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The Ramco Cements Ltd.

BSE: 500260 Sector: Industrials
NSE: RAMCOCEM ISIN Code: INE331A01037
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OPEN 664.80
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VOLUME 4974
52-Week high 1130.95
52-Week low 575.05
P/E 17.24
Mkt Cap.(Rs cr) 15,388
Buy Price 651.20
Buy Qty 21.00
Sell Price 651.80
Sell Qty 1.00
OPEN 664.80
CLOSE 662.70
VOLUME 4974
52-Week high 1130.95
52-Week low 575.05
P/E 17.24
Mkt Cap.(Rs cr) 15,388
Buy Price 651.20
Buy Qty 21.00
Sell Price 651.80
Sell Qty 1.00

The Ramco Cements Ltd. (RAMCOCEM) - Auditors Report

Company auditors report

To the Members of THE RAMCO CEMENTS LIMITED

Report on the Audit of the Separate Financial Statements Opinion

We have audited the Separate financial statements of THE RAMCO CEMENTS LIMITED("the Company") which comprise the Separate Balance sheet as at 31stMarch 2021 and the Separate Statement of Profit and Loss the Separate Statement ofchanges in Equity and the Separate Statement of cash flows for the year ended on thatdate and notes to the separate financial statements including a summary of significantaccounting policies and other explanatory information (herein after referred to as"the Separate Financial Statements"). In our opinion and to the best of ourinformation and according to the explanations given to us the aforesaid separatefinancial statements give the information required by the Companies Act 2013 ("theAct") in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2021 and the profit and total comprehensive income changes in equity andits cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor’s Responsibilities for the Audit ofthe Separate Financial Statements section of our report. We are independent of the Companyin accordance with the Code of

Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the separate financial statementsunder the provisions of the Companies Act 2013 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 opinion.

Emphasis of Matter

We draw attention to Note No. 61 to the separate financial statements which describesthe uncertainties and the impact of the COVID-19 pandemic on the company’s operationsand results as assessed by the management. The Management has assessed that there is nomaterial impact on the financial statements due to lock down and related restrictionsimposed towards controlling the COVID 19 pandemic. Our opinion is not modified in respectof this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the separate financial statements of the current period.These matters were addressed in the context of our audit of the separate 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.

