You are here » Home » Companies » Company Overview » Thakkers Developers Ltd

Thakkers Developers Ltd.

BSE: 526654 Sector: Infrastructure
NSE: N.A. ISIN Code: INE403F01017
BSE 00:00 | 05 Jul 126.90 -6.10
(-4.59%)
OPEN

127.05

HIGH

138.20

LOW

126.55

NSE 05:30 | 01 Jan Thakkers Developers Ltd
OPEN 127.05
PREVIOUS CLOSE 133.00
VOLUME 123
52-Week high 185.00
52-Week low 58.25
P/E 3.42
Mkt Cap.(Rs cr) 114
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 127.05
CLOSE 133.00
VOLUME 123
52-Week high 185.00
52-Week low 58.25
P/E 3.42
Mkt Cap.(Rs cr) 114
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Thakkers Developers Ltd. (THAKKERSDEVELP) - Auditors Report

Company auditors report

To

The Members of

Thakkers Developers Limited

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the standalone Ind AS financial statements of ThakkersDevelopers Limited ('the Company') which comprise the Balance sheet as at 31 March 2021the Statement of Profit and Loss including the Statement of Other Comprehensive Incomethe Cash flow statement for the year then ended and a Statement of changes in equity forthe year ended and notes to standalone Ind AS financial statements including a summary ofsignificant 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 2021 and profit including other comprehensive income changes in equity and its cashflows for the year ended on that date.

Basis for 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 accordancewith the ‘Code of Ethics' issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence obtained by us is sufficient andappropriate to provide a basis for our opinion on the standalone Ind AS financialstatements.

Emphasis of Matter paragraph

1. We draw attention to note 25 of the notes to accounts whichdescribes the Management assessment of uncertainties related to COVID-19 and itsconsequential financial impact on its assets as at March 31 2021 and operations of theCompany. The assessment of the management is dependent on the circumstances as they evolveconsidering the uncertainties prevailing in the economic situation.

2. We also draw attention to the following matters

a) Of the total tangible assets of Rs. 324.72 Lakhs (Written downvalue) Vehicles of Rs. 20.24 Lakhs (Written down value) are registered in the name of theDirectors and vehicles of Rs 15.93 Lakhs are registered in the name of relatives of theDirectors.

b) Further it was noted that the internal financial controls of thecompany need to be strengthened to commensurate with the nature and size of the company.

c) The Company has partially spent an amount which was required to beprovided under Section 135 of the Companies act 2013 towards Corporate SocialResponsibility. The amount of Rs 13.60 Lakhs is transferred to specified bank account on02/06/2021.

d) Profit before tax of Rs.414.05 Lakhs for the Financial Year2019-2020 is restated in accordance with Ind AS 8 by including Rs.366.82 lakhs which wasremained to be shown in Audited Financials for the said financial year.

Our report is not modified in respect of above matters.

