Mukand Engineers Ltd Merged Auditor Reports

To the Members of Mukand Engineers Limited Report on the Audit of the Financial Statements Opinion

We have audited the standalone Ind AS financial statements of Mukand Engineers Ltd ("the Company"), which comprises of the Balance Sheet as at 31st March, 2021, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including Indian Accounting Standards ("Ind AS") specified under section 133 of the Act, of the state of affairs of the Company as at 31st March, 2021, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditors Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provision of the Act and the Rules there under, and we have fulfilled our other ethic responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on standalone financial statements.

Material Uncertainty Related to Going Concern

Attention to Note No. 44 We draw your attention to the Statement which states that the Company has incurred a net loss of Rs 3,152.50 lakhs (loss after tax) during the year ending 31 st March, 2021 and as of that date, the Companys current liabilities exceeded its total assets by Rs 4063.86 lakhs and has accumulated losses amounting to Rs 8191.62 (loss after tax) up to 31st March, 2021 resulting in to erosion of the Net Worth of the Company. During the period under review, Fund flow of the Company has been impacted on account of general slow-down in the business, which may also seriously impair Companys financial position. This indicate that a material uncertainty exists that may cast significant doubt on the Companys ability to continue as going concern. However, keeping in mind the ongoing restructuring exercise by the Company, it is believed that the business will be able to generate sufficient profits in future to meet its financial obligations, these annual financial statements have been prepared using going concern basis of accounting.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters (‘KAM) are those matters that, in our professional judgment, were of most significance in our audit of the standalone Ind AS financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have determined the matters described below to be the key audit matters to be communicated in our report.

Key Audit Matters How our audit addressed the key audit matter
Accuracy of revenues and onerous obligations in respect of fixed-price contracts
The Company inter alia engages in various fixed-price engineering contracts, for which revenue is recognized by the Company using the percentage of completion computed as per the Input method prescribed under Ind AS 115 Revenue from Contracts with Customers. The application of Ind AS 115 involves certain key judgments relating to identification of distinct performance obligations, determination of transaction price of the identified performance obligations, the appropriateness of the basis used to measure revenue recognized over a period.	Our audit work included but was not restricted to the following procedures:
The following factors requiring significant auditor attention:	• Obtained an understanding of the systems, processes and controls implemented by management for recording and calculating revenue, and the associated unbilled revenue, unearned and deferred revenue balances, and onerous contract obligations.
• High inherent risk around accuracy of revenue, given the customised and complex nature of these contracts and interdependence on performance of these contracts.	• Tested the design and operating effectiveness of related manual controls and involved auditors experts to assess key controls over:
• High estimation uncertainty relating to determination of the progress of each contract, costs incurred till date and additional costs required to complete the remaining contract.	• Business environment in which the business systems operate, including access controls, segregation of duties;
• Identification and determination of onerous contracts and related obligations.	• Testing the controls over the completeness and accuracy of cost/efforts and revenue reports generated by the system; and
• Determination of unbilled revenue receivables and unearned revenue related to these contracts as at end of reporting period.	• Testing the access and application controls pertaining to allocation of resources and budgeting systems which prevents the unauthorized changes to recording of efforts incurred and controls relating to the estimation of contract efforts required to complete the project.
Considering the materiality of the amounts involved, and significant degree of judgement and subjectivity involved in the estimates as mentioned above, we have identified revenue recognition for fixed price contracts and determination of onerous contracts and related provisions, as a key audit matter for the current year audit.	• Selected a sample of contracts and performed a retrospective review of efforts incurred with estimated efforts to identify significant variations and verify whether those variations have been considered in estimating the remaining efforts to complete the contract.
	• Reviewed a sample of contracts with unbilled revenues to identify possible delays in achieving milestones, which require change in estimated efforts to complete the remaining performance obligations.
	• Performed analytical procedures for reasonableness of incurred and estimated efforts. contracts based on estimates tested as above.
	Evaluated the appropriateness of disclosures made in the financial statements with respect to revenue recognized during the year as required by applicable Indian Accounting Standards.
	• For Fixed price contracts, we have verified the measurement of revenue for the extent of delivery of performance obligations with the actual and estimated cost of efforts as per the projected budgets.
	• Evaluated the identification of performance obligations and the prescribed transaction.
	• Tested the managements computation of the estimation of contract costs and onerous obligations, if any.
	• We performed analytical procedures as applicable for reasonableness of revenues disclosed and service offerings.
	• We:
	• Assessed that the estimates of costs to complete were reviewed and approved by appropriate designated management personnel;
	• Performed a retrospective analysis of costs incurred with estimated costs to identify significant variations and verified whether those variations are required to be considered in estimating the remaining costs to complete the contract; and
	• Inspected underlying documents and performed analytics to determine reasonableness of contract costs.
	Based on the above stated procedures, no significant exceptions were noted in revenue recognition
Evaluation of uncertain tax positions
The Company operates in multiple jurisdictions and is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business including direct and indirect tax matters. This involves significant management judgment to determine the possible outcome of the uncertain tax positions, consequently having an impact on related accounting and disclosure in the financial statements.	Our audit procedures include the following substantive procedures:
	• Obtained details of completed tax assessments and demands for the year ended March 31, 2021 from the management to understand managements underlying assumptions in estimating the tax provision and the possible outcome of the disputes.
	• Discussed with appropriate senior management and evaluated managements underlying key assumptions in estimating the tax provisions.
	• Legal precedence and other rulings in evaluating managements position on these uncertain tax positions were also considered.
	• We also considered the effect of new information in respect of uncertain tax positions as at April, 2020 to evaluate whether any change was required to managements position on these uncertainties.
	• Read and analyzed select key correspondences, external legal opinions/consultations by managements for key uncertain tax positions.
Allowance for doubtful debts/ Provision for Expected Credit Loss
Allowance for doubtful debts was identified as key audit matter since-	Our audit work included but was not restricted to the following procedures:
• Receivables comprise a significant portion of the liquid assets of the Company.	• We assessed the validity of material long outstanding receivables by considering past payment history and unusual patterns to identify potentially impaired balances.
• There is an inherent risk around the accuracy of companys trade receivables being fairly valued and adequately provided against where doubt exists.	• The assessment of the appropriateness of the allowance for trade receivables comprised a variety of audit procedures including:
• There is a risk of debtors being misstated and disclosures related to the same in the financial statements.	• Verifying the appropriateness and reasonableness of the assumptions applied in the managements assessment of the receivables allowance.
• Accordingly, the estimation of the allowance for trade receivables is a significant judgement area and is therefore considered a key audit matter.	• To address the risk of management bias, we evaluated the results of our procedures against audit procedures on other key balances to assess whether or not there was an indication of bias.

