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Valiant Organics Ltd.

BSE: 540145 Sector: Industrials
NSE: VALIANTORG ISIN Code: INE565V01010
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OPEN 652.20
PREVIOUS CLOSE 645.25
VOLUME 3762
52-Week high 1358.95
52-Week low 504.50
P/E 20.49
Mkt Cap.(Rs cr) 1,754
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 652.20
CLOSE 645.25
VOLUME 3762
52-Week high 1358.95
52-Week low 504.50
P/E 20.49
Mkt Cap.(Rs cr) 1,754
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Valiant Organics Ltd. (VALIANTORG) - Auditors Report

Company auditors report

To the Members of

Valiant Organics Limited

Report on the Audit of the Standalone Financial Statements

OPINION

We have audited the accompanying Standalone Financial Statements ofValiant Organics Limited ("the Company") which comprise the Balance Sheet as at31 March 2022 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Cash Flows and the Statement of Changes in Equity for the year then endedand a summary of significant accounting policies and other explanatory information (hereinafter referred to as standalone financial statements).

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended from time to time and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March 2022and its profit total comprehensive income its cash flows and the changes in equity forthe year ended on that date.

BASIS OF OPINION

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under Section 143(10) of the Act(SAs). Our responsibilities under those Standards are further described in theAuditor's Responsibility for the audit of the standalonefinancialstatementssectionofourreport.Weareindependent of the Company in accordance withthe Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI)together with the ethical requirements that are relevant to our audit of the StandaloneFinancial Statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.

KEY AUDIT MATTERS

Key audit matters are those matters that in our professionaljudgement were of most significance in our audit of the standalone financial statementsof the current period. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. We have determined the matters describedbelow to be the key audit matters to be communicated in our report.

Key Audit Matters Auditor's Response
Valuation Accuracy Completeness and disclosures pertaining to Inventories with reference to Ind AS 2. Our audit approach consisted of the following: -
The Company's inventories consists of raw materials and components work in progress finished goods stores and spares. We assessed the Company's process regarding maintenance of records valuation and accounting of transactions relating to inventories as per the Indian Accounting Standard.
Refer Note no: 11 of the standalone financial statements: We have evaluated the design of internal controls relating to recording and valuation of Inventory.
Inventories of H 9734.37 lakhs constitute 24.09% of the current assets of the company as at 31 March 2022. We have carried out substantive audit procedures at financial and assertion level to verify the allocation of overheads to inventory.
Correctness completeness and valuation are critical for reflecting true and fair financial results of operations and hence identified as key audit matter. We have undertaken physical of inventories verification on test check basis.
We have verified management process of physical verification of inventories and reconciling differences with the books of accounts.

INFORMATION OTHER THAN FINANCIAL STATEMENTS AND AUDITOR'S REPORTTHEREON

The Board of Directors of the Company is responsible for the otherinformation. The other information comprises the information included in the AnnualReport but does not include the standalone financial statements and our Auditor'sReport thereon.

Our opinion on the standalone 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 standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially 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.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIALSTATEMENTS

The Board of Directors of the Company is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements and estimates that are reasonable andprudent; and 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 standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements the Management isresponsible for assessing the ability of the Company to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Management either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing thefinancial reporting process of the Company.

AUDITOR'S RESPONSIBILITY FOR THE AUDIT OF STANDALONE FINANCIALSTATEMENTS

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

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

Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate 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 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 system in place and theoperating effectiveness of such controls.

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

Conclude on the appropriateness of use of the going concern basis ofaccounting by the Management and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theability of the Company 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 Standalone 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 financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the Standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (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 Standalone financialstatements.

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 to communicatewith them all relationships and other matters that may reasonably be thought to bear onour 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 standalonefinancial 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 in terms of Section 143(11) of the Act wegive in Annexure A a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. As required by section 143(3) of the Act based on our audit wereport that:

a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit.

b. In our opinion proper books of accounts as required by law havebeen kept by the Company so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss (including OtherComprehensive Income) Statement of Cash Flows and Statement of Changes in Equity dealtwith by this Report are in agreement with the relevant books of account.

d. In our opinion the aforesaid financial statements comply with theInd AS specified under Section 133 of the Act.

e. On the basis of the written representations received from thedirectors as on 31 March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2022 from being appointed as a director in termsof section 164(2) of the Act.

f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referour separate report in "Annexure B". Our report expresses an unmodified opinionon the adequacy and operating effectiveness of the internal financial controls overfinancial reporting of the Company.

g. With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of Section 197(16) of the Actas amended in our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its Directors during theyear is in accordance with the provisions of Section 197 of the Act.

h. 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 as amended in our opinion and to the best of our information and according tothe explanations given to us:

(i) The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements. (Refer Note no 34 to theStandalone financial statements).