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 2021. 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 of our 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. Revenue recognition:
The revenue from estate dealing and development activities represents 54.21% of the total revenue from operations of the company. The Company recognizes revenue on execution of agreement and letter of allotment and when control of the goods or services are transferred to the customer at an amount that reflects the consideration (i.e. the transaction price) to which the Company is expected to be entitled in exchange for those goods or services excluding any amount received on behalf of third party (such as indirect taxes). The revenue from construction activities and sale of flats/shops represent the remaining 45.79% of the total revenue from operations of the company. Significant accounting judgments includes estimation of costs to complete determining the stage of completion and the timing of revenue recognition in this case. Our audit procedures on Revenue recognition included the following:
For majority of its contracts the Company recognizes revenue and profit on the stage of completion based on the proportion of contract costs incurred for the work performed to the balance sheet date relative to the estimated costs on the contract at completion. The recognition of revenue and profit /loss therefore is based on estimates in relation to the estimated total costs of each contract. • Evaluating that the Company's revenue recognition accounting policies are in line with the applicable accounting standards and their application to the key customer contracts including consistent application;
The Company transfers control of a good or service over time and therefore satisfies a performance obligation and recognizes revenue over time. The Company recognizes revenue for performance obligation satisfied over time only if it can reasonably measure its progress towards complete satisfaction of the performance obligation. The Company would not be able to reasonably measure its progress towards complete satisfaction of a performance obligation if it lacks reliable information that would be required to apply an appropriate method of measuring progress. In those circumstances the Company recognizes revenue only to the extent of cost incurred until it can reasonably measure outcome of the performance obligation. • Sales cut-off procedures for determination of revenue in the correct reporting period;
• Scrutinizing all the revenue journal entries raised throughout the reporting period and comparing details of a sample of these journals which met certain risk-based criteria with relevant underlying documentation;
In addition we have performed the following procedures:
• Testing the design and implementation of internal controls including control over process for determining estimates used as evaluating whether they are operating effectively.
• Testing sample sales of units for projects with the underlying contracts completion status and proceeds received from customers;
• Identified and tested operating effectiveness of key controls around approvals of contracts intimation of possession letters and controls over collection from customers; and
• Compared on a sample basis revenue transactions recorded during the year with the underlying contracts progress reports invoices raised on customers and collections in bank accounts and whether the related revenue had been recognised in accordance with the Company's revenue recognition policies;
• Identification and testing operating effectiveness of key controls over recording of actual costs incurred for the projects;
• Review of the costs to complete workings comparing the costs to complete with the budgeted costs and inquiring into reasons for variance; and
• Sighting approvals for changes in budgeted costs with the rationale for the changes and assessment of contract costs to determine no revenue nature costs are taken to inventory.

 

2. Inventories
Inventories comprising of finished goods and construction work in progress along with respective development costs represents 52.46% of the Company's total assets. Our audit procedures to assess the net realizable value (NRV) of inventories included the following:
Construction materials • Evaluating the design and operative effectiveness of internal controls relating to valuation of inventories.
The construction materials and consumables not separately valued. It is treated as part of project cost on purchase for a particular project. Project work in progress is accordingly valued. • Discussion with the management to understand the basis of calculation and justification for the estimated recoverable amounts of the unsold units and TDR ("the NRV assessment");
Construction work in progress
The construction work in progress is valued at lower of cost or net realizable value. Work in Progress in respect of tenement of Flats/shops booked is valued at proportionate sale value. Cost includes cost of land development rights rates and taxes construction costs borrowing costs other direct expenditure allocated overheads and other incidental expenses. Net realizable value is the estimated selling price in the ordinary course of business less estimated costs of completion and the estimated costs necessary to make the sale. • Evaluating the design and implementation of the Company's internal controls over the NRV assessment. Our evaluation included assessing whether the NRV assessment was prepared and updated by appropriate personnel of the Company and whether the key estimates including estimated future selling prices and costs of completion for all property development projects used in the NRV assessment were discussed and challenged by management as appropriate;
Finished stock of completed projects (ready units) Finished stock of completed projects comprises of 47.85% of the total inventory of the company. Finished stock of completed projects and stock in trade of units is valued at lower of cost or net realizable value. • Evaluating the management's valuation methodology and assessing the key estimates data inputs and assumptions adopted in the valuations which included comparing expected future average selling prices with available market data such as recently transacted prices for similar properties located in the nearby vicinity of each property development project and the sales budget plans maintained by the Company;
Estate Dealing / development activity • Re-performing the calculations of the NRV assessment and comparing the estimated construction costs to complete each development with the Company's updated budgets on sample basis.
At cost including attributable development expenses or net realizable value whichever is less.
Transfer of Development Rights
Self-generated TDR is valued at stipulated percentage of cost of area in respect of which TDR is generated.
TDR purchased is valued at cost or net realizable value whichever is lower.

