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Tinna Rubber & Infrastructure Ltd.

BSE: 530475 Sector: Others
NSE: N.A. ISIN Code: INE015C01016
BSE 00:00 | 30 Nov 126.70 -3.55
(-2.73%)
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130.50

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NSE 05:30 | 01 Jan Tinna Rubber & Infrastructure Ltd
OPEN 130.50
PREVIOUS CLOSE 130.25
VOLUME 22269
52-Week high 142.00
52-Week low 22.10
P/E 10.11
Mkt Cap.(Rs cr) 108
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 130.50
CLOSE 130.25
VOLUME 22269
52-Week high 142.00
52-Week low 22.10
P/E 10.11
Mkt Cap.(Rs cr) 108
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Tinna Rubber & Infrastructure Ltd. (TINNARUBBER) - Auditors Report

Company auditors report

To

The Members of

TINNA RUBBER AND INFRASTRUCTURE LIMITED

Tinna House

No. 6 Sultanpur (Mandi Road)

Mehrauli Delhi-110030

Report on the Standalone Ind AS Financial Statements

Qualified Opinion

We have audited the accompanying standaloneInd AS financial statementsof TINNA RUBBER AND INFRASTRUCTURE LIMITED ("the Company") whichcomprise the Balance Sheet as at March 31 2021 and the Statement of Profit and Loss(including other comprehensive income) the Statement of Cash Flows and the Statement ofChanges in Equity for the year then ended and a summary of significant accountingpolicies and other explanatory information (hereinafter referred to as Ind AS FinancialStatements).

In our opinion and to the best of our information and according to theexplanation given to us except for the effects of the matter described in the basis ofQualified Opinion section of our report the aforesaid standaloneInd AS financialstatements give the information required by the Companies Act 2013 in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 312021net profit and total comprehensive income changes in equity and its cash flows for theyear ended on that date.

Basis for Qualified Opinion

The Company had incurred marketing promotion expenses and otherexpenses amounting to Rs. 80.43 lakhs during the financial year 2018-19 which has beenamortized over a period of three years as is more appropriately referred in note no.33(11) of the accompanying financial statement. The same is not in accordance withprovisions of Ind AS 38 "Intangible Assets" (Para 69). Consequently the netloss and total comprehensive income for the year ended 31st March 2019 was understated byRs. 53.62lakhs and other noncurrent assets and other current assets were overstated byRs. 26.81 lakhs each. During the year had the correct accounting treatment been followedby the Company profit for the year would have been higher by Rs. 26.81 Lakhs.

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013 as amended ("TheAct"). Our responsibilities under those Standards are further described in the"Auditor's Responsibilities for the Audit of the Standalone FinancialResults" section of our report. We are independent of the Company in accordance withthe code of Ethics issued by The Institute of Chartered Accountants of India together withthe ethical requirements that are relevant to our audit of the financial statement 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 obtained by us is sufficient and appropriate to provide abasis for our qualified opinion.

Emphasis of Matter

a) We draw attention to note no. 33(2) of the accompanying statementin relation to accounting of financial guarantee provided by the company in respect ofborrowings available by one of its associate and other group companies based in India anddisclosure of the same as contingent liability as is more fully described therein.

b) We draw attention to Note no. 33(4)(a) of the accompanyingStandalone Ind AS Financial Statements which describes the basis of fair value of theCompany's investment of Rs. 643.36 lakhs in M/s BGK Infratech Private Limited and Rs.37.29 lakhs in M/s Puja Infratech LLP which are to be valued at fair value through othercomprehensive income in accordance with IND AS 109"Financial Instruments" asspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 and the Companies (Indian Accounting Standards) Rules 2015. The Valuationinvolves significant management judgments and estimates on the valuation methodology andvarious assumptions used in determination of value in use/fair value by independentvaluation experts as is more fully described in the aforesaid note. Based on themanagement policy no change in fair value of the investee Company is considered necessaryfor the current financial year.

c) We draw attention to Note no. 32(A)(a) of the accompanyingStandalone Ind AS Financial Statement with regard to provision of interest on term loanavailed from India Bulls Commercial Credit Limited (IBCCL) as is more fully described inthe above note. Since the matter is under arbitration the impact of the outcome cannot bedetermined at the reporting date and hence not provided for.

d) The Company has an investment of 341.25 lakhs in TP BuildtechPrivate Limited an associate Company the net worth of which as at 31 March 2021haseroded. Considering this matter is fundamental to the understanding of the users ofstandalone financial statements we draw attention to Note no 33(4)(b)of the financialstatement regarding the Company's noncurrent investment in associate company TPBuildtech Private Limited. Based on disclosure in the said note no provision forimpairment has been considered necessary in the Financial Statement.

