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Supreme Petrochem Ltd.

BSE: 500405 Sector: Industrials
NSE: SPLPETRO ISIN Code: INE663A01025
BSE 00:00 | 12 Aug 821.50 1.55
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NSE 05:30 | 01 Jan Supreme Petrochem Ltd
OPEN 835.00
PREVIOUS CLOSE 819.95
VOLUME 4000
52-Week high 1027.05
52-Week low 602.20
P/E 10.94
Mkt Cap.(Rs cr) 7,724
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 835.00
CLOSE 819.95
VOLUME 4000
52-Week high 1027.05
52-Week low 602.20
P/E 10.94
Mkt Cap.(Rs cr) 7,724
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Supreme Petrochem Ltd. (SPLPETRO) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

SUPREME PETROCHEM LIMITED

Report on the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of SupremePetrochem Limited ("the Company") which comprise the Balance Sheet as atMarch 312022 the Statement of Profit and Loss (including other comprehensive income)Statement of Changes in Equity and Statement of Cash Flows for the year then ended and asummary of significant accounting policies and other explanatory information (hereinafterreferred to as "the standalone financial statements").

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 including the Indian Accounting Standards specified undersection 133 of the Act ("Ind AS") of the state of affairs of the Company as atMarch 31 2022 and its profit (including other comprehensive income) changes in equityand its cash 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 Audit of theStandalone Financial Statements section of our report. We are independent of the Companyin accordance 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 ICAI's Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our opinion.

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 bekey audit matters to be communicated in our report.

Key Audit Matter description How the scope of our audit responded the key audit matter
Valuation of inventory:
Inventory forms a significant part i.e. 13.20% of the Company's total assets. We have reviewed the stock records and held discussion with the management. We verified arithmetical accuracy of valuation records / reports.
Inventory comprises of Raw Materials Finished Goods Stock in process and Stores and Spares. Almost entire inventory except inventory at third party locations and finish goods in transit were physically verified by the management as at March 31 2022. This verification was in addition to actual verification of inventory test checked by us during the course of our audit at the plant at Nagothane and Manali and at certain godowns of the Company. We have also carried out alternate audit procedures to satisfy ourselves with respect to existence and condition of the inventory at the year-end.
Inventories are valued at lower of cost and net realisable value.
Styrene Monomer is the main raw material for the Company. Styrene Monomer which is imported is subject to high price fluctuation risk as well as foreign currency risk.
The volatility in the prices of Styrene Monomer may significantly impact the valuation of not only Raw material but also other items of inventory. For a sample of inventory items we have verified that the weighted average cost calculation by the system and satisfied ourselves.
In determining the net realisable value the management uses data of sales of finished good available which is a management estimate. We have reviewed the price movement of Styrene Monomer prices with respect to cost to the Company based on the contracts entered onto by the Company. Compared such prices with the last selling prices.
We have considered this as a key audit matter due to the significance in the amount of inventory and volatility in the prices of Styrene Monomer. Compared the value of Finished Goods with the last selling prices of the respective product to determine the basis of valuation adopted.

Information Other than the Standalone Financial Statements and OurReport thereon

The Company's Board of Directors is responsible for the otherinformation. The Other Information comprises of the Directors' Report and ManagementDiscussion & Analysis (but does not include the standalone financial statements andour report thereon) which we obtained prior to the date of this report. Our opinion onthe standalone financial statements does not cover the Other Information and we do not andwill 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 identified above and in doing soconsider whether the Other Information is materially inconsistent with the standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

If based on the work we have performed on the Other Information thatwe obtained prior to the date of this auditor's report we conclude that if there is amaterial misstatement of this Other Information we are required to report that fact. Wehave nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance 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 financialperformance changes in equity cash flows of the Company in accordance with the Ind ASand other accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding 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 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.

