TO THE MEMBERS OF VISHNU CHEMICALS LIMITED
REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL
We have audited the accompanying standalone financial statements ofVishnu Chemicals Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2022 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flows for the year ended onthat date and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the 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 ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the company as at March 31 2022and its profit total comprehensive income its cash flows and the changes in equity forthe year ended on that date.
Basis for 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 the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.
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.
Aspects determined as KAM
1. Trade Receivables:
Trade receivables comprise almost half of the current assets and alsoform a sizeable component of the total assets of the company. Management's judgement inassessing their recoverability and estimating possible provision for any credit loss wouldinvolve consideration of facts from a multidimensional perspective like among otherscontractual terms credit history of the customers past payment patterns anyidentifiable rejection possibilities and the like.
Audit Measures adopted to validate KAM included the following:
Assessing the appropriateness in validation of certain overduereceivables basis the past payment history current transactional issues and long-termbinding contracts in place and correspondence with the customers.
Testing the operational efficacy of relevant controls withrespect to recognition and realizability of receivables and their application on aconsistent basis.
Undertook a substantive testing to ascertain any inconsistentrealization patterns that would give raise to any impairment provisioning;
Basis the above stated measures no significant exceptions were notedin valuation of trade receivables requiring any provision.
2. Contingent liabilities and Disputed liabilities:
The provisioning for contingent and disputed liabilities involvessignificant judgment to determine the possible outcome and their treatment in the books ofaccounts. These judgments could eventually lead to making an appropriate disclosure ormight even require some provisioning to be made in the financial statements depending onwhether an obligation requiring outflow of resources would arise in future or not.
As part of audit procedures we sought the source documents as well asthe correspondence and other material pertaining to each issue. We reviewed to validatethe appropriateness of the management's judgment in arriving at a decision of disclosure /provision and see if they are adequate and comprehensive to the extent possible.
Emphasis of Matter
The preference shareholders of the company who are also the promotershave given an undertaking foregoing 6% of the eligible 7% dividend amounting to Rs 459.83Lakhs receivable by them for the financial year 2021-22 as mentioned in Note 43 of Notesto Accounts.
Our Opinion is not modified in respect of this matter.
Information other than the Standalone Financial Statements andAuditor's Report thereon:
The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Information butdoes not include the standalone financial statements and our auditor's report 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 Financial Statements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and 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 management isresponsible 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.
The Board of Directors is responsible for overseeing the Company'sfinancial reporting process.
Auditor's responsibilities for the Audit of the 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 professionaljudgment and maintain professional scepticism 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 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 the goingconcern basis 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 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 conditions maycause 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 financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the 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 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 precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. 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 purposes of ouraudit.
b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the relevant books of account.
d) In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 312022 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 referto our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.
g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as 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 the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements.
ii. The Group did not have any material foreseeable losses on long-termcontracts including derivative contracts.
iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.
vi. a. The management has represented that to the best of itsknowledge and belief no funds (which are material either individually or in theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the company to or in any other person(s)or entities including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or not that the intermediary shall whetherdirectly or indirectly lend or invest in other persons or entities identified in anymanner by or on behalf of the company (Ultimate Beneficiaries) or provide any guaranteesecurity or the like on behalf of ultimate beneficiaries.
b. The management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the company from any person(s) or entities including foreign entities("Funding Parties") with the understanding that such company shall whetherdirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or provideguarantee security or the like on behalf of the Ultimate beneficiaries.
c. Based on the audit procedures performed we report that nothing hascome to our notice that has caused us to believe that the representations given undersub-clause (i) and (ii) by the management contain any material mis- statement.
v. In our opinion Company has complied with section 123 of theCompanies Act 2013 with respect to dividend declared/paid during the year.
2. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government in terms of Section 143(11) ofthe Act we give in "Annexure B" a statement on the matters specified inparagraphs 3 and 4 of the Order.
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1(f) under 'Report on Other Legal andRegulatory Requirements' section of our report to the Members of Vishnu Chemicals Limitedof even date)
Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")
We have audited the internal financial controls over financialreporting of VISHNU CHEMCALS LIMITED ("the Company") as of March 312022in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.
Management's Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishingand maintaining 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 respective company's policies 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.
Our responsibility is to express an opinion on the internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
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 judgement including the assessment of therisks of material 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 internal financial controls system overfinancial reporting of the Company.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is aprocess 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 control overfinancial reporting includes 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that 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 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.
