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Standard Industries Ltd.

BSE: 530017 Sector: Others
NSE: SIL ISIN Code: INE173A01025
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VOLUME 12968
52-Week high 41.50
52-Week low 11.50
P/E 0.83
Mkt Cap.(Rs cr) 153
Buy Price 0.00
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Sell Price 0.00
Sell Qty 0.00
OPEN 23.80
CLOSE 25.05
VOLUME 12968
52-Week high 41.50
52-Week low 11.50
P/E 0.83
Mkt Cap.(Rs cr) 153
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Standard Industries Ltd. (SIL) - Auditors Report

Company auditors report

TO

THE MEMBERS OF STANDARD INDUSTRIES LIMITED

Report on the Standalone IND AS Financial Statements Opinion

We have audited the accompanying standalone financial statements of STANDARD INDUSTRIESLIMITED ("the Company") which comprise the Balance Sheet as at 31 March2022 the Statement of Profit and Loss (including other comprehensive profit theStatement of cash flows and the Statement for changes in equity for the year then endedand a summary of the significant accounting policies and other explanatory information(herein after referred to as "Standalone IND AS Financial Statements") In ouropinion and to the best of our information and according to the explanations given to usthe aforesaid standalone financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2022 the net profit and totalcomprehensive profit changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalone financial statement in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013.Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the standalone 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 the independencerequirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules made thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the ICAI's Codeof Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

Other matter

We draw your attention to the Note no. 3A (vii) of the standalone financial statementswhich describes the management's assessment of the impact of the outbreak of Coronavirus(Covid-19) and subsequent second wave on the business operations of the company. TheCompany has considered the possible effects that may result from the pandemic relating toCOVID-19 and subsequent second wave on the carrying amounts of receivables unbilledrevenues and investment in subsidiaries. In developing assumptions relating to thepossible future uncertainties in the global economic conditions because of this pandemicthe Company as at the date of approval of these financial statements has unused internalsources of information including credit reports and related information economicforecasts. The impact of COVID 19 and subsequent second wave on the Company's financialstatements may differ from that estimated at the date of approval of these financialstatements.

Our opinion is not modified in respect of this matter.

Key Audit Matters

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

Description of Key Audit Matters as follows:-

The Key Audit Matters How the matter was addressed in our Audit
a. Adoption of Ind AS 115 – Revenue From Contracts with Customer
As described in Note No. (2.4) & Note No. (29) To the standalone financial statements The company adopted Ind AS 115 - Revenue from Contracts with Customers which is a new revenue accounting standard. The application and transition to this accounting standard is complex and is an area of focus in the audit. We Assessed the company's process to identify the impact of adoption of the new accounting standard.
Our Audit Approach consisted testing of design and operating effectiveness of the internal controls and substantive testing as follows :
• Selected a sample of contracts and performed a retrospective review of efforts incurred with estimated efforts to identify significant variances and verify whether those variations have been considered in estimating the remaining efforts to complete the contract.
• Performed analytical procedures and test of details for reasonableness of incurred and estimated efforts.
b. Diminution in Value of Investment in Subsidiary Company
We draw Attention to Note No. (48) of financial statements regarding Investment in subsidiary company – Standard Salt Works Limited. We assessed that in view of the long term strategic nature of the Investment in lease hold rights to salt pans and growth prospect of subsidiary business no provision for diminution in value of Investment is considered necessary at this stage.
The company has material uncertain tax positions including matters under disputes which involves significant judgement to determine the possible outcome of these disputes Refer Note No. (43) of the financial statements • We obtained details of completed tax assessments and demands for the year ended March 31 2022 from management.
• We discussed with appropriate senior management and evaluated management's underlying key assumptions in estimating the tax provisions and;
• Assessed management's estimate to the possible outcome of the disputed cases.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance inclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materiallymisstated.

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

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Ind AS standalone financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive profit cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder section 133 of the Act read with relevant rules issued thereunder. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 standalone

Ind AS financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error. In preparing the standalone financialstatements management is responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so. The Board ofDirectors are also responsible for overseeing the company's financial reporting process

Auditor's Responsibility 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 standalone financial statements. As part of an audit in accordance withSAs we exercise professional judgment and maintain professional skepticism throughout theaudit. We also:

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

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

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubton the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor's report tothe related 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 auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and event's in a manner that achievesfair presentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat 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)planning the scope of our audit work and in evaluating the results of our work; and (ii)to evaluate the effect of any identified misstatements in the financial statements.

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

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

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

Report on Other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Act we report that: (a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit.

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

(c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveloss) change in equity and Statement of Cash Flow dealt with by this Report are inagreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31March 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2022 from being appointed as a director in terms ofSection 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operative effectiveness of such controls refer to ourseparate Report in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting. (g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act asamended: In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act. (h) With respect tothe other matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 as amended in our opinion and to the best ofour information and according to the explanations given to us: (i) The Company hasdisclosed the impact of pending litigation on its financial position in its standalone IndAS financial statements refer note no (41) to the financial statements. (ii) The Companyhas made provision as required under applicable law or accounting standards for materialforeseeable losses if any on long term contracts including derivative contracts.

