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Suprajit Engineering Ltd.

BSE: 532509 Sector: Auto
NSE: SUPRAJIT ISIN Code: INE399C01030
BSE 15:14 | 11 May 256.95 4.85
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NSE 15:04 | 11 May 256.50 4.25
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OPEN 245.85
PREVIOUS CLOSE 252.10
VOLUME 15686
52-Week high 310.00
52-Week low 107.10
P/E 30.81
Mkt Cap.(Rs cr) 3,556
Buy Price 256.60
Buy Qty 52.00
Sell Price 256.95
Sell Qty 74.00
OPEN 245.85
CLOSE 252.10
VOLUME 15686
52-Week high 310.00
52-Week low 107.10
P/E 30.81
Mkt Cap.(Rs cr) 3,556
Buy Price 256.60
Buy Qty 52.00
Sell Price 256.95
Sell Qty 74.00

Suprajit Engineering Ltd. (SUPRAJIT) - Auditors Report

Company auditors report

To

The Members of Suprajit Engineering Limited

Report on the Audit of the Standalone Ind AS Financial Statements Opinion

We have audited the accompanying standalone Ind AS financial statements of SuprajitEngineering Limited ("the Company") which comprise the standalone Balance Sheetas at March 31 2020 the standalone Statement of Profit and Loss including the statementof Other Comprehensive Income the standalone Cash Flow Statement and the standaloneStatement of Changes in Equity for the year then ended and notes to the standalone Ind ASfinancial statements including a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 as amended ("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 March 31 2020its profit including other comprehensive income its cash flows and the changes in equityfor the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the ‘Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements' section ofour report. We are independent of the Company in accordance with the ‘Code of Ethics'issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Emphasis of Matter

We draw attention to note 2(b) to the standalone Ind AS financial statements whichdescribes the fact that the pandemic COVID-19 would cause various economic and socialdisruption to the Company impacting trade receivables and carrying value of other assetssupply chains consumer demand commodity prices personnel available for work and accessto offices. The impact may be different from that estimated as at the approval of thefinancial statements and the Company will continue to closely monitor any material changesto future economic conditions. 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 Ind AS financial statements for the financialyear ended March 31 2020. These matters were addressed in the context of our audit of thestandalone Ind AS financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. For each matter below ourdescription of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the standalone Ind AS financial statementssection of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the standalone Ind AS financial statements. The results of ouraudit procedures including the procedures performed to address the matters below providethe basis for our audit opinion on the accompanying standalone Ind AS financialstatements.

Key audit matters How our audit addressed the key audit matter
1. Impairment assessment of Investments in Subsidiaries (as described in Note 6(a) of the standalone Ind AS financial
As at March 31 2020 the carrying value of investment in wholly Our audit procedures included the following: owned subsidiaries in the standalone Ind AS balance sheet amounts to Rs. 2362.62 Million (net of impairment provision).
• We understood the Company's process for identification of indicators for impairment and evaluated the Company's internal controls over its impairment assessment of investment in subsidiaries. We understood the key assumptions applied by the management such as revenue growth operating margins discount rates and terminal growth rates in determining impairment;
As described in Note 6(a) an impairment provision of Rs. 161.97 million has been made during the year towards the carrying value of investment in subsidiaries.
To assess if there is an impairment in the investment management conducted impairment tests annually or whenever changes in circumstances or events indicate that the carrying amount of such investment may not be recoverable.
An impairment loss is recognized if the recoverable amount is lower than the

carrying value.

