To the Members of Transformers & Rectifiers (India) Limited Report on the Audit ofthe Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of Transformers andRectifiers (India) Limited ("the Company") which comprise the Balance Sheet asat March 31 2021 the Statement of Profit and Loss including Other Comprehensive Incomethe Statement of Changes in Equity and the Statement of Cash Flows for the year then endedand notes to the standalone financial statements including a summary of significantaccounting policies and other explanatory information (hereinafter referred to as"the standalone financial statements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards specified under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2021 and total comprehensiveincome (comprising of profit and other comprehensive income) changes in equity and itscash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditors'Responsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion.
Emphasis of Matter
We draw your attention to Note 53 of the standalone financial statements whichdescribes the impact of Coronavirus disease 2019 (Covid-19) on the operations andfinancials of the Company.
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 these standalone financial statements of the current year.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|Key Audit Matters ||How our audit addressed the key audit matters |
|1 Reasonableness of carrying value of investments made in and loans given to subsidiary company. ||Our audit procedures inter alia included following: |
|(Refer note 6(b) to the standalone financial statements) ||- Assessed the process for identifying impairment indicators and obtained an understanding of impairment assessment process performed by the management; |
|There is a risk in respect of the possible impairment of Investments made in and loans given to subsidiary due to its inability to achieve profits and existence of substantial accumulated losses in Retained Earnings as at March 31 2021 which might affect the recoverable amounts of investments made in & loans given to the subsidiary company. ||- Obtained understanding of management' future plans about subsidiary's operations' |
|For impairment testing purpose the company has assessed the recoverability of its investments and loans based on financial position of the Subsidiary as at March 31 2021 and recognised additional impairment provision of Rs. 15 lakhs in respect of its investments. ||- Considered the adequacy of the impairment provision and related disclosures made in standalone financial statements. |
|Since the assessment of the recoverable amount of said investments and loans required considerable amount of judgments and the amount of impairment provision being material this is considered to be a key audit matter. ||Conclusion: |
| ||Based on procedures described above we did not find any material exceptions to conclusion arrived by the management based on procedures performed by it in the recoverability assessment of investments in and loans given to subsidiary company. |
|2 Recoverability assessment of trade receivables ||Our audit procedures inter alia included following: |
|(Refer note 12 to the standalone financial statements) ||- Tested the accuracy of aging of trade receivables at year end on a sample basis; |
|There is a risk in respect of default on receivables from the Company's customers. The Company is exposed to potential risk of financial loss when the customers fail to meet their contractual obligations in accordance with the requirements of the agreements. ||- Obtained a list of outstanding receivables and identified any debtors with financial difficulty through discussion with management; |
|The recoverable amount was estimated by management based on their specific recoverability assessment on major individual debtor with reference to the aging profile historical payment pattern and the past record of default by the customer. Management uses provision matrix for estimating and recognizing loss allowance for other trade receivables. For the purpose of loss allowance / impairment assessment significant judgements and assumptions including historically observed default rates over the expected life the credit risks of customers the timing and amount of realisation of these receivables are required. Therefore it is considered a key audit matter. ||- Assessed the recoverability of the unsettled receivables on a sample basis through our evaluation of management's assessment with reference to the credit profile of the customers and historical payment pattern of customers; |
| ||- Tested subsequent settlement of trade receivables after the balance sheet date on a sample basis if any and; |
| ||- Considered whether any additional impairment provision is required to be made. Conclusion: |
| ||Based on the procedures described above we did not find any material exceptions to the key judgements and assumptions used by management in the recoverability assessment of trade receivables. |
|3 Recognition and measurement of MAT Credit Entitlement ||Our audit procedures inter alia included following: |
|(Refer Note 24 to the standalone financial statements) ||- Analysed the underlying processes and the controls implemented in respect of recognition and measurement of MAT Credit Entitlement working; |
|The recognition and measurement of MAT Credit Entitlement requires significant calculations of future taxable profits. Furthermore the assessment of the ability to use MAT Credit Entitlement is based on the expectations of the Management regarding the Company's economic development which is influenced by the current market environment and the assessment of future market development and thus requires the use of judgment. ||- Examined the identification and quantification of MAT Credit Entitlement according to tax regulations and financial reporting pursuant to Indian accounting standard-12 "Income Taxes"; |
|In light of this and on account of accumulation of reasonably high MAT Credit Entitlement amount its recognition and measurement are considered a key audit matter. ||- Also examined the projected profitability statement and analysed the manner of the utilization of MAT Credit Entitlement in future. Conclusion: |
| ||Based on the procedures described above we did not find any material exceptions to company's recognition and measurement of MAT Credit Entitlement. |
|4 Litigations and claims ||Our audit procedures inter alia included following: |
|(Refer note 41(A)(i) to the standalone financial statements) ||- Discussed disputed litigation matters with the company's management; |
|The cases are pending with multiple tax authorities like Excise service tax Customs etc. and there are claims from customers which have not been acknowledged as debt by the company. ||- Evaluated the management's judgment of tax risks estimates of tax exposures other claims and contingencies. Further past and current experience with the tax authorities and management's correspondence / response including on the claims lodged by customers were used to assess the appropriateness of management's best estimate of the most likely outcome of each uncertain contingent liability; |