Information Other than Financial Statements and Auditors Report thereon

The Companys Board of Directors are responsible for the other information. The other information comprises the information included in the Companys annual report but does not include the standalone financial statements and our auditors report thereon. The Annual Report is expected to be made available to us after the date of this Auditors Report.

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

In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available, and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

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

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The accompanying Standalone Financial Statements have been approved by the Companys Board of Directors. The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management and Board of Directors are responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, of has no realistic alternative but to do so.

Board of Directors is also responsible for overseeing the companys financial reporting process.

Auditors Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud of error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

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

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud of error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risks of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omission, misrepresentation, of the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstance. Under Section 143(3)

(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial control with reference to standalone financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the standalone financial statements or, if such disclosers are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transaction and events in a manner that achieves fair presentation.

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

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the currents period and are therefore the key audit matter. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters :

1) Corresponding figures of the Company for the year ended 31st March 2020 have been audited by another auditor who expressed an unmodified opinion dated 27th June, 2020 on the standalone financial statements of the Company for the year ended 31st March 2020. Our opinion on the standalone financial statements is not modified in respect of the above matter.

2) Due to the COVID-19 related restrictions imposed by the state government, we were unable to physically observe the verification of inventory that was carried out by the management of the company. Consequently, we have performed analytical audit procedures as an alternative to obtain comfort over the existence of inventory at year end as per the guidance provided in SA 501 "Audit Evidence - Specific Considerations for Selected items". Analytical procedures include reconciling the inventory count performed by internal auditor with general ledger, testing item costs and high value items. Our opinion on the Ind as financial statements is not modified in respect of the above matter.

3) The company has accepted and advanced inter corporate deposits. The company has classified the same under current borrowings/Loans advanced as in the opinion of the management same will be matured/renewed with fresh terms within a period of 12 months.

4) The company recognizes in few contracts revenue from Contracts with Customer when the outcome of the contract is ascertained reliably instead of it to be recognized when a performance obligation is satisfied by transferring a promised service to the customer.

Our opinion is not modified in respect of aforesaid matter.

