rai saheb rekhchand mohota spg wvg mills ltd Auditors report

To the Members of Mohota Industries Limited

Report on the Audit of the Standalone Financial Statements

Qualified Opinion

We have audited the accompanying standalone Financial Statements of Mohota Industries Limited ("the Company"), which comprise the Balance sheet as at March 31, 2021, 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 then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the basis for qualified opinion paragraph of our report, 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 the conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the company as at March 31, 2021, its Loss(including other comprehensive income),changes in equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

a) The Company has invested Rs.15.52 crores in a partnership firm. The financial statements of the said partnership firm for the year ended March 31, 2021 were not available; hence the impact on the profit/(loss) and corresponding impact on the carrying amount of investment is not ascertainable.

b) The Company has not performed impairment testing with respect to the investment in a partnership firm as required by Indian Accounting Standard (Ind AS 36) ‘Impairment of assets, hence the impact on the carrying amount of investment is not ascertainable.

c) Balances of trade receivables, trade payables, loans and advances given/taken are subject to confirmations, reconciliations and consequent adjustments.

d) Deposits with Government Revenue Authorities are subject to confirmations and full recoverability is not ascertainable.

e) Grant receivable from Government under PSI2007 Mega Project Incentive Scheme is subject to confirmations to eligibility of the Auditee and full recoverability of said grant is not ascertainable owing to defunct operations.

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SA), as specified under section 143(10) of the Act (SAs).

Our responsibilities under those Standards 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 (ICAI) together with the independence requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and Rules made there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basic of our audit opinion on the standalone financial statements.

Material Uncertainty related to Going Concern

We draw attention to Note No. 8 in the standalone financial results that the Company has incurred net loss during the year and the current liabilities have exceeded the current assets. Further, the Company has defaulted in repayment of principle dues and interest payable to banks. These events indicate that a material uncertainty exists that may cast significant doubt on the Companys ability to continue as a going concern. Ouropinion is not modified in respect of this matter.

Emphasis of Matter

We draw attention to Note No. 9 in the standalone financial results that the Company has defaulted in repayment of principle dues and interest payable to banks. The Company has provided interest liability based on last available sanction letter on the principle outstanding upto 31st March, 2021.The bank has rejected the debt restructuring proposal and has moved to National Company law Tribunal for resolution. Pending resolution, no further adjustment has been made in the standalone financial results in respect of the principle amount of loan and interest provided thereon.

We also draw attention to Note No. 8 in the standalone financial results that the management is closely monitoring the COVID-19 situation and its impact on the operations and future performances of the company. Our opinion is not qualified in respect of these matters.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the standalone 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.

Description of Key Audit Matter:

1. At March 31, 2021, the Company held provisions in respect of Maharashtra Municipal Tax and has disclosed total contingent liabilities of Rs.182.34 lakhs (previous year Rs. 273.82 lakhs). These provisions are based on judgements and accounting estimates made by management in determining the likelihood and magnitude of claims. Accordingly, unexpected adverse outcomes could significantly impact the Companys reported loss and balance sheet position. Refer Note 34 of standalone financial statements and accounting policies for contingent liabilities, provisions, and related disclosures.

2. The Company has received an amount of Rs. 2.15 crores from the R.S.R. MOHOTASPG. & WVG. MILLS LTD. E.P.F. TRUST. The balance outstanding is shown under the head "Trade Payables"in Note-19 in the standalone financial statements instead of "Borrowings" under "Non-Current Liabilities" in Note-15. Further, the amount paid by the Trust to the Company isin contravention tothe object of the Trust. Refer Note 19 of standalone financial statements and accounting policies for Trade Payable.

Our response:

• We evaluated the design and tested the operating effectiveness of controls in respect of the determination of the provisions. We determined that the operation of the controls provided us with evidence over the completeness, accuracy and valuation of the provisions.

• We read the summary of litigation matters provided by management and held discussions with the management and their legal counsels. We requested legal letters from some of the Companys external legal advisors with respect to the matters included in the aforesaid disclosures. Where appropriate, we examined correspondence connected with the cases.

