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Standard Batteries Ltd.

BSE: 504180 Sector: Others
NSE: STANDRDBAT ISIN Code: INE502C01039
BSE 12:57 | 04 Oct 30.00 -0.20
(-0.66%)
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30.50

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NSE 05:30 | 01 Jan Standard Batteries Ltd
OPEN 30.50
PREVIOUS CLOSE 30.20
VOLUME 1150
52-Week high 49.75
52-Week low 22.20
P/E
Mkt Cap.(Rs cr) 16
Buy Price 29.70
Buy Qty 50.00
Sell Price 30.00
Sell Qty 1399.00
OPEN 30.50
CLOSE 30.20
VOLUME 1150
52-Week high 49.75
52-Week low 22.20
P/E
Mkt Cap.(Rs cr) 16
Buy Price 29.70
Buy Qty 50.00
Sell Price 30.00
Sell Qty 1399.00

Standard Batteries Ltd. (STANDRDBAT) - Auditors Report

Company auditors report

To the Members of The Standard Batteries Limited Report on the Audit of the FinancialStatements Qualified Opinion

We have audited the accompanying Financial Statements of The Standard Batteries Limited("the Company") which comprise the Balance Sheet as at 31st March 2022 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes tothe Financial Statements including summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "Financial Statements").

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 section of our report the aforesaid Financial Statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended (Ind AS) and other accounting principles generally accepted in India ofthe state of affairs (financial position) of the Company as at 31st March 2022 and itsloss (financial performance including other comprehensive income) changes in equity andits cash flows for the year ended on that date.

Basis for Qualified Opinion

Recoverability of Inter Corporate Loan and Interest

We draw attention to Note 23(l) of the Financial Statements regarding non-recognitionof interest income for the year on Inter Corporate Loan amounting to Rs. 485 Lakhsoutstanding as on 31st March 2022. In the absence of sufficient and appropriate auditevidences we are unable to comment on the recoverability of the Inter Corporate Loan andinterest thereon. This constitutes a departure from the requirements of Indian AccountingStandard 109 "Financial Instruments". We conducted our audit of the FinancialStatements in accordance with the Standards on Auditing (SAs) specified under section143(10) of the Act. Our responsibilities under those Standards are further described inthe Auditor's Responsibilities for the Audit of the Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India ("ICAI") together with theethical requirements that are relevant to our audit of the Financial Statements under theprovisions of the Act and the Rules made thereunder 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 qualified opinion on the 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. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Key Audit Matter Response to Key Audit Matter
The Company is involved in various tax and other disputes for which final outcomes cannot be easily predicted and which may or may not result in significant liabilities as the disputes are pending before authorities/ court. The assessment of the risks associated with the litigations is based on complex assumptions which require the use of judgement and such judgement relates primarily to the assessment of the uncertainties connected to the prediction of the outcome of the proceedings and to the adequacy of the disclosures in the Financial Statements. Our audit approach included: Inquiry with the concerned department/ officials regarding the status of the most significant disputes and inspection of the key relevant documents.
Assessment of assumptions used in the evaluation of potential legal and tax risks by the Company considering the legal precedence and advice received by the Company from its lawyers.
Analysis of opinion received from the experts where available. Review of the adequacy of the disclosures in the notes to the Financial Statements.

Information Other than the 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 andShareholders Information but does not include the financial statements and our Auditor'sReport thereon.

Our opinion on the Financial Statements does not cover the other information and we donot express any form of assurance or conclusion thereon. In connection with our audit ofthe Financial Statements our responsibility is to read the other information and indoing so consider whether the other information is materially inconsistent with theFinancial Statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated. If we conclude based on the work we have performed onthe other information obtained prior to the date of this Auditor's Report that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Financial Statements that givea true and fair view of the financial position financial performance including totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Financial Statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the Financial Statements the management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless themanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. The Board of Directors is responsible for overseeingthe Company's financial reporting process.

Auditor's 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 Auditor's Report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud 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 Financial Statements. As part of an audit in accordance with SAs weexercise professional judgment and maintain professional skepticism 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 the management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 Financial Statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our Auditor'sReport. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the Financial Statementsincluding the disclosures and whether the Financial Statements represent the underlyingtransactions and events in a manner that achieves fair presentation. We communicate withthose charged with governance regarding among other matters the planned scope and timingof the audit and significant audit findings including any significant deficiencies ininternal control that we identify during our audit. We also provide those charged withgovernance with a statement that we have complied with relevant ethical requirementsregarding independence and to communicate with them all relationships and other mattersthat may reasonably be thought to bear on our independence and where applicable relatedsafeguards. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the Financial Statements ofthe current period and are therefore the key audit matters. We describe these matters inour Auditor's Report unless law or regulation precludes public disclosure about the matteror 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

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act and on the basisof such checks of the books and records of the Company as we considered appropriate andaccording to the information and explanations given to us we give in "AnnexureA" a statement on the matters specified in paragraphs 3 and 4 of the Order to theextent applicable.