|In normal course of business financial exposures may arise from pending proceedings and from claims of the customers not acknowledged as debt by the company. Whether a claim needs to be recognized as liability or disclosed as contingent liability in the financial statements is dependent on a number of significant assumptions and judgments. The amounts involved are potentially significant and determining the amount if any to be recognised or disclosed in the financial statements is inherently subjective. ||- Critically assessed the entity's assumptions and estimates in respect of claims included in the contingent liabilities disclosed in the standalone financial statements. Also assessed the probability of negative result of litigation and the reliability of estimates of related obligations. Conclusion: |
|We have considered Litigations and claims a Key Audit Matter as it requires significant management judgement including accounting estimates that involve high estimation uncertainty. ||Based on the procedures described above we did not find any material exceptions to the management's assertions and treatment presentation & disclosure of the subject matter in the standalone financial statements. |
Information Other than the Standalone Financial Statements and Auditors ReportThereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board'sReport including Annexures to Board's Report Management Discussion and Analysis/Corporate Governance Report and Shareholder's Information but does not include thestandalone financial statements and our auditors' report thereon. The above-referredinformation is expected to be made available to us after the date of this audit report.Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated. When we read the information if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance and take appropriate actions necessitated by the circumstances & theapplicable laws and regulations.
Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial 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 financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act. 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 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the standalone 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 is also responsible foroverseeing the Company's financial reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditors' 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 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 standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to standalone financial statements inplace and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a 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 auditors' report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditors' report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current year and are therefore the key audit matters. We describe these matters inour auditors' report unless law or regulation precludes public disclosure about thematters or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' 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 Annexure "A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act we report that:
a. we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;
b. in our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;
c. the Balance Sheet the Statement of Profit and loss including other comprehensiveincome the Statement of Changes in Equity and the Statement of Cash Flows dealt with bythis Report are in agreement with the books of account;
d. in our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act;
e. on the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 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 with reference tostandalone financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate report in Annexure "B";
g. with respect to the other matters to be included in the Auditors' Report inaccordance 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 the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act; and
h. with respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 its financialposition in its standalone financial statements - Refer Note 41(A)(i) of the standalonefinancial statements;
ii. the Company has long-term contracts as at March 31 2021 for which there are nomaterial foreseeable losses. The company did not have any derivative contracts as at March31 2021;
iii. there has been delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company in case of Dividend declared inF.Y.2012-13 where the unpaid Dividend amounting to Rs. 0.48 Lakhs and Fraction shareDividend amounting to Rs. 0.54 Lakhs were transferred on March 31 2021 as against therespective due dates - October 4 2020 and October 9 2020.
| ||For K. C. Mehta & Co. |
| ||Chartered Accountants |
| ||Firms Registration No. 106237W |
| ||Vishal P. Doshi |
|Place: Vadodara ||Partner |
|Date: May 25 2021 ||Membership No. 101533 |
| ||UDIN : 21101533AAAABP2190 |
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements section of our report of even date to the members of Transformers andRectifiers (India) Limited)
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets except in case of certain assets whereitem wise particulars and tagging of fixed assets is pending for updation in the fixedassets register.
(b) The Company has a regular program of physical verification of fixed assets whichin our opinion is reasonable. The assets which were to be covered as per the said programhave been physically verified by the management during the year. In our opinion andaccording to the information and explanations given to us no material discrepancies werenoticed on such verification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties otherthan self-constructed properties are held in the name of the Company.
ii. The Inventories except for goods-in-transit and inventories lying with thirdparties have been physically verified by the management during the year and in ouropinion the frequency of verification is reasonable. As explained to us there were nomaterial discrepancies on physical verification of inventory as compared to the bookrecords.
iii. The Company has not granted loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013 except in respect of its wholly owned subsidiary.
(a) In our opinion and according to the information and explanations given to us theterms and conditions on which loans have been granted to the wholly-owned subsidiarycompany covered in the register maintained under section 189 of the Act are not primafacie prejudicial to the interest of the Company.
(b) The schedule of repayment of principal and payment of interest has been stipulatedfor the loan granted to said subsidiary and the repayment/receipts are regular.
