city online services ltd Auditors report

TO THE MEMBERS OF CITY ONLINE SERVICES LIMITED

Report on the Audit of the financial statements

Opinion

We have audited the accompanying financial statementsof City Online Services Limited (“the Company”) which comprise the Balance Sheet as at 31March2023, the Statement of Profit & Loss(including Other Comprehensive Income), the Statement of Changes in Equityand theStatement of CashFlows for the year ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as “thefinancial statements”).

In our opinion and to the best of our information and according to the explanations given to us, except for the effect of matter described in the “Basis for Qualified Opinion” section of our report, the aforesaid 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 Indian Accounting Standards prescribed under Section 133 of the Act read with 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 31 March,2023, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the 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 financial statements under the provisions of the Companies Act, 2013 and the Rules made thereunder, 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 basis for our audit opinion.

We draw attention to the following matter:

1. The Companys “Loans & Advances” are carried in the Balance Sheet at Rs.14.48 Lakhs given to a related party (City Online Digital Private Limited) having negative net worth and recovery of the same is unascertainable. Further, no provision has been made in the books of accounts.

2. The Company has “Trade Receivables” amounting to Rs.227.38 Lakhs as on the balance sheet date out of which Rs.26.6 Lakhs is outstanding for more than 2 years and the recovery of the same is unascertainable. However, provision has been made in the books of accounts only to the extent of Rs.14 Lakhs and provision for an amount of Rs.12.64 Lakhs is not created. Further, we were unable to determine whether any adjustments to these amounts were necessary.

3. Had the above-said provision of Rs.27.12 Lakhs (Rs.14.48 Lakhs towards related party and provision for an amount of Rs.12.64 Lakhs towards Trade receivables aging more than 2years) been created, the results of the operations of the company for the current financial year would have resulted in profit before taxes of Rs.9.84 Lakhs, against the original profits of Rs.36.96 lakhs.

4. Noted a difference in the revenue reported per books of accounts versus the revenue in line with GST returns filed with the GST authorities. Thereby resulting in under reporting of revenue to the authorities by Rs. 419.22 Lakhs.

Rs. In Lakhs

Revenue as per books	Revenue as per GST returns	(Short) / Excess
6,351.61	6064.34	419.22

Emphasis of Matter

We draw attention to

1. Note 12 to the financial statements represents the balance amounting to Rs.227.38 Lakhs under the head “Financial Assets- Trade Receivables” regarding amount receivable from sundry debtors as on balance sheet date is subject to confirmations and reconciliations and consequential adjustments, if any. The impact of the same on accounts cannot be ascertained.

2. Note 23 to the financial statements represents the balance amounting to Rs.297.63 Lakhs under the head “Financial Liabilities - Trade Payables” regarding amount payable to sundry creditors as on balance sheet date is subject to confirmations and reconciliations and consequential adjustments, if any.

3. Note 25 to the financial statements represents the balance amounting to Rs.34.99 Lakhs under the head “Other Current Liabilities” regarding “Deposits from customer - Refundable” as on balance sheet date is subject to confirmations and reconciliations and consequential adjustments, if any. The impact of the same on accounts cannot be ascertained.

4. Note 25 to the financial statements represents the balance amounting to Rs.249.13 Lakhs under the head “Other Current Liabilities” regarding “Statutory Liabilities” in the nature of TDS, GST are remaining unpaid as on the balance sheet date.

Material Uncertainty Relating to Going Concern

The company is having a negative net-worth of Rs.15.38 Lakhs as on 31st March 2023. The Management of the company has represented that in case of need, the promoters shall infuse the required capital/loan for furtherance of operations. Hence, the financial statements are prepared on going concern basis.

Our opinion on the financial statements is not modified in respect of above matters.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our auditof the financial statementsof the current period. We have determined that there are no Key audit matters to communicate in our report.

Information other than the financial statements and auditors report thereon:

The Companys management and Board of Directors is responsible for the other information. The other information comprises the information included in the Directors Report, Management Discussion & Analysis and Corporate Governance Report, but does not include the financial statements and our auditors report thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management for the Financial Statements

The Companys management and Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (“IND AS”) specified under section 133 of the Act.

