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Texmaco Rail & Engineering Ltd.

BSE: 533326 Sector: Engineering
NSE: TEXRAIL ISIN Code: INE621L01012
BSE 00:00 | 08 Aug 43.35 2.10
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43.50

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OPEN 41.40
PREVIOUS CLOSE 41.25
VOLUME 220771
52-Week high 58.90
52-Week low 26.55
P/E 76.05
Mkt Cap.(Rs cr) 1,395
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 41.40
CLOSE 41.25
VOLUME 220771
52-Week high 58.90
52-Week low 26.55
P/E 76.05
Mkt Cap.(Rs cr) 1,395
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Texmaco Rail & Engineering Ltd. (TEXRAIL) - Auditors Report

Company auditors report

To

The Members of

TEXMACO RAIL & ENGINEERING LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements of TEXMACO RAIL& ENGINEERING LIMITED ("the Company") which comprise the Balance Sheet asat 31st March 2021 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Cash Flows the Statement of Changes in Equity for the year thenended on that date and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information in which areincorporated the returns for the year ended on that date audited by the branch auditor ofthe Kalindee unit (herein after referred to as "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 themannersorequiredandgiveatrueandfairviewinconformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021its profit (including Other Comprehensive Income) changes in equity and its cash flowsfor the year ended on that date.

Basis for Opinion

2. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe 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.

Key Audit Matters

3. Key Audit Matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report in respect of the units audited byus.

Key Audit Matter Procedures Performed
Investment in Subsidiaries/ Joint Ventures and Associates Principal Audit Procedures
The impairment review of unquoted equity instruments and debt with a carrying value of 5278.60 lakhs is considered to be a risk area due to the size of the balances as well as the judgmental nature of key assumptions which may be subject to management override. The carrying value of such unquoted equity instruments and debt is at risk of recoverability. Besides obtaining an understanding of Management's processes and controls with regard to testing the impairment of the unquoted equity instruments in loss making subsidiaries and joint ventures. Our procedures included the following:
• Understood the management's underlying assumptions and appropriateness of the valuation used;
• Compared the Company's assumptions with comparable benchmarks in relation to key inputs such as long-term growth rates and discount rates;
Contingent Liabilities Principal Audit Procedures
The Company operates in a complex tax environment and is required to discharge direct and indirect tax obligations under various legislations such as Income Tax Act 1961 the Finance Act 1994 Goods and Services Tax Acts and VAT Acts of various states. In assessing the exposure of the Company for the tax litigations we have performed the following procedures:
• Obtained an understanding of the process laid down by the management for performing their assessment taking into consideration past legal precedents changes in laws and regulations expert opinions obtained from external tax / legal experts (as applicable);
The tax authorities under these legislations have raised certain tax demands on the Company in respect of the past periods. The Company has disputed such demands and has appealed against them at appropriate forums. As at March 31 2021 the Company has an amount of 17 829.22 Lakhs involved in various pending tax litigations.
• Assessed the processes and entity level controls established by the Company to ensure completeness of information with respect to tax litigations;
Ind AS 37 requires the Company to perform an assessment of the probability of economic outflow on account of such disputed tax matters and determine whether any particular obligation needs to be recorded as a provision in the books of account or to be disclosed as a contingent liability. Considering the significant degree of judgement applied by the management in making such assessments and the resultant impact on the financial statements we have considered it to be an area of significance for our audit. • Along with our tax experts we undertook the following procedures:
• Reading communications with relevant tax authorities including notices demands orders etc. relevant to the ending litigations as made available to us by the management;
• Testing the accuracy of disputed amounts from the underlying communications received from tax authorities and responses filed by the Company;
• Considered the submissions made to appellate authorities and expert opinions obtained by the Company from external tax / legal experts (wherever applicable) which form the basis for management's assessment;
• Assessed the positions taken by the management in the light of the aforesaid information and based on the examination of the matters by our tax experts.
• Read the disclosures included in the financial statements in accordance with Ind AS 37.

No Key Audit Matters have been communicated to us in respect of one unit which isaudited by the Branch Auditor

Other Information

4. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and Analysis;Board's Report including Annexures to Board Report Business Responsibility ReportCorporate Governance and Shareholders' Information but does not include the standalonefinancial statements and our auditor's report thereon. The aforesaid documents areexpected to be made available to us after the date of this auditor's report.

5. Our opinion on the standalone financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

6. In connection with our audit of the standalone financial statements ourresponsibility is to read the other information when it becomes available and in doingso consider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

7. When we read the aforesaid documents if we conclude that there is a materialmisstatement therein we are required to communicate the matters to those charged withgovernance.