(c) The principal and interest are not overdue in respect of loan granted to abovereferred subsidiary.
iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act in respect ofthe loans granted investments made and guarantees and security provided by it.
v. According to the information and explanations given to us the Company has notaccepted any deposits during the year from the public within the meaning of provisions ofsection 73 to 76 of the Act and the rules framed thereunder or under the directivesissued by the Reserve Bank of India and therefore reporting under clause (v) of the Orderis not applicable to the Company.
vi. We have broadly reviewed the records maintained by the Company pursuant to therules prescribed by the Central Government for maintenance of cost records undersub-section (1) of section 148 of the Companies Act 2013 and are of the opinion thatprima facie the prescribed records have been made and maintained. We have however notmade a detailed examination of the records with a view to determining whether they areaccurate or complete.
vii. (a) According to the information and explanations given to us and on the basis ofour examination of the records the Company has been regular in depositing withappropriate authorities undisputed statutory dues including provident fund employee'sstate insurance income-tax duty of customs goods and service tax cess and any otherstatutory dues applicable to it.
Further no undisputed amounts payable in respect of income tax duty of customs goodsand service tax cess and other statutory dues were in arrears as at March 31 2021 for aperiod of more than six months from the date they become payable.
(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no disputed dues in respect of Incometax Sales tax duty of customs and goods and service tax which have not been deposited.According to the information and explanations given to us the following are theparticulars of duty of excise and Service tax as at March 31 2021 which have not beendeposited on account of dispute:
|Name of Statute ||Nature of disputed dues ||Amount (Rs. In lakhs) ||Period to which the amount relates ||Forum where disputes are pending |
|Central Excise Act 1944 ||Excise Duty ||424.52 ||F.Y. 2008-09 to F.Y. 2014-15 & F.Y. 2017-18 ||Central Excise & Service Tax Appellate Tribunal Ahmedabad |
|Central Excise Act 1944 ||Excise Duty ||124.64 ||F.Y. 2011-12 to F.Y. 2015-16 ||Assistant Commissioner of Central Excise Ahmedabad |
|Customs Act 1962 ||Custom Duty ||231.30 ||27-Dec-13 to 23-Sep-16 ||Central Excise & Service Tax Appellate Tribunal Mumbai |
|Finance Act 1994 ||Service Tax ||40.57 ||F.Y. 2014-15 & F.Y. 2015-16 ||Commissioner of (Appeals) Bhopal |
viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to financial institutions and banks. Thecompany has not taken any loans from Government and has not issued any debentures.
ix. In our opinion and according to information and explanation given to us the termloans taken by the Company have been applied for the purpose for which they were raised.The company has not raised any money by way of initial public offer or further publicoffer (including debt instruments) during the year.
x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement of the Company.
xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.
xii. In our opinion the Company is not a Nidhi company and therefore reporting underclause (xii) of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to ustransactions with the related parties are in compliance with sections 177 and 188 of theAct where applicable and the details of such transactions have been disclosed in thestandalone financial statements as required by the applicable Indian accounting standards.
xiv. According to the information and explanations given to us and based on ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year andtherefore reporting under clause (xiv) of the Order is not applicable to the Company.
xv. In our opinion and according to the information and explanations given to us theCompany has not entered into non-cash transactions with directors or persons connectedwith him and therefore reporting under clause(xv) of the Order is not applicable to theCompany.
xvi. In our opinion and according to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934.
| ||For K. C. Mehta & Co. |
| ||Chartered Accountants |
| ||Firms Registration No. 106237W |
| ||Vishal P. Doshi |
| ||Partner |
|Place: Vadodara ||Membership No. 101533 |
|Date: May 25 2021 ||UDIN : 21101533AAAABP2190 |
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2(f ) under Report on Other Legal and RegulatoryRequirements section of our report to the Members of Transformers and Rectifiers(India) Limited on the standalone financial statements of even date)
Report on the Internal Financial Controls with reference to standalone financialstatements under Clause (i) of Sub-section 3 of Section 143 of the Act.
We have audited the internal financial controls with reference to standalone financialstatements of Transformers and Rectifiers (India) Limited ("the Company") as ofMarch 31 2021 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.
Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance note") and the Standards on Auditingspecified under section 143(10) of the Companies Act to the extent applicable to an auditof internal 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 with reference to financial statementswere established and maintained and if such controls operated effectively in all materialrespects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. 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 auditors' 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 Company's internal financial controls withreference to financial statements.
Meaning of Internal Financial Controls with reference to financial statements
A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to financialstatements
Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.
In our opinion the Company has in all material respects adequate internal financialcontrols with reference to standalone financial statements and such internal financialcontrols with reference to standalone financial statements were operating effectively asat March 31 2021 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.
| ||For K. C. Mehta & Co. |
| ||Chartered Accountants |
| ||Firms Registration No. 106237W |
| ||Vishal P. Doshi |
|Place: Vadodara ||Partner |
|Date: May 25 2021 ||Membership No. 101533 |
| ||UDIN : 21101533AAAABP2190 |