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 March 31 2022 based on theinternal control over financial reporting criteria established
by the Company considering the essential components of internal controlstated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India.
ANNEXURE 'B' TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 2 under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Vishnu Chemicals Limited of evendate)
3. i. In respect of the Company's fixed assets:
(a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant &Equipment.
(B) The Company has maintained proper records showing full particularsof intangible assets.
(b) The Company has a program of verification to cover all the items ofProperty Plant & Equipment in a phased manner which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. Pursuant to theprogram certain Property Plant & Equipment were physically verified by themanagement during the year. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification.
(c) According to the information and explanations given to us therecords examined by us and based on the examination of the conveyance deeds / registeredsale deed provided to us we report that the title deeds of all the immovable properties(other than properties where the company is the lessee and the lease agreements are dulyexecuted in favour of the lessee) are held in the name of the Company as at the balancesheet date.
(d) The company has not revalued its Property Plant & Equipment orIntangible assets or both during the year.
(e) As per the information and explanations provided to us noproceedings have been initiated against the company for holding benami property under TheBenami Transactions (Prohibition) Act 1988 and rules made thereunder.
ii. (a) The inventories were physically verified during the year by theManagement at reasonable intervals. In our opinion and according to the information andexplanations given to us the coverage and procedure of such verification by theManagement is appropriate having regard to the size of the Company and the nature of itsoperations. No discrepancies of 10% or more in the aggregate for each class of inventorieswere noticed on such physical verification of inventories when compared with books ofaccount.
(b) The company has been sanctioned working capital limits in excess ofRupees five crore in aggregate from banks on the basis of security of current assets.Further the quarterly returns or statements filed by the company with such banks are inagreement with books of account of the company.
iii. (a) According the information and explanations given to us theCompany has granted interest free unsecured loan and also Corporate Guarantee to its/onbehalf of its Indian wholly owned subsidiary (WOS) in terms of the condition forsanctioning of Term loans by Banks to the WOS. While there is no fresh amount advancedduring the year the total loan amount granted in the earlier years and the actual balanceoutstanding at the end of the year is Rs 989 Lakhs (with an amortised value of Rs 951.59Lakhs). While the original loan amount taken by WOS for which corporate gurantee was givenwas Rs 4570 Lakhs an amount of Rs 3328.32 lakhs of the loans are outstanding as at thedate of the balance sheet.
(b) According to the information and explanations given to us theterms and conditions of grant of the loans and guarantees provided are not prima facieprejudicial to the interests of the company.
(c ) As per the stipulation of the banks lending to WOS the loan givenby company to WOS cannot be withdrawn and gurantee will be in force till the loans takenfrom banks are repaid by WOS which as per schedules of payment will last till 31-12-2028and hence we are unable to offer any comment as required under this clause.
(d) In view of aforesaid nature of the loans and guarantee the commentas required under this clause is not pertinent.
(e) As per the information provided and aforesaid nature of the loansand gurantee no loan or advance in the nature of loans have been renewed or extended orfresh loans granted to settle overdues of existing loans given to same parties.
(f) As mentioned herein the repayment of the loan granted by thecompany to WOS is dependent on the closure of loans given to it by banks and hence nospecific period of repayment is specified the aggregate amount of which is Rs 989 Lakhs(with an amortised value of Rs 951.59 Lakhs) and which constitutes 100% of the total loansgiven by the company.
iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theAct in respect of grant of loans making investments and providing guarantees andsecurities as applicable.
v. According to the information and explanations provided to us theCompany has not accepted deposits or amounts which are deemed to be deposits in terms ofthe directives issued by Reserve Bank of India and the provisions of sections 73 to 76 orany other relevant provisions of the Act and the rules framed there under and thereforethe provisions of the clause 3 (v) of the Order are not applicable to the Company.
vi. We have broadly reviewed the cost records maintained by the companypursuant to sub-section (1) of section 148 of the Act and are of the opinion that primafacie the prescribed accounts and records have been made and maintained.
vii. According to the information and explanations given to us inrespect of statutory dues:
(a) The Company has generally been regular in depositing undisputedstatutory dues including Goods and Service Tax provident fund employees' stateinsurance income Tax sales tax service tax duty of customs duty of excise cess andany other statutory dues to the appropriate authorities except in instances of payment ofincome taxes and there are no dues outstanding for a period of more than six months fromthe date they became payable as at March 312022.