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

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

(iv) (a) The management has represented that to the best of itsknowledge and belief as disclosed in Note no 39 (d) (i) to the standalone financialstatements no funds have been advanced or loaned or invested (either from borrowed fundsor share premium or any other sources or kind of funds) by the Company to or in any otherperson or entity including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries")or provide any guarantee security or the like on behalf of the Ultimate Beneficiaries;

(b) The management has represented that to the best of its knowledgeand belief as disclosed in Note no. 39 (d) (ii) to the standalone financial statementsno funds have been received by the Company from any persons or entities including foreignentities ("Funding Parties") with the understanding whether recorded inwriting or otherwise that the Company shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Party ("Ultimate Beneficiaries") or provide any guarantee securityor the like on behalf of the Ultimate Beneficiaries; and

(c) Based on such audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (a) and (b) above contain any materialmisstatement.

(v) The Company has not paid any dividend during the year. As per noteno 17 (F) The Board of Directors of the Company have proposed final dividend for the yearwhich is subject to the approval of the members at the ensuing Annual General Meeting. Theamount of dividend proposed is in accordance with section 123 of the Act as applicable.

For Gokhale & Sathe
Chartered Accountants
Firm Registration Number: 103264W
Tejas Parikh
Partner
Place: Mumbai Membership Number: 123215
Date: 25 May 2022 UDIN: 22123215AJSZBQ7972

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT ON STANDALONEFINANCIAL STATEMENTS

(Referred to in para 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

(i) In respect of the Company's Property Plant and Equipment andIntangible Assets:

(a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant and Equipmentand Capital Work in Progress.

(B) The Company has maintained proper records showing full particularsof intangible assets.

(b) The Company has a regular program of verification of PropertyPlant and Equipment so to cover all the items in a phased manner which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Pursuantto the programme certain Property Plant and Equipment were due for verification duringthe year and were physically verified by the Management during the year. No materialdiscrepancies were noticed on such verification which were not properly dealt with in thebooks of accounts in the current year.

(c) According to the information and explanations given to us therecords examined by us and based on the examination of the conveyance deeds / registeredsale deeds provided to us we report that the title deeds of self-constructed buildingsand title deeds of all immovable properties (other than properties where the Company islessee and lease agreements are duly executed in favour of the Company) disclosed in thefinancial statements included under Property Plant and Equipment are held in the name ofthe Company as at the balance sheet date. In respect of immovable properties of land thathave been taken on lease and disclosed separately in Property Plant & Equipment in thefinancial statements the lease agreements are in the name of the Company except thebelow:

Description of Property Gross Carrying Value (H in lakhs) Held in the name of Whether promoter director or their relative or employee Period held (since) Reason for not being held in the name of company also indicate if in dispute and period for which it has been held
Factory land Plot No. 231 to 236 VATVA (these are survey numbers) - Plot Nos. 228 to 239 16.84 Dispo Dyechem Private Limited No October 2018 Properties were acquired through amalgamation/merger the name change in the name of the Company is pending.
Land (Sayakha) - Plot No. 540 & 541 & DP/90/21 1568.59 Amarjyot Chemical Limited No October 2018
Land - Plot No. A1/322-11 Vapi Industrial Area. 57.44 Amarjyot Chemical Limited No October 2018
Plot No C-1 + 2/B GIDC Estate DAHEJ Tal. Vagra Dist. Bharuch Gujarat. 300.00 Aarti Industries Limited No August 2019 Application is already filed for change in title of the property.

(d) The Company has not revalued its Property Plant and Equipment orintangible assets during the year ended 31 March 2022.

(e) There are no proceedings initiated or are pending against theCompany for holding any benami property under the Prohibition of Benami PropertyTransactions Act 1988 and rules made thereunder.

