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Tanla Platforms Ltd.

BSE: 532790 Sector: IT
NSE: TANLA ISIN Code: INE483C01032
BSE 00:00 | 20 Oct 995.70 23.80
(2.45%)
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970.05

HIGH

1020.00

LOW

955.00

NSE 00:00 | 20 Oct 997.40 24.80
(2.55%)
OPEN

979.00

HIGH

1020.00

LOW

953.05

OPEN 970.05
PREVIOUS CLOSE 971.90
VOLUME 58983
52-Week high 1030.00
52-Week low 273.00
P/E 98.88
Mkt Cap.(Rs cr) 13,542
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 970.05
CLOSE 971.90
VOLUME 58983
52-Week high 1030.00
52-Week low 273.00
P/E 98.88
Mkt Cap.(Rs cr) 13,542
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Tanla Platforms Ltd. (TANLA) - Auditors Report

Company auditors report

To the Members of Tanla Solutions Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Tanla SolutionsLimited (“the Company”) which comprise the balance sheet as at 31st March 2020and the statement of Profit and Loss(Including other comprehensive income) statement ofchanges in equity and statement of Cash Flows for the year then ended and notes to thestandalone financial statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as the “standalonefinancial 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 Indian Accounting Standardsprescribed under section 133 of the Act read with Companies (Indian Accounting Standards)Rules 2015 as amended (“Ind AS”) and other accounting principles generallyaccepted in India of the state of affairs of the Company as at March 312020 and lossincluding 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 ofthe Standalone Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the ethical requirements that are relevant toour audit of the standalone financial statements under the provisions of the Act and theRules thereunder and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

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.