• For litigation provisions, we tested the calculation of the provisions, assessed the assumptions against third party data, where available and assessed the estimates against historical trends.

• We considered managements judgements on the level of provisioning and disclosures in respect of the aforesaid matters, which we considered to be appropriate.

Information Other than the Standalone Financial Statements and Auditors Report Thereon

The companys Board of Directors is responsible for the preparation of other information. The other information comprise the information included in the Management Discussion and Analysis, Boards Report including Annexures to the Boards Report, Business Responsibility Report, Corporate Governance and Shareholders Information but does not include the standalone financial statements and our auditors report thereon.

The other information is expected to be made available to us after the date of this auditors report.

Our opinion on the 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 and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of the audit or otherwise appears to be materially misstated.

If based on the work we have performed, we conclude that Other Information is materially misstated; we are required to report that fact. Our report in this regard is restricted as other information is not made available to us as on the date of this report.

Responsibility of Management and Those charged with the Governance for the Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect of the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and the cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provision 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 judgements and estimates that are reasonable and prudent; and the 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 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 is 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, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of 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 or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level ofassurance, but is not a guarantee that our audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatement 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 financial statements.

As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional scepticism through the audit. We also:

• Identify and assess the risk of material misstatement of the standalone financial statements, whether due to fraud or 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 risk 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, or override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(l) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system 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 Companys 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 disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of 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 statement represents the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

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 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 current period and are therefore the key audit matters. We describe these matters in our auditors report unless flaw 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.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order 2016("the order") issued by the Central Government of India in terms of sub-section(11)of section 143 of the Companies Act, 2013 we give in the "Annexure A" a statement on the matters specified in the paragraphs 3 and 4 of the order.

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

(a) We have sought and obtained all the information and explanations which to be the best ofour knowledge and belief were necessary for our audit.

(b) In our opinion, proper books of accounts as required by the law have been kept by the Company so far as it appears from ourexamination of books;

(c) The Balance Sheet, the statement of Profit and Loss including other comprehensive income, Statement of Changes in Equity and the Cash Flow Statement dealt with by this report are in agreement with the relevant books of account;

(d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under section 133 of the Act, read with Rule 7 of the companies (Accounts) Rules, 2014, as amended;

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

(f) 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". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companys internal financial controls overfinancial reporting.

(g) With respect to the other matters to be included in the Auditors Report 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 the explanations given to us, the remuneration paid by the Company to its director during the year is in accordance with the provisions of section 197 of the Act.

(h) With respect to the other matters to be included in the Auditors Report in accordance with rule 11 of Companies (Audit and Auditors) Rules 2014, as amended in our opinion and to the best ofour information and according to the explanations given to us;

(i) The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements (refer Note No. 34);

(ii) The company did not have any long-term contracts including derivative contracts, for which there were any material foreseeable losses;

(iii) There were no amounts which were required to be transferred to the investor Education and Protection Fund by the Company.

CAABHIJIT SAGDEO

Partner

Membership No. 103700

UDIN: 21103700AAAABL7579

For & on behalf of

BPSD&ASSOCIATES

Chartered Accountants

FRN: 118251W

Nagpur, dated the 28th June, 2021

Annexure -Ato the Auditors Report

(referred to in paragraph 1 under‘Report on Other Legal and regulatory requirementssection of our report to the members of the Company of even date)

The annexure referred to in paragraph 1 under "Report on Other Legal and Regulatory Requirement" section of our Independent Auditors Report of even date to the members of the Company on the Financial Statements for the year ended 31st March 2021, we report that:

i. In respect of Fixed Assets:

a) According to the information and explanations given to us, the Company has maintained proper records showing full particulars, including quantitative details and situation of Fixed Assets.

b) According to the information and explanations given to us, the Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified in a phased manner over a period of three years. In our opinion, the periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, certain fixed assets were physically verified during the year and no material discrepancies were observed on such verification.

c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.

