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VST Tillers Tractors Ltd.

BSE: 531266 Sector: Auto
NSE: VSTTILLERS ISIN Code: INE764D01017
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OPEN 2348.50
PREVIOUS CLOSE 2328.50
VOLUME 451
52-Week high 3129.40
52-Week low 2046.55
P/E 26.61
Mkt Cap.(Rs cr) 2,021
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2348.50
CLOSE 2328.50
VOLUME 451
52-Week high 3129.40
52-Week low 2046.55
P/E 26.61
Mkt Cap.(Rs cr) 2,021
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

VST Tillers Tractors Ltd. (VSTTILLERS) - Auditors Report

Company auditors report

To

The Members of

V.S.T. Tillers Tractors Limited

Report on the Audit of Financial Statements

Opinion

1. We have audited the accompanying financial statements of M/s. V.S.T. TillersTractors Limited ("the Company") which comprise the Balance Sheet as at March31 2022 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended March31 2022 and a summary of the significant accounting policies and other explanatoryinformation. (Hereinafter referred to as "financial statements").

2. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements for the year ended March 31 2022 give theinformation required by the Companies Act 2013 ('Act') in the manner so required and givea true and fair view in conformity with the accounting principles generally accepted inIndia including Indian Accounting Standards ('Ind AS') specified under section 133 of theAct of the state of affairs (financial position) of the Company as at March 31 2022 andits profit (financial performance including other comprehensive income) its cash flowsand the changes in equity for the year ended on that date.

Basis for Opinion:

3. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India ('ICAI') together withthe ethical requirements that are relevant to our audit of the financial statements 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 we have obtained is sufficient and appropriate to providea basis for our opinion.

Key Audit Matter

4. Key Audit Matters are those matters that in our professional judgement were ofmost significance in our audit of the financial statements for the year. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave described the matter described below to be the key audit matters to be communicatedin our report.

Key Audit Matters How the matter was addressed in our Audit
Appropriateness of capitalisation of costs as per Ind AS 16 Property Plant and Equipment: Our audit procedures to assess appropriate capitalization of such expenditure includes but were not limited to the following:
The Company has incurred total cost Rs. 4010.32 lakhs on property plant and equipment (PPE - representing cost incurred for development of Engines and acquisition of plant & machinery and other capital equipments) as part of business explanation and product development. • Assessed the design and implementation and tested the operating effectiveness of key controls surrounding the capitalization of costs.
This cost needs to be capitalised and depreciated once the assets are ready for use as intended by the management and certainty about the future economic cash flows. • Reviewed management's capitalization policy including application of the aforesaid policy to assess consistency with the requirements set out by Ind AS 16 Property Plant and Equipment.
Inappropriate timing of capitalisation of the cost and/ or inappropriate classification of categories of items of PPE could result in material misstatement of PPE with a consequent impact on depreciation charged. • Compared the additions with the budgets and the orders given to the vendors.
Owing to the above factors we have identified this as a key audit matter for current year audit due to the significance of the capital expenditure incurred during the year. • Tested the additions on a sample basis for their nature and purpose to ensure that the capitalization is as per company's accounting policy.
• Assessed the appropriateness and adequacy of the related disclosures in the financial statements in accordance with the applicable Indian accounting standards.

Information Other than the Financial Statements and Auditor's Report thereon:

5. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe financial statements and our auditor's report thereon. The Annual Report is expectedto be made available to us after the date of this auditor's report.

Our opinion on the financial statements does not cover the other information and wewill not express any form of assurance conclusion thereon. In connection with our audit ofthe financial statements our responsibility is to read the other information identifiedabove when it becomes available and in doing so consider whether the other informationis materially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.

When we read the Annual Report if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements:

6. The accompanying financial statements have been approved by the Company's Board ofDirectors. The Company's Board of Directors is responsible for the matters stated inSection 134(5) of the Act with respect to the preparation of these financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under section 133 of the Act and other accountingprinciples generally accepted in India. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgements and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of accounting records relevant to the preparationand presentation of the financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

7. In preparing the financial statements the Board of Directors are responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

8. The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements:

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

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

(i) Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

(ii) Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

(iii) Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

(iv) Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

(v) Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

11. Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

12. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

13. We also provide those charged with governance with a statement that we havecomplied 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.

Report on Other Legal and Regulatory Requirements:

14. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors/managers during the current year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under Section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) whichare required to be commented upon by us.

15. As required by the Companies (Auditor's Report) Order 2020 ("theOrder") issued by the Central Government of India in terms of sub section (11) ofsection 143 of the Companies Act 2013 we give in "Appendix - A" a statement onthe matters specified in paragraphs 3 and 4 of the Order to the extend applicable.

