You are here » Home » Companies » Company Overview » Supreme Industries Ltd

Supreme Industries Ltd.

BSE: 509930 Sector: Industrials
NSE: SUPREMEIND ISIN Code: INE195A01028
BSE 00:00 | 11 Aug 1894.95 5.75
(0.30%)
OPEN

1897.20

HIGH

1900.00

LOW

1884.20

NSE 00:00 | 11 Aug 1895.35 7.75
(0.41%)
OPEN

1895.70

HIGH

1900.00

LOW

1881.00

OPEN 1897.20
PREVIOUS CLOSE 1889.20
VOLUME 3873
52-Week high 2689.00
52-Week low 1668.60
P/E 28.57
Mkt Cap.(Rs cr) 24,075
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1897.20
CLOSE 1889.20
VOLUME 3873
52-Week high 2689.00
52-Week low 1668.60
P/E 28.57
Mkt Cap.(Rs cr) 24,075
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Supreme Industries Ltd. (SUPREMEIND) - Auditors Report

Company auditors report

To The Members of

The Supreme Industries Limited

Report on the Audit of Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of TheSupreme Industries Limited ("the Company") which comprises of Balance Sheet asat March 31 2022 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flow for the yearthen ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information in which are included the financialstatements of 24 manufacturing units 27 - Depots 7 Fabrication units and 6 officeslocated across India [hereinafter referred to as "Branches"] for the year endedon that date audited by 9 branch auditors.

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 so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with Companies (Indian Accounting Standards) Rules2015 as amended ("Ind AS") and other accounting principles generally acceptedin India of the state of affairs of the Company as at 31st March 2022 its profit(including other comprehensive income) changes in equity and its cash flows for the yearended 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 Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules madethereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics.

We believe that the audit evidence obtained by us and the auditevidences obtained by branch auditors in terms of their report referred to in the othermatters section below is sufficient and appropriate to provide a basis for our auditopinion on the standalone financial statements.

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.

Sr. No Key Audit Matters Auditor's response
1. Industrial Promotion Scheme (IPS) receivable of Rs 85.88 crores as at March 31 2022 Audit procedures performed:
Other current and non-current assets include government grant receivable in the form of refund of Sales tax/GST under IPS Scheme of Rs 85.88 crores as at March 31 2022 (Rs. 95.09 crores as at March 31 2021) from the states of Maharashtra Madhya Pradesh West Bengal and Rajasthan as per the respective schemes/ notifications announced/ issued by the aforesaid State Governments. In response to the risk of completeness of the accruals in the standalone financial statements:
Post GST the state of west Bengal is yet to notify the IPS scheme and accordingly the Company has not recognized grant since July 2017 in this regard. The amount whereof is presently not ascertainable. Management judgement is involved in assessing the accounting for grants and particularly in considering the probability of a grant being released and we have accordingly designated this as a focus area of the audit. We have examined the eligibility certificates and obtained a list of year wise break- up of the IPS receivables by the Company for all the financial years.
We had discussed the status of the assessment of grants receivable for all the financial years and the management view on the expected time frame by which the grants will be released.
Additionally we have considered the status of the previous assessments and the adjustments if any done by the respective concerned authorities.
Based on the procedures performed those gave us sufficient evidence to conclude that the grants have been accounted in terms of the schemes/notifications announced/issued by various state governments.

Information Other than the Standalone Financial Statements andAuditor's report thereon

The Company's Board of Directors is responsible for the preparation ofother information. The Other information comprises the information included in the Board'sReport including Annexures to the Board report and Management Discussion and Analysisbut does not include the standalone financial statement and 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 required to report that fact. We havenothing to report in this regard.

Responsibilities of Management and those charged with Governance forthe Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financial performance(including other comprehensive income) changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone financial statements the management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative 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 Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements 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 can arise from fraud or error and are considered materialif individually 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 theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial control system in place and theoperating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the 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 theentity'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 conditions maycause the entity 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 financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

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) to evaluatethe effect of an identified misstatements in the standalone financial statements.