Report on Other Legal and Regulatory Requirements

1. As required by section 197(16) of the Act, based on our audit, we report that the Company has paid remuneration to its directors during the year in accordance with the provisions of and limits laid down under section 197 read with Schedule V to the Act.

2. As required by the Companies (Auditors Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the "Annexure A" a statement on the matters specified in the paragraph 3 and 4 of the Order.

Further to our comments in Annexure A, as required by section 143(3) of the Act, based on our audit, we report, to the extent applicable, that:

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

ii. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

iii. The Standalone financial statements dealt with by this Report are in agreement with the relevant books of account

iv. In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

v. On the basis of the written representations received from the directors as on 31st March 2021 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2021 from being appointed as a director in terms of Section 164(2) of the Act.

vi. With respect to the adequacy of the internal financial controls over financial reporting of the Company, and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".

5) With respect to the other matters to be included in the Auditors 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 to the explanations given to us:

i. The Company has disclosed the impact of pending litigation as at 31 March 2021 on its financial position in its standalone financial statements- refer Note No. 30 to the standalone financial statements.

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivatives contract.

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

iv. The disclosures in the standalone financial statements regarding holding as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made in these standalone financial statements since they do not pertain to the financial year ended 31 March 2021.

"ANNEXURE A" TO INDEPENDENT AUDITORS REPORT

With reference to the Annexure A reference to in the Independent Auditors Report to the member of the Company on the standalone financial statements for the year ended 31st March 2021, we report the following:

1. In respect of its Fixed Assets:

(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.

(b) The Company has a regular Schedule of Physical Verification of its fixed assets performed by Management and Internal Auditors, by which all fixed assets are verified in a phased manner over a period of three year. In our opinion, this periodicity of physical verification is reasonable having regards to the size of the Company and the nature of its assets. Pursuant to the Schedule of Physical Verification, certain fixed assets were physically verified existing in office during the year and no material discrepancies were noticed on such verification.

(c) According to the information and explanation given to us and on the basis of our examination of the records of the Company, the Company does not hold any immovable properties in its name.

2 The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. The Company has maintained proper record of inventory. The discrepancies noticed on verification between the physical stock and the book record were not material.

3. According to information and explanations given to us and the records produced to us for our verification, the Company has granted unsecured loan to a company covered in the register maintained under Section 189 of the Act during the year.

a) In respect of the aforesaid loan, the terms and conditions of the grant of such loan are prima facie not prejudicial to the Companys interest;

b) In respect of the aforesaid loan, the schedule of repayment of principal and payment of interest is stipulated and as at 31st March, 2021, no repayment of the principal and interest amounts, as stipulated is due;

c) In respect of the aforesaid loan, no amount is overdue for more than ninety days.

4. In our opinion and according to the information and explanations given to us, the Company has yet to comply the provisions of Section 185 & 186 of the Act, with respect to the loan given, investments made guarantees and securities given.

5. In our opinion and according to the information and explanations given to us, the Company has generally complied with the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other provisions of the Act and the Companies (Acceptance of Deposits) Rules, 2014 to the extent notified, with regard to deposits accepted from the public. The Company not being an "Eligible Company" as defined in Companies (Acceptance of Deposits) Rules, 2014, sought and obtained the approval from the Company Law Board for extension in time limit for repayment of Public Deposits outstanding as on March 31 2015 on the respective due dates of maturity.

6. To the best of our knowledge and as explained the Central Government has not prescribed the maintenance of cost records under Section 148 of the Act for any of the services rendered by the Company.

7. In respect of Statutory Dues:

(a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employee State Insurance Corporation (ESIC), Income Tax, Goods and Service Tax, Custom Duty, Cess and other material statutory dues applicable to it with the appropriate authorities. Some delays have been observed in the payment of Income Tax, Goods and Services Tax and Cess. As explained to us, there were no dues towards Custom Duty and Wealth Tax during the year.

(b) According to information and explanations given to us, there were no undisputed amounts payable in respect of Provident Fund, Employee State Insurance Corporation (ESIC), Income Tax, Goods and Service Tax, Cess and other material statutory dues in arrears as on 31st March, 2021 for a period of more than six months from the date they become payable.