Key Audit Matters

Sr. No Key Audit Matters How the Key Audit Matter was addressed in our audit
1 Revenue Recognition Our audit procedures in respect of this area included:
Refer to the disclosures related to Revenue Recognition in Note 2 to the Financial Statements. 1. Performed walkthroughs and test of controls of the revenue recognition processes and assessed the design and operating effectiveness of key controls.
The company provides mobile messaging and payment solutions for application to Peer(A2P) messaging services. The messaging platform has advanced security reliability analytics service levels along with the proven ability to process the largest volume of messages per second. 2. Evaluated the appropriateness of the Company's accounting policies and assessing compliance with the policies in terms of the applicable accounting standards.
3. Verified the revenue assurance procedures and reconciliations performed by the management to validate SMS counts
Considering the nature of business in which company operates there is an inherent risk in relation to accuracy and completion of revenue recognition. As the complexities of the nature significant volume of data processed and impact of different pricing models we have considered this as a key audit matter.
4. Performed other substantive procedures including analytics.
2 Assessment of COVID-19 Impact-If company has evaluated the impact Our audit procedures in respect of COVID-19 Impact assessment include but are not limited to:
The World Health Organization announced a global health emergency because of a new strain of coronavirus (“COVID-19”) and classified its outbreak as a pandemic on March 112020. On March 24 2020 the Indian government announced a strict 21-day lockdown across the country to contain the spread of the virus which has been/was further extended upto May 312020. This pandemic and response are creating disruption in global supply chain and adversely impacting most of the industries which has resulted in global slowdown. Covid-19 has contributed to a significant decline and volatility in global and Indian economy. Considering the uncertainty around the impact of Covid-19 the company has made provision of Rs 4873.14 lakhs against its investment in subsidiary [Refer note no 5]. 1. Testing the design and operating effectiveness of key controls.
2. Selecting samples based on quantitative and qualitative risk factors.
3. Verifying the sample selected to assess appropriate classification and provision amount as per extant policy.
4. Obtained an understanding of the basis of evaluation of the management.
Our audit procedures in respect of Impairment of Goodwill include but are not limited to:
The full extent and duration of the impact of COVID-19 is currently unknown and the provision made by the Company based on its estimates involves a significant amount of judgement including the duration and spread of the pandemic and any new information that may emerge concerning the severity of the virus its spread to other regions and the actions to contain the virus or treat its impact among others. Hence we have ascertained the assessment of the impact of Covid-19 and provision thereof as a Key Audit Matter. 1. Obtained an understanding from the management with respect to process and controls followed by the Company to perform annual impairment test related to goodwill.
2. Assessed the Company's internal controls over preparation of annual budgets and future forecasts for the business as a whole and the approach followed for annual impairment test and key assumptions applied.
3. Assessed the reasonableness of the assumptions used and appropriateness of the valuation methodology applied and tested the discount rate and long-term growth rates used in the forecast including comparison to economic and industry forecasts where appropriate
4. Assessed reasonableness of the future revenue and margins the historical accuracy of the Company's estimates and its ability to produce accurate long-term forecasts.
5. Compared the future operating cash flow forecasts with the business plan and budgets approved by the Board.
6. Assessed and validated the adequacy and appropriateness of the disclosures made by the management in the standalone financial statements
7. Verification of compliance with Ind AS 36 - Impairment of Assets.
Our audit procedures in respect of Impairment of Investment in subsidiaries include but are not limited to:
1. Assessed the determination of the recoverable amount of the investments based on our understanding of the nature of the company's business and the economic environment surrounding its operations
2. Verified the adjustments in the standalone statements of the subsidiary consequent to which the carrying value of investment was reduced
3. Verified the arithmetical/mathematical accuracy of the management computations
4. Assessed the adequacy of the related disclosures in the notes to the standalone financial statements.
3 Depreciation on Technology Assets (or) Re-measurement of useful lives of Technology Assets Our audit procedures in respect of this area included:
The charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company's assets are determined by the Management at the time the asset is acquired and reviewed periodically including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events which may impact their life. 1. Obtained an understanding of management's process for as- sessment/re-assessment of useful life and tested the design and operating effectiveness of internal controls over such identification and re-measurement
2. Obtained an understanding with management whether there was any objective evidence for re-assessment of useful lives and challenging management's assertions
3. Verified the latest financial statements of the branches/compo- nent audited by the respective auditor
The estimated useful life of an identifiable assets are based on a number of factors including the effects of obsolescence demand competition and other economic factors (such as the stability of the industry and known technological advances) and the level of maintenance expenditures required to obtain the expected future cash flows from the asset.
4. Verified conversion adjustments performed by the management and assessed the arithmeticai/mathematicai accuracy of the computations.
As per the Telecom Commercial Communications Customer Preference Regulations (TCCCPR) 2018 voice and text communications should be provided using block chain technology. For the year ended March 31 2020 the change in technology and cioudification of services has resulted in re-assessment of useful life of technology assets leading to additional provision of accelerated depreciation amounting to Rs 23940.17 lakhs. 5. Assessed the appropriateness of the disclosure made in the financial statements
Pursuant to such change in technology on account of the regulatory mandate the company has re-assessed the useful life of assets at branch amounting to Rs. 30565.35 lakhs which are fully depreciated as at March 312020.
We identified the re-assessment of useful life as a key audit matter because of the significance of these items to the standalone financial statements and the degree of judgement exercised by management in determining whether there was objective evidence for such reassessment.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annual reportbut does not include the standalone financial statements and our auditor's reportthereon.

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 in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 standalone1 financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements the Board ofDirectors is responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the Board of Directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

Those 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.

We give in “Annexure A” a detailed description ofAuditor's responsibilities for Audit of the Standalone Financial Statements. OtherMatter

1. We did not audit the financial statements of one branch included inthe standalone financial statements of the Company whose financial statements reflecttotal assets of Rs.1185.87 Lakhs as at March 312020 and the total revenue of Rs.2134.23Lakhs total net loss 30717.39 lakhs for the year ended on that date as considered inthe standalone financial statements. The financial statements of this branch have beenaudited by the branch auditor whose reports have been furnished to us and our opinion inso far as it relates to the amounts and disclosures included in respect of branch isbased solely on the report of such branch auditor. Further this branch is located outsideIndia whose financial statements have been prepared in accordance with accountingprinciples generally

accepted in their respective countries and which have been audited byother auditors under generally accepted auditing standards applicable in their respectivecountry. The management has converted the financial statements of this branch locatedoutside India from accounting principles generally accepted in their respective countriesto accounting principles generally accepted in India. We have audited these conversionadjustments made by the Company's management.

2. The standalone Ind AS financial statements of the Company for theyear ended March 31 2019 were audited by another auditor whose report dated May 022019expressed an unmodified opinion on those statements.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016(“the Order”) issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in “Annexure B” a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books andproper returns adequate for the purposes of our audit have been received from the branchnot visited by us.

