considering the components of internal controls stated in the Guidance Noteon
Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
| ||For MITTAL GUPTA & CO |
| ||Chartered Accountants |
| ||(Firms Registration No. 01874C) |
| ||(B. L. Gupta) |
|Place of Signature : Kanpur ||Partner |
|Date : June 30 2021 ||(Membership No. 073794) |