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Tata Consultancy Services Ltd.

BSE: 532540 Sector: IT
NSE: TCS ISIN Code: INE467B01029
BSE 00:00 | 27 May 3262.20 33.60
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NSE 00:00 | 27 May 3261.30 34.35
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OPEN 3249.00
PREVIOUS CLOSE 3228.60
VOLUME 146145
52-Week high 4045.50
52-Week low 3116.15
P/E 31.27
Mkt Cap.(Rs cr) 1,193,672
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3249.00
CLOSE 3228.60
VOLUME 146145
52-Week high 4045.50
52-Week low 3116.15
P/E 31.27
Mkt Cap.(Rs cr) 1,193,672
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Tata Consultancy Services Ltd. (TCS) - Auditors Report

Company auditors report

To the Members of

Tata Consultancy Services Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Tata Consultancy ServicesLimited (hereinafter referred to as “the Company”) which comprise theStandalone Balance Sheet as at 31 March 2021 and the Standalone Statement of Profit andLoss (including other comprehensive income) Standalone Statement of Changes in Equity andStandalone Statement of Cash Flows for the year then ended and notes to the standalonefinancial statements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as “the standalone financialstatements”).

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 accounting principles generally accepted in India ofthe state of affairs of the Company as at 31 March 2021 and profit and othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters (‘KAM') 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.

Description of Key Audit Matters

Key audit matters How our audit addressed the key audit matter
Revenue recognition– Fixed price contracts
The Company inter alia engages in Our audit procedures included the following:
Fixed-price contracts wherein revenue is recognized using the percentage of completion computed as per the input method based on the Company's estimate of contract costs (Refer Note 4(a) and Note 10 to the standalone financial statements). Obtained an understanding of the systems processes and controls implemented by the Company for recording and computing revenue and the associated contract assets unearned and deferred revenue balances.
We identified revenue recognition of fixed price contracts as a Key Audit Matter since Including involvement of our Information technology (‘IT') specialists as required:
there is an inherent risk and presumed fraud risk around the accuracy and existence of revenues recognised considering the customised and complex nature of these contracts and significant inputs of IT systems; Assessed the IT environment in which the business systems operate and tested system controls over computation of revenue recognised;
Tested the IT controls over appropriateness of cost and revenue reports generated by the system;
application of revenue recognition accounting standard (Ind AS 115 Revenue from Contracts with customers) is complex and involves a number of key judgments and estimates mainly in identifying performance obligations related transaction price and estimating the future cost-to- completion of these contracts which is used to determine the percentage of completion of the relevant performance obligation; Tested the controls pertaining to allocation of resources and budgeting systems which prevent the unauthorized recording/changes to costs incurred; and
Tested on a random sampling basis the controls relating to the estimation of contract costs required to complete the respective projects.
these contracts may involve onerous obligations which requires critical assessment of foreseeable losses to be made by the Company; and On selected specific and statistical samples of contracts we tested that the revenue recognized is in accordance with the revenue recognition accounting standard
at year-end significant amount of work in progress (Contract assets) related to these contracts are recognised on the balance sheet. Evaluated the identification of performance obligations and the ascribed transaction price;
Tested Company's computation of the estimation of contract costs and onerous obligations if any. We:
assessed that the estimates of costs to complete were reviewed and approved by appropriate designated management personnel;
performed a retrospective analysis of costs incurred with estimated costs to identify significant variations and challenged whether those variations are required to be considered in estimating the remaining costs to complete the contract;
assessed the appropriateness of work in progress (contract assets) on balance sheet date by evaluating the underlying documentation to identify possible changes in estimated costs to complete the remaining performance obligations; and
inspected underlying documents and performed analytics to determine reasonableness of contract costs.
Evaluation of key tax matters
The Company operates in multiple jurisdictions and is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business including transfer pricing and indirect tax matters. These involve significant judgment by the Company to determine the possible outcome of the uncertain tax positions consequently having an impact on related accounting and disclosures in the standalone financial statements. Refer Note 4(e) and Note 19 to the standalone financial statements. Our audit procedures included the following:
understood assessed and tested the design implementation and operating effectiveness of key controls over taxes;
Obtained an understanding of key tax matters;
The audit team along with our internal tax experts -
read and analysed select key correspondences external legal opinions/ consultations obtained by the Company for key tax matters;
evaluated and challenged key assumptions made by the Company in estimating the current and deferred tax balances;
assessed and challenged the Company's estimate of the possible outcome of the disputed cases by considering legal precedence and other judicial rulings; and
Assessed and tested the presentation and disclosures relating to taxes in the standalone financial statements.
Assessment of provision towards legal claim
Refer to Note 4(f) to the standalone financial statements “Use of estimates and judgements Provisions and contingent liabilities” and Note 19 to the standalone financial statements “Commitments and contingencies” Our audit procedures included the following: obtained management assessment on the litigation along with the communications made to the Board of Directors and regulators;
The Company has ongoing legal proceedings with Epic Systems Corporation (referred to as Epic) for alleged unauthorised access to and download of Epic's confidential information and use thereof in the development of the Company's product MedMantra. The Company in the current year has recorded a provision of Rs1218 crore (US $165 million) towards this legal claim in its ‘Standalone Statement of Profit and Loss'. This has been presented as an “exceptional item” in the Standalone Statement of Profit and Loss. read and considered final orders by various courts on this matter;
read and considered all available submissions filed by both Epic and the Company to various courts till date;
considered legal views obtained by the Company from external law firms and the relevant judicial precedents considered by the Company in their assessment of provision towards this legal claim;
Due to the complexity involved in this litigation the Company applied judgement in measuring and recognizing provision towards the legal claim. This process involved an evaluation based on judicial precedents and views shared by the lawyers (external and internal) of the Company and detailed deliberations with the Company's senior management. Accordingly it has been considered as a key audit matter. conducted detailed discussions with in-house legal head and Company's senior management to understand their assessment on the most likely outcome of this litigation and to understand the basis considered for the provision towards this legal claim; and
assessed the adequacy of provision recorded and evaluated disclosures in the standalone financial statements in relation to this legal claim.