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

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss (including Other ComprehensiveIncome) Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the Indian AccountingStandards specified under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended.

e) On the basis of written representations received from the directors as on March 312022 taken on record by the board of directors none of the directors are disqualified ason March 31 2022 from being appointed as directors in terms of section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate report in "Appendix-B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols with reference to financial statements.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - (Refer Note 41 to the financial statements)

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

iii. The amount required to be transferred to the Investor Education and ProtectionFund has been transferred by the Company during the year ended March 312022.

iv. a. The management has represented that to the best of its knowledge and belief nofunds have been advanced or loaned or invested (either from borrowed funds or securitiespremium or any other sources or kind of funds) by the Company to or in any persons orentities including foreign entities ('the intermediaries') with the understandingwhether recorded in writing or otherwise that the intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ('the Ultimate Beneficiaries') or provide anyguarantee security or the like on behalf the Ultimate Beneficiaries;

b. The management has represented that to the best of its knowledge and belief nofunds have been received by the Company from any persons or entities including foreignentities ('the Funding Parties') with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the FundingParty ('Ultimate Beneficiaries') or provide any guarantee security or the like on behalfof the Ultimate Beneficiaries; and

c. Based on such audit procedures performed as considered reasonable and appropriate inthe circumstances nothing has come to our attention that causes us to believe that themanagement representations under sub-clauses (a) and (b) above contain any materialmisstatement.

v. The dividend paid by the Company is in accordance with provisions of Sec section 123of Companies Act 2013.

For K.S. Rao & Co.
Chartered Accountants
ICAI Firm Registration No: 003109S
Hitesh Kumar P
Partner
Place: Bengaluru Membership No.: 233734
Date: May 09 2022 UDIN: 22233734AIPRUS2106

Appendix - A to the Independent Auditors' Report

The Appendix referred to in Independent Auditors' Report to the members of the Companyon the financial statements for the year ended March 312022 we report that:

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

(a) (A) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment ('PPE') includingright- of-use asset.

(B) The Company has maintained proper records showing full particulars of intangibleassets including intangible assets under development.

(b) The Company has the program of physical verification of Property Plant andEquipment once in three years which in our opinion is reasonable having regard to sizeof the Company and nature of its assets. Pursuant the program during the year themanagement is in the process of conducting the physical verification as on reporting date.Accordingly in the absence of same we are not able to comment on the materialdiscrepancies if any.

(c) The title deeds of all the immovable properties (other than properties where thecompany is the lessee and the lease agreements are duly executed in favour of the lessee)disclosed in the financial statements are held in the name of the Company.

(d) The Company has not revalued any of its Property Plant and Equipment during theyear.

(e) No proceedings have been initiated during the year or are pending against theCompany as at March 31 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

(ii) (a) The management has conducted physical verification of inventory at reasonableintervals during the year and material discrepancies noted have been properly dealt in thebooks of account.

(b) In our opinion and based on the information and explanations provided to us themonthly information filed with banker with related to the current assets & currentliabilities of the Company is in agreement with books of account.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to any company firm Limited LiabilityPartnership or other parties listed in the register maintained under section 189 of theCompanies Act 2013 ('the Act'). Accordingly clauses from (iii) (a) to (iii) (f) ofparagraph 3 of the Order is not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sec 185 and 186 of Companies Act 2013 inrespect of loans making investments and providing guarantee and security as applicable.

(v) According to the information and explanations given to us the Company has notaccepted deposits and does not have any unclaimed deposits within the meaning of Section73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of the clause 3 (v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Act in respect of the Company's manufacturing activities and areof the opinion that prima facie the specified accounts and records have been made andmaintained. However we have not conducted a detailed examination of the same.

(vii) a) According to the information and explanations given to us and according to therecords as produced and examined by us in our opinion the Company is regular indepositing with appropriate authorities the undisputed statutory dues including providentfund employee's state insurance income tax goods and service tax customs duty cessand other material statutory dues as applicable and there are no arrears of outstandingstatutory dues as at March 312022 for a period of more than six months form date theybecome payable.

b) According to the information and explanations given to us there are no dues inrespect of income tax sales tax service tax value added tax goods and service taxcustoms duty excise duty cess which have not been deposited on account of dispute exceptfor the below:

Name of the Statute Nature of Dues Forum where Dispute is pending Period for which the amount relates Amount involved (Amount Rs. in lakhs)
The Income Tax Act 1961 Disallowance of expenditure incurred in connection with earning exempted income. Income Tax Appellate Tribunal 2010-11 3.41
The Income Tax Act 1961 Disallowance of Marketing Expenses Income Tax Appellate Tribunal 2011-12 344.94
The Income Tax Act 1961 Disallowance of expenditure incurred in connection with earning exempted income. Commissioner of Income Tax (Appeals) 2011-12 196.68
The Income Tax Act 1961 Disallowance of expenditure incurred in connection with earning exempted income. Income Tax Appellate Tribunal 2012-13 4.05
The Income Tax Act 1961 Disallowance of expenditure incurred in connection with earning exempted income. Income Tax Appellate Tribunal 2013-14 16.45
The Income Tax Act 1961 Disallowance of expenditure incurred in connection with earning exempted income. Commissioner of Income Tax (Appeals) 2015-16 232.90
The Income Tax Act 1961 Disallowance of expenditure incurred in connection with earning exempted income. Commissioner of Income Tax (Appeals) 2016-17 59.20
The Income Tax Act 1961 Disallowance of Advance written off and 80G disallowance Commissioner of Income Tax (Appeals) 2016-17 75.32
The Income Tax Act 1961 Disallowance under Section 80G and 14A Commissioner of Income Tax (Appeals) 2017-18 93.36
The Customs Act 1962 Disallowance of Concessional Custom Duty availed under Customs Notification No.12/2012 for Reaper Combinder Appellate Tribunal 2014-17 25.68