Our opinion 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 financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key Audit Matter Auditor's Response
1 Evaluation of uncertain positions Principal Audit Procedures
The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. Obtained details of completed tax assessments and demands for the year ended March 3 1 202 1from management. We involved our internal experts to challenge the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. Our internal experts also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions.
Refer Note no. 32(A)(c) to the Standalone Financial Statements. Additionally we considered the effect of new information in respect of uncertain tax positions as at April 1 2020 to evaluate whether any change was required to management's position on these uncertainties.
2 Taxation
Significant judgments are required in determining provision of income taxes both current and deferred as well as the assessment of provision for uncertain tax position including estimates of interest and penalties where appropriate. We evaluated the design and implementation of controls in respect of provision for current tax and the recognition and recoverability of deferred tax assets.
We discussed with management the adequate implementation of policies and control regarding current and deferred tax.
We examined the procedure in place for the current and deferred tax calculation for completeness and valuation and audited the related tax computation and estimates in the light of our knowledge of the tax circumstances. Our work was conducted with our tax specialist. We performed the assessment of the material components impacting the tax expenses balance and exposures. We reviewed and challenged the information reported by components with the support of our own tax specialist where appropriate. In respect of deferred tax assets and liabilities we assess the appropriateness of management's assumptions and estimates to support deferred tax assets for tax losses carried forward and related disclosures in financial statements. Based on the procedure performed above we obtained sufficient audit evidence to corroborate management's estimates regarding current and deferred tax balances.

 

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annual reportbut does not include the Ind AS financial statements and our auditor's reportthereon. The Annual Report is expected to be made available to us after the date of thisAuditor's Report. Our opinion on the Ind AS financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

Responsibilities of Management and Those Charges with Governance forthe Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standaloneInd AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows and changes in equity of the company in accordance with accountingprinciples generally accepted in India including the Indian Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 and the Companies (Indian Accounting Standards) Rules 2015.Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 theInd AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofTaud or error.

In preparing theInd AS financial statements the board of directors isresponsible for the assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

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

Auditor's Responsibility for the Audit of Ind AS FinancialStatements

Our objectives are to obtain reasonable assurance about whether the IndAS financial statements as a whole are free from material misstatement whether due tofraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Ind AS financial statements.

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 thestandaloneInd 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 financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace 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 management's use of thegoing 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 standalone Ind AS financial statements or ifsuch disclosures are inadequate to modify our opinion. Our conclusions are based on theaudit evidence obtained up to the date of our auditor's report. However futureevents or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandaloneInd AS financial statements including the disclosures and whether thestandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone Ind ASfinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the Ind AS financial statementsmay be influenced. We consider quantitative materiality and qualitative factors in

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

(ii) to evaluate the effect of any identified misstatements in the IndAS financial statements.

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 standaloneIndAS financial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Companies Act 2013 we give in the Annexure ‘A ‘astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

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 havebeen kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet and the Statement of Profit and Loss includingthe Statement of Other Comprehensive Income the Cash Flow Statement and the Statement ofChanges in Equitydealt with by this Report are in agreement with the books of account.

(d) In our opinion except for the effects/possible effects of thematters described in the Basis for Qualified Opinion paragraph above the aforesaidstandalone financial statements comply with the Indian Accounting Standards prescribedunder Section 133 of the Act and the rules prescribed there under.

(e) On the basis of the written representations received from thedirectors as on 31st March

2021 taken on record by the Board of Directors none of the directorsis disqualified as on 31st March 2021 from being appointed as a director in terms ofSection 164 (2) of the Act.

(f) The qualifications relating to maintenance of accounts and othermatters connected therewith are as stated in the Basis for Qualified Opinion paragraphabove.