• In respect of the external valuation specialist engaged by the management we obtained the valuation report from the management and assessed the independence objectivity and competence of the management expert;
The recoverable amount is estimated by calculating the value in use basis valuation conducted by an external valuation specialist (‘management's expert') factoring future business plans and such valuation report/future business plans are reviewed and approved by the Audit Committee/ Board of Directors of the Company. In view of the COVID -19 pandemic the management has reassessed its future business plans and key assumptions as at March 31 2020 while assessing the adequacy of impairment provision.
• We tested the key assumptions and considered the sensitivity scenarios performed by management's expert;
•We involved our valuation specialists for evaluating and testing the key assumptions and methodologies used and the computations made by the management's expert in their valuation reports; and
This is a key audit matter as the testing of investment impairment is complex and involves significant judgement. The key assumptions involved in impairment tests are projected revenue growth operating margins discount rates and terminal growth etc.
•We assessed the disclosures made in the standalone Ind AS financial statements.
2. Estimation of potential losses on realization of investment in Franklin Templeton Mutual Fund that were wound-up
(as described in Note 32(a) of the standalone Ind AS financial statements)
Our audit procedures include among others:
As at March 31 2020 the carrying value of investment in Franklin Templeton Mutual Fund (FTMF) debts schemes in the standalone Ind AS balance sheet amounts to Rs. 979.49 million. • We obtained details of investment in FTMF as on March 31 2020 as per the books of the Company and traced it with confirmation/statement received from FTMF.
As described in Note 32(a) FTMF has voluntarily decided to wind up six of its debt schemes effective April 23 2020 and in this regard the Company has recognized a provision of Rs. 97.95 million on March 31 2020 on best estimate basis towards potential loss on realization of said investment. • Read the regular updates provided by FTMF to the Company post winding up of schemes and we assessed the potential implication on realization of investment.
As part of regular updates shared by FTMF with investors it is noted that based on maturity profile of the schemes investors would realize their investment over a period of five years and beyond and Net Asset Value (NAV) per unit will continue to be computed and declared as per the same accounting and valuation principles followed prior to April 23 2020 without any change. • We understood the basis and computations made by the management in estimating the potential loss on realization of investment factoring regular updates given by FTMF maturity profile of schemes subsequent change in NAV and other factors such as historical yield and expected future returns from the funds.
Further the fund house suspended the e-voting process required to start unwinding of the schemes after the stay Order passed by Honorable Gujarat High Court. This has blocked redemptions indefinitely and the market expectation is that investors would earn lower return. • We evaluated the basis followed by the management in estimation of uncertainty considering available information.
Given the background the Company has carried out an impact assessment factoring regular updates given by FTMF maturity profile of schemes subsequent changes in NAV and other factors such as historical yield expected future returns and made a provision for potential loss on realization of carrying value of investment on best estimate basis. • We assessed the classification and adequacy of the disclosures made in the standalone Ind AS financial statements.
This is a key audit matter considering the complexity and involvement of significant judgement by management.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Board of Director's report includingannexures but does not include the standalone Ind AS financial statements consolidatedInd AS financial statements and our auditor's report thereon.

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

In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the standalone Ind AS financialstatements or our knowledge obtained in the 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.

Responsibilities of Management and Those charged with Governance for the Standalone IndAS Financial Statements

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 standalone Ind AS financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone Ind AS financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Charged with Governance are also responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone Ind AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone Ind ASfinancial 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 control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of 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 standalone Ind ASfinancial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant de ciencies 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 with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone Ind AS financialstatements for the financial year ended March 31 2020 and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

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 ofthe Act we give in the "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. 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 ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; (c) The standalone Balance Sheet the standalone Statement ofProfit and Loss including the Statement of Other Comprehensive Income the standalone CashFlow Statement and standalone Statement of Changes in Equity dealt with by this Report arein agreement with the books of account; (d) In our opinion the aforesaid standalone IndAS financial statements comply with the Accounting Standards specified under Section 133of the Act read with Companies (Indian Accounting Standards) Rules 2015 as amended; (e)On the basis of the written representations received from the directors as on March 312020 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2020 from being appointed as a director in terms of Section 164 (2) of theAct; (f) With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these standalone Ind AS financial statementsand the operating effectiveness of such controls refer to our separate Report in"Annexure 2" to this report; (g) In our opinion the managerial remuneration forthe year ended March 31 2020 has been paid / provided by the Company to its directors inaccordance with the provisions of section 197 read with Schedule V to the Act; (h) Withrespect to the other matters to be included in the Auditor's Report in accordance withRule 11 of the Companies (Audit and Auditors) Rules 2014 as amended in our opinion andto the best of our information and according to the explanations given to us: i. TheCompany has disclosed the impact of pending litigations on its financial position in itsstandalone Ind AS financial statements – Refer note 36(a) to the standalone Ind ASfinancial statements; ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses on long-term contractsincluding derivative contracts – Refer note 19 and note 42(ii) to the standalone IndAS financial statements;

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

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Rajeev Kumar
Partner
Membership Number: 213803
UDIN: 20213803AAAABV5630
Place of Signature: Bengaluru
Date: June 12 2020

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE IND ASFINANCIAL STATEMENTS OF SUPRAJIT ENGINEERING LIMITED

Statement on the matters specified in paragraphs 3 and 4 of the Companies (Auditor'sreport) Order 2016 ("the Order")

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment. (b) All propertyplant and equipment have not been physically verified by the management during the yearbut there is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies were noticed on such verification.

(c) According to the information and explanations given by the management andconfirmation from banks relating to title deeds of immovable properties mortgaged with thebanks the title deeds of immovable properties are held in the name of the Company and inrespect of immovable properties of land that have been taken on lease and disclosed asRight-of-use assets in the standalone financial statements the lease agreements are inthe name of the Company.

(ii) The inventory has been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification. Inventories lying with third parties have beenconfirmed by them as at year end and no material discrepancies were noticed in respect ofsuch confirmations. (iii) According to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Act. Accordingly the provisions of clause 3(iii)(a) (b) and (c) of the Orderare not applicable to the Company.

