tamil nadu petro products ltd share price Auditors report

To the Members of Tamilnadu Petroproducts Limited

Report on the Audit of Standalone Financial Statements

We have audited the accompanying standalone financial statements of Tamilnadu Petroproducts Limited ("the Company") which comprise the Balance Sheet as at 31^st March, 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended and the notes to the standalone financial statements including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ( "the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2023, its profit, total comprehensive income, its cash flows and changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the standalone 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 opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, 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 standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have determined the matters described below to be the key audit matters to be communicated in our report. For each matter below, our description of how our audit addressed the matter is provided in that context.

Accounting for legal and other contractual claims:	Our response
The Company is involved in litigations comprising of tax matters, legal compliances, and other disputes the financial impact of which would largely depend on the decision by the appellate authorities. The Company assesses the need to make a provision or disclose a contingency on a case-to-case basis considering the underlying facts of each matter, in consultation with its legal counsel and the level of probability of outflow of economic resources. This involves a high level of management judgement and assumptions which impact the risk assessment and consequential provisioning and disclosure of contingencies in the financial statements. This area is significant to our audit since the completeness and accuracy of accounting and disclosures for contingencies is dependent on such management judgement and assumptions.	Our audit procedures included the following:
	Evaluated and tested the Companys processes and controls for monitoring of claims, litigations, disputes, compliance and assessment thereof for determining the likely outcome.
	Read the summary of the litigations prepared by the management and discussed the material cases to determine the Companys assessment of the likelihood and magnitude of any liability that may arise.
	Obtained independent legal confirmations from the concerned professionals engaged by the Company, where applicable, to seek their opinion on the status of litigations and checked the managements judgements and assumptions.
	Discussed with the management to understand the basis of managements judgements and estimates and independently assessed the level of probability of outflow of resources embodying the economic resources to arrive at our judgement of whether a provision was required or a disclosure sufficient.
	Obtained risk assessment of tax litigations from tax specialists to assess managements judgements and assumptions on such matters.
	Read the minutes of the board meetings to determine the completeness of claims, disputes, and litigations.
	Tested the adequacy of disclosures in the standalone financial statements.
	Also obtained necessary representation from the management with regard to the provisioning and disclosures in respect of the claims and litigations.

Other Information

The Companys Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Boards Report including annexures to Boards Report and Report on Corporate Governance but does not include the standalone and consolidated financial statements and our respective auditors report thereon. The other information referred to above is expected to be made available to us after the date of this auditors report. Our opinion on the standalone financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.

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

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

Managements Responsibility for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the IND AS specified under the Act read with Rules framed thereunder as applicable.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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

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

Auditors Responsibilities for the Audit of the Standalone Financial Statements

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

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

Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud 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 made by management.

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

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

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone 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 standalone 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 standalone 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 Section 143(11) of the Act, we give in Annexure-A, a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. 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, Statement of Profit and Loss including Other Comprehensive Income, the 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 standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with relevant Rules issued there under.

(e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31^st 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 with reference to financial statements 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 with reference to financial statements.

(g) With respect to other matters to be included in Auditors Report in accordance with the requirements of section 197(16) of the Act, 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, 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 on its financial position in its standalone financial statements. Refer Note. Nos.31A and 33 to the standalone financial statements.

ii. The Company has certain long-term contracts for which there are no material foreseeable losses. The Company did not have any derivative contracts at the year end.

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

iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) other than those disclosed in the standalone financial statements 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 entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") 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 (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(c) Based on the audit procedures that have been 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 (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

v. (a) The final dividend proposed in the previous year, declared, and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable. The Company has not paid any interim dividend during the year.

(b) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section

123 of the Act, as applicable. (Refer note.44 to the standalone financial statements).

vi. As proviso to Rule 3(1) of Companies (Accounts) Rules, 2014 is applicable for the Company with effect from April 1, 2023, reporting under clause (g) of Rule 11 of Companies (Audit and Auditors) Rules, 2014 relating to audit trail is not applicable for the year.

For R.G.N Price & Co.

Chartered Accountants

(Firm Registration No. 002785S)

	Sriraam Alevoor M
	Partner
Place: Chennai	M. No. 221354
Date : 23rd May 2023	UDIN:23221354BGXJLJ5015

ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT

[Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements section of our report of even date to the Members of the Tamilnadu Petroproducts Limited ("the Company") on the standalone financial statements of the Company for the year ended 31^st March 2023]

To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that: i. In respect of the Companys Property, Plant and Equipment:

(a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment and relevant details of right-of-use assets.

(B) The Company does not have any intangible assets and reporting under this clause is not applicable.

(b) The Company has adopted a policy of physically verifying its Property, Plant and Equipment once in two years which in our opinion is reasonable having regard to the size of the company and nature of its business. During the year Property, Plant and Equipment have been physical verified by the management and the discrepancies noticed on such verification have been properly dealt with in the books of accounts.