2. As required by Section 143(3) of the Act based on our report we report that: a) wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit; b) in our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books; c) the Balance Sheet the Statement of Profitand Loss (including Other Comprehensive Income) the Statement of Changes in Equity andthe Statement of Cash Flows dealt with by this Report are in agreement with the books ofaccount; d) in our opinion except for the matter described in the Basis for QualifiedOpinion section of our Report the aforesaid Financial Statements comply with the IndianAccounting Standards specified under Section 133 of the Act; e) on the basis of writtenrepresentation received from the directors as on 31st March 2022 and taken on record bythe Board of Directors none of the directors are disqualified as on 31st March 2022 frombeing appointed as a director in terms of section 164(2) of the Act; f) with respect tothe adequacy of the internal financial controls with reference to the Financial Statementsof the Company and the operating effectiveness of such controls refer to our separatereport in "Annexure B".

g) with respect to the other matters to be included in the Auditors' Report inaccordance with the requirements of section 197(16) of the Act the Company has compliedwith the provisions of Section 197 read with Schedule V of the Act relating to managerialremuneration. h) With respect to the other matters to be included in the Auditor's Reportin accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to us:i. The Company does not have any pending litigations which will impact its financialposition in its Financial Statements; ii. The Company does not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses; iii. There were no amounts due which were required to be transferred to theInvestor Education and Protection Fund by the Company. iv. a) The Management hasrepresented that to the best of its knowledge and belief no funds (which are materialeither individually or in the aggregate) have been advanced or loaned or invested (eitherfrom borrowed funds or share premium or any other sources or kind of funds) by the Companyto or in any other person or entity including foreign entity("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries; b) The Management has represented that tothe best of its knowledge and belief no funds (which are material either individually orin the aggregate) have been received by the Company from any person or entity includingforeign entity ("Funding Parties") with the understanding whether recorded inwriting or otherwise that the Company shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Party ("Ultimate Beneficiaries") or provide any guarantee securityor the like on behalf of the Ultimate Beneficiaries; c) Based on the audit procedures thathave been considered reasonable and appropriate in the circumstances nothing has come toour notice that has caused us to believe that the representations under sub-clause (i) and(ii) of Rule 11(e) as provided under (a) and (b) above contain any materialmisstatement. v. The Company has not declared or paid (Final or Interim) during the yearin accordance with section 123 of the Companies Act 2013.

For V. Singhi & Associates
Chartered Accountants
Firm Registration No. 311017E
(Aniruddha Sengupta)
Place: Kolkata Partner
Date: 30th May 2022 Membership No. 051371
UDIN:

Annexure A to the Independent Auditor's Report

Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the members of The Standard Batteries Limited ofeven date on the Ind AS Financial Statements for the year ended 31st March 2022 we reportthat: i. In respect of the Company's Property Plant and Equipment and Intangible Asset:a) A) The Company has maintained proper records showing full particulars includingquantitative details and situation of its Property Plant and Equipment.

B) The Company does not have any intangible asset. Accordingly reporting under clause3(i)(a)(B) of the Order is not applicable. (b) The Company has a program of physicalverification to cover all the items of Property Plant and Equipment in a phased mannerwhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. Pursuant to the program certain Property Plant and Equipment werephysically verified by the management during the year. According to the information andexplanations given to us no material discrepancies were identified on such physicalverification. c) According to the information and explanation given to us the Companydoes not hold any immovable properties. Accordingly reporting under clause 3(i)(c) of theOrder is not applicable. d) The Company has not revalued its Property Plant and Equipment(including Right of Use assets) during the year. e) According to the information andexplanations given to us no proceedings have been initiated during the year or arepending against the Company for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (45 of 1988) and rules made there under as at 31st March 2022.

