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Technocraft Industries (India) Ltd.

BSE: 532804 Sector: Metals & Mining
NSE: TIIL ISIN Code: INE545H01011
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OPEN 848.85
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VOLUME 4877
52-Week high 993.40
52-Week low 330.05
P/E 13.53
Mkt Cap.(Rs cr) 2,205
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 848.85
CLOSE 840.90
VOLUME 4877
52-Week high 993.40
52-Week low 330.05
P/E 13.53
Mkt Cap.(Rs cr) 2,205
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Technocraft Industries (India) Ltd. (TIIL) - Auditors Report

Company auditors report

TO THE MEMBERS OF

TECHNOCRAFT INDUSTRIES (INDIA) LIMITED

Report on the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Ind AS financial statementsof TECHNOCRAFT INDUSTRIES (INDIA) LIMITED ("the Company") whichcomprise the Balance Sheet as at March 31 2020 the Statement of Profit and Loss(Including Other Comprehensive Income) the Cash Flow Statement and the Statement ofchanges in Equity for the year then ended and notes to the financial statements includinga summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Companies Act 2013 as amended ("the Act") in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2020 its profit including other comprehensive income its cash flows and the changesin equity for the year ended on that date.

Basis of Opinion

We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing (SAs) as specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the‘Auditor's Responsibilities for the Audit of the Standalone Ind AS FinancialStatements' section of our report. We are independent of the Company in accordance withthe ‘Code of Ethics' issued by the Institute of Chartered Accountants of Indiatogether with the ethical requirements that are relevant to our audit of the financialstatements under the provisions of the Act and the Rules there under and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Standalone Ind AS financialstatements.

Emphasis of Matter

We draw attention to note 38 (1) to the accompanying standalonefinancial statements which describes the effects of uncertainties relating to Covid-19pandemic outbreak on the Company's operations and management's evaluation of its impact onthe accompanying standalone financial statements as at 31st March 2020 theimpact of which is dependent on future developments which are highly uncertain. Ouropinion is not modified in respect of this matter

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone Ind AS financial statements forthe financial year ended March 31 2020. These matters were addressed in the context ofour audit of the standalone Ind AS financial statements as a whole and in forming ouropinion thereon and we do not provide a separate opinion on these matters. For eachmatter below our description of how our audit addressed the matter is provided in thatcontext.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor's responsibilities for the audit of the standalone Ind AS financialstatements section ofour report including in relation to these matters. Accordingly ouraudit included the performance of procedures designed to respond to our assessment of therisks of material misstatement of the standalone Ind AS financial statements. The resultsof our audit procedures including the procedures performed to address the matters belowprovide the basis for our audit opinion on the accompanying standalone Ind AS financialstatements.

