Himatsingka Seide Ltd Directors Report.

To the Members of Himatsingka Seide Limited

Report on the Audit of the Standalone Financial Statements

OPINION

We have audited the standalone 3nancial statements of Himatsingka Seide Limited ("the Company"), which comprise the standalone balance sheet as at 31 March 2021, and the standalone statement of pro3t and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash 3ows for the year then ended, and notes to the standalone financial statements, including a summary of the signi3cant 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 3nancial statements give the information required by the Companies Act, 2013 ("Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of a3airs of the Company as at 31 March 2021, and pro3t and other comprehensive income, changes in equity and its cash 3ows for the year ended on that date.

BASIS FOR OPINION

We conducted our audit in accordance with the Standards on Auditing (SAs) speci3ed 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 3nancial statements under the provisions of the Act and the Rules thereunder, and we have ful3lled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is su3cient and appropriate to provide a basis for our opinion on the standalone 3nancial statements.

EMPHASIS OF MATTER

We draw attention to Note 1.4 to these standalone 3nancial statements, which describes the Managements assessment and the e3ects of COVID-19 pandemic on the signi3cant estimates and judgements involved in preparation of the standalone 3nancial statements. In view of the highly uncertain economic environment impacting the textile industry, a de3nitive assessment of the impact is highly dependent upon circumstances as they evolve in future and the actual results may di3er from those estimated as at the date of approval of these standalone 3nancial statements. Based on information available as of this date, Management believes that no further adjustments are required to the standalone 3nancial statements.

Our opinion is not modi3ed in respect of this matter.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgement, were of most signi3cance in our audit of the standalone 3nancial statements of the current year. These matters were addressed in the context of our audit of the standalone 3nancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

DESCRIPTION OF KEY AUDIT MATTER

 

REVENUE RECOGNITION
See note 2.1 and 20 to the standalone 3nancial statements In view of the signi3cance of the matter we applied the following audit procedures in this area, amongst others, to obtain audit evidence:
Revenue from the sale of goods in the ordinary course is measured at the fair value of the consideration received or receivable when the goods are delivered and control has passed to the buyer. 1. We evaluated the revenue recognition accounting policies by comparing it with the applicable accounting standards.
Revenue from sale of goods is recognized at the point in time when control is transferred to customer. 2. We tested the design of key controls and operating e3ectiveness of the relevant key controls with respect to revenue recognition on samples selected on a random basis.
We identi3ed revenue recognition as a key audit matter because the Company and its external stakeholders focus on revenue as a key performance indicator. This could result in a risk of revenues being overstated or recognised before control has been transferred. 3. We performed substantive testing for the revenue transactions using statistical sampling and tested the supporting documents.
4 We carried out analytical procedures on revenue recognised during the year to identify unusual variances, if any and obtained explanations from management.
5. We tested, on a sample basis, speci3c revenue transactions recorded before and after the 3nancial year-end date to determine that the period in which the revenue has been recognized is appropriate.
6. We tested speci3c manual journal entries posted to revenue to identify any unusual items.

 

CARRYING VALUE OF INVESTMENTS IN SUBSIDIARIES AND ASSESSMENT OF IMPAIRMENT
See note 2.14 and 4A to the standalone 3nancial statements In view of the signi3cance of the matter we applied the following audit procedures in this area, amongst others, to obtain audit evidence:
The Company has made signi3cant investments in subsidiaries which are recorded at cost less impairment. The investments in subsidiaries are tested for impairment by Management at least annually. The carrying value of investments is dependent on achieving su3cient level of future net cash 3ows. 1. We tested the design of key controls and operating e3ectiveness of the relevant key controls around the assessment of impairment of investments in subsidiaries.
The Company is required to make signi3cant judgement with respect to the impairment if any, which is based on the information available with the Company. 2. We tested the underlying assumptions used by the Company for their assessment of the fair value of the investments.
Impairment assessment of investments have been identi3ed as a key audit matter because of the estimation and judgements involved in computation of the fair value of investments. 4. We together with the valuation specialists tested the key assumptions used by management along with their external experts in computing fair value of investments, such as weighted average cost of capital, growth rates and pro3tability.
6. We performed sensitivity analysis on key assumptions used by the Company in computing fair value of the investments, to identify impairment charge, if any and when identi3ed an appropriate recognition including disclosure of the impairment in the 3nancial statement.