S. No. Key Audit Matter Auditor’s Response
1 Recognition and measurement of deferred taxes Principal Audit Procedures
The recognition and measurement of deferred tax items requires determination of differences between the recognition and the measurement of assets liabilities income and expenses in accordance with the Income Tax Act and other applicable tax laws including application of ICDS and financial reporting in accordance with Ind AS. The key matter was addressed by performing audit procedures which involved assessment of underlying process and evaluation of internal financial controls with respect to measurement of deferred tax and assessment of the items leading to recognition of deferred tax in light of prevailing tax laws and applicable financial reporting standards.
Assessment of Deferred Tax Assets is done by the management at the close of each financial year taking into account forecast of future taxable results. Furthermore we assessed the adequacy and appropriateness of the disclosures in the separate financial statements.
We have considered the assessment of deferred tax liabilities and assets as a key matter due to the importance of management’s estimation and judgment and the materiality of amounts.
(Refer to Note No. 4.4.3 4.4.5 and 4.4.6 to the Separate Financial Statements)
2 Evaluation of uncertain Tax Position/ Other contingent liabilities Principal Audit Procedures
The Company has material uncertain tax position in respect of possible or actual taxation disputes litigations and claims. The provisions are estimated using a significant degree of management judgment in interpreting the various relevant rules regulations and practices and in considering precedents in various legal forums. The Audit addressed this Key Audit Matter by assessing the adequacy of tax Provisions by reviewing the management’s underlying assumptions in estimating the tax provisions and the possible outcome of the disputes.
(Refer to Note No. 46.2.1 to 46.2.22 to the Separate Financial Statements) We reviewed the significant litigations and claims and discussed with the Company’s legal counsel external advisors about their views regarding the likely outcome and magnitude of and exposure to relevant litigation and claims.
We also reviewed to relevant judgements and the opinions given by the company’s advisers which were relied on by the management for such claims.
Furthermore we assessed the adequacy and appropriateness of the disclosures in the separate financial statements.
3 Disputes and potential litigations Principal Audit Procedures
The Competition Commission of India (CCI) vide its order dated 31st August 2016 had imposed a penalty of ' 258.63 Crores on the company towards alleged cartelisation. The Company’s appeal along with other cement companies had been dismissed by NCLAT vide its order dated 25th July 2018. Against the order the Company appealed to the Hon’ble Supreme Court which by its order dated 05th October 2018 admitted the appeal and directed to continue the interim order passed by NCLAT. Accordingly the Company has re-deposited ' 25.86 Crores being 10% of the penalty. The Company backed by legal opinion believes that it has a good case and hence no provision is made. Management Judgement is involved in considering the probability of the claim being successful and we have accordingly designated this as a focus area of the audit. In response to the risk of completeness of the disclosures and probability of claim being successful we reviewed the legal advice obtained by the management from external legal advisor. We discussed the case with Management and reviewed the related documents. We also reviewed the stand taken by other companies in the cement industry who are all also involved in this issue. We reviewed the disclosures for completeness based on our audit procedures.
(Refer to Note No. 46.2.6 to the Separate Financial Statements)
4 Existence and impairment of Trade Receivables Principal Audit Procedures
Trade Receivables are significant to the Company’s financial statements. The Collectability of trade receivables is a key element of the company’s working capital management which is managed on an ongoing basis by its management. Due to the nature of the Business the requirements of customers and various contract terms are in place there is a risk that the carrying values may not reflect of their recoverable amounts as at the reporting date which would require an impairment provision. Where there are indicators of impairment the company undertakes assessment of the recoverability of the amounts. Given the magnitude and inherent uncertainty involved in the judgement in estimating impairment assessment of trade receivables we have identified this as a key audit matter. We performed audit procedures on the assessment of trade receivables which included substantive testing of revenue transactions obtaining trade receivable external confirmations and testing the subsequent payments received. Assessing the impact of impairment on trade receivables requires judgement and we evaluated management’s assumptions in determining the provision for impairment of trade receivables by analyzing the ageing of receivables assessing significant overdue individual trade receivables and specific local risks combined with the legal documentations where applicable.
(Refer to Note No. 17 to the Separate Financial Statements) We also reviewed the system of obtaining monthly confirmation from the customers which are kept in electronic mode by the company. We tested the timing of revenue and trade receivables recognition based on the terms agreed with the customers. We also reviewed on a sample basis terms of the contract with the customers invoices raised etc. as a part of our audit procedures.
Furthermore we assessed the adequacy and appropriateness of the disclosures in the separate financial statements.

Information Other than the Separate Financial Statements and Auditors’ ReportThereon

The Company’s Management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in theCompany’s annual report Board’s Report including Annexure to Board’sReport Business Responsibility Report Corporate Governance and Report on CSR activitiesand Shareholders information but does not include the separate financial statements andour auditor’s report thereon.

Our opinion on the separate financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the separate financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the separate financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management’s Responsibility for the Separate Financial Statements

The Company’s Management and Board of Directors are responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these separatefinancial statements that give a true and fair view of the state of affairs profit orloss including other comprehensive income changes in equity and cash flows of the Companyin accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133of Companies Act 2013 read with relevant rules issued there under and accountingprinciples generally accepted in India. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgements and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the separate financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the separate financial statements Management and Board of Directors areresponsible for assessing the Company’s ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company’sfinancial reporting process.

Auditor’s Responsibilities for the Audit of the Separate Financial Statements

Our objectives are to obtain reasonable assurance about whether the separate financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these separate financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the separate financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal controls 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 with reference to separatefinancial statements in place and the operating 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 concernbasis 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 separate 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 the separatefinancial statements including the disclosures and whether the separate financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the separate_financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the separate financial statements may be influenced. Weconsider 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 separate financialstatements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the separate financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor’s report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

The Separate Financial Statements includes financial performance of a foreign branchwhich reflects total assets of Rs. 1.72 Crores total revenue of Rs. 7.34 Crores and netcash outflow amounting to Rs. 0.67 Crores for the year ended on 31st March2021 which was audited by independent auditors in accordance with the regulations of thatcountry and whose report has been furnished to us and has been considered in the separatefinancial statements solely based on such audited financial statements.