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 theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and 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 conditions maycause 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 financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of the misstatement in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin; (i) planning the scope of our audit work and evaluating the results of our work; and(ii) to evaluate the effects 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 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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ('theOrder') issued by the Central Government of India in terms of section 143(11) of the Actwe give in the 'Annexure A' a statement on the matters specified in the paragraph 3 and 4of 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 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 Cash Flows and the Statement of Changes in Equitydealt with by this Report are in agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under section 133 of the Act read with rule 7 ofthe Companies (Accounts) Rules 2014;

e) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof 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';

g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act 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.

h) With respect to the other matters to be included in the Auditor'sReport in accordance with rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended 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 itsstandalone financial position in its standalone financial statements. Refer Note 40 to thefinancial statements;

ii. The Company has made provisions as required under the applicablelaw or accounting standards for material foreseeable losses if any on long termcontracts including derivative contracts to the standalone financial statements; and

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 itsknowledge and belief no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the Company toor in any other person(s) or entity(ies) including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries.

(b) As stated in note no. 55 the management has represented that tothe best of its knowledge and belief no funds have been received by the Company from anyperson(s) or entity(ies) including foreign entities ("Funding Parties") withthe understanding whether recorded in writing or otherwise that the Company shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries; and

(c) Based on such audit procedures that we considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (a) and (b) contain any materialmisstatement.

v As stated in Note 17.10 to the standalone financial statements

(a) The final dividend proposed for the previous year declared andpaid by the Company during the year is in accordance with Section 123 of the Act.

(b) The interim dividend declared and paid by the Company during theyear and until the date of this report is in compliance with Section 123 of the Act.

(c) The Board of Directors of the Company have proposed final dividendfor the year which is subject to the approval of the members at the ensuing Annual GeneralMeeting. The amount of dividend proposed is in accordance with section 123 of the Act.

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT OF OUR REPORT OFEVEN DATE

Referred to in paragraph 1 under ‘Report on Other Legal &Regulatory Requirements' of our report on even date to the members of the Company onstandalone financial statements for the year ended March 31 2022

(i) (a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of property plant and equipment.

(B) The Company has maintained proper records of Intangible assetsshowing full particulars of such assets;

(b) As informed to us the property plant and equipment andright-to-use assets have been physically verified by the management during the periodaccording to a phased programme. In our opinion such programme is reasonable havingregard to the size of the Company and the nature of its assets. We have been furtherinformed that no material discrepancies were noticed on such verification by themanagement between the book records and physical verification.

(c) Based on our examination of the property tax receipts and leaseagreement for land on which building is constructed registered sale deed / transfer deed/ conveyance deed provided to us we report that the title in respect of self-constructedbuildings and title deeds of all other immovable properties (other than properties wherethe company is the lessee and the lease agreements are duly executed in favour of thelessee) disclosed in the financial statements included under Property Plant andEquipment are held in the name of the Company as at the balance sheet date

(d) The Company not has revalued its Property Plant and Equipment(including Right of Use assets) or intangible assets or both during the year. Accordinglyparagraph 3(i)(d) of the Order are not applicable;

(e) As represented by the management there are no proceedings initiatedor are pending against the company for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (45 of 1988) and rules made thereunder.

(ii) (a) Inventories have been physically verified during the year bythe management during the year and at the year end. In our opinion the coverage andprocedure of verification is reasonable; and

The discrepancies noticed on physical verification in each class ofInventory as compared to the book records were not material (less than 10%) having regardsto size and nature of operations and have been properly dealt with in the books ofaccount;

As stated in note no. 54 the Company has been sanctioned workingcapital limits in excess of five crore rupees in aggregate from banks or financialinstitutions on the basis of security of current assets during the year. We have observedthat there are no discrepancies in the revised quarterly statements filed by the Companywith such banks as compared to the books of account maintained by the Company. However wehave not carried out a specific audit of such statements.

(iii) The Company has made investments in companies firms LimitedLiability Partnerships and granted unsecured loans to other parties during the year

(a) (A) The Company does not have any subsidiaries joint ventures andassociates and hence reporting under clause 3(iii)(a) (A) of the Order is not applicable.;

(B) details of investments in companies firms Limited LiabilityPartnerships and granted unsecured loans to other parties during the year are as under:

(Rs in Lakhs)

Guarantees Security Loans Advances in nature of loans
Aggregate amount granted/ provided during the year
- Subsidiaries
- Joint Ventures
- Associates
- Others 5500.00
Balance outstanding as at balance sheet date in respect of above cases
- Subsidiaries
- Joint Ventures
- Associates
- Others 5500.00

(b) In our opinion the investments made and the terms and conditionsof the grant of loans during the year are prima facie not prejudicial to the Company'sinterest

(c) In respect of loans and advances in the nature of loans theschedule of repayment of principal and payment of interest has been stipulated and therepayments or receipts are regular;

(d) In respect of loans granted by the Company there is no overdueamount remaining outstanding as at the balance sheet date.