ii. In respect of inventories:

The inventories were physically verified during the year by the Management at reasonable intervals. In our opinion, the frequency of verification is reasonable. However, on account of COVID-19 restrictions on movement imposed by Local Government Authorities, the verification of inventory could not be carried out.

iii. According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to Companies, Firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act. Accordingly, paragraph 3 (iii) (a), (b) and (c) of the Order are not applicable to the Company.

iv. According to the information and explanation given to us, the Company has not given any loans, or made any investments, or provided any guarantee, or security as specified under section 185 and 186 of the Companies Act, 2013. Accordingly, paragraph 3

(iv) of the Order is not applicable.

v. The Company has not accepted any deposits from public within the meaning of sections 73 to 76 or any other relevant provision of the Companies Act and the rules framed there under, where applicable. Therefore, the said clause is not applicable to the Company.

vi. According to the information and explanations given to us, we have broadly reviewed the books of account maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 148 of the Act, related to the manufacture of yam & fabrics, and are of the opinion that prima-facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same. Also, the Cost Audit as required under the provisions of the Act is not completed till the date of this report.

vii. a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, income- tax, employees state insurance, duty of excise sales tax, value added tax, duty of customs service tax, Goods and service tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of customs, service tax, Goods and service tax, cess and other material statutory dues were in arrears as at 31 March 2021 for a period of more than six months from the date they became payable except the following liabilities pending for payment for more than six months.

Nature of dues	Period to which it relates	Amount (Rs. in lakhs)
EPF	Jan 20 to Mar 21	101.48
ESIC	Feb 20, Mar 20, Dec 20 to Mar 21	9.94
Profession Tax	Apr 20 to Mar 21	13.75
TDS	Apr 20 to Mar 21	2.53

b) According to the information and explanations given to us outstanding dues of octroi and property tax that have not been deposited by the Company on account of disputes are given below:

Name of the Statute	Nature of dues	Period to which it relates	Amount (Rs. in lakhs)	Forum where the Dispute is pending
Maharashtra Municipalities Act 1965	Octroi on Grey Fabrics	01/07/1994 to 15/05/1995	2.38	Honourable High Court, Nagpur Bench.
Maharashtra Municipalities Act 1965	Octroi on Grey Fabrics	16/05/1995 to 31/03/1996	27.87	Honourable High Court, Nagpur Bench.
Maharashtra Municipalities Act 1965	Octroi on Grey Fabrics	01/04/1996 to 31/03/1997	24.24	Honourable High Court, Nagpur Bench.
Maharashtra Municipalities Act 1965	Octroi on Grey Fabrics	01/04/1997 to 11/11/1997	12.66	Honourable High Court, Nagpur Bench.
Maharashtra Municipalities Act 1965	Octroi on Grey Fabrics	12/11/1997 to 30/04/1999	20.58	Honourable High Court, Nagpur Bench.
Maharashtra Municipalities Act 1965	Property Tax	2012-13 to 2014-15	61.42	Supreme Court, Delhi

viii. Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the Company has defaulted in repayment of loans to Banks.

There are also outstanding loans or borrowings from any financial institutions but there are no outstanding loans and borrowings from Government and debenture holders.

The details of default are given below:

Name of lenders	Nature of Loan	Particulars	Amount of default as at 31.03.2021 (Rs. in Lakhs)	Period of default
State Bank of India	Cash Credit	Principle	3,488.32	November2019
State Bank of India	Term Loan	Principle	279.96	November2019
Bank of India	Cash Credit	Principle	2,069.57	November2019
Bank of India	C/C Pledge	Principle	171.34	November2019
Induslnd Bank Ltd	Credit Card	Principle	18.71	November2019
ICICI Bank	Credit Card	Principle	292.17	November2019
Jain Sons Fin Lease Ltd	Business Loan	Principle	183.86	November 2019
Shriram City Union Finance	Business Loan	Principle	33.22	November2019

ix. According to the information and explanations given to us, 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, paragraph 3 (ix) ofthe Order is not applicable.

x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.

xi. According to the information and explanation given to us, the Company has paid/provided for managerial remuneration in accordance with requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.

xii. According to the information and explanations given to us, in our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) ofthe Order is not applicable.

xiii. 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 and details of such transactions have been disclosed in the standalone Financial Statements as required by the applicable Indian Accounting Standards.

xiv. According to the information and explanations 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 or fully or partly convertible debentures during the year.

xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.