(b) Details of statutory dues referred to in sub-clause (a) which havenot been deposited as at March 312022 on account of dispute are given below:
|Nature of the statute ||Nature of dues ||Forum where dispute is pending ||Period to which the amount relates ||Amount in Rs Lakhs |
|Sales Tax Act ||Interest on Sales tax ||Commissioner ||1998-99 ||7.75 (Rs 7.75 Lakhs deposited) |
|Sales Tax Act ||Sales tax ||High Court ||2008-09 ||124.36 (Rs 124.36 Lakhs deposited) |
|Sales Tax Act ||Entry Tax ||Appellate Commissioner ||2014-15 to 2017-18 ||55.40 (Rs 14.68 Lakhs deposited) |
|Finance Act 1994 ||Service Tax ||CESTAT ||2006-2007 to 2010-11 ||418.68 Stay granted |
|Finance Act 1994 ||Service Tax ||CESTAT ||2011-12 ||233.94 (Rs 17.55 Lakhs deposited) |
viii. According to the information and explanations provided to us theCompany has not surrendered or disclosed as income during the year any transactions notrecorded in the books of account in tax assessments under the Income Tax Act 1961.
ix. a. In our opinion the Company has not defaulted in repayment ofloans or other borrowings or in the payment of interest thereon to any lender.
b. The Company has not declared as a wilful defaulter by any bank orfinancial institution or government or any government authority.
c. I n our opinion and according to the information and explanationsgiven to us the term loans have been applied for the purpose for which they wereobtained.
d. On an overall examination of the financial statements of thecompany funds raised on short-term basis have prima facie not been used for long-termpurposes by the company.
e. According to the information and explanations provided to us theCompany has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries associates or joint ventures.
f. According to the information and explanations provided to us andprocedures performed by us the Company has not raised loans during the year on the pledgeof securities held in its subsidiaries joint ventures or associate companies.
x. a. The Company has not raised moneys by way of initial public offeror further public offer (including debt instruments) during the year and hence reportingunder clause 3 (x)(a) of the Order is not applicable to the Company.
b. The Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully partially or optionally convertible)during the year and hence reporting under clause 3(x) (b) of the Order is not applicableto the Company
xi. a. To the best of our knowledge and according to the informationand explanations given to us and based on the audit procedures performed by us no fraudby the Company or on the Company has been noticed or reported during the year.
b. To the best of our knowledge no report under subsection (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.
c. As represented to us the Company has not received anywhistle-blower complaints during the year.
xii. The Company is not a Nidhi Company and hence reporting underclause 3 (xii) of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanationsgiven to us the Company is in compliance with Section 177 and 188 of the Companies Act2013 where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the standalone financial statements asrequired by the applicable accounting standards.
xiv. a. In our opinion and based on our examination the company has aninternal audit system commensurate with the size and nature of its business.
b. We have considered the internal audit reports of the company issuedtill date for the period under audit.
xv. In our opinion during the year the Company has not entered intoany non-cash transactions with its Directors or persons connected to its directors andhence provisions of section 192 of the Companies Act 2013 are not applicable to theCompany.
xvi. The Company is not required to be registered under section 45-1Aof the Reserve Bank of India Act 1934 and hence reporting under clause 3 (xvi) of theOrder is not applicable to the Company.
xvii. The Company has not incurred cash losses in the financial yearand in the immediately preceding financial year.
xviii. We continue to be statutory auditors of the Company since theprevious year and have not resigned at any point during the year hence reporting underclause 3 (xviii) of the Order is not applicable.
xix. According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the financialstatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report that company is not capable of meeting its liabilities existing at the dateof balance sheet as and when they fall due within a period of one year from the balancesheet date. We however state that this is not an assurance as to the future viability ofthe company. We further state that our reporting is based on the facts up to the date ofthe audit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the company as and when they fall due.
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 accountincompliance with the provision of sub-section (6) of section 135 of the said Act.Accordingly reporting under clause (xx) of the Order is not applicable for the year.
| ||For Jampani & Associates |
| ||Chartered Accountants |
| ||(Firm's Registration No. 016581S) |
| ||sd/- |
| ||Trinadha Rao Marisetty |
| ||Partner |
|Place: Hyderabad ||Membership No. 207990 |
|Date: 16th May 2022 ||UDIN: 22207990AJSABQ7898 |