(e) No loan granted by the Company which has fallen due during theyear has been renewed or extended or fresh loans granted to settle the overdues ofexisting loans given to the same parties.

(f) The Company has not granted any loans or advances in the nature ofloans either repayable on demand or without specifying any terms or period of repaymentduring the year. Hence reporting under clause 3(iii) (f) is not applicable.

(g) The Company has not provided any guarantee or security or grantedany advances in the nature of loans secured or unsecured to companies firms LimitedLiability Partnerships or any other parties.

(iv) The Company has complied with the provisions of Sections 185 and186 of the Companies Act 2013 in respect of loans granted investments made andguarantees and securities provided as applicable.

(v) In our opinion and according to the information and explanationsgiven to us the Company has complied with the directives issued by the Reserve Bank ofIndia and the provisions of sections 73 to 76 or any other relevant provisions of the Actand the rules framed there under to the extent applicable. We are informed by theManagement that no order has been passed by the Company Law Board or National Company LawTribunal or Reserve Bank of India or any court or any other Tribunal in this regard.

(vi) We have broadly reviewed accounts and records maintained by theCompany pursuant to rules made by the Central Government for the maintenance of costrecords under Section 148(1) of the Act in respect of Company's products to which thesaid rules are made applicable and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have however not made a detailedexamination of records with a view to determine whether they are accurate.

(vii) (a) According to the information and explanations given to us andaccording to the records of the Company examined by us in our opinion the Company isgenerally regular in depositing with the appropriate authorities undisputed statutory duesincluding Provident Fund Employees' State Insurance Income- tax Sales Tax and Goods andServices Tax. According to the information and explanations given to us no undisputedamounts payable in respect of aforesaid dues were outstanding as at March 31 2022 for aperiod of more than 6 months from the date they became payable.

(b) According to the information and explanations given to us theparticulars of statutory dues that have not been deposited on account of disputes are asunder:

(Rs in Lakhs)

Statutes Nature of Dues Period Amount (Rs in Lakhs) Forum where disputes pending
1 Service Tax (Finance Act 1994) Service Tax and penalty Sep-2013 - May-2015 117.57 CESTAT
2 Tamil Nadu VAT Act 2006 VAT and penalty. 2009-2010 0.61 Deputy Commissioner (Appeals)
2010-2011 0.65 Deputy Commissioner (Appeals)
2011-2012 1.99 Deputy Commissioner (Appeals)
2012-2013 1.98 Deputy Commissioner (Appeals)
2013-2014 10.48 Deputy Commissioner (Appeals)
2014-2015 2.27 Deputy Commissioner (Appeals)
2015-2016 3.72 Deputy Commissioner (Appeals)
2012-2013 1.19 Additional Commissioner
3 GST Act ITC disallowed 2016-2017 16.71 Deputy Commissioner (Appeals)

(viii) According to the information and explanations given to us thereare no transactions not recorded in the books of account which have been surrendered ordisclosed as income during the year in the tax assessments under the Income Tax Act 1961(43 of 1961).

(ix) The Company has not defaulted in repayment of dues to thefinancial institutions banks and government. The Company has not issued any debentures;

a) The management has represented that the Company has not beendeclared willful defaulter by any bank or financial institution or government or anygovernment authority.

b) The Company has not taken any term loan during the year and thereare no outstanding term loans at the beginning of the year and hence reporting underclause 3(ix)(c) of the Order is not applicable.

c) On an overall examination of the financial statements of theCompany funds raised on short-term basis have prima facie not been used during the yearfor long-term purposes by the Company.

d) The Company does not have any subsidiaries joint ventures orassociate companies. Accordingly paragraph 3 (ix)(e) of the order is not applicable tothe Company;

e) The Company does not have any subsidiaries joint ventures orassociate companies. Accordingly paragraph 3 (ix)(f) of the order is not applicable tothe Company;

(x) The Company has not raised money by way of initial public offer orfurther public offer (including debt instruments) nor any term loan during the periodunder audit. Accordingly clause 3(x) of the Order is not applicable.