(c) The report on the accounts of the branch office of the Companyaudited under Section 143(8)of the Act by branch auditors have been sent to us and havebeen properly dealt with by us in preparing this report.

(d) The Balance Sheet the Statement of Profit and Loss (includingother comprehensive income) the Statement of Changes in Equity and the Statement of CashFlow dealt with by this Report are in agreement with the books of account and with thereturns received from the branches not visited by us

(e) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014.

(f) On the basis of the written representations received from thedirectors as on March 312020 taken on record by the Board of Directors none of thedirectors is disqualified as on March 312020 from being appointed as a director in termsof Section 164 (2) of the Act.

(g) With respect to the adequacy of the internal financial controlswith reference to standalone financial statements of the Company and the operatingeffectiveness of such controls refer to our separate Report in “Annexure C”.

(h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements - Refer Note 39 to thestandalone financial statements;

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

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

3. As required by The Companies (Amendment) Act 2017 in our opinionaccording to information explanations given to us the remuneration paid by the Companyto its directors is within the limits laid prescribed under Section 197 of the Act and therules thereunder.

For MSKA & Associates Chartered Accountants

ICAI Firm Registration No. 105047W

Amit Kumar Agarwal

Partner

Membership No. 214198 UDIN: 20214198AAAACV5867

Place: Hyderabad INDIA Date: June 10 2020

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT ON EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF TANLA SOLUTIONS LIMITED

Auditor's Responsibilities for the Audit of the StandaloneFinancial 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 internal financial controls with reference to Standalone financialstatements in place and the operating effectiveness 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 thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

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.

We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

For MSKA & Associates

Chartered Accountants

ICAI Firm Registration No. 105047W

Amit Kumar Agarwal

Partner

Membership No. 214198 UDIN: 20214198AAAACV5867

Place: Hyderabad Date: June 10 2020

ANNEXURE B TO INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL

STATEMENTS OF TANLA SOLUTIONS LIMITED FOR THE YEAR ENDED MARCH 312020

[Referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements' in the Independent Auditors'

Report]

i.

(a) The company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets (Property Plant andEquipment).

(b) Fixed assets (Property Plant and Equipment) have been physicallyverified by the management during the year and no material discrepancies were identifiedon such verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

ii. The Company is involved in the business of rendering services.Accordingly the provisions stated in paragraph 3(ii) of the Order are not applicable tothe Company.

iii. The Company has granted loans secured or unsecured to theCompanies covered in the register maintained under section 189 of the Act.

(a) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the rate of interest and otherterms and conditions on which the loans have been granted to the Companies listed in theregister maintained under Section 189 of the Act are not prima facie prejudicial to theinterest of the Company.

(b) In case of the loans granted to the Companies listed in theregister maintained under section 189 of the Act schedule of repayment of principal andpayment of interest have been stipulated and the borrowers have been regular in thepayment of the principal and interest.

(c) There are no amounts overdue for more than ninety days in respectof the loan granted to Companies listed in the reg ister maintained under section 189 ofthe Act.

iv. In our opinion and according to the information and explanationsgiven to us the Company has not either directly or indirectly granted any loan to any ofits directors or to any other person in whom the director is interested in accordancewith the provisions of section 185 of the Act the Company has complied with theprovisions of section 186 of the Act in respect of loans investments guarantees andsecurity made.

v. In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits from the public within the meaningof Sections 73 74 75 and 76 of the Act and the rules framed there under. Accordinglythe provisions of clause 3(v) of the Order are not applicable.

vi. The provisions of sub-section (1) of section 148 of the Act are notapplicable to the Company as the Central Government of India has not specified themaintenance of cost records for any of the products of the Company. Accordingly theprovisions stated in paragraph 3 (vi) of the Order are not applicable to the Company.

vii.

(a) According to the information and explanations given to us and therecords of the Company examined by us in our opinion the Company is regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees' state insurance income-tax goods and service tax duty of customscess and any other statutory dues applicable to it.

(b) According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome-tax service tax goods and service tax cess and other statutory dues wereoutstanding at the year end for a period of more than six months from the date they

became payable.

