Huhtamaki India Ltd Directors Report.

To the Members of Huhtamaki India Limited (formerly known as "Huhtamaki PPL Limited")

Report on the Audit of the Financial Statements

Qualified Opinion

We have audited the financial statements of Huhtamaki India Limited (formerly known as Huhtamaki PPL Limited ("the Company"), which comprise the balance sheet as at December 31, 2021, and the statement of profit and loss (including other comprehensive income), statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of the significant accounting policies and other explanatory information (herein after referred to as "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 below, the aforesaid financial 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 affairs of the Company as at December 31, 2021, and loss and other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

We draw attention to Note 47(9) to the financial statements for the year ended December 31, 2021 according to which the managerial remuneration paid to the erstwhile Managing Director and Executive Director/ Chief Financial Officer of the Company (amounting to Rs. 37.1 million) and consequently the total managerial remuneration for the financial year (amounting to Rs. 45.1 million) exceeds the prescribed limits under Section 197 read with Schedule V to the Companies Act, 2013 by Rs. 16.2 million. As per the provisions of the Act, the excess remuneration is subject to approval of the shareholders which the Company proposes to obtain in the forthcoming Annual General Meeting. Pending such approval, the impact, if any, on the financial statements cannot be quantified.

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditors Responsibilities for the Audit of the 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 financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion on the financial statements.

Key Audit Matters

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

Key audit matter How our audit addressed the key audit matter
Timing of revenue recognition
(Refer note 3(i) to accounting policies and note 33) In view of the significance of the matter we applied the following audit procedures, among others, in this area to obtain sufficient appropriate audit evidence:
Revenue from sale of goods is recognised when control is transferred to the customers. • Assessed the appropriateness of Companys accounting policy for revenue recognition as per the relevant accounting standard.
The Company uses a variety of delivery terms and this has an impact on the timing of revenue recognition. There is a risk that revenue could be recognised at a time which is different from the transfer of control for sales transactions occurring during the year. • Evaluated the design and implementation of key internal financial controls and processes including relevant information technology systems in relation to the timing of revenue recognition for a sample of transactions with special reference to controls over revenue cut offs throughout the year and at the year end.
In view of above, ascertainment of timing of revenue recognition has been identified as a key audit matter. • Tested sample revenue transactions by using statistical sampling in order to examine whether revenue has been recognised in the correct period taking into account the relevant underlying documentation and records.
Timing of revenue recognition
• We assessed the adequacy of disclosures in the financial statements against the requirements of Ind-AS 115 - Revenue from Contracts with Customers.
• Circulated direct confirmation of balances to customers on a sample basis and where the confirmations were obtained, we tested the completeness and accuracy of the reconciliations prepared by management.
Tax litigations - Provisions and contingencies
(Refer note 3(o) to accounting policies and note 44) In view of the significance of the matter we applied the following audit procedures, among others, in this area to obtain sufficient appropriate audit evidence:
The Company is subject to a number of ongoing litigations relating to direct tax (including transfer pricing arrangements) and indirect tax matters. • Evaluated the design, implementation and operating effectiveness of key internal controls around the recognition and measurement of provisions and disclosure of contingent liabilities.
Assessment of the outcome of ongoing litigations and consequentially whether or not any provision and/or disclosures are required is inherently uncertain and involves significant judgement since it requires interpretation of the applicable tax legislations and decisions previously passed by authorities. Also, as at the year end, the amounts involved are significant. • Obtained information from the Companys internal tax and legal team regarding the status of ongoing litigations.
In view of the above we have identified ongoing litigations relating to direct tax (including transfer pricing arrangements) and indirect tax matters as a key audit matter. • Evaluated managements judgment regarding the expected resolution of matters with various tax authorities, based on third-party opinions and the use of past experience, where available, with the tax authorities.
• Involved our subject matter experts for evaluating the Companys assessment of the possible outcome of the matters and analysing and challenging the assumptions used in estimation of provisions based on their knowledge and experience of the application of the relevant legislation by the relevant authorities and related correspondence with the authorities.
• Assessed the adequacy of provision for ongoing litigations by verifying the appropriateness of assumptions used and estimates made by the management in light of the decisions previously made by the authorities in similar circumstances and by comparing the estimates of prior year with the actual outcome.
• Assessed the adequacy of Companys disclosures in respect of ongoing litigations as per the relevant accounting standards.
Secondary Purchases
Vendors are selected and secondary purchases orders are raised at each of these locations. Considering the volume and value of such transactions spread across multiple locations and multiple vendors, there is a risk of misstatement on account of fraud in such secondary purchase bookings. In view of the significance of the matter we applied the following audit procedures, among others, in this area to obtain sufficient appropriate audit evidence:
Secondary purchases are recognised against a valid purchase order, at an agreed and approved rate, once the goods and services are received from approved vendors. • Evaluated the design, implementation and operating effectiveness of the Companys general information technology controls and key information technology/ manual application controls over the Companys systems which govern recording of secondary purchases.
Secondary purchases are material to the financial statements and there is a risk of secondary purchases being overstated and inaccurately accounted for when the relevant service or product is not received by the Company. • Performed substantive testing on a sample basis using statistical sampling by agreeing selected samples of secondary purchase vendor transactions to underlying documents and approvals as per the approved delegation of authority manual.
In view of the above, secondary purchases has been recognised as a key audit matter as the Company has multiple locations of buying. • Performed substantive cut-off testing by selecting samples of secondary purchase transactions, agreeing to the underlying documents, which include purchase orders, purchase invoices and evidence of receipt of goods and services.
• Circulated, as part of the vendor confirmation process, direct confirmation of balances to vendors on a sample basis and where the confirmations were obtained, we tested the completeness and accuracy of the reconciliations prepared by management.
• Assessed manual journals posted to secondary purchases to identify unusual items.