(xi) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us no frauds have beennoticed or reported during the period by the Company.

(xii) The Company is not a chit fund or a Nidhi Company. Accordinglythe provision of the clause 3(xii) of the Order is not applicable to the Company.

(xiii) According to the information and explanation given to us andbased on our examination of the records of the Company transactions with related partiesare in compliance with sections 177 and 188 of the Act where applicable and the detailshave been disclosed in the Financial Statements etc. as required by the applicableaccounting standards.

(xiv) (a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the 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 the naturetiming and extent of our audit procedures.

(c) The management has represented that there are no whistle-blowercomplaints received and accordingly the provision of the clause 3(xiv)(c) of the order isnot applicable to the Company.

(xv) The Company has not entered into any non-cash transactions withdirectors or persons connected with him covered under the provisions of section 192 of theAct. Accordingly the provision of the clause 3(xv) of the Order is not applicable to theCompany.

(xvi) (a) In our opinion the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause3(xvi) (a) (b) and (c) of the Order is not applicable.

(b) The management has represented that there is no core investmentcompany within the Group (as defined in the Core Investment Companies (Reserve Bank)Directions 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is notapplicable.

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

(xviii) There has been no resignation of the statutory auditors of theCompany during the year.

(xix) On the basis of the financial ratios ageing and expected datesof realisation of financial assets and payment of financial liabilities other informationaccompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examination of the evidence supporting the assumptionsnothing has come to our attention which causes us to believe that any materialuncertainty exists as on the date of the audit report indicating that Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the Company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the Company as and when they falldue.

(xx) (a) There are no unspent amounts towards Corporate SocialResponsibility (CSR) on other than ongoing projects requiring a transfer to a Fundspecified in Schedule VII to the Companies Act in compliance with second proviso tosub-section (5) of Section 135 of the said Act. Accordingly reporting under clause 3(xx)(a) of the Order is not applicable for the year.

(b) In respect of ongoing projects the Company has informed us thatthe unspent Corporate Social Responsibility (CSR) amount as at the Balance Sheet date outof the amounts that was required to be spent during the year has been deposited in aSpecial Account in compliance with the provision of sub-section (6) of section 135 of thesaid Act as on the date of this report.

ANNEXURE B

Annexure B - referred to in paragraph 3(g) under "Report on OtherLegal and Regulatory Requirements" of our report of even date

Report on the Internal Financial Controls with reference to financialstatements under clause (i) of sub-section 3 of section 143 of the Companies Act 2013("the Act")

Opinion

We have audited the internal financial controls with reference tofinancial statements of Supreme Petrochem Limited ("the Company") as of March312022 in conjunction with our audit of the Standalone Financial Statements of theCompany for the year ended on that date.

In our opinion the Company has in all material respects an adequateinternal financial controls system with reference to financial statements and suchinternal financial controls with reference to financial statements were operatingeffectively as at March 31 2022 based on the internal control over financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI).

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control with reference tofinancial statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia (ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding 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 with reference to financial statements based on our audit. We conductedour audit in accordance with the Guidance Note on Audit of Internal Financial ControlsOver Financial Reporting (the "Guidance Note") and the Standards on Auditingissued by 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 Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls with reference to financial statements 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 with reference to financialstatements and their operating effectiveness.

Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financial controls withreference to 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 standalone financialstatements whether due to fraud or error. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on theCompany's internal financial controls system with reference to financial statements.

Meaning of Internal Financial Controls With reference to FinancialStatements

A Company's internal financial control with reference to financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of standalone financial statements for externalpurposes in accordance with generally accepted accounting principles. A company's internalfinancial control with reference to 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 asnecessary to permit preparation of standalone financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls With reference toFinancial Statements

Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial control with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

For G. M. Kapadia & Co. Chartered Accountants
Firm Registration No.104767 W
Rajen Ashar Partner
Membership No. 048243
UDIN: 22048243AHWXAO1010
Place: Mumbai
Dated this 27 day of April 2022

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