ii. a) The Company does not have any inventory. Accordingly reporting under clause3(ii)(a) of the Order is not applicable. b) The Company has not been sanctioned workingcapital limits in excess of five crore rupees in aggregate from banks or financialinstitutions on the basis of security of current assets at any point during the year.Accordingly reporting under clause 3 (ii) (b) of the Order is not applicable. iii. In ouropinion and according to the information and explanations given to us during the year theCompany has not made any investments provided any guarantee or security or granted anyloans or advances in nature of loans secured or unsecured to companies firms LimitedLiability Partnership or any other parties except a loan granted to a company in earlieryears. a) A) The Company does not have any subsidiaries joint ventures and associates. B)During the year the Company has not advanced any loan. The balance outstanding at thebalance sheet date in respect to a loan granted to a company in earlier years isaggregating to Rs. 485 lakhs. b) According to the information and explanations given to usand based on the audit procedures conducted by us we are of the opinion that the termsand conditions of the loans given are prime facie not prejudicial to the interest of theCompany. c) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the loans given are repayable on demand andaccordingly schedule of repayment of principal has not been stipulated. The interestincome has not been recognised in the books considering the financial position of therecipient company. d) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the loan receivable is repayableon demand. Accordingly there is no overdue amount for more than ninety days in respect ofloans given.

e) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there is no loan given falling due during theyear which has been renewed or extended or fresh loans given to settle the overdues ofexisting loans given to the same party. f) According to the information and explanationsgiven to us and on the basis of our examination of the records of the Company the Companyhas granted a loan in the earlier years to a promoter company amounting to Rs. 485 lakhsoutstanding as on 31st March 2022 which is repayable on demand and tantamount to 100percent of the loan given by the Company. iv. In our opinion and according to theinformation and explanations given to us the Company has complied with the provisions ofsections 185 and 186 of the Act with respect to the loans given and investments madeexcept for Inter corporate loan given to a Company in earlier years amounting to Rs. 485lakhs outstanding as on 31st March 2022 on which interest has not been recognised for theyear. (Also refer to the Basis for Qualified Section of our Report). v. In our opinion andaccording to the information and explanations given to us the Company has not acceptedany deposits or deemed to be deposits during the year and therefore the provisions of theclause 3(v) of the Order is not applicable to the Company. vi. The Central Government hasnot prescribed maintenance of cost records under sub-section (1) of section 148 of the Actin respect of any activities of the Company. Therefore the provision of Clause 3(vi) ofthe said Order is not applicable to the Company. vii. a) According to the information andexplanations given to us and on the basis of our examination the records the Company isgenerally regular in depositing undisputed applicable statutory dues including Goods andServices Tax provident fund employees' state insurance income tax and any otherstatutory dues to the appropriate authorities and there are no undisputed dues outstandingas on March 31 2022 for a period of more than six months from the date they becomepayable except profession tax as follows:

Particulars Amount Outstanding
(In Rs.) Since
Profession Tax 800 April 2021

b) In our opinion and according to the information and explanations given to us thereare no outstanding statutory dues referred in subclause (a) which have not been depositedon account of any dispute except sales tax as reported below.

Name of the Statute Nature of Dues Amount (Rs. in Lakhs) Period to which the amount relates Forum where dispute is pending
The Central Sales Tax Act 1956 (Assam) Central Sales Tax 9.82 1993-1998 Sales Tax Appellate Tribunal
The Central Sales Tax Act 1956 (Odisha) Central Sales Tax 0.74 1995-1998 Sales Tax Appellate Tribunal
The Central Sales Tax Act 1956 (TamilNadu) Central Sales Tax 0.18 1997-1998 Sales Tax Appellate Tribunal
Assam General Sales Tax Act 1993 Local Sales Tax 11.42 1993-1998 Sales Tax Appellate Tribunal
The Orissa Additional Sales Tax Act 1975 Local Sales Tax 11.05 1995-1998 Sales Tax Appellate Tribunal
Madhya Pradesh General Sales Tax Act 1958 Local Sales Tax 0.54 1997-1998 Sales Tax Appellate Tribunal

viii. There were no transactions relating to previously unrecorded income that havebeen surrendered or disclosed as income during the year in the tax assessments under theIncome Tax Act 1961 (43 of 1961).

ix. a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has not taken any loans orother borrowings from banks financial institutions and Government. Accordingly reportingunder clause 3(ix)(a) of the Order is not applicable. b) According to the information andexplanations given to us and on the basis of our examination of the records of theCompany the Company does not have any outstanding dues on account of loan payable to bankor financial institution or other lender. Accordingly reporting under clause 3(ix)(b) ofthe Order is not applicable. c) According to the information and explanations given to usand on the basis of our examination of the records of the Company the Company has notobtained any term loans during the year. Accordingly reporting under clause 3(ix) (c) ofthe Order is not applicable. d) According to the information and explanations given to usand on the basis of our examination of the records of the Company the Company has notraised funds on short term basis from banks and financial institutions during the year.Accordingly reporting under clause 3(ix)(d) of the Order is not applicable. e) Accordingto the information and explanations given to us and on the basis of our examination of therecords of the company the Company has not taken any funds from any entity or person onaccount of or to meet the obligations of its subsidiaries associates or joint ventures.f) The Company has not raised any secured loans during the year. Accordingly reporting onclause 3(ix)(f) of the Order is not applicable. x. a) According to the information andexplanations given to us the Company has not raised monies by way of initial public offeror further public offer (including debt instruments).