(c) The title deeds of all immovable properties disclosed in the financial statements are held in the name of the Company as at the balance sheet date, except to the extent disclosed under note no.33 to the financial statements.

(d) The Company has not revalued any of its Property, Plant and Equipment during the year. The Company does not have any intangible assets.

(e) No proceedings have been initiated during the year or are pending against the Company as at March 31, 2023 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

ii. (a) Physical verification of inventories has been conducted at reasonable intervals by the management and the coverage & procedure of such verification by the management is appropriate. The discrepancies noticed on physical verification of inventory were not 10% or more in aggregate of each class of inventory and these discrepancies have been properly dealt with in the books of accounts.

(b) The Company has been sanctioned working capital limits in excess of 5 crores, in aggregate during the year from banks on the basis of security of current assets. Details of differences between quarterly returns or statements filed by the Company with such banks and other books of accounts on the respective dates are given below:

( in lakh)

Particulars	Amount as per book of account (A)	Amount as per Return submitted to Banks (B)	Reported excess/ (shortage) C= B-A
Trade Receivables
As at 30th June 2022	13,719.38	12,417.61	(1,301.77)
As at 30th September 2022	16,893.01	16,562.03	(330.97)
As at 31st December 2022	14,626.81	14,256.48	(370.33)
As at 31st March 2023	13,886.42	13,874.64	(11.78)
Trade Payables
As at 30th June 2022	6,772.74	4,085.11	(2,687.63)
As at 30th September 2022	6,777.01	5,514.48	(1,262.52)
As at 31st December 2022	5,969.28	5,243.17	(726.11)
As at 31st March 2023	9,257.71	8,186.41	(1,071.30)
Inventories
As at 30th June 2022	13,008.23	10,557.47	(2,450.76)
As at 30th September 2022	12,263.01	11,799.16	(463.84)
As at 31st December 2022	14,573.44	14,063.54	(509.90)
As at 31st March 2023	16,793.55	16,321.60	(471.95)

Refer note to the financial statements for reasons for excess/shortage as mentioned in the table above.

iii. During the year, the Company has not provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, limited liability partnerships or any other parties Therefore, sub-clauses (a), (c) to (f) of this clause are not applicable.

As required by clause 3(iii)(b) of the Order, we report that the investments made during the year are not prejudicial to the Companys interest.

iv. The Company has not granted any loans nor any guarantee or security to the directors or to any company, body corporate or to any other person covered by section 185 & section 186 of the Act. The investments made by the Company is in compliance with section 186 of the Act.

v. The Company has not accepted any deposit or amounts which are deemed to be deposits under sections 73 to 76 or any other relevant provisions of the Act and rules made thereunder. Hence, reporting under clause 3(v) of the Order is not applicable.

vi. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under section 148(1) of Act, and are of the opinion that prima facie the prescribed cost records have been made and maintained. We have however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

vii. (a) In our opinion, the Company is regular in depositing undisputed statutory dues, including goods and services tax, provident fund, employees state insurance, income tax, sales tax, service tax, duty of custom, duty of excise, value added tax, cess and any other statutory dues applicable to it with the appropriate authorities.

There were no undisputed amounts payable in respect of the above statutory dues in arrears as at March 31, 2023 for a period of more than six months from the date they became payable.

(b) In respect of statutory dues referred to in clause (a) there are no dues which have not been deposited on account of any dispute as of 31st March 2023, except for:

( In lakh)

Nature of Statute	Nature of Dues	Forum where dispute is pending	Financial Year	Amount involved	Amount unpaid
Tamilnadu Sales Tax Act	Sales Tax	Sales Tax Appellate Tribunal	1993-94	1,629	1,629
		Deputy Commissioner Commercial Taxes	2005-06	5.15	5.15
Finance Act, 1994	Service Tax	CESTAT, Chennai	2011-12 to 2014-15	102.47	97.35
Excise Duty	Excise Duty	Principal Commissioner GST & CE	1994-95 to 1996-97	60.82	23.47
		CESTAT, Chennai	2005-06 to 2009-10	244.22	221.11
Customs Act	Customs Duty	Deputy Commissioner of Customs	1999-00	34.25	34.25
Income Tax Act	Income Tax	Supreme Court	2001-02	2,645.60	123.56
		CIT (Appeals)	2015-16 & 2016-17	1,340.23	1,274.71
		DCIT/ A.O	1999-00, 2005-06, 2008-09 , 2012-13, 2013-14	4,295.59	822.97
Tamilnadu Electricity Regulatory Commission (RPO) Regulations, 2010	Renewable Purchase Obligation	Madras High Court	2010-11 to 2022-23	3,449.90	3,449.90
Tamilnadu Tax on Consumption or Sale of Electricity Amendment Act, 2007	Electricity Tax	Supreme Court	2003-04 to 2008-09	1,054.93	1,054.93
Electricity Act, 2003	Cross Subsidy Charge under Group Captive Scheme	Madras High Court	2014-15 to 2016-17	444.95	444.95
TNERC (Grid connectivity and Intra- State Open Access) Regulations, 2014	Cross Subsidy Surcharge	Madras High Court	2012-13 to 2013-14	226.71	226.71
Electricity Tax Act, 2003	Electricity Cess	CEIG	2011-12, 2012-13	132.99	132.99
National Green Tribunal Act, 2010	Interim Environmental Compensation	National Green Tribunal	2019-20	200	200
TN Government Regulations	Rent for leasehold land	Thasildar, Thiruvottiyur	1990-2020	9,224.34	9,224.34