The 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 ofappropriateaccounting 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the management and Board of Directors of the company 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, or has no realistic alternative but to do so.

The management and Board of Directors of the company are responsible for overseeing the financial reporting process of the company.

Auditors Responsibilities for the Audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the 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 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 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 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 omissions, misrepresentations, or the 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)(i) 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 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 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 financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the 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 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 financial statements of the current period and are therefore the key audit matters. 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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of subsection (11) of section 143 of the Companies Act, 2013, we give in the “Annexure A”, a statement on the matters specified in paragraphs 3 and 4 of the Order.

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 the best of 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 the Company so far asit appears from our examination of those books;

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

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

e) On the basis of the written representations received from the directors as on 31 March ,2023,taken on record by the Board of Directors, none of the directors is disqualified as on31 March, 2023 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 over financial 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 directors 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 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 does not have any pending litigations in its financial position in its financial statements;

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

(iii) There were no such amounts which were required to be transferred to the Investor Education and Protection Fund during the year ended 31st March 2023.

(iv) (a) The management has represented that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person or entity, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediaries shall, whether, directly or indirectly lend or invest in other person or entity identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(b) The management has represented that, to the best of its knowledge and belief, no funds have been received by the company from any person or entity, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other person or entity identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Funding Parties or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

(c) Based on the audit procedures that were considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.

(v) There is no dividend declared or paid during the year by the Company as per the provisions of Section 123 of the Act.

For Laxminiwas & Co.

Chartered accountants

Firms Registration Number:011168S

Sd/-

Guha Roy Ashish Kumar

Partner

Membership Number:018659

UDIN:23018659BGXCSJ9025

Place: Hyderabad

Date: 30th May, 2023

Annexure A to the Auditors Report

(Referred to in paragraph 2 under ‘Report on other legal and regulatory

requirements section of our report to the Members of City Online Services

Limited of even date)

(i) . In respect of the companys Property, Plant and Equipment and

Intangible Assets:

a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company is maintaining proper records showing full particulars including quantitative details and situation of property plant & equipment and intangible assets.

b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has carried out physical verification of all its property plant & equipment. In our opinion, the frequency of verification is reasonable considering the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

c) According to the information and explanations given to us, we report that, there is no Immoveable property of Land and buildings which are freehold or leasehold held in the name of the company as of balance sheet date 31st March 2023. Therefore, the Clause 3(i)(c) of the Order is not applicable to the Company and hence not commented upon.

d) According to the information and explanations given to us and on the basis of our explanation of the company, the company has not revalued its property, plant and equipment or intangible assets or both during the year. Therefore, the clause 3(i)(d)of the order is not applicable to the company and hence not commented upon.

e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no proceeding initiated or are pending against the company for holding any benami property under the Benami Transaction Prohibition Act 1988. Therefore, the Clause 3(i)(e) of the Order is not applicable to the Company and hence not commented upon.

(ii) . a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no inventory lying with the company as on the balance sheet date. Therefore, the Clause 3(ii)(a) of the order is not applicable to the company.

b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the company has sanctioned working capital from banks or financial institutions which is less than Rs.5crores, but not on the basis of security of current assets. Therefore, the Clause 3(ii)(b) of the Order is not applicable to the Company and hence not commented upon.

(iii). According to the information and explanations given to us and on the basis of our examination of the records of the company, the Company has granted unsecured advances to companies during the year of which;

a) Based on the audit procedures carried on by us and as per the information and explanations given to us, the company has provided advances to the following

Particulars	Amount Rs.
Aggregate amount during the year
-Related	-
-Other than subsidiaries	22,10,114
Balance outstanding as at balance sheet date
-Related	-
-Other than subsidiaries	14,47,854

b) According to the information and explanations given to us and on the basis of our examination of the records, the company, in case of loans and advances, which are in the nature of loans, there is no interest levied, therefore the terms and conditions of the grant of loans and advances are prejudicial to the companys interest;

c) The schedule of repayment of principal and payment of interest has not been stipulated.