 

3. Accuracy and completeness of related party transactions and disclosures
Advances to related parties represent 17.10% of the total assets and Advances from related parties represent 21.07% of the total liabilities of the company. The Company has undertaken transactions with its related parties in the normal course of business at arm's length. These transactions include making new or additional investments lending and borrowing of advances in the related parties. We identified the accuracy and completeness of the said related party transactions and its disclosure as set out in respective notes to the financial statements as a key audit matter due to the significance of transactions with related parties during the year ended March 31 2021 and regulatory compliance thereon. • Obtained and read the Company's policies processes and procedures in respect of identifying related parties evaluation of arm's length obtaining approval recording and disclosure of related party transactions.
• We tested on a sample basis related party transactions with the underlying contracts and other supporting documents and for appropriate authorization and approval for such transactions.
• We read minutes of shareholder meetings board meetings and minutes of meetings of those charged with governance in connection with Company's assessment of related party transactions being in the ordinary course of business at arm's length.
• Agreed the related party information disclosed in the financial statements with the underlying supporting documents on a sample basis.

Other Information

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annualreport but does not include the standalone Ind AS financial statements and ourauditor's report 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 Responsibilities for the Standalone Ind AS FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standaloneInd AS financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) specified under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone Ind AS financial statements board ofdirectors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the board of directors either intend to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

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

Auditor's Responsibilities for the Audit of the 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 ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that anaudit conducted 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:

• 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.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of the management's use ofthe going concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the 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 conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone Ind AS financial statements including the disclosures and whether thestandalone Ind AS financial statements represents the underlying transactions and eventsin a 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 2021 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

1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the "Annexure A" a statement on thematters specified in the paragraph 3 and 4 of the order.

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

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

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

(c) The balance sheet the statement of profit and loss and the cashflow statement and the Statement of Changes in Equity dealt with by this Report are inagreement with the books of account;

(d) In our opinion the aforesaid Ind AS financial statements complywith the applicable Indian Accounting Standards specified under Section 133 of the Actread with Companies (Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from thedirectors as on 31 March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2021 from being appointed as a director in termsof Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company with reference to these standalone Ind ASfinancial statements and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B" to this report;

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

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements.

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

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

3. With respect to the matter to be included in the Auditors'Report under section 197(16):

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.

The Ministry of Corporate Affairs has not prescribed other detailsunder Section 197(16) which are required to be commented upon by us.

For and on behalf of
M/s. S. R. Rahalkar & Associates
Chartered Accountants
Firm Registration No-108283W
CA A. P. Sawarkar
Partner
Membership No. 100442
UDIN: 21100442AAAAHE2248
Place: Nashik
Date: June 30 2021

Annexure A to the Independent Auditors' Report

The Annexure referred to paragraph 1 under the heading "Report onother legal and regulatory requirements" of the Independent Auditors Report of evendate to the members of Thakker's Developers Limited) on the standalone Ind ASfinancial statements for the year Ended on 31/03/2021.

We report that:

(i) (a) The company has maintained records of Fixed Assets so as toshow full particulars however the quantitative details and situations of the fixed assetshas not been mentioned in the Fixed Assets register.

(b) All fixed assets have not been physically verified by themanagement during the year but there is a regular program of verification which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given by themanagement the title deeds of immovable properties included in property plant andequipment are held in the name of the company.

(ii) The management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies were noticed on suchphysical verification.

(iii) The Company has not granted loans and advances to parties coveredin the register maintained under Section 189 of the Act. Hence reporting under thisclause is not applicable to the company.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Section 185 and Section 186of the Act in respect of investments made or loans or guarantee or security provided asapplicable.

(v) In our opinion and according the information and explanations givento us the company has not accepted deposits and the directives issued by the ReserveBank of India and the provisions of sections 73 to 76 or any other relevant provisions ofthe Companies Act. Accordingly paragraph 3 (v) of the Order is not applicable to thecompany.

(vi) Pursuant to the rules made by the Central Government of India thecompany is required to maintain cost records as specified under Section 148(1) of the Actin respect of its products. We have broadly reviewed the same and are of the opinion thatprima facie the prescribed accounts and records have been made and maintained. We havenot however made a detailed examination of the records with a view to determine whetherare accurate and complete.