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

(ix) (a) According to the information and explanations provided to us and based onexamination of financial statements The Company is not having any loans from bank orfinancial institutions. Accordingly reporting under this Clause is not applicable.

(b) According to the information and explanations provided to us the Company has notbeen declared wilful defaulter by any bank or financial institution or other lender;

(c) According to the information and explanations provided to us and based onexamination of financial statements the Company is not having any borrowings.Accordingly reporting under this clause is not applicable.

(d) According to the information and explanations provided to us and based on anoverall examination of financial statements the Company has not raised any funds onshort-term basis prima facie Accordingly reporting under this clause is not applicable.

(e) According to the information and explanation provided to us and based on theexamination of financial statements the Company is not having any subsidiary or Jointventure or associate companies. Accordingly reporting under this clause is notapplicable.

(f) According to the information and explanation provided to us and based on theexamination of financial statements the Company is not having any subsidiary or Jointventure or associate companies. Accordingly reporting under this clause is notapplicable.

(x) (a) According to the information and explanations given by the management theCompany has not raised moneys by way of initial public offer or further public offer ordebt instruments or term loans and hence the reporting under clause 3 (x) (a) is notapplicable.

(b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause 3(x)(b) of the Order is not applicable.

(xi) (a) Based upon the audit procedures performed for the purpose of reporting thetrue and fair view of the financial statements and according to the information andexplanations given by the management we report that no fraud by the Company or no fraudon the Company by the officers and employees of the Company has been noticed or reportedduring the period.

(b) No report under sub-section (12) of section 143 of the Companies Act has been filedin Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government during the year and up to the date of this report.

(c) We have taken into consideration the whistle blower complaints received by theCompany during the year (and up to the date of this report) while determining the naturetiming and extent of our audit procedures.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly the provisions of clause 3(xii) of the orderare not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the books of account

(a) In our opinion the Company has an adequate internal audit system commensurate withthe size and the nature of its business.

(b) We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date in determining the nature timing and extent ofour audit procedures.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him as referred to in section 192 ofcompanies Act 2013. Accordingly paragraph 3(xv) of the Order is not applicable.

(xvi) (a) In our opinion 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 the Group (as defined inthe Core Investment Companies (Reserve Bank) Directions 2016) and accordingly reportingunder clause 3(xvi)(d) of the Order is not applicable.

(xvii) The Company has not incurred cash losses during the financial year covered byour audit and in the immediately financial year.

(xviii) There has been no resignation of the statutory auditors of the Company duringthe year.

(xix) On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

(xx) (a) There are no unspent amounts towards Corporate Social Responsibility (CSR)except those deposited in separate bank account of the Company related to previous year.Accordingly reporting under clause 3(xx)(a) of the Order is not applicable for the year.

(b) The unspent CSR amount related to the previous year has been transferred to theseparate bank account within 30 days from the end of the financial year.

(xxi) The reporting under clause 3(xxi) is not applicable in respect of audit offinancial statements of the Company. Accordingly no comment has been included in respectof said clause under this report.

For K.S. Rao & Co.
Chartered Accountants
ICAI Firm Registration No: 003109S
Hitesh Kumar P
Partner
Place: Bengaluru Membership No.: 233734
Date: May 09 2022 UDIN: 22233734AIPRUS2106

Appendix - B to the Independent Auditors' Report

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

We have audited the internal financial controls with reference to financial statementsof M/s. V.S.T. Tillers Tractors Limited ("the Company") as of March 312022 in conjunction with our audit of the financial statements of the Company for the yearended on that date.

Responsibilities of Management and Those Charged with Governance for Internal FinancialControls

The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control with reference to financialstatements 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 and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to 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.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin 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 and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements includes obtaining an understanding of internal financial controls withreference to financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls withreference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements.

A company's internal financial controls with reference to financial statements 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 controlswith reference to financial statements includes those policies and procedures that

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

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

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

Inherent Limitations of Internal Financial Controls with reference to financialstatements.

Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 financialcontrols 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 adequate internalfinancial controls with reference to financial statements and such internal financialcontrols with reference to financial statements were operating effectively as at March 312022 based on the internal financial controls with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India.

For K.S. Rao & Co.
Chartered Accountants
ICAI Firm Registration No: 003109S
Hitesh Kumar P
Partner
Place: Bengaluru Membership No.: 233734
Date: May 09 2022 UDIN: 22233734AIPRUS2106

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