d) According to the information and explanation given to us there is no repayment schedule, using which overdue for more than 90 days can be obtained therefore, the provision of Clause 3 (iii) (d) is not commented upon.

e) According to the information and explanations given to us there is no repayment schedule on the basis of which, we can determine that the loans fallen due during the year, has been renewed, extended or a fresh loan has been granted to settle the existing dues. Hence, commenting on Clause 3 (iii) (e) is not required.

f) According to the information and explanations given to us and on the basis of our examination of the records, the company has not granted loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment to related parties as defined in clause (76) of section 2 of the Companies Act, 2013.

(iv) . In our opinion and according to the information and explanations given

to us and on the basis of our examination of the records of the company, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.

(v) . According to the information and explanations given to us and on the basis of our examination of the records of the company, the company has not accepted any deposits during the year and does not have any unclaimed deposits as at 31st March, 2023 and therefore the provisions of the clause 3 (v) of the order is not applicable to the company.

(vi) . According to the information and explanations given to us, the Central

Government has not prescribed the maintenance of cost records under section 148(1) of the Act, in respect of the services rendered by the Company. Therefore, the Clause 3 (vi) of the Order is not applicable to the Company.

(vii) . According to the information and explanations given to us, in respect of

statutory dues:

a) The company has not been regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income tax, Customs duty, Goods and Service Tax and other material statutory dues applicable to it with the appropriate authorities,

The undisputed amounts payable in respect of Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, Goods and Service tax, Customs Duty, Cess and other material statutory dues in arrears as at 31 March, 2023 for a period of more than six months from the date they became payable amounting to Rs.182.79 Lakhs.

Sl. No Name of the Statute	Details of Section	Amount in Rs.
1 CGST Act, 2017		149.25
2 Income-Tax Act, 1 961	TDS under sec 195, 194J& 192	30.98
3 Professional Tax Act, 1987		2.56
	Total	182.79

b) There were no statutory dues which have not been deposited as at March 31,2023 on account of any disputes.

(viii) . According to the information and explanations given to us and on the basis of our examination of the records, the company has not surrendered or disclosed any transaction, previously unrecorded in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year. Accordingly, the requirement to report on Clause 3 (viii) of the Order is not applicable to the Company.

(ix) . The Company has raised money by way of term loans which were applied for the purpose for which it was raised.

a) Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to a lender

b) According to the information and explanations given to us, the company has not been declared willful defaulter by any bank or financial institution or any other lenders.

c) According to the information and explanations given to us and on the basis of the examination of records of the company, the term loans were applied for the purpose for which the loans were obtained.

d) According to the information and explanations given to us and on the basis of the examination of records of the company, no funds raised on short term basis have been utilized for long term purposes.

e) According to the information and explanations given to us and on the basis of the examination of records of the company, the company has not taken any funds from any entity or a person on account of or to meet the obligations of its subsidiaries, Associates or Joint ventures.

f) According to the information and explanations given to us and on the basis of the examination of records of the company, the company has not raised loans during the quarter on the pledge of the securities held in its subsidiaries, Joint ventures or Associate companies.

(x) . a) According to the information and explanations given to us and on the basis of the examination of records of the company, no money was raised by the way of initial public offer or further public offer (including debt instruments) and hence not commented upon.

b) According to the information and explanations given to us, the company has not made anypreferential allotment or private placement of shares or convertible debentures (fully, partially optionally convertible) during the year. Accordingly, Clause (x)(b) of the Order is not applicable and hence not commented upon.

(xi) a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, based upon the audit procedures performed for the purpose of reporting the true and fair view of the Financial Statements, we report that no fraud by the Company or no material fraud on the Company by the officers and employees of the Company has been noticed or reported during the year. Accordingly, Clause (xi)(a)of the Order is not applicable and hence not commented upon.

b) According to the information and explanation given to us and on the basis of our examination of the records of the Company, there is no fraud by the company or no material fraud on the company by the officers and employees of the company. Accordingly, filing of Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 with the Central Government is not required and hence Clause (xi) (b) of the Order is not applicable and not commented upon.

c) According to the information and explanations given to us, there were no whistle-blower complaints in the company. Therefore, the Para 3 (xi) (c) of the Order is not applicable to the Company and hence not commented upon.