Management's Responsibility for the Standalone Financial Statements

8. The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

9. In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

10. The Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibility for the Audit of the Financial Statements

11. Our objectives are to obtain reasonable assurance about whether the 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 a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud 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.

12. 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 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.

• Obtained an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)

(i) of the Companies Act 2013 we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

13. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

14. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

15. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about thematters or when we determine that a matter should not be communicated in our reportbecause the adverse consequences of doing so would reasonably be expected to outweigh thepublic interest benefits of such communication.

16. Materiality is the magnitude of misstatements in the standalone financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the financialstatements.

Other Matters

17. We did not audit the financial statements of one unit included in the standaloneInd AS financial statements of the Company whose financial statements reflect total assets95376.37 lakhs as at 31st March 2021 and total revenues of 58773.72 lakhs total loss of1914.94 lakhs total comprehensive loss of 1750.52 lakhs and cash flows (net) of 560.22lakhs for the year ended on that date.

The financial statements of this unit has been audited by the branch auditor whosereport has been furnished to us and our opinion in so far as it relates to the amountsand disclosures included in respect of this unit is based solely on the report of suchbranch auditor.

Our Opinion on the Standalone financial statements and our report on Other Legal andRegulatory Requirements below is not modified in respect of the above matter.

Report on Other Legal and Regulatory Requirements

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

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

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The report on the accounts of the unit of the Company audited under section 143(8)of the Act by branch auditor has been sent to us and has been properly dealt with by us inpreparing this report.

(d) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) and the Cash Flow Statement Statement of Changes in Equity dealt with by thisreport are in agreement with the books of account and with the returns received from theunit not visited by us.

(e) in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

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

(g) 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".

(h) 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: According tothe information and explanations given to us and the records of the Company examined byus the managerial remuneration paid or provided to one Executive Director is in excess ofthe prescribed limits mandated by the provisions of section 197 read with Schedule V ofthe Act for which the Company is in the process of taking approval from shareholderthrough a Special Resolution in the ensuing Annual General Meeting.

(i) 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 in our opinionand 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 its financialposition in its financial statements Refer Note 1.37 of the standalone financialstatements.

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

c. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

For L. B. Jha & Co.
Chartered Accountants
Firm Registration No: 301088E
(D.N. Roy)
Partner
Place: Kolkata Membership No. 300389
Date: 14.05.2021 UDIN:21300389AAAAES5418

ANNEXURE- A: TO THE INDEPENDENT AUDITOR'S REPORT

to the Members of TEXMACO RAIL & ENGINEERING LIMITED

[Referred to in paragraph 18 of the Auditors' Report of even date]

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property plant and equipments.

(b) As explained to us the company has a system of verifying all its major PropertyPlant & Equipments over a period of three years. The Property Plant and Equipment soscheduled for verification during this year have been physically verified. Thediscrepancies noticed on such verification were not material and have been properly dealtwith in the books of accounts.

(c) According to the information and explanations given to us and the records of theCompany examined by us the title deeds of the immovable properties of the Company areheld in the name of the Company except the immovable properties which were owned bycompanies demerged/merged with the Company under the scheme of arrangements approved bythe appropriate authorities which are still held in the name of the erstwhile companies.

2. The inventory has been physically verified by the management during the year. Thediscrepancies noticed on physical verification of inventory as compared to book recordswere not material and have been properly dealt with in the books of account. In ouropinion the frequency of verification is reasonable.

3. (a) According to the information and explanations given to us and based on the auditprocedures conducted by us the Company has granted unsecured loans to subsidiarycompanies and its associate which are parties covered in the register maintained undersection 189 of the Companies Act 2013. The terms and conditions of these loans in ouropinion are not prima-facie prejudicial to the interests of the Company.

(b) There is no stipulation regarding recovery of loans as these loans are repayable ondemand.

(c) The aforesaid loans being repayable on demand there is no amount overdue for morethan ninety days in respect of recovery of principal and interest of the above loans.

4. According to the information and explanations given to us and the records of theCompany examined by us the provisions of section 185 and 186 of the Companies Act 2013have been complied with in respect of loans investments guarantees and securities givenby the Company.

5. The Company has not accepted any deposits within the meaning of Sections 73 to 76 ofthe Act and the rules framed there under.

6. We have broadly reviewed the books of accounts maintained by the Company pursuant tothe order made by the Central Government for the maintenance of cost records under section148(1) of the Act and are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. We have not however carried out any detailedexamination of such records and accounts.