Information Other than the Financial Statements and Auditors Report thereon

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 financial statements and our auditors report thereon.

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 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 in the 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.

Managements and Board of Directors Responsibility 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 of these financial statements that give a true and fair view of the state of affairs, profit / loss and other 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. 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 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 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 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 are also responsible for overseeing the Companys financial reporting process.

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 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 financial controls with reference to financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures in the financial statement made by the Management and Board of Directors.

• Conclude on the appropriateness of the Management and Board of Directors use of 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.

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

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

(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 balance sheet, the statement of profit and loss (including other comprehensive income), the statement of changes in equity and the statement of cash flows 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;

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

f) the qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above; and

g) with respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness 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 December 31, 2021 on its financial position in its financial statements - Refer Note 44 to the financial statements;

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

iii) There were no delays in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

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

(D) With respect to the matter to be included in the Auditors Report under section 197(16) of the Act:

i) We draw attention to Note 47(9) to the financial statements for the year ended December 31, 2021 according to which the managerial remuneration paid to the erstwhile Managing Director and Executive Director/ Chief Financial Officer of the Company (amounting to Rs. 36.1 million) and consequently the total managerial remuneration for the financial year (amounting to Rs. 45.1 million) exceeds the prescribed limits under Section 197 read with Schedule V to the Companies Act, 2013 by Rs. 16.2 million. As per the provisions of the Act, the excess remuneration is subject to approval of the shareholders which the Company proposes to obtain in the forthcoming Annual general Meeting.

ii) The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.

Annexure - A

to the Independent Auditors Report - December 31, 2021 on the financial statements (Referred to in our report of even date)

With reference to the Annexure referred to in the Independent Auditors Report to the Members of the Company on the financial statements for the year ended December 31, 2021, we report the following:

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

(b) The Company has a regular programme of physical verification of its property, plant and equipment by which all property, plant and equipment are verified in a phased manner over a period of three years. In our opinion, this 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 property, plant and equipment were physically verified by the management during the year. In our opinion, and according to the information and explanations given to us, no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us, the title deeds of immovable properties as disclosed in Note 4 to the financial statements are held in the name of the Company, except for the immovable properties located at Silvassa, Khopoli, Thane, Bangalore flexibles plant, Bangalore labels plant, Sricity, Ambernath plant and Daman. These immovable properties are in the name of the former name of the Company i.e Huhtamaki PPL Limited. The management has made an application / are in process of making application to the relevant authorities for transfer of the immovable properties in its present name

(ii) The inventory, except goods-in-transit and inventory lying with third parties, has been physically verified by management at reasonable intervals during the year.

In our opinion, the frequency of such verification is reasonable. In respect of goods-in-transit subsequent goods receipts have been verified and in respect of inventory lying with third parties at the year-end, these have been confirmed by them. The discrepancies noticed on such verification between physical stocks and the book records were not material.

(iii) In our opinion and according to 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 Act. Accordingly, paragraph 3 (iii) (a), (b) and (c) of the Order is not applicable to the Company

(iv) In our opinion and according to the information and explanation given to us, the Company has not granted any loans nor made any investments or given any guarantees or provided any security to the parties covered under Section 185 and Section 186 of the Act. Accordingly, paragraph 3 (iv) of the Order is not applicable to the Company.

(v) According to information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of the directives issued by Reserve Bank of India, provisions of Sections 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 as specified under Section 148(1) of the Act, for maintenance of cost records in respect of the products manufactured by the Company, 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 cost records with a view to determine whether they are accurate or complete.