(xii) . According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company is not Nidhi Company. Therefore, Clause (xii) (a), (b) and (c) of the Order is not applicable to the Company and hence not commented upon.

(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 financial statements as required by the applicable accounting standards.

(xiv) . a) According to the information and explanations given to us and based on our examination of the records of the company, the company has an internal audit system commensurate with the size and nature of its business.

b) Based upon 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 provided by the management, we considered the reports of the Internal Auditors for the period under audit.

(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, Clause (xv) of the Order is not applicable and hence not commented upon.

(xvi) . a) According to the information and explanations given to us and based on our examination of the records of the Company, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. Accordingly, Clause 3 (xvi)(a) of the order is not applicable.

b) According to the information and explanations given to us and on the basis of our examination of the records of the company, the Company has not conducted any Non- Banking Financial or Housing Finance activities. Accordingly, Clause 3(xvi)(b) of the Order is not applicable.

c) According to the information and explanations given to us and on the basis of our examination of the records of the company, the company is not a core investment company. Accordingly, Clause 3(xvi)(c) of the Order is not applicable and hence not commented upon.

d) According to the information and explanations given to us and on the basis of our examination of the records of the company, neither the company nor its group of company is a core investment company. Accordingly, Clause 3(xvi)(d) of the Order is not applicable and hence not commented upon.

(xvii) . According to the information and explanations given to us and on the basis of our examination of the records of the company, the company has not incurred cash losses in the financial year. Hence commenting on Clause (xvii) is not required.

(xviii) .According to the information and explanations given to us and on the basis of our examination of the records of the Company, there has been no resignation of the statutory auditors during the year. Accordingly, Clause 3 (xviii) of the Order is not applicable and hence not commented upon.

(xix) . According to the information and explanations given to us and on the

basis of our examination of the records of the Company, on the basis of financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, there are no material uncertainty exists as on the date of audit report. The Company is capable of meeting its liabilities existing on the date of balance sheet. We, however, state that this is not an assurance as to the future viability of the company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the company as and when they fall due.

(xx) . According to the information and explanation provided to us and based on the examination of records of the company. The company is not subjected to compliance requirement with respect to section 135 of The Companies Act, 2013. Therefore, the Clause (xx) (a) & (b) of the Order is not applicable to the Company and hence not commented upon.

(xxi) . There have been no qualifications or adverse remarks by the respective auditors in the Companies (Auditors Report) Order (CARO) reports of the companies included in the consolidated financial statements. Accordingly, reporting under Clause 3(xxi) of the Order is not applicable for the year.

For Laxminiwas & Co.

Chartered accountants

Firms Registration Number:011168S

Sd/-

Guha Roy Ashish Kumar

Partner

Membership Number:018659

UDIN:23018659BGXCSJ9025

Place: Hyderabad

Date: 30th May, 2023

Annexure - B to the Auditors Report

Referred to in paragraph 1 (f) under “Report on other Legal and Regulatory Requirements section of our report to the members of City Online Services Limitedof 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 City Online Services Limited(“the Company”)as of 31st March 2023 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 management and Board of directors of the company 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 (‘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

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 issued by Institute of Chartered accountants of India and the standards on auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements 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 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 internal financial controls system over financial reporting of the Company.

Meaning of Internal Financial Controls over Financial Reporting

A companys internal financial control over financial 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. A companys internal financial control over financial 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.

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 over financial 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.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2023, 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.

For Laxminiwas & Co.

Chartered accountants

Firms Registration Number:011168S

Sd/-

Guha Roy Ashish Kumar Partner

Membership Number:018659 UDIN:23018659BGXCSJ9025

Place: Hyderabad Date: 30th May, 2023