b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly reporting under clause 3(x)(b) of the Order is not applicable xi.a) To the best of our knowledge and according to the information and explanations given tous no fraud by the Company or no material fraud on the Company has been noticed orreported during the year. b) No report under sub-section (12) of section 143 of theCompanies Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Auditand Auditors) Rules 2014 with the Central Government during the year and upto the dateof this report. c) No whistle-blower complaints have been received by the Company duringthe year. xii. The Company is not a Nidhi Company. Accordingly reporting under clause 3(xii) of the Order is not applicable to the Company. xiii. In our opinion and according tothe information and explanations given to us the Company is in compliance with Section177 and 188 of the Companies Act 2013 where applicable for all transactions with therelated parties and the details of related party transactions have been disclosed in thefinancial statements as required by the applicable accounting standards. xiv. a) In ouropinion the Company has an adequate internal audit system commensurate with the size andthe nature of its business. b) We have considered the internal audit reports for the yearunder audit issued to the Company during the year and till date in determining thenature timing and extent of our audit procedures.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its directors during the year and hence provisions ofsection 192 of the Companies Act 2013 are not applicable to the Company. xvi. a) In ouropinion and according to the information and explanations given to us the Company is notrequired to be registered under section 45–IA of the Reserve Bank of India Act 1934.Accordingly reporting under clause 3(xvi) (a) (b) and (c) of the Order are notapplicable. b) In our opinion and according to the information and explanations given tous there is no core investment company within the Group (as defined in the CoreInvestment Companies (Reserve Bank) Directions 2016). xvii. In our opinion and accordingto the information and explanations given to us the Company has incurred cash losses inthe financial year and in the immediately preceding financial year. The details of cashlosses incurred is as follows:

Financial Year Cash Losses
(Rs. in Lakhs)
2021-22 75.13
2020-21 36.30

xviii. There has been no resignation of Statutory Auditors of the Company during theyear. xix. On the basis of financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of 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 upto the date of audit report and we neither give any guarantee nor any assurancethat all liabilities falling due within a period of one year from the balance sheet willget discharged by the company as and when they fall due. xx. The Company is not requiredto spend amount in pursuance of the Corporate Social Responsibility as stipulated underSection 135 of the Companies Act 2013. Accordingly reporting under clause 3(xx)(a) and(b) of the Order are not applicable. xxi. The Company is not required to prepareConsolidated Financial Statements. Accordingly reporting under clause 3(xxi) of the Orderis not applicable

For V. Singhi & Associates
Chartered Accountants
Firm Registration No. 311017E
(Aniruddha Sengupta)
Place: Kolkata Partner
Date: 30th May 2022 Membership No. 051371
UDIN:

Annexure B to the Independent Auditor's Report

Referred to in Paragraph 2(f) on Other Legal and Regulatory Requirements of our Reportof even date to the members of The Standard Batteries Limited on the Financial Statementsfor the year ended 31st March 2022 Report on the Internal Financial Controls under Clause(i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls with reference to Financial Statementsof The Standard Batteries Limited ("the Company") as at 31st March 2022 inconjunction with our audit of the Financial Statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls with reference to Financial Statements based on the internal controlscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to Financial Statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls with reference to FinancialStatements. 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 Statements wereestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to Financial Statements and their operatingeffectiveness. Our audit of internal financial controls with reference to FinancialStatements included obtaining an understanding of internal financial controls assessingthe risk that a material weakness exists and testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the Financial Statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our qualified audit opinion on the Company's internal financial controls withreference to Financial Statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A Company's internal financial control with reference to Financial Statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Financial Statements for external purposes in accordancewith generally accepted accounting principles.

A Company's internal financial control with reference to Financial Statements includesthose policies and procedures that (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the Company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of the Financial Statements in accordance with generallyaccepted accounting principles including the Ind AS and that receipts and expenditures ofthe Company are being made only in accordance with authorisations of management anddirectors of the Company; and (3) provide reasonable assurance regarding prevention ortimely detection of unauthorised acquisition use or disposition of the Company's assetsthat could have a material effect on the Financial Statements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference toFinancial Statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to Financial Statements to future periods are subject to the risk that theinternal financial control with reference to Financial Statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

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 2022 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 V. Singhi & Associates
Chartered Accountants
Firm Registration No. 311017E
(Aniruddha Sengupta)
Place: Kolkata Partner
Date: 30th May 2022 Membership No. 051371
UDIN:

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