 

RECOGNITION FOR GOVERNMENT GRANTS AND ASSESSMENT OF RECOVERABILITY
See note 2.5, 6 and 8 to the standalone 3nancial statements In view of the signi3cance of the matter we applied the following audit procedures in this area, among other procedures, to obtain su3cient audit evidence:
The Company is eligible for government grants under various schemes issued by the State and the Central government. 1. We evaluated the government grant accounting policies by comparing with the applicable accounting standards.
Each of these schemes requires ful3lment of conditions by the Company to be eligible to receive grant. The Company also assesses the recoverability of these grants at each balance sheet date. 2. We tested the design of key controls and operating e3ectiveness of relevant key controls with respect to recognition of grant (including its classi3cation as capital and revenue grant) and assessment of recoverability of government grants.
Recognition of grants (including its classi3cation as capital or revenue grant) require a suitable assurance by the Company towards compliance with the conditions speci3ed in the relevant schemes and that the grants will be received. The assessment of ful3lment of relevant conditions speci3ed in the grant at the time of recognition involves signi3cant judgement and assumptions. 4. We performed substantive testing, on a sample basis, towards recognition of grants in accordance with the relevant schemes, its classi3cation as revenue or capital grant and veri3ed the supporting documents.
Further, the Company needs to assess at each balance sheet date the recoverability of the grant. 6. We evaluated the Companys assessment of recoverability of respective grants based on ageing analysis and obtained explanations from management to assess the adequacy of the level of provision, if any, required for amounts considered recoverable.
We have identi3ed recognition of grant and its recoverability as a key audit matter because of the complexities in establishing the compliance with the eligibility conditions of the grant and judgement involved towards the assessment of its recoverability.

OTHER INFORMATION

The Companys management and 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 3nancial 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 standalone 3nancial 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 3nancial statements, our responsibility is to read the other information identi3ed above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone 3nancial 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 and take necessary actions, as applicable under the relevant laws and regulations.

MANAGEMENTS AND BOARD OF DIRECTORS RESPONSIBILITY FOR THE STANDALONE 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 of these standalone 3nancial statements that give a true and fair view of the state of a3airs, pro3t/loss and other comprehensive income, changes in equity and cash 3ows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) speci3ed 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 of 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 design, implementation and maintenance of adequate internal 3nancial controls that were operating e3ectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone 3nancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone 3nancial statements, the 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 the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors is also responsible for overseeing the Companys 3nancial reporting process.

Independent Auditors Report on the Audit of the Standalone Financial Statements of Himatsingka Seide Limited for the year ended 31 March 2021 (continued) AUDITORS RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the standalone 3nancial 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 in3uence the economic decisions of users taken on the basis of these standalone 3nancial statements. As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone 3nancial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is su3cient 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 control 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 3nancial controls with reference to standalone 3nancial statements in place and the operating e3ectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures in the standalone 3nancial statements made by the Management and Board of Directors.

• Conclude on the appropriateness of the Management and Board of Directors 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 signi3cant 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 3nancial 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 standalone 3nancial statements, including the disclosures, and whether the standalone 3nancial statements represent the underlying transactions 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 signi3cant audit 3ndings, including any signi3cant de3ciencies 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 signi3cance in the audit of the standalone 3nancial 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 bene3ts of such communication.

Independent Auditors Report on the Audit of the Standalone Financial Statements of Himatsingka Seide Limited for the year ended 31 March 2021 (continued) 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 Section 143 (11) of the Act, we give in the "Annexure A" a statement on the matters speci3ed in paragraphs 3 and 4 of the Order, to the extent applicable.

2) A) As required by Section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the 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 as it appears from our examination of those books.

c) The standalone balance sheet, the standalone statement of pro3t and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash 3ows dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid standalone 3nancial statements comply with the Ind AS speci3ed under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31 March 2021 taken on record by the Board of Directors, none of the directors is disquali3ed as on 31 March 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 3nancial controls with reference to standalone 3nancial statements of the Company and the operating e3ectiveness of such controls, refer to our separate Report in "Annexure B".