(vii) (a) Undisputed statutory dues including provident fundemployees' state insurance income-tax sales-tax service tax duty of customs dutyof excise value added tax cess and other material Statutory dues have been regularlydeposited with the appropriate authorities though there has been a slight delay in a fewcases.

According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome-tax service tax sales-tax duty of custom duty of excise value added tax cessand other statutory dues were outstanding at the year end for a period of more than sixmonths from the date they became payable.

(b) According to the records of the Company there are no dues ofincome-tax sales tax service tax duty of custom duty of excise value added tax goodsand service tax cess and other statutory dues on account of dispute.

(viii) According to the records examined by us and the information andexplanation given to us the company has not defaulted in repayments of loans orborrowings from any financial institution bank government or debenture holder asapplicable as at the Balance sheet date.

(ix) In our opinion and according to the information and explanationsgiven to us the moneys raised by way of term loans have been applied on an overall basisfor the purposes for which they were obtained. The company has not raised money by way ofinitial public offer or further public offer including debt instruments) during thefinancial year.

(x) During the course of our examination of the books and records ofthe company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the company or on the company by its officers oremployees notice or reported during the year nor have we been informed of any such caseby the Management.

(xi) According to the information and explanations give to us and basedon our examination of the records of the Company the Company has paid or provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanationgiven to us the company is not a Nidhi Company. Accordingly paragraph 3(xii) of theorder is not applicable.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

(xiv) According to the information and explanation given to us and onthe basis of explanation given to us the company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the year.Accordingly paragraph 3(xiv) of the order is not applicable to the Company

(xv) In our opinion and according to the information and explanationgiven to us the company has not entered into any non-cash transactions with directors orpersons connected with directors. Accordingly paragraph 3(xv) of the order is notapplicable to the Company.

(xvi) The company of the company is not required to be registered undersection 45-IA of the Reserve Bank of India Act 1934. Accordingly paragraph 3(xvi) of theorder is not applicable to the company.

Place: Nashik For S. R. Rahalkar & Associate
Date: 30/06/2021 Chartered Accountants
FRN: 108283W
A.P. Sawarkar
Partner
Membership No. 100442
UDIN: 21100442AAAAHE2248

Annexure B to the Independent Auditors' Report

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE IND AS FINANCIAL STATEMENTS OF THAKKERS DEVELOPERS LIMTED

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 Thakkers Developers Limited as of 31 March 2021 in conjunction withour audit of the standalone Ind AS financial statements of the company for the year endedon 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. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting with reference to the standalone IndAS financial statements based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting with reference to the standalone Ind AS financialstatements was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting withreference to the standalone Ind AS financial statements and their operating effectiveness.Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting with reference tothe standalone Ind AS financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the standaloneInd AS financial statements whether due to fraud or error.

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

Meaning of Internal Financial Controls over Financial Reporting withreference to the standalone Ind AS financial statements

A company's internal financial control over financial reporting withreference to the standalone Ind AS financial statements is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof standalone Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting with reference to the standalone Ind AS financial statements includesthose 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 standalone Ind AS financial statements in accordancewith generally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorisations of management and directorsof the company; 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 standalone Ind AS financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting with reference to the standalone Ind AS financial statements

Because of the inherent limitations of internal financial controls overfinancial reporting with reference to the standalone Ind AS financial statementsincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingwith reference to the standalone Ind AS financial statements to future periods are subjectto the risk that the internal financial control over financial reporting with reference tothe standalone Ind AS financial statements may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls over financial reporting with reference to these standaloneInd AS financial statements and such internal financial controls over financial reportingwith reference to these standalone Ind AS financial statements were operating effectivelyas at March 31 2021 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 Reportingissued by the Institute of Chartered Accountants of India.

For S.R. Rahalkar & Associates
Chartered Accountants
Date: 30/06/2021 Firm Registration Number–108283W
Place: Nashik
A.P. Sawarkar
Partner
Membership Number 100442
UDIN: 21100442AAAAHE2248

.