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

(iv) (a) The Management of the Company has represented that to the best of itsknowledge and belief no funds (which are material either individually or in theaggregate) have advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries; (b) TheManagement of the Company has represented that to the best of its knowledge and beliefno funds (which are material either individually or in the aggregate) have been receivedby the Company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries;

(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement.

(v) As stated in Note 21.5 to the standalone financial statements (a) The interimdividend declared by the Company in their Board Meeting held on 19th May 2022 and untilthe date of this report is in compliance with Section 123 of the Act.

(b) The Board of Directors of the Company have proposed final dividend for the yearwhich is subject to the approval of the members at the ensuing Annual General Meeting. Theamount of dividend proposed is in accordance with section 123 of the Act as applicable.

2. 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 we give in"Annexure B" a statement on the matter specified in the paragraph 3 and 4 of theOrder.

For Arunkumar K. Shah & Co
Chartered Accountants
(FRN: 126935W)
Arunkumar K. Shah
Proprietor
Membership No: 034606.
UDIN : 22034606AJFVQD2738
Place: Mumbai
Dated: 19th May 2022

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

Referred in paragraph 1(f) under "Report on Legal and Regulatory Requirement"section of our report of even date on the Standalone Ind AS Financial Statement OfStandard Industries Limited

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

1. We have audited the internal financial controls over financial reporting of StandardIndustries Limited (the "Company") as of March 31 2022 in conjunction withour audit of the standalone Ind As financial statements for the year ended on that date.

2. Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). 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 Companies Act 2013.

3. Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We have conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAI anddeemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects to the extent applicable.

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

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

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4. Meaning of Internal Financial Controls over Financial Reporting

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

5. Inherent Limitations of Internal Financial Controls over Financial Reporting

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

6. Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Arunkumar K. Shah & Co
Chartered Accountants
FRN: 126935W
(Arunkumar K. Shah)
Proprietor
Membership No: 034606
UDIN : 22034606AJFVQD2738
Place: Mumbai
Dated: 19th May 2022

ANNEXURE "B" TO THE AUDITORS' REPORT

The annexure referred to in Paragraph 2 Of Our Report on Other Legal and RegulatoryRequirements section of our report of Even Date On the Standalone Financial Statements ForThe Year Ended March 31 2022 of Standard Industries Limited

To the best of our information and according to the explanations provided to us by theCompany and the books of account and records examined by us in the normal course of auditwe state that: (i) In respect of Property Plant and Equipment and Intangible Assets:

(a) (A) The company has updated its property plant and equipment 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 particulars of intangibleassets.

(b) The property plant and equipment were physically verified during the year by themanagement in accordance with a regular programme of verification which in our opinionprovides for physical verification of all the fixed assets at reasonable intervals.According to the information and explanation given to us no material discrepancies werenoticed on such verification.

(c) According to information and explanations provided to us and based on ourexamination the title deeds of immovable property are held in the name of the company asat Balance Sheet date.

(d) The Company has not revalued any of its Property Plant and Equipment(including right-of-use assets) and intangible assets during the year. (e) No proceedingshave been initiated during the year or are pending against the Company as at March 312022 for holding any benami property under the Benami Transactions (Prohibition) Act 1988(as amended in 2016) and rules made thereunder.

(ii) In respect of Inventories:

(a) As explained to us inventory has been physically verified during the year by themanagement and no material discrepancies were noticed on physical verification.

(b) The Company has not been sanctioned working capital limits in excess of Rs 5 crorein aggregate at any points of time during the year from banks or financial institutionson the basis of security of current assets and hence reporting under clause 3(ii)(b) ofthe Order is not applicable.

(iii) In respect of Granting of Loan:

The Company has made investments in companies firms Limited Liability Partnershipsand granted unsecured loans to other parties during the year in respect of which: (a)The Company has not provided any loans or advances in the nature of loans or stoodguarantee or provided security to any other entity during the year and hence reportingunder clause 3(iii)(a) of the Order is not applicable. (b) In our opinion the investmentsmade and the terms and conditions of the grant of loans during the year are prima facienot prejudicial to the Company's interest.

(c) As the Company has not granted any loan hence reporting under clause 3(iii)(c) ofthe Order is not applicable.

(d) As the Company has not granted any loan hence reporting under clause 3(iii)(d) ofthe Order is not applicable.