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 auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Other Matters:

We did not audit the financial statements of branches included in thestandalone financial statements of the Company whose financial statements reflect thetotal assets of Rs 3268.27 crores as at March 312022 (Rs 2726.64 crores as at March312021) and total revenue of Rs 7469.79 crores for the year ended on that date (Rs6173.06 crores for the year ended March 312021). The financial statements of thesebranches have been audited by the branch auditors whose reports have been furnished to usand our opinion in so far as it relates to the amounts and disclosures included in respectof these branches is based solely on the report of such branch auditors.

Our opinion on the standalone financial statement and our report on theother legal and regulatory requirements below is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. Pursuant to the Companies (Auditor's Report) Order 2020 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the Annexure "A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

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 havebeen kept by the Company so far as it appears from our examination of those books andrecords.

(c) The reports on the financial statements of branches of the Companyaudited under section 143(8) of the Act by nine firms of independent auditors have beensent to us and have been properly dealt with by us in preparing this report.

(d) The Balance sheet the Statement of Profit & Loss (includingother comprehensive income) Statement of Changes in Equity and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(e) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withCompanies (Indian Accounting Standards) Rules 2015 as amended.

(f) On the basis of the written representation received from thedirectors as on March 312022 taken on records by the Board of Directors none of thedirectors are disqualified as on March 31 2022 from being appointed as a Directors interms of Section 164(2) of the Act.

(g) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in Annexure "B".

(h) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of Sec 197(16) of the Act as amended:

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.

(i) With respect to the matters to be included in the Auditor's reportin accordance with the rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial performance in its standalone financial statements. [Refer note no 38 tostandalone financial statements]

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

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

iv. a) The management has represented that to the best of theirknowledge and belief no funds (which are material

either individually or in the aggregate) have been advanced or loanedor invested (either from borrowed funds or share premium or any other sources or kind offunds) by the Company to or in any other person or entity including foreign entity("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend to or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries.

b) The management has represented that to the best of their knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend to or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries.

c) Based on the audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representation under sub clause (i) and (ii) of Rule 11(e) of TheCompanies (Audit and Auditors) Rules 2014 as provided under (a) and (b) above containsany material misstatement. (Refer note no. 49 to the standalone financial statement)

v. a) The final dividend paid by the Company during the year in respectof the previous year is in accordance with Section 123 of the Act to the extent it appliesto payment of dividend.

b) The interim dividend declared and paid by the Company during theyear is in accordance with the Section 123 of the Act.

c) As stated in the note 34(B) to the standalone financial statementsthe Board of Directors of the Company has proposed final dividend for the year which issubject to the approval of the members at the ensuing annual general meeting. The dividenddeclared is in accordance with Section 123 of the Act to the extent it applies to thedeclaration of dividend.

Annexure A to the Independent Auditors' Report

ANNEXURE "A" REFERRED TO IN "REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTS" SECTION OF OUR REPORT TO THE MEMBERS OF THE SUPREMEINDUSTRIES LIMITED OF EVEN DATE:

i. a. In respect of Company's Property Plant and Equipment (PPE) andIntangible Assets:

A. The Company has maintained proper records showing full particularsincluding quantitative details and situation of PPE and relevant details of right-to-useassets.

B. The Company has maintained proper records showing full particularsof intangible assets.

b. As explained to us the Company has a phased program for physicalverification of the PPE for all locations. In our opinion the frequency of verificationis reasonable considering the size of the Company and nature of its PPE. Physicalverification of the assets has been carried out during the year pursuant to the programmein that respect. According to the information and explanations given to us and on thebasis of our examination of the records no material discrepancies were noticed on suchverification.

c. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties disclosed in the financial statements included under property plant andequipment other than properties where the company is lessee and lease agreements are dulyexecuted in favour of the Company are held in the name of the Company except thefollowing:

Description of Gross Held in the Whether Period held: Reason for not being Property carrying name of promoter director indicate a held in the name of amount or their relative or range where Company (Rs in Crores) employee appropriate
Free Hold land non-Agricultural 1.14 Hector Gat No. 242/1 & 2 of Mehrun Shivar back side of MIDC Jalgaon 0.05 Mr. Shivratan Jeetmal Taparia Director Purchased on 27/03/1987 i.e. since last 35 years We have been informed that Company has obtained deed of declaration from the directors mentioning they have no right on these properties. Further due to some procedural/technical issues both the the properties are still not transferred in the name of the company.
Free Hold land Agricultural 0.86 Hector Gat No. 244/2 3 4 & 5 of Mehrun Shivar back side of MIDC Jalgaon 0.38 Mr. Mahavir Prasad Surajmal Taparia Director Purchased on 17/12/2004 i.e. since last 18 years

d. The Company has not revalued any of its PPE (including right-of-useassets) and intangible assets during the year and hence reporting under clause 3(i)(d) ofthe Order is not applicable to the Company.

e. In our opinion and according to the information and explanationsgiven to us and on the basis of our examination of the records neither any proceedingshave been initiated during the year nor are pending as at March 31 2022 for holding anybenami property under the Benami Transactions (Prohibition) Act 1988 as amended andrules made thereunder and hence reporting under clause 3(i)(e) of the Order is notapplicable to the Company.

ii. a. The inventories have been physically verified by the managementat reasonable intervals during the year except for goods

in transit and those lying with third parties. The procedures ofphysical verification of the inventories followed by the management are reasonable andadequate in relation to the size of the Company and nature of it's business. As per theinformation and explanations given to us and on the basis of our examination of therecords no discrepancies of 10% or more in the aggregate for each class of inventory werenoticed on physical verification of inventories as compared to book records.

b. According to the information and explanations given to us and on thebasis of our examination of the records the Company has not been sanctioned workingcapital limit in excess of Rs 5 crores on the basis of security of current assets inaggregate at any point of time during the year from banks and financial institutions andhence reporting under clause 3(ii)(b) of the Order is not applicable to the Company.

iii. In respect of Investment in provided any guarantee or security orgranted any loans or advances in the nature of loans secured or unsecured to companiesfirms Limited Liability Partnerships or any other parties:

(a) The Company has not provided any loans or advances in the nature ofloans or guarantee or provided security to any other entity during the year and hencereporting under clause 3(iii)(a) is not applicable to the Company.

(b) According to the information and explanations given to usinvestment made are in the ordinary course of business and in our opinion prima facienot prejudicial to the Company's interest.

(c) The Company has not granted any loans or advances in the nature ofloans during the year and hence reporting under clauses 3(iii)(c) (d) (e) and (f) of theOrder is not applicable to the Company.

iv. In our opinion and according to the information and explanationsgiven to us and on the basis of our examination of the records the Company has compliedwith the provisions of section 185 and 186 of the Act to the extent applicable withrespect to the investments made during the year. The Company has not provided any loansguarantee and security during the year.

v. In our opinion and according to the information and explanationsgiven to us no deposits or amounts which are deemed to be deposits within the meaning ofSection 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptanceof Deposits) Rules 2014 have been accepted by the Company and hence reporting underclause 3(v) of the Order is not applicable to the Company.

vi. We have broadly reviewed the books of account maintained by theCompany pursuant to rules made by the central government for the maintenance of costrecords under sub section 1 of section 148 of the Act in respect of company's products andare of the opinion that prima facie the prescribed accounts and records have been madeand maintained. However we have not made a detailed examination of the cost records witha view to determine whether they are accurate and 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 in depositing undisputed statutory dues includingGoods and Services tax provident fund employees' state insurance income tax sales taxcustom duty duty of excise value added tax cess and other statutory dues during theyear with the appropriate authorities. No undisputed amounts payable in respect of theaforesaid statutory dues were outstanding as at the last day of the financial year for aperiod of more than six months from the date they became payable.