Other Information ss The Company's management and Board of Directors areresponsible for the other information. The other information comprises the informationincluded in the Company's annual report but does not include the financial statements andour auditors' report thereon.

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 ouraudit of the standalone responsibility is to read the financial other information and indoing so consider whether the other information is materially inconsistent with thestandalone financial statements or our knowledge obtained in the audit or otherwiseappears to be materially misstated. If based on the atements that work we have performedwe conclude that there is a material misstatement of this other information we arerequired to report that fact. We have nothing to report in this regard.

Management's and Board of Directors' Responsibility for the Standalone FinancialStatements

The Company's management and Board of Directors are responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a trueandfairview thestate affairs (including other comprehensiveincome) changes in equity and cash flows of the accordance Companyin with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under Section 133 of the responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone a true and fair view and financial are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations 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

Standalone Financial Statements

Act. 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 auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements 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 standalone 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 control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to standalone financial operatingeffectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures in ant thestandalonefinancial Management andBoard of Directors.

Conclude on the appropriateness of the Management and Board of Directors use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditionsthatmaycastsignificant doubt onthe Company's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters thesignific plannedscopeandtimingoftheauditand audit findings including any significantdeficiencies 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 standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors' report unless law or regulation precludes public disclosure about thematter 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 Section 143(11) of the Act we givein the “Annexure A” a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

2. (A) As required by Section 143(3) of the Act we report that: (a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief 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 Standalone Balance Sheet the Standalone Statement of Profit and Loss(including other comprehensive income) the Standalone Statement of Changes in Equity andthe Standalone Statement of Cash Flows dealt with by this Report are in agreement with thebooks of account.

(d) In our opinion the aforesaid standalone financial statements comply with the IndAS specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 from being appointed as a director in terms of Section164(2) of the Act. (f) 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 B”.

(B) 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. TheCompany has disclosed the impact of pending litigations as at 31 March 2021 on itsfinancial position in its standalone financial statements - Refer Note 19 to thestandalone financial statements; ii. The Company did not have any long-term contractsincluding derivative contracts for which there were any material foreseeable losses; iii.There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company; and iv. The disclosures in thestandalone financial statements regarding holdings as well as dealings in specified banknotes during the period from 8 November 2016 to 30 December 2016 have not been made inthese standalone financial statements since they do not pertain to the financial yearended 31 March 2021.

(C) With respect to the matter to be included in the Auditors' Report under Section197(16) of the Act: In our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under Section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) ofthe Act which are required to be commented upon by us.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Amit Somani
Partner
Bengaluru Membership No: 060154
12 April 2021 UDIN: 21060154AAAAAU5511

Annexure A to the Independent Auditors' report on the standalone financial statementsof Tata Consultancy Services Limited for the year ended 31 March 2021

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed by whichall fixed assets are verified in a phased manner over a period of three years. In ouropinion this periodicity of physical verification is reasonable having regard to the sizeof the Company and the nature of its assets. Pursuant to the programme certain fixedassets were physically verified during the year and no material discrepancies were noticedon 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 propertiesincluded in property plant and equipment are held in the name of the Company.

In respect of immovable properties taken on lease and disclosed as right-of-use-assetsin the standalone financial statements the lease agreements are in the name of theCompany.

(ii) The inventory has been physically verified by the management during the year. Inour opinion the frequency of such verification is reasonable.

The Company has maintained proper records of inventory. The discrepancies noticed onverification between the physical stock and the book records were not material.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of theAct. Accordingly the provisions of clause 3(iii) (a) (b) and (c) of the Order are notapplicable to the Company.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Act with respectto the loans given investments made guarantees and securities given.

(v) The Company has not accepted any deposits from the public within the meaning of thedirectives issued by the Reserve Bank of India provisions of Section 73 to 76 of the Actany other relevant provisions of the Act and the relevant rules framed thereunder.