(iv) In our opinion and according to the information and explanations given by themanagement the Company has complied with the provisions of section 185 and 186 of the Actin respect of grant of loans to directors including entities in which they are interestedand in respect of loans and advances given making investments and providing guaranteesand securities as applicable.

( v) The Company has not accepted any deposits within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Act related to the manufacture of automobile components and are ofthe opinion that prima facie the specified accounts and records have been made andmaintained. We have not however made a detailed examination of the same (vii) (a) TheCompany is generally regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income tax duty ofcustom goods and services tax cess and other material statutory dues applicable to it.(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax duty ofcustom goods and services tax cess and other statutory dues were outstanding at theyear end for a period of more than six months from the date they became payable.

(c) According to the records of the Company there are no dues of income-taxsales-tax service tax duty of custom duty of excise value added tax goods andservices tax and cess which have not been deposited on account of any dispute except thefollowing:

Name of the statute Nature of the dues

Amount ( Rs. in Million)

Payment under protest

Period (financial year) to which the amount relates

Forum where dispute is pending
The Income Tax Act 1961 Disallowance of certain expenses and benefit

0.90

0.90

2008-09

Income Tax Appellate Tribunal
The Income Tax Act 1961 Disallowance of certain expenses and benefit

7.96

7.96

2010-11 & 2011-12

Commissioner of Income Tax (Appeals)
The Income Tax Act 1961 Disallowance of certain expenses and benefit

1.26

1.26

2012-13

Income Tax Appellate Tribunal
(including interest)
The Income Tax Act 1961 Disallowance of certain expenses and benefit

1.39*

0.29

2015-16

Commissioner of Income Tax (Appeals)
The Finance Act 1994 Maharashtra Ineligible cenvat credit availed (including interest and penalty)

0.11

-

2015-16

Customs Excise & service tax Appellate Tribunal
Joint Commissioner of
Value Added Tax Act 2002 Maharashtra Value Added Tax

9.51

0.51

2014-15

Sales Tax (Appeals)

*the aforesaid demand amount is excluding Rs. 212.54 Million relating to advance taxpayment which was not considered by the Assessing officer and hence the Company has filednecessary rectification application u/s 154 of the Income tax Act 1961.

(viii) In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowings to bank ordues to a financial institution. The Company did not have any outstanding dues todebenture holders or government during the year.

(ix) In our opinion and according to information and explanations given by themanagement the Company has utilized the monies raised by way of term loans for thepurpose for which they were raised. The Company has not raised monies by way of initialpublic offer or further public offer (including debt instruments).

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the standalone Ind AS financial statements and according to the informationand explanations given by the management we report that no fraud by the Company or nofraud on the Company by the officers and employees of the Company has been noticed orreported during the year.

(xi) According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 of Actwhere applicable and the details have been disclosed in the notes to the standalone Ind ASfinancial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) are not applicable tothe Company.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in section 192 of the Act.

(xvi) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Rajeev Kumar
Partner
Membership Number: 213803
UDIN: 20213803AAAABV5630
Place: Bengaluru
Date: June 12 2020

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE IND ASFINANCIAL STATEMENTS OF SUPRAJIT ENGINEERING LIMTED

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

We have audited the internal financial controls over financial reporting of SuprajitEngineering Limited ("the Company") as of March 31 2020 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat date.

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these standalone Ind AS financialstatements based on our audit. We conducted our audit in accordance with the Guidance Noteon Audit of Internal Financial Controls Over Financial Reporting (the "GuidanceNote") and the Standards on Auditing as specified under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting with reference to these standalone Ind AS financialstatements was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls over financial reporting with reference to thesestandalone Ind AS financial statements and their operating effectiveness. Our audit ofinternal financial controls over financial reporting included obtaining an understandingof internal financial controls over financial reporting with reference to these standaloneInd AS financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue 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 internal financial controls over financialreporting with reference to these standalone Ind AS financial statements.

Meaning of Internal Financial Controls Over Financial Reporting With Reference to theseStandalone Ind AS Financial Statements

A company's internal financial control over financial reporting with reference to thesestandalone Ind AS financial statements is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation of Ind ASfinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingwith reference to these standalone Ind AS financial statements includes those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton the Ind AS financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting WithReference to these Standalone Ind AS Financial Statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to these standalone Ind AS financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these standalone Ind AS financial statements to future periods are subject to the riskthat the internal financial control over financial reporting with reference to thesestandalone Ind AS financial statements may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these standalone Ind AS financialstatements and such internal financial controls over financial reporting with reference tothese standalone Ind AS financial statements were operating effectively as at March 312020 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 theInstitute of Chartered Accountants of India.

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Rajeev Kumar
Partner
Membership Number: 213803
UDIN: 20213803AAAABV5630
Place: Bengaluru
Date: June 12 2020

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