Key Audit Matters How our audit addressed the key audit matter
1. Impact of COVID-19 pandemic on the future financial performance and position of the Company
(as described in Note 38(1) of the Ind AS Balance Sheet) Our audit procedures considered the guidance laid down by the ‘ICAI Accounting &Auditing Advisory March 2020 - Impact of Corona virus on Financial Reporting and the Auditors Consideration' highlighting few important areas which require particular attention in respect of the audit of the financial statements for the year 2019-20 including:
The extent to which the COVID-19 pandemic will impact the Company's financial performance and position will depend on future developments which are highly uncertain. a) Impairment of Non-financial Assets
b) Impairment Losses (ECL Bad-debts etc.)
c) Revenue
d) Borrowing Costs
e) Provisions Contingent Liabilities and Contingent Assets
f) Modifications or termination of Contracts or Arrangements
g) Going Concern Assessment
h) Post Balance Sheet Events
i) Presentation of Financial Statements
j) Changes in Internal Controls
k) External Confirmations
l) Audit evidences through electronic mode We considered the above guidance and appropriately applied to our response to modification of our audit procedures to obtain sufficient appropriate audit evidence on the significant audit areas and reached appropriate conclusions thereon.
2. Assessment of impairment of investment in subsidiaries
(Refer Note 6(a) of the Standalone Ind AS Balance Sheet)
As at March 31 2020 the Company balance sheet includes investment in subsidiaries & associates of Rs. 2893.33 lakhs In accordance with Indian Accounting Standards (Ind- AS) the management has allocated these balances to their respective cash generating units (CGU) and tested these for impairment using a discounted cash flow model. The management compares the carrying value of these assets with their respective recoverable amount. A deficit between the recoverable amount and CGU's net assets would result in impairment. The inputs to the impairment testing model which have most significant impact on the model includes: As a part of our audit we have carried out the following procedures:
a) Sales growth rate; a) We assessed the Company's methodology applied in determining the CGUs to which these assets are allocated.
b) Operating margin; b) We assessed the assumptions around the key drivers of the cash flow forecasts including discount rates expected growth rates and terminal growth rates used;
c) Working capital requirements; c) We also assessed the recoverable value by performing sensitivity testing of key assumptions used.
d) Capital expenditure; and d) We tested the arithmetical accuracy of the models
e) Discount rate applied to the projected cash flows. e) Performed analysis of the disclosures related to the impairment tests and their compliance with Indian
Accounting Standard (Ind-AS).
Key Audit Matters How our audit addressed the key audit matter
The impairment test model includes sensitivity testing of key assumptions. The annual impairment testing is considered a significant accounting judgment and estimate and a key audit matter because the assumptions on which the tests are based are highly judgmental and are affected by future market and economic conditions which are inherently uncertain and because of the materiality of the balances to the financial statements as a whole.
3. Revenue Recognition (Refer to the accounting policies in Note 3 to the financial statements)
Revenue from the sale of goods is recognised upon the transfer of control of the goods to the customer. The Company uses a variety of shipment terms across its operating markets and this has an impact on the timing of revenue recognition. There is a risk that revenue could be recognised in the incorrect period for sales transactions occurring on and around the year- end therefore revenue recognition has been identified as a key audit matter. a) Our audit procedures included reading the Company's revenue recognition accounting policies to assess compliance with Ind AS 115 "Revenue from contracts with customers".
b) We performed test of controls of management's process of recognizing the revenue from sales of goods with regard to the timing of the revenue recognition as per the sales terms with the customers.
c) We performed test of details of the sales transactions testing based on a representative sampling of the sales orders to test that the related revenues and trade receivables are recorded taking into consideration the terms and conditions of the sale orders including the shipping terms.
d) We also performed audit procedures relating to revenue recognition by agreeing deliveries occurring around the year end to supporting documentation to establish that sales and corresponding trade receivables are properly recorded in the correct period.
e) Audit procedures relating to revenue recognition were extended to a longer period to ensure that there is no impact on the revenue numbers reported based on the possible effects of pandemic relating to Covid-19.

Other Information

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Directorsreport but does not include the Standalone Ind AS financial statements and our auditor'sreport thereon.

Our opinion on the standalone Ind AS financial statements does notcover the other information and we do not express any form of assurance conclusionthereon.

In connection with our audit of the standalone Ind AS financialstatements our responsibility is to read the other information and in doing so considerwhether such other information is materially inconsistent with the 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.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone Ind ASfinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended. 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; andthe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone Ind AS financial statements management isresponsible 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 management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Ind ASFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone Ind AS financial statements as a whole are free from material misstatementwhether due 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 Ind AS financialstatements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate 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.

2. Obtain an understanding of internal control relevant to the audit inorder to 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.

3. Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the 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 the Companyto cease to continue as a going concern.

5. Evaluate the overall presentation structure and content of thestandalone Ind AS financial statements including the disclosures and whether thestandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves 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 Standalone IndAS financial statements for the financial year ended March 31 2020 and are therefore thekey 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.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 (theorder); issued by the Central Government of India in terms of sub-section (11) of section143 of the Companies Act 2013 we give in the Annexure - A a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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 purpose of our audit;

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as appears from our examination of those books;

(c) The Balance Sheet Statement of Profit and Loss including thestatement of Other Comprehensive Income Cash Flow Statement and Statement of Changes inEquity dealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid Standalone IND AS financialstatements comply with the Indian Accounting Standards specified under section 133 of theAct read with relevant Rules issued there under.

