TO THE MEMBERS OF
SUNTECK REALTY LIMITED
REPORTON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements ofSUNTECK REALTY LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2020 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flows for the year thenended and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone 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 of the Company as at 31st March2020 its profit (including other comprehensive income) its changes in equity and itscash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Auditof the Standalone Financial Statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the ethical requirements that are relevant toour audit of the financial statements under the provisions of the Act and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on thestandalone financial statements.
Emphasis of Matters
Without qualifying our opinion we draw your attention to followingmatters: a) In view of COVID-19 pandemic outbreak we draw your attention to the note no.61 of the accompanying standalone financial statements regarding the Management'sassessment of inter-alia recoverability/ realisability of Company's assets basedon current indicators of future economic conditions. The Management apart fromconsidering the internal and external information up to the date of approval of standalonefinancial statements has also performed sensitivity analysis on the assumptions used. TheManagement expects to inter-alia realise inventories of Rs. 30725.58 lakhs and projectsto be executed (by joint venture companies) having carrying value of Rs. 30107.96 lakhswhose commencement have been delayed; and recover trade receivables of Rs. 6552.18 lakhs(including in respect of what is stated in para "b" below) and contract assets(unbilled debtors) of Rs. 8580.44 lakhs. The impact of the global health pandemic may bedifferent from the estimated as at the date of approval of standalone financialstatements. Considering the continuing uncertainties the Management will continue toclosely monitor any material changes to future economic conditions. b) The Company hasoverdue trade receivable amounting to Rs. 1203.50 lakhs (Previous Year Rs. 1203.50lakhs) from a customer against sale of a commercial unit. The management has takennecessary steps for recovery of this receivable including filing of legal case and ishopeful of recovering the same in due course of time. In their opinion therefore noprovision is considered necessary at this stage. c) The Company is a partner in apartnership firm Kanaka & Associates in which the Company has total exposurecomprising of capital invested loans given and other receivables aggregating to Rs.1397.42 lakhs (Previous Year
Rs. 1179.55 lakhs). Since there is some dispute with the otherpartner the financial statements of the firm are not available and therefore the Companyhas not accounted for its share of profit or loss for the year from the said firm whichas explained by the management would be immaterial. The management is hopeful ofrecovering/ realising the aforesaid exposure in due course of time as the Company hasreceived the favourable arbitration award and a receiver has been appointed by virtue ofthe said order and hence in their opinion no provision is considered necessary at thisstage.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|Key Audit Matters ||How the matter was addressed in our audit |
|Revenue recognition for real estate development contracts: || |
|Revenue from real-estate contracts is recognised over a period of time (using percentage of completion method) if the necessary conditions/obligations as mentioned in the Ind AS 115 "Revenue from contracts with customers" are satisfied/met otherwise at a point in time. ||Our audit procedures on revenue recognised from real estate development contracts included: |
|Significant level of judgement is required to identifying contract obligations and whether these obligations are satisfied over a period of time or at the point in time. ||Testing the controls over the completeness and accuracy of cost and revenue reports generated from the system. |
|Further for determining revenue using percentage of completion method budgeted project cost is a critical estimate. This estimate has inherent uncertainty as it requires ascertainment of progress of the project cost incurred till date and balance cost to be incurred to complete the project. ||Obtaining an understanding of the systems processes and controls implemented by management for recording and calculating revenue. |
|Refer note no. 1(d) 2(a) and 48 to the standalone financial statements. ||Selected samples of old and new contracts and tested that the revenue has been recognised in accordance with the accounting standard by evaluating the identification of performance obligation |
| ||Reviewed the management's budgeting system and process of calculating the cost to be incurred for completing the remaining performance obligations which has been reviewed periodically and approved by appropriate levels of management. |
| ||Compared the aggregate project cost (including costs incurred) with costs of similar projects. Performing a retrospective review of costs incurred with budgeted costs to identify significant variations and verify whether those variations have been considered in estimating the remaining costs to complete the project. |
| ||Assessing the adequacy of disclosures included in financial statements as specified in Ind AS 115. |
|Impairment assessment of carrying value of investment in/loan to subsidiaries and joint ventures: || |
|The Company accounts for investments in equity instruments of subsidiaries and joint ventures at cost less accumulated impairment losses if any. ||Our procedures / testing included the following: |
|The assessment of recoverable amount of the Company's investment and loans receivable from subsidiaries and joint ventures involves significant judgement in respect of assumptions such as current projects expected recoverability of certain receivables/investments. ||Tested management's assessment of the provision required for impairment of investments / loans. |
|We focused on this area as a key audit matter due to judgement involved in forecasting future cash flows and the selection of assumptions. ||Checked the net worth of the subsidiaries/joint ventures and its history of financial performance. |
|Refer note no. 6 and 17 to the standalone financial statements. ||Evaluated appropriateness of key assumptions including sales future business plan upcoming projects and the current market rates used in the cash flow forecasts used in computing recoverable amount of investment and/or loan (including interest accrued). |
|Carrying values of Inventories || |
|Inventory is valued at cost and net realisable value (NRV) We assessed the Company's process for the valuation of whichever is less. expenditure relating or incidental to construction activity. ||The cost includes direct and indirect inventories by: Evaluating the design and operative effectiveness of internal controls relating to valuation of inventories. |