(vi) The Central Government has not prescribed the maintenance of cost records underSection 148 of the Act for any of the services rendered by the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Employees' StateInsurance Income-tax Goods and Services tax duty of Customs Cess and other materialstatutory dues have generally been regularly deposited during the year by the Company withthe appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident fund Employees' State Insurance Income-tax Goods andServices tax duty of Customs Cess and other material statutory dues were in arrears asat 31 March 2021 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofIncome- tax or Sales tax or Service tax or Goods and Services tax or duty of Customs orduty of Excise or Value added tax which have not been deposited by the Company on accountof disputes except for the following:

Name of the Statute Nature of the Dues Amount (Rs in crores)** Period Forum where dispute is pending
The Income- tax Act 1961 Income-tax 1222 Assessment Year - 2007- 08 2011-12 2015-16 Commissioner of Income Tax (Appeals)
193 Assessment Year - 2006-07 Income-Tax Appellate Tribunal
The Central Sales Tax Act 1956 and Value Added Tax Act Sales tax and VAT 218 Financial Year - 1994-1995 2004-2005 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 High Court
8 Financial Year-1990-1991 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2011-2012 2012-2013 Tribunal
2 Financial Year - 1995-1996 1997-1998 2004-2005 2005-2006 2011-2012 2016-17 2017-18 Assistant Commissioner
5 Financial Year - 2008-2009 2010-2011 2011-2012 2012-2013 2013-2014 2015-2016 2016-2017 Deputy Commissioner
15 Financial Year - 1997-1998 2005-2006 2010-11 2011-12 2012-13 2013-2014 2014-2015 2015-2016 2016-2017 Joint Commissioner
The Finance Act 1994 Service tax -* Financial Year - 2002-2003 2003-2004 2004-2005 Commissioner Appeals
212 Financial Year - 2006-2007 2007-2008 2009-2010 2010-2011 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 Tribunal
Goods and Service Tax Act GST 19 Financial Year 2019-20 2020-21 Commissioner Appeals

*Indicates amount less than Rs0.50 crore

**These amounts are net of amount paid/ adjusted under protest Rs767 Crores

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to banks. TheCompany did not have any outstanding loans or borrowings from financial are no dues todebenture holders during the year.

(ix) In our opinion and according to the information and explanations given to us theCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) and term loans during the year. Accordingly paragraph 3(ix)of the Order is not applicable to the Company.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no material fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us andbased on examination of the records of the Company the Company has paid/providedmanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act.

(xii) According to the information and explanations given to us in our opinion theCompany is not a Nidhi Company as prescribed under Section 406 of the Act. Accordinglyparagraph 3(xii) of the Order is not applicable to the Company. orGovernment and there(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company all transactions with the related parties arein compliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone financial statements as required by theapplicable Indian Accounting Standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable to the Company.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.Accordingly paragraph 3(xvi) of the Order is not applicable to the Company.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022 Amit Somani
Partner
Bengaluru Membership No: 060154
12 April 2021 UDIN: 21060154AAAAAU5511

Annexure B to the Independent Auditors' Report on the standalone financial statementsof Tata Consultancy Services Limited for the year ended 31 March 2021

Report on the internal financial controls with reference to the aforesaid standalonefinancial statements under Clause (i) of Sub-section 3 of

Section 143 of the Companies Act 2013

(Referred to in paragraph 2(A)(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Opinion

We have audited the internal financial controls with reference to standalone financialstatements of Tata Consultancy Services Limited (“the Company”) as of 31 March2021 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to standalone financial statements and such internal financialcontrols were operating effectively as at 31 March 2021 based on the internal financialcontrols with reference to standalone financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial

Controls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia (the “Guidance Note”).

Management's Responsibility for Internal Financial Controls

The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal financial controls withreference to standalone financial statements criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the 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 Companies Act 2013 (hereinafterreferred to as “the Act”).

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to standalone financial statements. 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 with reference to standalone financial statements were established andmaintained and whether such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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 such internalfinancial controls assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the standalone financial statementswhether 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 Company's internal financial controls withreference to standalone financial atements in statements.

Meaning of Internal Financial Controls with

Reference to Standalone Financial Statements

A company's internal financial st a referencetostandalonefinancial process designed toprovide reasonable assurance regarding the reliability of financial reporting and stthepreparationofstandalonefinancial for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial controls with reference tostandalone financial statements include 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 with generally accepted accounting principles and that receipts andexpenditures 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 with of unauthorised acquisition use or disposition ofthe company's assets that could have a material effect the standalone financialstatements.

Inherent Limitations of Internal Financial

Controls with Reference to Standalone Financial

Statements

Because of the inherent limitations of internal financial controls with reference tostandalone financial collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls with reference to standalone financialstatements to future periods are subject to the risk that the internal financial controlswith reference to standalone financial statements may become inadequate because of changesin conditions or that the degree of compliance with the policies or procedures maydeteriorate.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022 Amit Somani
Partner
Bengaluru Membership No: 060154
12 April 2021 UDIN: 21060154AAAAAU5511 includingthepossibilityof

.