(e) On the basis of the written representations received from thedirectors as on 31st March 2020 taken on record by the Board of Directorsnone of the directors is disqualified as on 31st March 2020 from beingappointed as a director in terms of section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in Annexure - B.

(g) In our opinion the managerial remuneration for the year endedMarch 31 2020 has been paid / provided by the Company to its directors in accordance withthe provisions of section 197 read with Schedule V to the Act;

(h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to us:

a. The company has disclosed the impact of pending litigations on itsfinancial position in its financial statement - Refer Note no. 28.

b. The Company has made provision as required under the applicable lawor Ind AS for material foreseeable losses if any on long-term contracts includingderivative contracts.

c. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT

The Annexure referred to in our Report of even date to the Members ofTECHNOCRAFT INDUSTRIES (INDIA) LIMITED on the Standalone Financial Statements for the yearended 31st March 2020 We report that:

1 a According to information and explanations given to us The Companyhas maintained proper records showing full particulars including quantitative details andsituation offixed assets.

b As explained to us the fixed assets of the company have beenphysically verified by the Management in a phased manner as per regular program ofverification which in our opinion is reasonable having regard to the size of the Companyand nature of its assets. Pursuant to this program some of the fixed assets have beenphysically verified by the management during the year and no material discrepancies havebeen noticed on such verification.

c The title deeds of the property as disclosed in Property Plant andEquipment and Investment Property vide Note No. 3&4 respectively to the financialstatements are held in the name of the company.

2 The stock of Finished Goods Goods-in-Process Raw Materials andStores & Spares parts have been physically verified during the year by the Management.In our opinion the procedures of physical verification of the above Inventories followedby the Management are reasonable and adequate in relation to the size of the Company andnature of its business. In respect of inventories lying with the third parties these havesubstantially been confirmed by them.

3 a In our opinion and according to the information and explanationsgiven to us the company has granted unsecured loans to 3 parties covered in the Registermaintained under section 189 of the Companies Act 2013.

b Payment of Principal amount and interest are regular whereverdemanded & stipulated.

c As the Loan is repayable on demand therefore comment in respect ofoverdue amount of loans granted to Companies Firms or other parties listed in theregister maintained under section 189 of the Companies Act 2013 is not applicable to thecompany.

4. In our opinion and according to the information and explanationsgiven to us the company has complied with the provisions of section 185 and 186 of theAct loans guarantees and security provided in respect of loans & other facilities toparties covered under section 185 of the Act and Investments made.

5. The Company has not accepted any deposits from the public to whichthe directives issued by the Reserve Bank of India and the provisions of section 73 to 76and any other relevant provision of the Companies Act 2013 and the rules framed thereunder apply.

6. We have broadly reviewed the books of account and records maintainedby the company in respect of the products where pursuant to the Rules made by the CentralGovernment of India the maintenance of cost records has been specified under section 148(1) of the Companies Act 2013 is applicable to the company and are of opinion that primafacie the prescribed accounts and records have been made and maintained. We have howevernot made detailed Examination of the records with view to determining whether they areaccurate or complete.

7 a According to the information and explanation given to us and therecords of the Company examined by us the Company is generally regular in depositingprovident fund dues employees state insurance income tax goods and service tax salestax service tax custom duty excise duty cess and any other statutory dues with theappropriate authorities and there are no undisputed amounts payable for the same wereoutstanding as at 31st March 2020 for a period exceeding six months from the date theybecame payable;

b According to the information and explanation given to us and therecords of the Company examined by us the Particulars of disputed statutory dues undervarious act as at 31st March 2020 which have not been deposited with the appropriateauthorities are as under:

Name of the Statute Nature of dues Amount (in Lakhs) (Rs.) Forum where dispute is pending
The Central Excise Act 1944 Excise Duty & Penalty
For F.Y 2005-06 38.73 Case pending with CESTAT (Mumbai)
For F.Y 1999-02 to Sept 2008 1115.67 Case pending with High Court Mumbai
For Period before 29-9-2008 195.61 Case pending with High Court Mumbai
For Period before 29-1-2009 266.77 Case pending with High Court Mumbai
For FY 2007-08 15.65 Case pending with High Court Mumbai
For period Oct 11 - Jan 12. 9.94 Case pending with CESTAT (Tribunal)
For the period Apr-15 to Sept- 15 4.85 Additional Commissioner (ST)
For the period Apr-15 to Dec- 15 2.55 Additional Commissioner (ST)
Service Tax & Penalty
For F.Y. 2006-07 & F.Y. 200809 21.97 Case pending with Commissioner (Appeals)
For period Oct 09 - Mar 13 24.60 Case pending with Commissioner (Appeals)
For period Apr 13 - Dec 13 3.68 Case pending with Commissioner (Appeals)
For Period Oct 13 to June 17 39.67 Case pending with Asst. Commissioner CGST
For Period Oct 13 to June 17 16.82 Case pending with Asst. Commissioner CGST
The Maharashtra Land Revenue Act 1966 For Payment of Royalty on extraction & transportation of mud stones & sand issued by Tahasildar Tal. Murbad Dist. Thane 82.48 Case pending With High Court Mumbai
Electricity Act 2003 For Payment of Additional Differential Electricity duty 2678.06 Case pending With High Court Mumbai
Income Tax Act 1961 For A. Y. 2012-13 0.10 CIT (Appeals)
Income Tax Act 1961 For A. Y. 2011-12 11.72 CIT (Appeals)
Income Tax Act 1961 For A.Y. 2012-13 179.59 CIT (Appeals)
Income Tax Act 1961 For A.Y. 2013-14 175.25 CIT (Appeals)

8. According to information and explanations given to us the companyhas not defaulted in repayment of loans or borrowings to a financial institution or bankand company does not have any outstanding loans or borrowing from Government or dues todebenture holders during the year.

9. The Company has not raised money by way of initial public offer orfurther public offer (including debt instruments) however the term loans have availed bythe company and were applied for the purposes for which those were raised.

10. According to the information and explanations given to us by themanagement which has been relied upon by us no fraud by the company or any fraud on theCompany by its officers or employees has been noticed or reported during the year.

11. In our opinion and according to the information and explanationsgiven to us the Company has paid/provided for managerial remuneration in accordance withthe requisite approvals mandated by the provisions of section 197 read with schedule V ofthe companies Act 2013.

12. In our opinion the Company is not a Nidhi Company. Therefore theprovisions of clause 3 (xii) of the order are not applicable to the Company.

13. In our opinion and according to the information and explanationsgiven to us all transactions with the related parties are in compliance with section 177and 188 of the companies Act 2013 where applicable. The details of related partytransactions have been disclosed in the financial statements as required under Ind AS"24" Related Party Disclosures specified under section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2015.

14. In our opinion and according to the information and explanationsgiven to us the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the and accordingly the provisionsof clause 3 (xiv) of the order is not applicable to the Company.

15. In our opinion and according to the information and explanationsgiven to us the Company has not entered into any Non-Cash transaction with directors orpersons connected with the directors. Accordingly the provisions of clause 3 (xv) of theorder is not applicable to the Company.

16. In our opinion and according to the information and explanationsgiven to us the company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly the provisions of clause 3 (xvi) of theorder is not applicable to the Company.

ANNEXURE - "B" TO THE INDEPENDENT AUDITORS REPORT

The Annexure referred to in our Report of even date to the Members ofTECHNOCRAFT INDUSTRIES (INDIA) LIMITED for the year ended 31st March 2020. We reportthat:

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

We have audited the internal financial controls over financialreporting of TECHNOCRAFT INDUSTRIES (INDIA) LIMITED ("the Company") as of March31 2020 in conjunction with our audit of the Standalone Ind AS financial statements ofthe Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the 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 internal financialcontrols system over financial reporting with reference to financial statements.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

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

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2020 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

.