viii. There were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

ix. a The Company has not defaulted in repayment of loans or other borrowings or in the payment of any interest thereon to any banks.

b. The Company has not been declared as willful defaulter by any bank or financial institution Institution or any other lender.

c. The Company has not raised any term loans during the year.

d. The funds raised by the Company on short term basis during the year has not been utilized for long term purposes.

e. The Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries The Company does not have any associates or joint ventures.

f. The Company has not raised any loans during the year on the pledge of securities held in its subsidiaries.

x. a. The Company has not raised moneys by way of initial public offer or further public offer (Including instruments) during the year and hence reporting under clause 3(x)(a) of the Order is not applicable.

b. During the year, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully or partly or optionally) and hence reporting under clause 3(x)(b) of the Order is not applicable.

xi. a. 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 explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company noticed or reported during the year, nor have we been informed of any such case by the Management.

b. No report under sub-section (12) of section 143 of the Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto the date of this report.

c. The Company has not received any whistle blower complaints during the year and up to the date of this report.

xii. The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.

xiii. In our opinion, the Company is in compliance with Section 177 and 188 of the Act, with respect to applicable transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.

xiv. (a) In our opinion the Company has an adequate internal audit system commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports for the year under audit, issued to the Company during the year and till date, in determining the nature, timing and extent of our audit procedures. xv. The Company has not entered into any non-cash transactions with its directors or persons connected with its directors and hence the provisions of section 192 of the Act, are not applicable to the Company. xvi.

(a) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

(b) The Company has not conducted any Non Banking Financial or Housing financing activities.

(c) The Company or any other Company in the group is not a Core Investment Company as defined in the regulations made by the Reserve Bank of India and hence reporting under this clause is not applicable.

xvii. The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors of the Company during the year.

xix. On the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements and our knowledge of the Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date.

xx. (a) There are no unspent amount towards Corporate Social Responsibility (CSR) activities other than ongoing projects requiring a transfer to a Fund specified in Schedule VII to the Act in compliance with second proviso to sub section (5) of Section 135 of the said Act.

(b) In respect of ongoing projects, the Company has transferred the unspent CSR amount as at the end of the previous financial year, to a special account within a period of 30 days from the end of the said financial year in compliance with the provision of section 135(6) of the Act.

For R.G.N.Price &Co.

Chartered Accountants

Firm Regn. 002785 S

	Sriraam Alevoor M
	Partner
Place: Chennai	M. No. 221354
Date: 23rd May 2023	UDIN: 23221354BGXJLJ5015

ANNEXURE-B TO THE INDEPENDENT AUDITORS REPORT

(Referred to in Clause (f) of Paragraph 2 of Report on Other Legal and Regulatory Requirements of our report of even date on the standalone financial statements to the members of the Company, on the Internal Financial Controls with reference to financial statements for the year ended 31 ^st March 2023.)

We have audited the internal financial controls with reference to financial statements of Tamilnadu Petroproducts Limited (‘the Company) as of March 31, 2023 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring orderly and efficient conduct of its business, including adherence 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 on Audit of Internal Financial Controls Over Financial Reporting and the Standards of Auditing, to the extent applicable to an audit of internal financial controls, both issued by the ICAI. Those Standards and 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 with reference to financial statements, 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 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 control with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companys internal financial control with reference to financial statement 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 tothe 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 control with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

According to the information and explanations given to us and based on our audit, the Company has, in all material respects, an adequate internal financial control with reference to financial statements and such internal financial control with reference to financial statements were operating effectively as at March 2023 based on the internal financial control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note of Internal Financial Controls over Financial Reporting issued by the ICAI.

For R.G.N.Price &Co.

Chartered Accountants

Firm Regn. 002785 S

	Sriraam Alevoor M
	Partner
Place: Chennai	M. No. 221354
Date: 23rd May 2023	UDIN: 23221354BGXJLJ5015