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

CAABHIJIT SAGDEO

Partner

Membership No. 103700

UDIN: 21103700AAAABL7579

For & on behalf of

BPSD&ASSOCIATES

Chartered Accountants

FRN: 118251W

Nagpur, dated the 28th June, 2021

Annexure - B to the Auditors Report

(Referred to in paragraph 2(g) under ‘Report on Other Legal and regulatory requirements section of our report to the members of the Company of even date)

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

We have audited the internal financial controls over financial reporting of Mohota Industries Limited (formerly known as The Rai Saheb Rekhchand Mohota Spg. &Wvg. Mills Limited) ("the Company") as of 31 March, 2021 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls 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 Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. 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

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. 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 over financial reporting was 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 system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, 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 judgment, 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 overfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

Acompanys internal financial control overfinancial reporting 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. Acompanys internal financial control overfinancial reporting 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 over financial reporting, 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 overfinancial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Qualified Opinion

1. According to information and explanations given to us and based on our audit, and as per the Note No. 4 of the standalone financial statements, since the company is unable to determine fair value of its investment in the M/s. K.C. Mohunta& Brother (a partnership firm) and the company has not carried out impairment testing on the value of investment in the firm as required by Ind-AS, a material weakness has been identified relating to inadequate internal financial controls over financial reporting in respect of the assessment of appropriateness of carrying amount of investment.

2. According to information and explanations given to us and based on our audit and as per the Note No. 4 of the standalone financial statements, the company has made investment in the M/s. K. C. Mohunta& Brother (a partnership firm) out of its internal accruals. The said investment in M/s. K. C. Mohunta & Brother (a partnership firm) is in nature of Long Term but has been made from the Companys internal accruals as explained to the consortium banker which were not meant to be used for long term purpose. This indicates material weakness of internal financial control over utilization of Companys finances.

3. The balances of trade receivables, trade payables, loans and advances given/ taken, deposits and grants receivable from revenue authorities are subject to confirmations from respective Parties. This indicates a weak internal control over balances of trade receivables, trade payables, loans and advances given/ taken, deposits and grants receivable from revenue authorities. This could potentially result in changes in the Companys trade payables, trade receivables, loans, advances, deposits and grants receivables as at year ended 31st March 2021.

A‘material weakness is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting, such that there is a reasonable possibility that a material misstatement of the companys annual or interim financial statements will not be prevented or detected on a timely basis.

In our opinion, except for the effects of the material weakness described above on the achievement of the objective of the control criteria, the Company has maintained, in all material respects, an adequate internal financial controls system over financial reporting with reference to these Ind AS financial statements and such internal financial controls over financial reporting with reference to these standalone financial statements were operating effectively as at March 31,2021, 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 Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Explanatory Paragraph

We have also audited, in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India, as specified under section 143(10) of the Act, the Ind AS standalone financial statements of the Company, which comprise the Balance Sheet as at March, 31, 2021 and the related Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. The material weaknesses reported in Para 1, 2 and 3 of the ‘Qualified Opinion section of this report were considered in determining the nature, timing and extent of audit tests applied in our audit of the Ind As standalone financial statements of the Company as at March 31, 2021. These material weaknesses reported in our report on internal financial controls affect our independent auditors report dated June 25,2021 which expresses a qualified opinion on said Ind AS standalone financial statements.

CAABHIJIT SAGDEO

Partner

Membership No. 103700

UDIN:21103700AAAABL7579

For & on behalfof

BPSD&ASSOCIATES

Chartered Accountants

FRN: 118251W

Nagpur, dated the 28th June, 2021