B) 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, 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 litigations as at 31 March 2021 on its 3nancial position in its standalone 3nancial statements - Refer Note 28 to the standalone 3nancial statements;

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

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 3nancial statements regarding holdings as well as dealings in speci3ed bank notes during the period from 8 November 2016 to 30 December 2016 have not been made in these standalone 3nancial statements since they do not pertain to the 3nancial year ended 31 March 2021. C) With respect to the matter to be included in the Auditors Report under Section 197(16): In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate A3airs has not prescribed other details under Section 197(16) which are required to be commented upon by us.

Annexure - A to the Independent Auditors Report on the standalone 3nancial statements of Himatsingka Seide Limited for the year ended 31 March 2021

With reference to the Annexure A referred to in paragraph 1 in Report on Other Legal and Regulatory Requirements of the Independent Auditors Report to the members of Himatsingka Seide Limited (‘the Company) on the standalone 3nancial statements for the year ended 31 March 2021, we report that:

i) a) The Company has maintained proper records showing full particulars, including quantitative details and situation of its 3xed assets.

b) The Company has a regular programme of physical veri3cation of its 3xed assets by which all 3xed assets are veri3ed in a phased manner over a period of two years. In our opinion, this periodicity of physical veri3cation is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, certain 3xed assets were physically veri3ed during the year. No material discrepancies were noticed on such veri3cation.

c) 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 title deeds of immovable properties included in property, plant and equipment are held in the name of the Company.

ii) The inventory, except goods-in-transit and stocks lying with third parties, has been physically veri3ed by the Management during the year. In our opinion, the frequency of such veri3cation is reasonable. The discrepancies noticed on veri3cation between the physical stock and the book records were not material and have been appropriately dealt with in the books of accounts. For stocks lying with third parties at the year-end, written con3rmation have been obtained by the Management.

iii) a) During the current year, the Company, has not granted any loans, secured or unsecured to companies, 3rms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, provisions of Clause 3(iii) (a) is not applicable to the Company. However, in the earlier years, the Company had given unsecured loans to two of its subsidiaries, of which, loan aggregating to INR 25,258.17 lakhs (excluding accrued interest of INR 7,618.44 lakhs) to one of the subsidiary has been converted into equity during the year and loan to another subsidiary aggregating to INR 577.75 lakhs has been written o3 during the year (refer Note 5.1 to the 3nancial statements).

b) According to the information and explanations given to us, the aforesaid interest on loan amounting to INR 7,618.44 lakhs is repayable on demand. We are informed that the Company has not demanded payment of said interest during the year, and thus, there has been no default on the part of the party to whom the money was lent. The interest (which was repayable on demand) relating to loan written o3 during the year (refer above) has been paid by the subsidiary.

c) There are no overdue amounts in respect of the aforesaid interest.

iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to the investments made and guarantees given. Further, there are no loans and security given in respect of which provisions of Section 185 and 186 of the Act are applicable.

v) The Company has not accepted any deposits from the public within the meaning of the directives issued by the Reserve Bank of India, provisions of Section 73 to 76 of the Act, any other relevant provisions of the Act and the relevant rules framed thereunder. Accordingly, paragraph 3(v) of the Order is not applicable to the Company. vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules prescribed by the Central Government of India for maintenance of cost records under Section 148 of the Act in respect of products manufactured and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records.

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, Employees State Insurance, Income tax, duty of Customs, Goods and Services Tax, Cess and any other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of Sales-tax, Service-tax, Duty of excise and Value added tax during the year. According to the information and explanations given to us, no undisputed amounts payable in respect of Provident fund, Employees State Insurance, Income tax, duty of Customs, Goods and Services Tax, Cess and any 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. As explained to us, the Company did not have any dues on account of Sales-tax, Service-tax, Duty of excise and Value added tax.

b) According to the information and explanations given to us, there are no dues of Income-tax, Goods and Services tax, Sales tax, Service tax, Duty of customs, Duty of excise or Value added tax which have not been deposited by the Company on account of disputes, except for the following:

Annexure-A to the Independent Auditors Report (continued)

Name of the statute Nature of the dues (as demanded) Amount (in INR) Period to which amount relates to Forum where dispute is pending
Income Tax Act, 1961 Income Tax 3333 64,887,270 AY 2006-07, 2009-10 and 2013-14 Income Tax Appellate Tribunal, Kolkata
Income Tax Act, 1961 Income Tax 3333 33,463,992 AY 2010-11, 2014-15 and 2016-17 Commissioner of Income Tax (Appeals), Kolkata
Central Excise Act,1994 Excise duty and penalty 53,079,936 FY 2003-04 to FY 2008-09 Commissioner of Customs, Bengaluru
Central Excise Act,1994 Excise duty and penalty 333333 2,186,141 (500,000)* Feb 2009 to Dec 2009 Commissioner of Customs, Bengaluru
Central Excise Act,1994 Excise duty and penalty 11,624,025 (967,767)* FY 2012 - 2016 Commissioner of Customs, Bengaluru