(c) According to information and explanations given to us upon our enquiries in this regard and records of the Company, the following statutory dues in respect of Income Tax, Works Contract Tax, Entry Tax, Central Sales Tax Act,1956 and Service Tax as at 31st March, 2021 have not been deposited by the Company on account of dispute:

Name of the Statue	Nature of dues	Amount of Contingent Liabilities (In Rs)	Amount paid under Protest (In Rs)	Period (Financial Year)	Forum where dispute is pending
The Income Tax Act, 1961	Income Tax	86,22,250	Nil	2000-2001,2001-2002	High Court of Bombay
The Income Tax Act, 1961	Income Tax	13,09,112	Nil	1999-2000	Income Tax Appellate Tribunal
The Income Tax Act, 1961	Income Tax	1,94,63,724	Nil	2013-2014, 2015-2016, 2016-2017	Commissioner of Income Tax-Appeal
The Income Tax Act, 1961	Income Tax	98,95,634	Nil	2002-2003 to 2012-2013	Income Tax Department Authorities
Sales Tax Act	Works Contracts Tax	85,57,186	9,73,212	2001-2002 and 2002-2003	High Court-UP & Odisha
Sales Tax Act	Works Contracts Tax	2,82,50,347	93,58,386	2001-2002 to 2004-2005, 2011-12, 2012-13, 2014-15	Sales Tax Department Authorities
Sales Tax Act	Entry Tax	16,27,173	8,16,000	1999-2000 to 2002-2003	High Court, Odisha
Sales Tax Act	Entry Tax	1,97,835	70,000	2003-2004 and 1999-2000	Asst. Commissioner (Sales Tax) Odisha

8. In our opinion and according to the information and explanation given to us, the Company has not defaulted in the repayments of loans or borrowings to financial institutions, banks, government and The Company has not issued any debentures.

9. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, clause (ix) of paragraph 3 of the Order is not applicable.

10. Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the Management, we report that no fraud by the Company or no fraud on the Company by the officers and employees of the Company has been noticed or reported during the year

11. To the best of our knowledge and according to the information and explanation given to us and based on examination of the record of the Company, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Scheduled V tot the Act.

12. According to the information and explanation given to us, in our opinion, the Company is not a Nidhi Company as prescribed under Section 406 of the Act.

13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act, where applicable. The details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standard.

14. According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares of fully or partly convertible debentures during the year, Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company.

15. According to the information and explanation given to us and based on our examination of the record of the Company, the Company has not entered into any noncash transaction with its directors or persons connected with him. Accordingly, Paragraph 3(xv) of the Order is not applicable to the Company.

16. According to the information and explanation given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

"ANNEXURE B" TO INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 1 A(f) under "Report on Other Legal and Regulatory Requirements " section of our report of even date)

Independent Auditors Report on the Internal Financial Controls with reference to the standalone financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

In conjunction with our audit of the standalone financial statements of Mukand Engineers Limited ( the Company) as at and for the year ended 31 March 2021, we have audited the internal financial controls with reference to financial statements of the Company as at that date.

Responsibilities of Management and Those Charged with Governance for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal financial control with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors Responsibility for the Audit of the Internal Financial Controls with Reference to Financial Statements

Our responsibility is to express an opinion on the Companys internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India (ICAI) prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to financial statements, and the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements were established and maintained and if such controls operated effectively in all material respects. .

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements includes obtaining an understanding of such internal financial controls, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks 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 to provide a basis for our audit opinion on the Companys internal financial controls system with reference to financial statements.

Meaning of Internal Financial Controls with Reference to Financial Statements

A companys internal financial control with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control with reference to financial statements includes those policies and procedures that:

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

(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

In our opinion, the Company has, in all material aspects, have an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were generally operating effectively as at 31st March, 2021, exceptions

Internal Financial Controls over Sundry Creditors / Other Payables : In respect of Sundry Creditors / Other Payables , the company does not have strict payment & reconciliation policy of dues over a period of time resulting into Long outstanding of creditors overdue for significant longer period of time.

Internal Financial Controls over Sundry Debtors : In respect of Sundry Debtors arising in the normal course of business, the company does not have strict collection policy for recovery of dues resulting into long outstanding of debtors overdue for significant longer period of time. The provision for the debtors is estimated by Management and there is appropriate process or methodology applied by the company to ascertain provision on debtors, if any.

The above opinion is based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Reporting issued by the Institute of Chartered Accountants of India.

For Bhushan Khot & Co.

Chartered Accountants

(Firms Registration No.116888W)

Bhushan Khot

(Partner)

Membership No. 101858

UDIN: 21101858AAAADE3809

Place: Mumbai

Date: May 25, 2021