(b) According to the information and explanations given to us and onthe basis of our examination of the records there are no statutory dues mentioned inclause vii (a) which have been not deposited on account of any dispute except thefollowing:

Name of the statute Nature of dues Amount Rs in Crores Period to which the amount relates Forum where dispute is pending
The Central Excise Act 1944 Excise Duty and Penalty 40.16 2000-01 to 2016-17 Custom Excise & Service Tax Appellate tribunal (CESTAT)
The Central Sales Tax Act 1956 and Sales Tax / VAT / Entry Tax- Acts of Sales Tax / VAT and Entry Tax 14.56 Various years from 2000-01 to 2016-17 Joint / Deputy Commissioner / Commissioner (Appeals)
various states 1.30 Various Years from 2002-03 to 2015-16 Sales tax Appellate Tribunal
1.88 Various Years from 2002-03 to 2012-13 High Court
Deputy Commissioner Sales Tax Jalgaon Profession tax 1.15 2012-13 Deputy commissioner of sales tax Jalgaon division Jalgaon
Maharashtra Land Revenue Code 1966 Royalty 0.28 2006-07 Collector - Pune
Bombay Stamp Act 1958 Stamp Duty 1.13 2006 Deputy Inspector General of Registration and Deputy Collector of Stamps Pune
Maharashtra Land Revenue Code 1966 Royalty on sand 0.17 2020-21 Collector Khalapur Raigad
Local Authority (ADDA) Development Fee 0.75 2009-10 ADDA
Professional Tax Profession Tax 0.00* 2009-10 Deputy Commissioner Profession Tax (DGP) WB
The Employee' Provident Funds & Miscellaneous Provision Act1952 Provident Fund 0.05 2002-03 to -2005-05 The Regional Provident Fund Commissioner-Gwalior
Employee State Insurance Act-1948 ESIC 0.24 2007-08 to 2010-11 Regional Director Indore

* Represents amount below Rs. 1000

viii. According to the information and explanations given to us and onthe basis of our examination of the records there were no transactions relating topreviously unrecorded income that have been surrendered or disclosed as income during theyear in the tax assessments under the Income Tax Act 1961 (43 of 1961) and hencereporting under clause 3(viii) of the Order is not applicable to the Company.

ix. (a) Based on our audit procedures and on the basis of informationand explanations given to us and on the basis of our examination of the records we are ofthe opinion that the Company has not defaulted in the repayment of loans or otherborrowings or in the repayment of interest thereon to the lenders and hence reportingunder clause 3(ix) of the Order is not applicable to the Company.

(b) The Company has not been declared as willful defaulter by any bankor financial institution or other lender.

(c) In our opinion and according to the information and explanationsgiven to us and on the basis of our examination of the records the Company has not takenany term loan during the year and hence reporting under clause 3(ix)(c) of the Order isnot applicable to the Company.

(d) On an overall examination of the standalone financial statementsin our opinion the Company has not utilized funds raised on short term basis for long termpurposes.

(e) Based on our audit procedures and on the basis of information andexplanations given to us the Company has not taken any funds from any entity or person onaccount of or to meet the obligations of its subsidiaries associates or joint venture andhence reporting under clause 3(ix)(e) of the Order is not applicable to the Company.

(f) Based on our audit procedures and on the basis of information andexplanations given to us during the year the Company has not raised any funds on thepledge of securities held in its subsidiaries joint venture and associates and hencereporting under clause 3(ix)(f) of the Order is not applicable to the Company.

x. (a) In our opinion and according to the information and explanationsgiven to us the Company has not raised any money by way of Initial public offer orfurther public offer (including debt instrument) during the year and hence reporting underclause 3(x)(a) of the Order is not applicable to the Company.