(g) In our opinion the managerial remuneration for the year endedMarch 31 2021 has been paid / provided by Company to its directors in accordance with theprovision of section 197 read with schedule V to the Act;

(h) With respect to the adequacy of the internal financial control overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in "Annexure B" to this report

(i) 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 itsInd AS financial statements. (Refer note no. 32(A))

(ii) The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts

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

Annexure-A referred to in paragraph 1 under the heading "Report onother legal and regulatory requirements" of our report of even date

Re: TINNA RUBBER AND INFRASTRUCTURE LIMITED (the Company)

1. a. The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets

b. The Company has a phased periodical programme of physicalverification of all fixed assets which in our opinion is reasonable having regard to thesize of the Company and the nature of its assets. No material discrepancies have beennoticed on such verification.

c. As per explanation given to us the title deeds of immovableproperties are held in the name of the Company.

2. As per explanations given to us inventories have been physicallyverified by the management at reasonable intervals. In our opinion the frequency of theverification is reasonable and no material discrepancies have been noticed on physicalverification of stocks as compared to book records.

3. The Company has not granted loans secured or unsecured toCompanies firms Limited Liability Partnership or other parties covered in the registermaintained under section 189 of the Companies Act 2013. Accordingly provisions of clause3 (a) (b) (c) of the Order are not applicable to the Company.

4. In our opinion and as per information and explanation 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 securities granted.

5. According to the information and explanation given to us theCompany has not accepted any deposits as per the provisions of Section 73 to 76 or anyother relevant provisions of the Companies Act and the rules framed thereunder.

6. We have broadly reviewed the cost records maintained by the Companypursuant to the rules made by the Central Government for the maintenance of cost recordsunder section 148 (1) of the Companies Act 2013 related to the manufacture of Rubber andRubber Product-waste Pairings and Scrap of Rubber and are of the opinion that primafacie the prescribed accounts and cost records have been maintained. We have nothowever made a detailed examination of the same.

7. (a) The Company is generally regular in depositing undisputedstatutory dues including Provident Fund Employees'

State Insurance Income-Tax Sales-Tax Service tax Duty of CustomsDuty of Excise Value Added Tax Goods and Service Tax Cess and any other statutory dueshowever with delays. Interest on Sales Tax payable amounting to Rs.

10.09 lakhs is in arrears as at 31st March 2021 concerned for a periodof more than six months from the date they become payable.

(b) According to the records of the company the dues of income-taxsales tax service-tax duty of custom duty of exercise value added tax and cess onaccount of any dispute are as follows:

Name of Statute Nature of Dues

Amount (Rs. In lakhs )

Financial Year

Forum where dispute is pending
1. Income Tax Act 1961 Income Tax

73.50

2000-2001

High Court of Delhi
2. Income Tax Act 1961 Income Tax

456.12

2013-2014

Income Tax Appellate Tribunal Delhi
3. Income Tax Act 1961 Income Tax

1.86

2009-2010

Income Tax Appellate Tribunal Delhi
4. Income Tax Act1961 Income Tax

651.61

2013-14

Commissioner of Income Tax(Appeals) Delhi
5. Service Tax Service Tax (excluding penalties and interest)

50.12

01.04.2008 to 30.06.2012

Hon'ble High Court Allahabad
6. Excise Duty Excise Duty (excluding interest and penalty)

5.50

2010-2011 to 2011-2012

Customs Excise & Service Tax Appellate Tribunal West Zonal Bench Ahmedabad
7. Excise Duty Excise Duty (excluding interest and penalty)

97.60

May 2010 to July 2012

Customs Excise & Service Tax Appellate Tribunal West Zonal Bench Ahmedabad
8. Excise Duty Excise Duty (excluding interest and penalty)

1.45

2011-2012

Commissioner of Central Excise (Appeals) Mumbai
9. Excise Duty Excise Duty (excluding interest and penalty) & and reversal of CENVAT credit for input and input services

71.26

2012- 13 to 2013- 14 (up to December 2014)

Customs Excise & Service Tax Appellate Tribunal West Zonal Bench Chandigarh
10. Excise Duty Interest and Penalty on Excise Duty Liability

104.00

2012- 2013 to 2013- 2014 (up to December 2014)

Customs Excise & Service Tax Appellate Tribunal West Zonal bench Chandigarh
11. Excise Duty Excise Duty & Service Tax Liability (Excluding Interest and penalty on excise Duty & services Tax Liability

92.12

2014-2015

Customs Excise & Service Tax Appellate Tribunal Chandigarh
12. Excise Duty Excise Duty & Service Tax Liability (Excluding Interest and penalty on excise Duty & services Tax Liability

75.88

2015-16

Appeal Filing is in process before Customs Excise & Service Tax Appellate Tribunal Chandigarh
13. Custom Duty Countervailing Duty