(e) No loan granted by the Company which has fallen due during the year has beenrenewed or extended or fresh loans granted to settle the over dues of existing loans givento the same parties. (f) The Company has not granted any loans or advances in the natureof loans either repayable on demand or without specifying any terms or period of repaymentduring the year. Hence reporting under clause 3(iii)(f) is not applicable. The Companyhas not provided any guarantee or security or granted any advances in the nature of loanssecured or unsecured to companies firms Limited Liability Partnerships or any otherparties. (iv) According to the information and explanation given to us the Company hascomplied with the provision of the sections 185 and 186 of the Companies Act 2013 ofgrant loans making investment and providing guarantees and securities as applicable.There were no loans granted during the year under Section 185 of the Act.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of section 73 to76 or any other relevant provision of the Act and the rule framed there under during theyear. No order has been passed by Company Law Board or National Company Law Tribunal orReserve Bank of India or any Court or any Tribunal.

(vi) The maintenance of cost records has not been specified by the Central Governmentunder sub-section (1) of section 148 of the Companies Act 2013 for the businessactivities carried out by the Company. Hence reporting under clause (vi) of theOrder is not applicable to the Company

(vii) In respect of Statutory dues:

(a) According to the records of the Company the Company is generally regular indepositing undisputed statutory dues including Goods and Services Tax Provident fundEmployees' state insurance Income-tax Sales-tax service tax duty of customs duty ofexcise value added tax and any other statutory dues with the appropriate authorities.According to the information and explanations given to us there are no arrears ofoutstanding statutory dues as mentioned above as at March 31 2022 for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofvalue added tax service tax duty of customs Goods and Services Tax Act outstanding onaccount of any dispute except as mentioned below:

Name of the Statute Nature of Dues Financial Year Forum where matter is pending Amount (Rs in Lakhs)
Income-tax Act 1961 Income-tax 2017-2018 Income-tax Appellate Authorities 156.31
Central Excise Act 1944 Excise Duty 1996 - 1997 to 1998 - 1999 Commissioner of Central Excise 106.93
1995 - 1996 to 1997 - 1998 High Court of Bombay 129.37
1985; 1991 1994 - 1995 & 1996 - 1997 to 1999 - 2000 Central Excise and Service Tax Appellate Tribunal 114.83
1996 - 1997 to 1997 - 1998 Assistant/ Deputy Commissioner of Central Excise 118.81

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

(ix) (a) The Company has not defaulted in repayment of loan or other borrowings or inthe payment of interest thereon.

(b) The Company has not been declared willful defaulter by any bank or financialInstitution or government or any government authority.

(c) The Company has not taken any term loan during the year and there are nooutstanding term loans at the beginning of the year and hence reporting under clause3(ix)(c) of the Order is not applicable.

(d) On an overall examination of the financial statements of the Company funds raisedon short-term basis have prima facie not been used during the year for long-termpurposes by the Company.

(e) On an overall examination of the financial statements of the Company the Companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its subsidiaries.

(f) The Company has not raised any loans during the year against pledge of securitiesheld in subsidiaries and hence reporting on clause 3(ix)(f) of the Order isnot applicable.

(x) (a) The Company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the year and hence reporting under clause3(x)(a) of the Order is not applicable

(b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause 3(x)(b) of the Order is not applicable.

(xi) (a) No fraud by the Company and no material fraud on the Company has been noticedor reported during the year.

(b) No report under sub-section (12) of section 143 of the Companies Act hasbeen filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)Rules 2014 with the Central Government during the year and upto the date of this report.

(c) We have taken into consideration the whistle blower complaints received by theCompany during the year (and upto the date of this report) while determining the naturetiming and extent of our audit procedures.

(xii) The Company is not a Nidhi Company and hence reporting under clause 3 (xii)(a)(b) and (c) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related partiesare in compliance with sections 177 and 188 of the Act wherever applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards. (xiv) (a) In our opinion the Company has anadequate internal audit system commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date in determining the nature timing and extent ofour audit procedures.

(xv) In our opinion during the year the Company has not entered into any non-cashtransactions with its Directors or persons connected with its directors and henceprovisions of section 192 of the Companies Act 2013 are not applicable to theCompany.

(xvi) (a) In our opinion the Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause 3(xvi)(a) (b)and (c) of the Order is not applicable.

(b) In our opinion there is no core investment company within the Group (as defined inthe Core Investment Companies (Reserve Bank) Directions 2016) and according reportingunder clause 3(xvi)(d) of the Order is not applicable.

(xvii) The Company has not incurred cash losses during the financial year covered byour audit. The Company has incurred cash losses of Rs 1917.43 lakhs immediatelypreceding financial year.

(xviii) There has been no resignation of the statutory auditors of the Company duringthe year.

(xix) On the basis of the 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 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) As per Section 135 of the Companies Act 2013 the Corporate Social Responsibility(CSR) is not applicable hence reporting under clause 3(xx)(a)(b) of the Order isnot applicable for the year.

For Arunkumar K. Shah & Co
Chartered Accountants
FRN: 126935W
(Arunkumar K. Shah)
Proprietor
Membership No: 34606
UDIN: 22034606AJFVQD2738
Place: Mumbai
Dated: 19th May 2022

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