(c) According to the information and explanation given to us andexamination of the records of the Company the outstanding dues of income-tax goods andservice tax customs duty cess and any other statutory dues on account of any disputeare as follows:

Name of the statute Nature of dues Amount Rs (In lakhs) Period to which the amount relates Forum where dispute is pending Remarks if any
Finance Act 1994 Service Tax Demand 1646.22 (Including Interest and penalty of Rs 745.90) June 012007 to October 312009 CESTAT Amount paid Rs. 900.30 Lakhs against principal demand

viii. In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in

repayment of dues to the bank.

ix. The Company did not raise any money by way of initial public offeror further public offer (including debt instruments)

and term loans during the year. Accordingly the provisions stated inparagraph 3 (ix) of the Order are not applicable to the Company.

x. During the course of our audit examination of the books and recordsof the Company carried out in accordance with

the generally accepted auditing practices in India and according tothe information and explanations given to us we have neither come across any instance ofmaterial fraud by the Company or on the Company by its officers or employees.

xi. According to the information and explanations given to us and basedon our examination of the records of the

Company the Company has paid managerial remuneration in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Act.

xii. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company.

Accordingly the provisions stated in paragraph 3(xii) of the Order arenot applicable to the Company.

xiii. According to the information and explanations given to us andbased on our examination of the records of the

Company transactions with the related parties are in compliance withsections 177 and 188 of the Act where applicable and details of such transactions havebeen disclosed in the financial statements as required by the applicable accountingstandards.

xiv. According to the information and explanations given to us andbased on our examination of the records of the Company the Company has made preferentialallotment of shares during the year and the requirements of Section 42 of the Act havebeen complied with. The shares have been issued for consideration other than cash.

xv. According to the information and explanations given to us and basedon our examination of the records of the

Company the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly provisions stated in paragraph 3(xv)of the Order are not applicable to the Company.

xvi. In our opinion the Company is not required to be registered undersection 45-IA of the Reserve Bank of India

Act 1934 and accordingly the provisions stated in paragraph clause 3(xvi) of the Order are not applicable to the Company.

For MSKA & Associates

Chartered Accountants

ICAI Firm Registration No. 105047W

Amit Kumar Agarwal

Partner

Membership No. 214198 UDIN: 20214198AAAACV5867

Place: Hyderabad Date: June 102020

ANNEXURE C TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF TANLA SOLUTIONS LIMITED

[Referred to in paragraph (2)(g) under ‘Report on Other Legal andRegulatory Requirements' in the Independent Auditors' Report]

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (“the Act”)

In conjunction with our audit of the standalone financial statements ofthe Company as of and for the year ended March 31 2020 we have audited the internalfinancial controls with reference to standalone financial statements of Tanla SolutionsLimited as of that date. Further as the branch of the Company is located outside Indiathe provisions of clause (i) of subsection 3 of Section 143 of the Act are not applicableto them.

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 tostandalone financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India (ICAI) (the “Guidance Note”). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to standalone financial statements based on ouraudit. We conducted our audit in accordance with the Guidance Note and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of the Act tothe extent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether internal financial controls withreference to standalone financial statements was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe internal financial controls with reference to standalone financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tostandalone financial statements included obtaining an understanding of internal financialcontrols with reference to standalone financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the standalone financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls with reference to standalone financial statements.

Meaning of Internal Financial Controls With Reference to StandaloneFinancial Statements

A Company's internal financial control with reference tostandalone financial statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of standalonefinancial statements for external purposes in accordance with generally acceptedaccounting principles. A Company's internal financial control with reference tostandalone financial statements includes those policies and procedures that (1) pertain tothe maintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on thestandalone financial statements.

Inherent Limitations of Internal Financial Controls With Reference toStandalone Financial Statements

Because of the inherent limitations of internal financial controls withreference to standalone financial statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial control with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects internalfinancial controls with reference to standalone financial statements and such internalfinancial controls with reference to standalone financial statements were operatingeffectively as at March 312020 based on the internal control with reference tostandalone financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note.

For MSKA & Associates

Chartered Accountants

ICAI Firm Registration No. 105047W

Amit Kumar Agarwal Partner

Membership No. 214198

UDIN: 20214198AAAACV5867

Place: Hyderabad

Date: June 10 2020

.