40.61

2013-2014

Hon'ble High Court of Delhi
14. Custom Duty Countervailing Duty

110.97

2014-2015

Hon'ble High Court of Delhi
15. Custom Duty Countervailing Duty

113.22

2015-2016

Hon'ble High Court of Delhi
16. Custom Duty Countervailing Duty

85.48

2016-2017

Hon'ble High Court of Delhi
17. Custom Duty Countervailing Duty

6.14

April 2017 to June 2017

Hon'ble High Court of Delhi
18. Custom Duty Redemption Fine and Penalty

10.00

1 September 2015 to 31 October 2015

Customs Excise & Service Tax Appellant Tribunal Allahabad

 

8. (a) The Company hastaken loans from Banksand Financial Institutions.The accounts are regular in nature.

The delays noticed in repayments are as under:

Name of Bank/Financial Institution

Amount (Including Interest) (Rs. in lakhs)

Due Date of Instalment

Actual Date of Payment

India bulls Commercial Credit Limited

26.79

10-09-2020

27-11-2020

India bulls Commercial Credit Limited

7.18

10-09-2020

27-11-2020

India bulls Commercial Credit Limited

24.69

10-10-2020

02-12-2020

India bulls Commercial Credit Limited

6.66

10-10-2020

02-12-2020

India bulls Commercial Credit Limited

19.11

10-11-2020

20-12-2020

India bulls Commercial Credit Limited

4.86

10-11-2020

21-12-2020

India bulls Commercial Credit Limited

26.79

10-12-2020

31-12-2020

India bulls Commercial Credit Limited

7.18

10-12-2020

30-12-2020

India bulls Commercial Credit Limited

26.79

10-01-2021

27-01-2021

India bulls Commercial Credit Limited

7.18

10-01-2021

27-01-2021

India bulls Commercial Credit Limited

26.79

10-02-2021

26-02-2021

India bulls Commercial Credit Limited

7.18

10-02-2021

26-02-2021

India bulls Commercial Credit Limited

21.11

10-03-2021

29-03-2021

India bulls Commercial Credit Limited

5.60

10-03-2021

29-03-2021

 

We draw attention to Note no. 32(A) (a) of the accompanying StandaloneInd AS Financial Statement with regard to provision of interest on term loan availed fromIndia Bulls Commercial Credit Limited (IBCCL) as is more fully described in the abovenote. Since the matter is under arbitration the impact of the outcome cannot bedetermined at the reporting date and hence not provided for.

9. Based on the information and explanations given to us by themanagement the Company has not raised any money by way of initial public offer/ furtherpublic offer and debt instruments. In our opinion and as per the information andexplanations given to us the monies raised by way of term loan were applied for thepurpose for which the said term loans were obtained.

10. Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and according to theinformation and explanations given by the management we report that no fraud by thecompany or no fraud/ material fraud on the company by the officers and employees of theCompany has been noticed or reported during the period.

11. In our opinion and according to the information and explanationgiven to us the managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.

12. In our opinion the Company is not a Nidhi Company. Therefore theprovisions of this clause of the order are not applicable to the Company and hence notcommented upon.

13. As per the information given to us all transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and the details have been disclosed in the Financial Statements etc. asrequired by theapplicable accounting standards.

14. According to the information and explanations given to us and on anoverall examination of the balance sheet the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and hence reporting requirements under clause 3(14) are notapplicable to the company and not commented upon.

15. In our opinion and according to the information and explanationsgiven to us the Company has not entered into any noncash transaction with directors orpersons connected with him.

16. The Company is not required to be registered under sections 45-IAof the Reserve Bank of India Act 1934.

Annexure - B to the Auditors' Report

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

To the Members of Tinna Rubber and Infrastructure Limited

We have audited the internal financial controls over financialreporting of TINNA RUBBER AND INFRASTRUCTURE LIMITED ("the Company") as of 31stMarch 2021 in conjunction with our audit of the Standalone financial statements of theCompany for the period ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

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

Meaning of Internal Financial Controls over Financial Reporting

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

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

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

3. Provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assetsthat could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

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

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March2021 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For V.R.Bansal& Associates

Chartered Accountants

Firm Registration No. 016534N

(Rajan Bansal)

Partner

Membership No. 093591

UDIN:21093591AAAAPA2057

Place: Delhi
Dated: 30-06-2021

 

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