(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 including Advance tax and Profession tax, Goods and services tax, Duty of Customs, Cess and other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities though there has been a slight delay in a few cases.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident fund, Employees State Insurance, Income-tax including Advance tax and Profession tax, Goods and services tax, Duty of customs, Cess and other material statutory dues were in arrears as at December 31, 2021 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of Income tax, Sales tax, Goods and services tax, Duty of customs, Duty of excise and Value added tax, which have not been deposited as at December 31, 2021 with the appropriate authorities on account of any dispute except as mentioned below:

Name of the Statute Nature of the Dues Period to which the amount relates Forum where dispute is pending Amount (Rs. million) Amount paid under protest (Rs. million)
Income Tax Act, 1961 Tax 2009-2010 Commissioner of Income-tax (Appeals) 3.23 -
2010-2011 Commissioner of Income-tax (Appeals) 1.24 -
2011-2012 High Court, Mumbai 24.41 -
Goods and Services Tax Act, 2017 Goods and Services Tax 2017-2018 to 2019-2020 Assistant Commissioner (Appeals) 12.31 -
2020-2021 Assistant Commissioner / Joint Commissioner (Appeals) 0.33 0.33
Central Excise Act, 1944 Excise Duty 1997-1998 Deputy Commissioner 0.16 -
2001-2002, 2006-2011, 2013-2017 CESTAT 227.63 4.81
2001-2008 High Court 3.47 3.27
2005-2006, 2014-2017 Commissioner 47.49 -
2009-2010 Joint Secretary, Ministry of Finance 0.04 -
2014-2018, 2020-2021 Commissioner (Appeals) 0.38 0.38
Finance Act, 1994 - Service Tax Service tax 2004-2006, 2011-2012, 2008-2015 Assistant Commissioner /Range Superintendent 0.72 0.02
2009-2017 CESTAT 46.93 1.88
2014-2017 Deputy Commissioner 4.15 -
Customs Act, 1962 Customs Duty 2004-2008 Joint Commissioner Customs 4.53 0.70
2006-2010, 2012-2013 Deputy Commissioner customs 1.19 0.87
2012-2013 CESTAT 0.32 -
2016-2017 Assistant Commissioner Customs 0.02 -
Telangana Tax on Entry of Goods into Local Areas Act, 2001 Entry Tax 2011-2017 High Court - Hyderabad 13.10 4.58
2017-2018 Additional Commissioner State Tax 0.63 0.19
The Central Sales Tax Act, 1956 Central Sales Tax 2010-2011, 2011-2012, 2013-2016 Sales Tax Tribunal 6.87 2.0
2015-2018 Deputy Commissioner State Tax 19.82 1.1
2016-2017 Joint Commissioner of State Tax 106.68 -
The Maharashtra Value Added 2007-2008 Sales Tax Tribunal 1.03 -
Value Added Tax Act, 2002 Tax 2016-2017 Deputy Commissioner State Tax 8.48 -
The Telangana Value added Tax Act, 2005 Value Added Tax 2005-2008 Sales Tax Tribunal 4.56 1.1

(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 banks or Government. The Company did not have any loans or borrowings from the debenture holders and financial institution during the year.

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

(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanation given to us, including the matter referred in Note 53 to the financial statements, we have neither come across any instance of fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Company.

(xi) According to the information and explanations given to us and based on our examination of the records of the Company, managerial remuneration paid to the erstwhile Managing Director and Executive Director/ Chief Financial Officer of the Company (amounting to Rs. 36.1 million) and consequently the total managerial remuneration for the financial year (amounting to Rs. 45.01 million) exceeds the prescribed limits under Section 197 read with Schedule V to the Companies Act, 2013 by Rs. 16.2 million. As per the provisions of the Act, the excess remuneration is subject to approval of the shareholders which the Company proposes to obtain in the forthcoming Annual General Meeting.

(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. 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, transactions with the related parties are in compliance with Sections 177 and 188 of the Act, where applicable. The details of such related party transactions have been disclosed in the notes to the financial statements as required under Indian Accounting Standard (Ind AS) 24, Related Party Disclosures notified under the Companies (Indian Accounting Standards) (Amendment) Rules, 2016.

(xiv) According to the information and explanations give 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, the Company has not entered into non-cash transactions with directors or persons connected with him as referred to in section 192 of the Act. Accordingly, paragraph 3 (xv) of the Order is not applicable to the Company.

(xvi) In our opinion and according to the information and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3 (xvi) of the Order is not applicable to the Company.

Annexure -B

to the Independent Auditors Report on financial statements of Huhtamaki India Limited (formerly known as Huhtamaki PPL Limited) for the year ended December 31, 2021

Report on the internal financial controls, with reference to aforesaid financial statements, under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013

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

Opinion

We have audited the internal financial controls with reference to financial statements of Huhtamaki India Limited (formerly known as Huhtamaki PPL Limited) as of December 31, 2021 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at December 31, 2021, based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the "Guidance Note")

Managements Responsibility for Internal Financial Controls

The Companys management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal controls stated in the Guidance Note. 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 Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to financial 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 financial controls with reference to financial statements 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 with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal controls based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

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

Meaning of Internal Financial Controls with reference to financial statements

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

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

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with 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 effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to financial statements

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

For B S R & Co. LLP
Chartered Accountants
Firms Registration No: 101248W/W-100022
Amar Sunder
Partner
Mumbai Membership No: 078305
February 28, 2022 UDIN: 22078305ADUYAE8652