(b) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not made anypreferential allotment private placement of shares or fully or partly convertibledebentures during the year or in the recent past and hence reporting under clause 3(x)(b)of the Order is not applicable to the Company.

xi. (a) During the course of our examination of the books and recordsof the Company carried out in accordance with the generally accepted auditing practicesin India and according to the information and explanations given to us we have neithercome across any instance of fraud by or on the Company noticed or reported during theyear nor have we been informed of such case by the management except fraud by way ofembezzlement by an employee at its manufacturing Unit at Gadegaon audited by the BranchAuditor of that Unit involving an amount of Rs. 0.17 crore which has been recovered fromthe employee.

(b) During the year no report under sub section 12 of Section 143 ofthe Act has been filed in Form ADT-4 as prescribed in Rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government.

(c) Based on our audit procedure performed and according to theinformation and explanations given to us no whistle blower complaints were received bythe Company during the year and hence reporting under clause 3(xi)(c) of the Order is notapplicable to the Company.

xii. In our opinion and according to the information and explanationsgiven to us and on the basis of our examination of the records the Company is not a NidhiCompany and hence reporting under clause 3(xii) of the Order is not applicable to theCompany.

xiii. According to the information and explanations given to us andbased on our examination of the records of the Company all the transactions with relatedparties are in compliance with Section 177 and 188 of the Act and all the details havebeen disclosed in the standalone financial statements as required by the applicableAccounting Standard. (Refer note no. 40 to the standalone financial statements)

xiv. (a) In our opinion and according to the information andexplanations given to us the Company has an adequate internal audit system commensuratewith the size and nature of its business.

(b) We have considered the internal audit reports for the year underaudit issued to the Company during the year and till date in determining nature timingand extent of our audit procedure.

xv. According to the information and explanations given to us theCompany has not entered into any non-cash transactions prescribed under Section 192 of theAct with directors or persons connected with them during the year.

xvi. (a) The Company is not required to be registered under Section45-IA of the Reserve Bank of India Act 1934 and hence reporting under clause 3(xvi) (a)(b) and (c) of the Order is not applicable to the Company.

(b) In our opinion there is no core investment company within the"Companies in the Group" as defined in the Core Investment Companies (ReserveBank) Directions 2016 and hence reporting under clause 3(xvi)(d) of the Order is notapplicable to the Company.

xvii. The Company has not incurred any cash losses during the financialyear covered by our audit and immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors of theCompany during the year and hence reporting under clause 3(xviii) of the Order is notapplicable to the Company.

xix. According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the standalonefinancial 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 the Company is not capable of meeting itsliabilities existing at the date of balance sheet as and when they fall due within aperiod of one year from the balance sheet date. We however state that this is not anassurance as to the future viability of the Company. We further state that our reportingis based on the facts up to the date of the audit report and we neither give any guaranteenor any assurance that all liabilities falling due within a period of one year from thebalance sheet date will get discharged by the Company as and when they fall due.

xx. According to the information and explanations given to us and onthe basis of our examination of the records there are no amounts unspent in respect ofcorporate social responsibility towards ongoing or other than ongoing projects and hencereporting under clause 3(xx) (a) and (b) of the Order is not applicable to the Company.

Annexure B to the Independent Auditors' Report

ANNEXURE "B" REFERRED TO IN "REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTS" SECTION OF OUR REPORT TO THE MEMBERS OF THE SUPREMEINDUSTRIES LIMITED OF EVEN DATE:

Report on the Internal Financial Controls over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Act

We have audited the internal financial controls over financialreporting of The Supreme Industries Limited ("the Company") as of March 31 2022in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential component 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 and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal financial controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 auditor's 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 internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting is aprocess 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 internal financialcontrol over financial reporting includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions 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 entity are being made only in accordance with authorisations ofmanagement;(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the entity's assets that could have amaterial effect on the standalone financial statements; and (4) also provide reasonableassurance by the internal auditors through their internal audit reports given to theorganisation 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.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has broadly in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2022 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential Component of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For LODHA & COMPANY
Chartered Accountants
Firm registration No. - 301051E
A.M. Hariharan
Partner
Place : Mumbai Membership No. 38323
Date : April 29 2022 UDIN: 22038323AIJDNG4508

.