7. (a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is regular in depositing theundisputed statutory dues including provident fund employees' state insuranceincome-tax duty of customs goods and services tax cess and any other statutory dues asapplicable with the appropriate authorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of dues of Customs Central Excise Service TaxEntry Tax Income Tax and Value Added Tax as at 31st March 2021 which have not beendeposited on account of a dispute are as follows:

Name of the statute Nature Amount (Rs. In Lakhs) Period to which the amount relates Forum where the dispute is pending
Customs Act 1962 Custom 111.67 01/12/1998 to 30/06/2000 Commissioner CE.
The Central Excise Act 1944 Excise 1019.06 1986-87 to 2013-14 Appeal filed before the CESTAT
The Central Excise Act 1944 Excise 25.69 1986-87 to 2013-14 Commissioner Appeal
The Central Excise Act 1944 Excise 118.43 1995-96 to2007-08 Supreme Court
Finance (Service Tax) Act 1994 Service Tax 5740.36 2003-04 to 2010-11 Appeal filed before the CESTAT
Entry Tax Act Entry Tax 41.81 2011-12 to 2016-17 Commissioner Appeal
Income Tax Act 1961 Income Tax 625.41 AY 2009-10 to 2018-19 Commissioner Appeal
Value Added Tax Act Vat 204.71 2003-04 to 2005-06 Addl. Commissioner
Value Added Tax Act Vat 4578.23 2008-09 to 2011-12 Appellate and Revisional Board.
Value Added Tax Act Vat 2236.81 2011-12 to 2015-16 West Bengal Taxation Tribunal.
Central Sales Tax Act CST 245.02 2003-04 to 2014-15 Addl. Commissioner
Central Sales Tax Act CST 1515.00 2006-07 to 2013-14 Appellate and Revisional Board.
Maharashtra Value Added Tax Act 2002 Sales Tax 220.64 2012-13 to 2013-14 Dy. Commissioner of Sales Tax Mumbai
Odisha VAT ACT 2004 Sales Tax 6.51 2013-14 to 2016-17 Sales Tax Bhubaneshwar-III Circle
West Bengal Value Added Tax Act 2003 Sales Tax 75.25 2012-13 Senior Joint Commissioner Commercial Taxes Kolkata South Circle
West Bengal Value Added Tax Act 2003 Sales Tax 15.75 2014-15 Deputy Commissioner Commercial Taxes Ballygunge Charge Kolkata
Income Tax Act 1961 Income Tax 30.57 AY 2009-10 High Court Bombay
The West Bengal VAT Act 2003 Vat 12.63 AY 2012-13 Appellate Authorities West Bengal
MP VAT Act 2002 Entry Tax 2.53 AY 2009-10 Appellate Authorities Bhopal
Value Added Tax Act Vat 33.03 AY 2009-10 and AY 2015-16 Appellate Authorities Bhopal
Value Added Tax Act Vat 3.13 AY 2009-10 Second Appellate Authorities Bhopal
Value Added Tax Act Vat 442.74 AY 2016-17 and 2017-18 West Bengal Taxation Tribunal
Central Sales Tax Act CST 55.68 AY 2016-17 and 2017-18 WB Appellate & Revision Board
Goods and Services Tax Act GST 0.56 AY 2018-19 Superintendent- Tadipatri
Central Sales Tax Act Sales Tax 4.07 AY 2011-12 DCCT Singhbhum Circle Jamshedpur
Central Sales Tax Act Sales Tax 5.80 AY 2015-16 ETO Gurgaon North.
Tamil Nadu VAT Act2006 Sales Tax 175.39 AY 2010-11 to 2012-13 Commercial Tax officer (Enforcement)
Group-1 Office of the Asst. Commissioner
(CT) (Enforcement) Cuddalore
Goods and Services Tax Act Service Tax 11.10 Oct 16 to June 17 Deputy Commissioner East – II Division
CGST Gurugram
Central Sales Tax Act Sales Tax 6.55 2017-2018 Commercial Tax Officer MAREDPALLY Circle
BEGUMPET Division Hyderabad
Central Sales Tax Act Sales Tax 1.28 2017-18 Deputy Commisioner Sales Tax
Goods and Services Tax Act GST 96.10 FY 2017-2020 Excise & Taxation officer Bhiwani
The Chhattisgarh Value Added Tax Act 2005 VAT 66.96 2015-2016 Assessment Commisioner Raipur
Finance (Service Tax) Act 1994 Service Tax 7.11 FY 2014-18 (Oct.2014 Assessment Commisioner Raipur
Onwards to June 17)
The Central Excise Act 1944 Central 17.65 Adjucating authority
Excise
Customs Act 1962 Custom 75.99 Commissioner Appeal
Total 17829.22

8. According to the information and explanation given to us and the records of theCompany examined by us the Company has not defaulted in repayment of dues of any of loansor borrowings to any banks. The Company has neither taken any loan from financialinstitutions or Government nor issued any debentures.