*represents amounts paid under protest viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to 3nancial institutions and banks. The Company does not have any outstanding loans or borrowings from government and there are no dues to debenture holders during the year.

ix) According to the information and explanations given to us and based on examination of the records of the Company, the term loans obtained during the year were applied for the purpose for which they were obtained. The Company has not raised any money by way of initial public o3er or further public o3er (including debt instruments) during the year.

x) According to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its o3cers or employees has been noticed or reported during the course of our audit.

xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/ provided for managerial remuneration in accordance with the 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, the Company is not a Nidhi Company as prescribed under Section 406 of the Act. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.

xiii) According to the information and explanations given to us and based on our examination of the records of the Company, all 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 3nancial 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. Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company.

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 to the Company.

xvi) According to the information and explanation given to us and in our opinion the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

Annexure-B to the Independent Auditors Report on the standalone 3nancial statements of Himatsingka Seide Limited for the year ended 31 March 2021.

Report on the internal 3nancial controls with reference to the aforesaid standalone 3nancial statements under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013

(Referred to in paragraph 2A (f) under ‘Report on Other Legal and Regulatory Requirements section of our report of even date)

OPINION

We have audited the internal 3nancial controls with reference to standalone 3nancial statements of Himatsingka Seide Limited ("the Company") as of 31 March 2021 in conjunction with our audit of the standalone 3nancial statements of the Company for the year ended on that date.

In our opinion, the Company has, in all material respects, adequate internal 3nancial controls with reference to standalone 3nancial statements and such internal 3nancial controls were operating e3ectively as at 31 March 2021, based on the internal 3nancial controls with reference to standalone 3nancial 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 (the "Guidance Note").

MANAGEMENTS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Companys management and the Board of Directors are responsible for establishing and maintaining internal 3nancial controls based on the internal 3nancial controls with reference to standalone 3nancial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note. These responsibilities include the design, implementation and maintenance of adequate internal 3nancial controls that were operating e3ectively for ensuring the orderly and e3cient 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 3nancial information, as required under the Companies Act, 2013 (hereinafter referred to as "the Act").

AUDITORS RESPONSIBILITY

Our responsibility is to express an opinion on the Companys internal 3nancial controls with reference to standalone 3nancial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal 3nancial controls with reference to standalone 3nancial statements. 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 3nancial controls with reference to standalone 3nancial statements were established and maintained and whether such controls operated e3ectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal 3nancial controls with reference to standalone 3nancial statements and their operating e3ectiveness. Our audit of internal 3nancial controls with reference to standalone 3nancial statements included obtaining an understanding of such internal 3nancial controls, assessing the risk that a material weakness exists, and testing and evaluating the design and operating e3ectiveness 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 standalone 3nancial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is su3cient and appropriate to provide a basis for our audit opinion on the Companys internal 3nancial controls with reference to standalone 3nancial statements.

MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO STANDALONE FINANCIAL STATEMENTS

A companys internal 3nancial controls with reference to standalone 3nancial statements is a process designed to provide reasonable assurance regarding the reliability of 3nancial reporting and the preparation of standalone 3nancial statements for external purposes in accordance with generally accepted accounting principles. A companys internal 3nancial controls with reference to standalone 3nancial statements include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly re3ect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone 3nancial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companys assets that could have a material e3ect on the standalone 3nancial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO STANDALONE FINANCIAL STATEMENTS

Because of the inherent limitations of internal 3nancial controls with reference to standalone 3nancial 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 3nancial controls with reference to standalone 3nancial statements to future periods are subject to the risk that the internal 3nancial controls with reference to standalone 3nancial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

for B S R & Co. LLP

Chartered Accountants

Firms Registration Number. 101248W/W-100022

Supreet Sachdev

Partner

Membership No. 205385

ICAI UDIN: 21205385AAAAAQ8533

Place: Bengaluru

Date: 29 May, 2021