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TCI Industries Ltd.

BSE: 532262 Sector: Others
NSE: N.A. ISIN Code: INE920B01019
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VOLUME 11
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OPEN 1330.00
CLOSE 1274.70
VOLUME 11
52-Week high 2179.65
52-Week low 955.00
P/E
Mkt Cap.(Rs cr) 115
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

TCI Industries Ltd. (TCIINDUSTRIES) - Auditors Report

Company auditors report

TO THE MEMBERS OF TCI INDUSTRIES LIMITED

Report on the Audit of the Ind AS Financial Statements Opinion

We have audited the accompanying Ind AS Financial Statements of TCI Industries Limited("the Company") which comprise the Balance Sheet as at March 31 2022 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date andnotes to the financial statements including a summary of the significant accountingpolicies and other explanatory information (hereinafter referred to as "the Ind ASFinancial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS Financial Statements give the information required bythe Companies Act 2013 as amended ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended ("Ind AS") and other accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2022 and its loss(financial performance including 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 Ind AS Financial Statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Ind AS Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand the Rules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the Ind AS Financial Statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS Financial Statements for the financial year endedMarch 31 2022. These matters were addressed in the context of our audit of the Ind ASFinancial 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 bethe key audit matters to be communicated in our report. For the matter below ourdescription of how our audit addressed the matter is provided in that context.

We have fulfilled the responsibilities described in the Auditor's responsibilities forthe audit of the Ind AS financial statements section of our report including in relationto these matters. Accordingly our audit included the performance of procedures designedto respond to our assessment of the risks of material misstatement of the Ind AS financialstatements. The results of our audit procedures including the procedures performed toaddress the matter below provide the basis for our audit opinion on the accompanying IndAS financial statements.

Key Audit Matter Auditor's Response
1. Litigation Matters (as described in Note 29 of the accompanying Ind AS Financial Statements) Our audit approach included:
The Company is involved in various taxes and other legal disputes for which final outcomes cannot be easily predicted and which may or may not result in significant liabilities as the disputes are pending before authorities/ court. * Inquiry with the c o n c e r n e d department/ officials regarding the status of the most significant disputes and inspection of the key relevant documents.
The assessment of the risks associated with the litigations is based on complex assumptions which require the use of judgement and such judgement relates primarily to the assessment of the uncertainties connected to the prediction of the outcome of the proceedings and to the adequacy of the disclosures in the financial statements. * Assessment of assumptions used in the evaluation of potential legal and tax risks by the Company considering the legal precedence and advice received by the Company from its lawyers.
* Analysis of opinion received from the experts where available.
* Review of the adequacy of the disclosures in the notes to the financial statements.
2. Property Plant and Equipment We tested controls in place over the fixed asset cycle evaluated the appropriateness of capitalisation process performed tests of details on costs capitalised assessed the timeliness of the capitalisation of the assets and assessed the de-recognition criteria for assets retired from active use.
There are areas where m a n a g e m e n t judgement impacts the carrying value of property plant and equipment and their respective depreciation rates. These include the decision to capitalise or expense costs; the annual asset life review; the timeliness of the capitalisation of assets and the measurement and recognition criteria for assets retired from active use. In performing these procedures we reviewed the judgements made by management including the nature of underlying costs capitalised; determination of realizable value of the assets retired from active use; the appropriateness of asset lives applied in the calculation of depreciation; and the useful lives of assets prescribed in Schedule II to the Act.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information provided in Annual Report but does not include theInd AS Financial Statements and our Auditor's Report thereon. The annual report isexpected to be made available to us after the date of this auditor's report.

Our opinion on the Ind AS Financial Statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS Financial Statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the Ind AS Financial Statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated. When weread the other information and if we conclude that there is a material misstatementtherein we are required to report that fact.

Responsibilities of Management and Those Charged with Governance for the Ind ASFinancial 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 financial statements that givea true and fair view of the financial position financial performance including othercomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding 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 Ind AS Financial Statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

In preparing the Ind AS Financial Statements the management is responsible forassessing the Company’s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company’s financialreporting process.

Auditor’s Responsibilities for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS FinancialStatements as a whole are free from material misstatement whether due to fraud or errorand to issue an Auditor’s Report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 Ind AS financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

* Obtain an understanding of internal financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the 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 the reasonableness ofaccounting 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 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 financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our Auditor’s Report. However future events or conditions may cause theCompany to cease to continue as a going concern.