9. In our opinion and according to the information and explanation given to us on anoverall basis the money raised by Company during the year by way of term loan have beenapplied for the purpose for which they were obtained. The Company has not raised any moneyby way of initial public offer or further public offer (including debt instruments).

10. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the Company noticed or reported during the year nor have webeen informed of such case by the management.

11. According to the information and explanations given to us and the records of theCompany examined by us the managerial remuneration paid or provided to One ExecutiveDirector is in excess of the prescribed limits mandated by the provisions of section 197read with Schedule V of the Act for which the Company is in the process of taking approvalfrom shareholder through a Special Resolution in the ensuing Annual General Meeting.

12. The related statutes are not applicable as the Company is not a Nidhi Company.

13. According to the information and explanations given to us and the records of theCompany examined by us the company has complied with the requirements of sections 177 and188 of the Act with respect to its transactions with the related parties. Pursuant to therequirement of the applicable Accounting Standard details of the related partytransactions have been disclosed in Note 1.41 of the standalone financial statements forthe year under audit.

14. The Company has made preferential allotment of shares during the year under audit.According to the information and explanation given to us and the records of the companyexamined by us the company has complied with the requirements of section 42 of the Act inthis regard and in our opinion on an overall basis the funds thus raised have beenapplied for the purposes these were raised.

15. According to the information and explanations given to us and the records of theCompany examined by us the Company has not entered into any non-cash transactions withany director of the Company and the holding company or persons connected with theminvolving acquisition of assets by or from them for consideration other than cash.

16. In our opinion and according to the information and explanations given to us notbeing a non-banking financial company the Company is not required to be registered undersection 45-IA of the Reserve Bank of India Act 1934.

For L. B. Jha & Co.
Chartered Accountants
Firm Registration No: 301088E
(D.N. Roy)
Partner
Place: Kolkata Membership No. 300389
Date: 14.05.2021 UDIN:21300389AAAAES5418

ANNEXURE- B TO THE INDEPENDENT AUDITOR'S REPORT to the Members of TEXMACO RAIL &ENGINEERING LIMITED

[Referred to in paragraph 19 (g) of the Independent Auditor's Report of even date]

Report on the Internal Financial Control under Clause (i) of Sub – sections 3 ofSection 143 of the Companies Act 2013("the Act")

1. We have audited the internal financial controls over financial reporting of TexmacoRail & Engineering Limited ("the Company") as of 31st March 2021 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Control

2. The Company's management is responsible for establishing and maintaining internalfinancial control based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation and maintenance ofadequate 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

3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the "Guidance Note" and the Standard on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable. 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.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includesobtaining an understanding of internal financial control over financial reportingassessing the risk that a material Weakness exists and testing and evaluating the designand operating effectiveness of internal controls based on the assessed risk. The procedureselected depends on the auditor's judgment including the assessment of the risk ofmaterial misstatement of the financial statement whether due to fraud or error.

5. 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 systemover financial reporting.

Meaning of Internal Financial Control over Financial Reporting

6. 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 the maintenance of the records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2) provide reasonable assurance that the transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditure of the Company are being madeonly in accordance with authorization of management and directors of company; and

3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial effect on the financial statements. Inherent Limitations of Internal FinancialControl over Financial Reporting

7. Because of inherent limitation of internal financial control over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to errors or fraud may occur and not be detected.Also projections of any evaluations of the internal financial control 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

8. In our opinion the Company has in all material respect an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2021 based on theinternal control over financial reporting criteria established by the company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Control Over Financial Reporting issued by ICAI.

Other Matters

9. Our aforesaid reports under section 143(3)(i) of the Act on the adequacy andoperating effectiveness of the Internal Financial Controls over financial reporting in sofar as it relates to the Kalindee unit is based on the corresponding report of the branchauditor.

For L. B. Jha & Co.
Chartered Accountants
Firm Registration No: 301088E
(D.N. Roy)
Partner
Place: Kolkata Membership No. 300389
Date: 14.05.2021 UDIN:21300389AAAAES5418

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