(ii) (a) Physical verification of inventory has been conducted atreasonable intervals by the management and in our opinion the coverage and procedure ofsuch verification by the management is appropriate. Discrepancies noticed were less than10% for each class of inventory.

(b) During the year the Company has been sanctioned working capitallimits in excess of H 5 crores in aggregate from banks on the basis of security ofcurrent assets. As mentioned in note no. 19(4) to the Standalone Financial Statements thedifference between the quarterly returns filed by the Company with banks and books ofaccounts are on account of explainable items and not material in nature.

(iii) The Company made investments in subsidiary and the saidinvestments primafacie are not prejudicial to the Company's interest.

The Company has not provided any guarantee or security or granted anyloans or advances in the nature of loans secured or unsecured to companies firmslimited liability partnerships or any other parties during the year and hence sub-clauses3 (iii) (a) (d) (e) (f) of the Order are not applicable.

(iv) The Company has not provided any loans or advances or madeinvestments provided guarantees and securities and hence compliance with provisions ofsection 185 and 186 of the Act is not applicable.

(v) The Company has not accepted deposits or amounts which are deemedto be deposits from the public during the year and hence the directives issued by theReserve Bank of India and the provision of section 73 to 76 any other relevant provisionsof the Act and the Companies (Acceptance of Deposit) Rules 2015 with regards to thedeposits accepted from the public are not applicable.

(vi) We have broadly reviewed the cost records maintained by theCompany pursuant to the Companies (Cost Records and Audit) Rules 2014 as amendedprescribed by the Central Government under sub-section (1) of Section 148 of the CompaniesAct 2013 and are of the opinion that prima facie the prescribed cost records have beenmade and maintained. We have however not made a detailed examination of the cost recordswith a view to determine whether they are accurate or complete.

(vii) In respect of statutory dues:

(a) Based on examination of records of the Company amountdeducted/accrued in the books of accounts in respect of undisputed statutory duesincluding Goods and Service tax Provident Fund Employees' State InsuranceIncome-tax Sales Tax Service Tax duty of Custom duty of Excise Value Added Tax cessand other material statutory dues applicable to the Company have been regularly depositedby it with the appropriate authorities during the year. There were no undisputed amountspayable in respect of Goods and Service Tax Provident Fund Employees' StateInsurance Income Tax Sales Tax Service Tax duty of Custom duty of Excise Value AddedTax cess and other material statutory dues in arrears as at 31 March 2022 for a period ofmore than six months from the date they became payable.

(b) Details of statutory dues referred to in sub-clause (a) above whichhave not been deposited as on 31 March 2022 on account of disputes are given below:

Name of Statute Nature of Dues unpaid amount (H in lakhs) period to which the amount relates Forum where dispute is pending
GST Act GST (Interest and Penalty) 111.98 FY 2017-18 Assistant Commissioner
GST Act GST(Input Credit ) 19.35 FY 2019-20 Superintendent
Income Tax Act Income Tax 2551.94 AY 2014 to 2019 & 2020 Commissioner of Income-tax (Appeals)
Stamp Duty Stamp Duty (Interest and Penalty) 199.87 FY 2020-21 The Chief Controlling Revenue Authority Inspector General of Registration and Controller of Stamps
Employees State Insurance Act 1948 ESIC 3.46 FY 2017-2019 Recovery Department – Assistant Officer
The Environment (Protection) Act 1986 Penalty 3.50 FY 2021-22 Gujarat Pollution Control Board

(viii) There were no transactions relating to previously unrecordedincome that were surrendered or disclosed as income in the tax assessments under theIncome Tax Act 1961 during the year.

(ix) (a) According to the records of the Company examined by us and theinformation and explanations given to us the Company has not defaulted in repayment ofloans or other borrowings or in the payment of interest to any lender during the year.

(b) According to the information and explanations given to us and onthe basis of our audit procedures we report that the Company has not been declared WilfulDefaulter by any bank or financial institution or government or any government authority.

(c) In our opinion and according to the information and explanationsgiven to us the term loans have been applied on an overall basis for the purposes forwhich they were obtained.

(d) On an overall examination of the financial statements of theCompany funds raised on short-term basis have prima facie not been used during the yearfor long-term purposes by the Company.

(e) According to the information and explanations given to us and on anoverall examination of the standalone financial statements of the Company we report thatthe Company has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries.