* Evaluate the overall presentation structure and content of the Ind AS FinancialStatements including the disclosures and whether the Ind AS Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

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 also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Ind AS Financial Statements forthe financial year ended March 31 2022 and are therefore the key audit matters. Wedescribe these matters in our Auditor’s Report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so 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 in terms of Section 143(11) of the Act andon the basis of such checks of the books and records of the Company as we consideredappropriate and according to the information and explanations given to us we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

2. As required by Section 143(3) of the Act based on our audit 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 Statement of Changes in Equity and the Statement of Cash Flows dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid Ind AS Financial Statements comply with the Ind ASspecified under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended.

e) On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 from being appointed as a director in terms of Section 164 (2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlsover financial reporting.

g) With respect to the other matters to be included in the Auditor’s Report inaccordance with the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements. Refer Note 29 to the financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

iv. a) The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentity ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

b) The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries; and

c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement.

v. The Company has not declared or paid any dividend during the year hence requirementfor compliance with Section 123 of the Act is not applicable.

vi. MCA vide its notification dated 31.03.2022 has extended the requirement ofimplementation of audit trail software to financial year commencing on or after 1st April2023. Accordingly reporting under Rule 11(g) of Companies (Audit and Auditors) AmendmentRule 2021 is not applicable.

Annexure - A to the Independent Auditor’s Report

Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements’ section of our report to the members of TCI Industries Limited of evendate on the Ind AS Financial Statements for the year ended March 31 2022.

To the best of our information and according to the explanations provided to us by thecompany and the books of account and records examined by us in the normal course ofbusiness we report that:

i. In respect of the Company’s Property Plant and Equipment and Intangible Asset:

a) A) The Company has maintained proper records showing full particulars includingquantitative details and situation of its Property Plant and Equipment.

B) The Company does not have any intangible asset. Accordingly reporting under clause3(i)(a)(B) of the Order is not applicable.

b) The Company has a program of physical verification to cover all the items ofProperty Plant and Equipment in a phased manner which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. Pursuant to theprogram certain Property Plant and Equipment were physically verified by the managementduring the year. According to the information and explanations given to us no materialdiscrepancies were identified on such physical verification.

c) According to the information and explanations given to us and on the basis of ourexamination of the records provided to us we report that the title deeds comprising allthe immovable properties which are freehold are held in the name of the Company as at thebalance sheet date. In respect of leasehold land that have been taken on lease andrecognized as Right of Use asset in Property Plant and Equipment in the financialstatements the lease agreements are in the name of the Company.

d) The Company has not revalued its Property Plant and Equipment (including Right ofUse assets) during the year.

e) According to the information and explanations provided by the management noproceedings have been initiated during the year or are pending against the Company forholding any benami property under the Benami Transactions (Prohibition) Act 1988 (45 of1988) and rules made there under as at 31st March 2022. Accordinglyreporting under clause 3(i)(e) of the Order is not applicable.

ii. a) The Company does not have any inventory. Accordingly reporting under clause3(ii)(a) of the Order is not applicable.

b) The Company has not been sanctioned working capital limits in excess of five crorerupees in aggregate from banks or financial institutions on the basis of security ofcurrent assets at any point during the year. Accordingly reporting under clause 3(ii)(b)of the Order is not applicable.

iii. In our opinion and according to the information and explanations given to us theCompany has not made any investments provided any guarantee or security or granted anyloans or advances in nature of loans secured or unsecured to companies firms LimitedLiability Partnership. Accordingly reporting under clause 3(iii) (a) (b) (c) (d) (e)and (f) of the Order are not applicable.

iv. During the year the Company has not granted any loans or made any investments orprovided any guarantee or security to parties covered under section 185 and 186 of theAct. Accordingly clause 3(iv) of the said Order is not applicable to the Company.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits or deemed to be deposits during the year andtherefore the provisions of the clause 3(v) of the Order is not applicable to theCompany.

vi. The Central Government has not prescribed maintenance of cost records undersub-section (1) of section 148 of the Act in respect of any activities of the Company.Therefore the provision of Clause 3(vi) of the said Order is not applicable to theCompany.

vii. a) According to the information and explanations given to us and on the basis ofour examination of the records the Company is generally regular in depositing undisputedapplicable statutory dues including Goods and Services Tax provident fundemployees’ state insurance income tax and any other statutory dues to theappropriate authorities and there are no undisputed dues outstanding as on March 31 2022for a period of more than six months from the date they become payable.

b) In our opinion and according to the information and explanations given to us thereare no statutory dues referred in sub-clause(a) which have not been deposited on accountof any dispute except property tax as reported below.