|Various estimates such as prevailing market conditions stage of completion of the projects future selling price selling costs and cost to complete projects are necessary to derive NRV. ||Testing the operating effectiveness of controls for the review of estimates involved for the expected cost of completion of projects including construction cost incurred construction budgets and net realisable value. |
|Refer note no. 1(k) and 12 particularly in respect of Construction work-in-progress of Rs. 17114.69 lakhs and Completed units of Rs. 13373.04 lakhs to the standalone financial statements. ||We carried out a combination of procedures involving enquiry and observation and inspection of evidence in respect of operation of these controls. |
| ||Comparing the aggregate project cost (including costs incurred) with costs of similar projects. Comparing NRV with recent sales or estimated selling price and also checked the general selling costs. |
|Fair valuation of certain investments: || |
|Joint ventures are carried at either Fair Value through Profit / Loss (FVTPL) or Fair Value through Other Comprehensive Income (FVTOCI) as per fair value hierarchy. ||Tested the operating effectiveness of controls for the review of assumptions and estimates used in evaluation of inputs for the purpose of fair valuation. |
|In case of investments whose fair valuation falls under the Level 3 hierarchy the Company engages third party valuers to perform the valuation. Inputs/assumptions used for valuation are not based on observable market data and therefore significant level of judgement is involved. ||Reviewed the valuation reports obtained by the Company from independent thirdparty valuers for investments recorded at fair value for level 3 fair valuation hierarchy and assessed/challenged the assumptions methods and competency of the valuer. |
|Hence we have considered this area as key audit matter. Refer note no. 1(m) and 6 to the standalone financial statements. || |
Information Other than the Standalone Financial Statements andAuditor's Report Thereon
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Board'sReport Management Discussion and Analysis Report Corporate Governance Report andBusiness Responsibility Report but does not include the standalone financial statementsand our auditor's report thereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Management's Responsibility for the Standalone FinancialStatements
The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance (including other comprehensive income) changes in equity and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate implementation and maintenance of accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statement that give a true and fair view and arefree from material misstatement whether due to fraud or error. In preparing thestandalone financial statements 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 managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
The Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal control 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 in place and the operating effectivenessof such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the 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 conditionsmay cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the standalone financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the standalone financialstatements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors' report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of Section 143 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act we report that:
a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity and the Statement of Cash Flowsdealt with by this Report are in agreement with the books of account.
d) In our opinion the aforesaid standalone financial statements complywith Ind AS prescribed under Section 133 of the Act.
e) On the basis of the written representations received from thedirectors as on 31st March 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2020 from being appointed as a director interms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting.
g) With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of Section 197(16) of the Actas amended in our opinion and to the best of our information and according theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of the Section 197 of the Act.
h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements Refer Note No. 39 to thestandalone financial statements.
ii. The Company did not have material foreseeable losses on long termcontracts including derivative contracts.
iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.
ANNEXURE REFERRED TO IN INDEPENDENT AUDITORS' REPORT TO THEMEMBERS OF THE COMPANY ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31stMARCH 2020
On the basis of such checks as we considered appropriate and accordingto the information and explanations given to us during the course of our audit we statethat:
i) a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of property plant and equipment(fixed assets).
b) According to the information and explanations given to us duringthe year all the property plant and equipment (fixed assets) have been physicallyverified by the management which in our opinion is reasonable considering the size ofthe Company and nature of its property plant and equipment (fixed assets). As explainedno material discrepancies were noticed on such verification.
c) As explained title deed of the immovable property classified asproperty plant and equipment (fixed assets) which was constructed as per the JointDevelopment Agreement with the land owners will be transferred in the name of the Companyafter formation of condominium.
ii) According to the information and explanations given to us theinventories have been physically verified by the management at reasonable intervals duringthe year and no material discrepancies were noticed on such verification. Due to COVID-19related nationwide lockdown the management was not able to perform year end physicalverification of inventory.
iii) According to the information and explanations given to us duringthe year the Company has granted unsecured interest-free loans to five subsidiarycompanies and a joint venture company covered in the register maintained under Section 189of the Act.
a) Considering what is stated in para (iv) below in respect ofnon-applicability of Section 186 of the Act relating to loans granted by the Company andas explained by the management said loans are granted to subsidiary companies for theirprincipal business activities the terms and conditions of the aforesaid loans are notprima facie prejudicial to the interest of the Company.
b) As explained by the management these loans are repayable on demandand as informed the Company has received the loan amount during the year as and when itwas demanded.
c) Considering what is stated in para
(b) above there are no amounts overdue from such parties.