(f) According to the information and explanations given to us andprocedures performed by us we report that the Company has not raised loans during theyear on the pledge of securities held in its subsidiaries.

(x) (a) The Company has not raised moneys by way of initial publicoffer or further public offer (including debt instruments) during the year and hencereporting under clause 3(x)(a) of the Order is not applicable.

(b) During the year the Company has not made any preferential allotmentor private placement of shares or convertible debentures (fully or partly or optionally)and hence reporting under clause (x) (b) of the Order is not applicable to the Company.

(xi) (a) To the best of our knowledge no fraud by the Company and nomaterial fraud on the Company has been noticed or reported during the year.

(b) To the best of our knowledge no report under Sub-section (12) ofSection 143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13of Companies (Audit and Auditors) Rules 2014 with the Central Government during the yearand up to the date of this report.

(c) As represented to us by the Management there were no whistleblower complaints received by the Company during the year and up to the date of thisreport.

(xii) The Company is not a Nidhi Company and hence reporting underclause 3(xii) of the Order is not applicable.

(xiii) In our opinion the Company is in compliance with Section 177and 188 of the Companies Act where applicable for all transactions with the relatedparties and the details of related party transactions have been disclosed in the financialstatements etc. as required by the applicable Indian accounting standards.

(xiv) (a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports for the year underaudit issued to the Company during the year and till date in determining the naturetiming and extent of our audit procedures.

(xv) In our opinion during the year the Company has not entered intoany non-cash transactions with any of its directors or persons connected with suchdirectors and hence provisions of section 192 of the Companies Act 2013 are notapplicable to the Company.

(xvi) (a) The Company is not required to be registered under Section45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause 3(xvi)(a) (b)and (c) of the Order is not applicable.

(b) In our opinion there is no core investment company within theGroup (as defined in the Core Investment Companies (Reserve Bank)

Directions 2016) and accordingly reporting under clause 3(xvi)(d) ofthe Order is not applicable.

(xvii) The Company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors of theCompany during the year.

(xix) On the basis of the financial ratios ageing and expected datesof realization of financial assets and payment of financial liabilities other informationaccompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examination of the evidence supporting the assumptionsnothing has come to our attention which causes us to believe that any materialuncertainty exists as on the date of the audit report indicating that Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the Company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the Company as and when they falldue.

(xx) The Company has fully spent the required amount towards CorporateSocial Responsibility (CSR) and there is no unspent CSR amount for the year requiring atransfer to a Fund specified in Schedule VII to the Companies Act or special account incompliance with the provision of Sub-section (6) of Section 135 of the said Act.Accordingly reporting under clause 3(xx) of the Order is not applicable for the year.

(xxi) The reporting under Clause 3(xxi) of the Order is not applicablein respect of audit of standalone financial statements. Accordingly no comment in respectof the said clause has been included in this report.

For Gokhale & Sathe
Chartered Accountants
Firm Registration Number: 103264W
Tejas Parikh
Partner
Place: Mumbai Membership Number: 123215
Date: 25 May 2022 UDIN: 22123215AJSZBQ7972

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT ON STANDALONEFINANCIAL STATEMENTS

(Referred to in paragraph 2(f) under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date)

Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of subsection 3 of section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of Valiant Organics Limited ("the Company") as on 31 March 2022 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Management of the Company 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 the policies of the Company thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on the internal financialcontrols of the Company over financial reporting based on our audit. We conducted ouraudit. We conducted audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") issued by theInstitute of Chartered Accountants of India and the Standards on Auditing prescribed undersection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. Those standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wereestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial control 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 judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlssystem over financial reporting of the Company.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A Company's internal financial control with reference toStandalone Financial Statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A Company's internal financial control with reference to StandaloneFinancial Statements include those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of StandaloneFinancial Statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only inaccordancewithauthorisationsofmanagementanddirectors of the Company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorised acquisitionuse or disposition of the Company's assets that could have a material effect on theStandalone Financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIALREPORTING

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

OPINION

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theInstitute of Chartered Accountants of India.

For Gokhale & Sathe
Chartered Accountants
Firm Registration Number: 103264W
Tejas Parikh
Partner
Place: Mumbai Membership Number: 123215
Date: 25 May 2022 UDIN: 22123215AJSZBQ7972

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