Name of the Statue Nature of Dues Amount (Rs. in Lakhs) Period to which the amount relates Forum where dispute is pending
Bombay Municipal Corporation Act Property Tax 34.02 2010-2022 Municipal Corporation of Greater Mumbai
Bombay Municipal Corporation Act Property Tax 2976.13 2010-2022 Municipal Corporation of Greater Mumbai

viii. There were no transactions relating to previously unrecorded income that havebeen surrendered or disclosed as income during the year in the tax assessments under theIncome Tax Act 1961 (43 of 1961).

a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not defaulted in repayment ofloans or other borrowings or in the payment of interest thereon to any lender.

b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not been declared a wilfuldefaulter by any bank or financial institution or other lender.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not obtained any term loansduring the year. The term loans taken in the earlier years have been applied for thepurpose for which the loans were obtained.

d) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the funds raised on short-term basis from otherparties have not been utilised for long-term purposes.

e) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the Company has not taken any funds from anyentity or person on account of or to meet the obligations of its subsidiaries associatesor joint ventures.

f) The Company has not raised any secured loans during the year. Accordingly reportingon clause 3(ix)(f) of the Order is not applicable.

ix. a) According to the information and explanations given to us the Company has notraised monies by way of initial public offer or further public offer (including debtinstruments).

b) The Company has made preferential allotment of non-convertible redeemable preferenceshares during the year. The provisions of Section 42 of the Act have been complied with inthis regard and amount has been utilized for the purpose for which it was raised. TheCompany has not made any private placement of shares or fully or partly paid convertibledebentures during the year.

x. a) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or no material fraud on the Company has been noticedor reported during the year.

b) No report under sub-section (12) of section 143 of the Companies Act has been filedin Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government during the year and upto the date of this report.

c) No whistle-blower complaints have been received by the Company during the year.

xi. The Company is not a Nidhi Company. Accordingly reporting under clause 3 (xii) ofthe Order is not applicable to the Company.

xii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiii. a) In our opinion the Company has an adequate internal audit system commensuratewith the size and the nature of its business.

b) We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date in determining the nature timing and extent ofour audit procedures.

xiv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its directors during the year and hence provisions ofsection 192 of the Companies Act 2013 are not applicable to the Company.

xv. a) In our opinion and according to the information and explanations given to usthe Company is not required to be registered under section 45–IA of the Reserve Bankof India Act 1934.

Accordingly reporting under clause 3(xvi) (a) (b) and (c) of the Order are notapplicable.

b) In our opinion and according to the information and explanations given to us theCompany is not a Core Investment Company (CIC) as defined in the regulations made by theReserve Bank of India. Accordingly reporting under clause 3(xvi) (c) of the Order is notapplicable.

c) In our opinion and according to the information and explanations given to us thereis no core investment company within the Group (as defined in the Core InvestmentCompanies (Reserve Bank) Directions 2016).

xvi. In our opinion and according to the information and explanations given to us theCompany has incurred cash losses in the financial year and in the immediately precedingfinancial year. The details of cash losses incurred is as follows:

Financial Year Cash Losses (Rs. in Lakhs)
2021-22 77.47
2020-21 138.61

xvii. There has been no resignation of Statutory Auditors of the Company during theyear.

xviii.On the basis of financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts upto the date of audit report and we neither give any guarantee nor any assurancethat all liabilities falling due within a period of one year from the balance sheet willget discharged by the company as and when they fall due.

xix. The Company is not required to spend amount in pursuance of the Corporate SocialResponsibility as stipulated under Section 135 of the Companies Act 2013. Accordinglyreporting under clause 3(xx)(a) and (b) of the Order are not applicable.

xx. The Company is not required to prepare Consolidated Financial Statements.Accordingly clause 3(xxi) of the Order is not applicable.

Annexure - B to the Independent Auditor’s Report

Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements’ section of our report to the members of TCI Industries Limited of evendate on the Ind AS Financial Statements for the year ended March 31 2022

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

We have audited the internal financial controls over financial reporting of TCIIndustries Limited ("the Company") as of March 31 2022 in conjunction with ouraudit of the Ind AS Financial Statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria 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. 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 respective company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditors’ Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting of the Company.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2022 based on the internal controlover financial reporting 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.

For V. Singhi & Associates

Chartered Accountants

Firm Registration No. 311017E
Tarun Jain
Partner
Place : Mumbai Membership No.: 130109
Date : May 28 2022 UDIN: 22130109AJUKMZ2624

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