Our opinion is not modified in respect of these matters.

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) ofsection 143 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. Asrequired 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 reports on the accounts of the branch offices of the Company audited underSection 143(8) of the Act by branch auditors have been sent to us and have been properlydealt with by us in preparing this report.

(d) The Separate Balance Sheet the Separate Statement of Profit and Loss includingOther Comprehensive Income the Separate Statement of changes in equity and the Separatestatement of Cash Flow dealt with by this Report are in agreement with the books ofaccount.

(e) In our opinion the aforesaid separate financial statements comply with the IndianAccounting 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 termsof Section 164 (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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the company’s internal financial controlover financial reporting.

(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. In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.

(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:

i. The Company has disclosed the details of the pending litigations and its impact onthe financial position in its separate financial statements have been disclosed in NoteNo. 46.2.1 to 46.2.22 of Notes to the Separate Financial Statements for the year ended 31stMarch 2021.

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

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

For SRSV & ASSOCIATES For RAMAKRISHNA RAJA AND CO
Chartered Accountants Chartered Accountants
Firm Registration No.: 015041S Firm Registration No.: 005333S
P. SANTHANAM M. VIJAYAN
Partner Partner
Membership No.: 018697 Membership No.: 026972
UDIN: 21018697AAAADS3420 UDIN: 21026972AAAADP4394
Place: Chennai
Date: 24th May 2021

"ANNEXURE A" TO THE INDEPENDENT AUDITOR’S REPORT

With reference to the Annexure A referred to in the Independent Auditor’s Reportto the company on the separate financial statements for the year ended 31stMarch 2021 we report the following:

i. Fixed Assets

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

b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. According to the informationand explanations given to us no material discrepancies were noticed on such physicalverification.

c) According to the information and explanation given to us the title deeds ofimmovable properties of the Company are held in the name of the Company.

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

ii. Inventory

a) The management has conducted the physical verification of inventory at reasonableintervals.

b) The discrepancies noticed on verification between the physical stocks and the booksrecords were properly dealt with in the books of accounts and were not material.

iii. The company has granted loan to a party listed in the register maintainedunder Section 189 of the Act. The maximum outstanding at any time during the year was Rs.68.07 Crores (Previous year Rs. 42.08 Crores) and the amount outstanding as on 31stMarch 2021 is Rs. 58.02 Crores (Previous year Rs. 41.68 Crores).

a) In our opinion the terms and conditions on which the loan has been granted to theparty listed in the register maintained under section 189 of the Act are not prejudicialto the interest of the Company.

b) The payment of the principal and the interest wherever applicable are regular.

c) There are no overdue amounts in respect of the loan granted to a party listed in theregister maintained under section 189 of the Act.

iv. In our opinion and according to the information and explanations given to usthe Company has complied with the provisions of Section 185 and 186 of the Companies Act2013 in respect of loans investments guarantees and security.

v. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits during the year. Accordingly reporting under thisclause does not arise.

vi. The Company is maintaining the cost records which have been specified by theCentral Government under section 148 (1) of the Companies Act 2013.

vii. Undisputed and disputed taxes and duties

a) According to the records of the Company and information and explanations given tous the company is regular in depositing undisputed statutory dues including providentfund employees’ state insurance income-tax duty of customs goods and servicestax cess and any other statutory dues with the appropriate authorities. No undisputedamounts payable in respect of the above were in arrear as at 31st March 2021for a period of more than six months from the date they become payable.

b) As at 31st March 2021 according to the records of the Company thefollowing are the particulars of the disputed dues on account of sales tax income taxcustoms duty wealth tax service tax and cess which have not been deposited on accountof dispute:

Rs. In Crores

Name of the Statute Forum where dispute is pending Period to which it relates 31-03-2021 31-03-2020
1 VAT / CST Act / Entry Tax Assessing Authority 1990-91 to 2010-11 0.46 0.46
Assistant/Deputy Commissioner Appeals 1990-91 to 2010-11 & 2013-14 to 2016-17 1.22 1.22
Appellate Tribunal 1990-91 to 2010-11 & 2013-14 5.81 5.81
High Court 1990-91 to 2010-11 1.06 1.06
2 Central Excise Act & Cenvat Credit Rules Assistant/Deputy / Additional Commissioner 2004-05 to 2017-18 121.61 123.34
Commissioner Appeals 1997-98 2004-05 to 2016-17 2.61 0.62
Appellate Tribunal 2004-05 to 2017-18 114.52 132.62
High Court 2006-07 to 2011-12 77.74 58.45
Supreme Court 2004-05 to 2013-14 20.82 20.82
3 Income Tax Act Commissioner Appeals 2010-11 & 2015-16 26.93 28.35
Dispute Resolution Panel 2015-16 12.50 -
Appellate Tribunal 2009-10 2011-12 to 2013-14 24.82 25.29
High Court 1999-2000 0.09 -
Total 410.19 398.04

viii. Based on our audit procedures and according to the information andexplanations given to us by the management we are of the opinion that the company has notdefaulted in repayment of loans or borrowings to a financial institution bank Governmentor debenture holders.

ix. The company has not raised money by way of initial public offer or furtherpublic offer during the Current year. The Company has raised term loans frombanks/institutions and Non-convertible debentures during the year and the proceeds havebeen applied for the purposes for which they were raised.

x. In our opinion and according to the information and explanations given to us wereport that no fraud by the company or on the company by its officers or employees hasbeen noticed or reported during the year.

xi. In our opinion the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Companies Act 2013.

xii. In our opinion the Company is not a Nidhi Company.

Accordingly clause (xii) of Para 3 of the Order 2016 is not applicable to the Company.

xiii. In our opinion and according to the information and explanation given to usall transactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the SeparateFinancial Statements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us the Company has notmade a preferential allotment or private placement shares or fully or partly convertibledebentures during the year under review. Accordingly the provisions of clause (xiv) ofPara 3 of the Order are not applicable to the Company.

xv. ln our opinion and according to the information and explanations given to usthe Company has not entered into any non - cash transactions with directors or personsconnected with the Directors. Accordingly provisions of clause (xv) of Para 3 of theOrder are not applicable to the Company.

xvi. In our opinion and according to the information and explanations given to usthe Company is not required to be registered under Section 45-IA of the Reserve Bank ofIndia Act 1934. Accordingly the provision of clause (xvi) of Para 3 of the Order 2016 isnot applicable to the Company.

For SRSV & ASSOCIATES For RAMAKRISHNA RAJA AND CO
Chartered Accountants Chartered Accountants
Firm Registration No.: 015041S Firm Registration No.: 005333S
P. SANTHANAM M. VIJAYAN
Partner Partner
Membership No.: 018697 Membership No.: 026972
UDIN: 21018697AAAADS3420 UDIN: 21026972AAAADP4394
Place: Chennai
Date: 24th May 2021

"ANNEXURE B" TO THE INDEPENDENT AUDITOR’S REPORT

of even date on the Separate Financial Statements Prepared in Accordance with theIndian Accounting Standards of The Ramco Cements Limited.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of M/s. THERAMCO CEMENTS LIMITED ("the Company") as of March 31 2021 in conjunction withour audit of the separate financial statements of the Company for the year ended on thatdate.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls 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 (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors’ Responsibility

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 on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31st 2021 based onthe 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.

For SRSV & ASSOCIATES For RAMAKRISHNA RAJA AND CO
Chartered Accountants Chartered Accountants
Firm Registration No.: 015041S Firm Registration No.: 005333S
P. SANTHANAM M. VIJAYAN
Partner Partner
Membership No.: 018697 Membership No.: 026972
UDIN: 21018697AAAADS3420 UDIN: 21026972AAAADP4394
Place: Chennai
Date: 24th May 2021

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