iv) The Company has not granted any loans or provided any guarantees orsecurity to the parties covered under Section 185 of the Act. As informed and on the basisof legal opinion obtained by the Company the provisions of Section 186 of the Act withrespect to the loans made guarantees given and security provided are not applicable tothe Company as the Company is engaged in the business of providing infrastructuralfacilities. In our opinion and according to the information and explanations given to usand based on the aforesaid legal opinion the Company has complied with the provisions ofSection 186 of the Act to the extent applicable with respect to the investments made.
v) No deposits within the meaning of directives issued by RBI (ReserveBank of India) and Sections 73 to 76 or any other relevant provisions of the Act and rulesframed thereunder have been accepted by the Company. vi) We have broadly reviewed thebooks of account maintained by the Company pursuant to the rules made by the CentralGovernment of India regarding the maintenance of cost records under sub-section (1) ofSection 148 of the Act and are of the opinion that prima facie the prescribed accountsand records have been maintained. We have however not made a detailed examination of therecords with a view to determine whether they are accurate or complete.
vii) a) According to the information and explanations given to us andon the basis of our examination of the records the Company is generally regular indepositing undisputed statutory dues including Provident Fund Employees' StateInsurance Income Tax Goods and Service Tax (GST) Duty of Customs Cess and othermaterial statutory dues applicable to the Company with the appropriate authorities. Noundisputed amounts in respect of the aforesaid statutory dues were outstanding as at thelast day of the financial year for a period of more than six months from the date theybecame payable.
b) According to the information and explanations given to us and on thebasis of our examination of the records of the Company there are no dues of Income TaxGST and Duty of Customs which have not been deposited on account of any dispute except thefollowing:
|Statute ||Nature of Dues ||Forum where the dispute is pending ||Amount (Rs. in lakhs) ||Financial year to which it relates |
|Income Tax Act 1961 ||Income Tax ||Income Tax Appellate Tribunal ||6.29 ||2006-07 |
| || || ||10.36 ||2008-09 |
| || ||(Referred back to Assessing Officer for reassessment) || || |
| || || ||0.21 ||2010-11 |
| || || ||5.10 ||2011-12 |
| || ||Income Tax ||0.14 ||2013-14 |
| || ||Appellate Tribunal Commissioner of Income Tax ||102.28 ||2012-13 |
| || ||(Appeals) ||15.00 ||2014-15 |
viii) In our opinion and according to the information and explanationsgiven to us during the year the Company has not defaulted in repayment of loans orborrowings to financial institutions banks and dues to debenture holders. The Company didnot have any loans or borrowings from the Government.
ix) According to the information and explanations given to us theCompany has not raised any money by way of initial public offer or further public offer(including debt instruments) during the year and in recent past and based on theinformation and explanations given to us by the management term loans have been appliedfor the purpose for which they were obtained. However certain funds have been temporarilyused for other corporate purpose.
x) During the course of our examination of the books and records of theCompany carried out in accordance with the generally accepted auditing practices in Indiaand according to the information and explanations given to us we have neither come acrossany instance of fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of such case by themanagement.
xi) According to the information and explanations given to us and basedon the examination of the records the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.
xii) In our opinion the Company is not a nidhi company. Therefore theprovisions of clause 3 (xii) of the Order are not applicable to the Company.
xiii) According to the information and explanations given to us theprovisions of Section 177 and 188 of Act to the extent applicable in respect oftransactions with the related parties have been complied with by the Company and thedetails have been disclosed in the Standalone Financial Statements as required by theapplicable accounting standards in Note No. 44 to the Standalone Financial Statements.
xiv) During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures.Therefore the provisions of clause 3 (xiv) of the Order are not applicable to theCompany.
xv) According to the information and explanations given to us duringthe year the Company has not entered into any non-cash transactions with directors orpersons connected with him under Section 192 of the Act.
xvi) The Company is not required to be registered under Section 45 IAof the Reserve Bank of India Act 1934.
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of SUNTECK REALTY LIMITED ("the Company") as of 31st March 2020 inconjunction with our audit of the Standalone Financial Statements of the Company for theyear ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in 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 both applicable to an audit ofInternal Financial Controls and both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the Auditors' judgment including the assessment of therisks of material misstatement of the standalone financial statements whether due tofraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A Company's internalfinancial control over financial reporting includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the Company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorisations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on thefinancial statements; and (4) also provide reasonable assurance by the internal auditorsthrough their internal audit reports given to the organisation from time to time.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion considering nature of business size of operation andorganisational structure of the entity the Company has broadly in all material respectsan adequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at 31st March2020 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
| ||For LODHA & CO. |
| ||Chartered Accountants |
| ||Firm Registration No: 301051E |
| ||R. P. Baradiya |
| ||Partner |
|Place: Mumbai ||Membership No. 44101 |
|Date: 28th July 2020 ||UDIN : 20044101AAABIQ4576 |