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Engineers India Ltd.

BSE: 532178 Sector: Engineering
NSE: ENGINERSIN ISIN Code: INE510A01028
BSE 00:00 | 24 Apr Engineers India Ltd
NSE 05:30 | 01 Jan Engineers India Ltd
OPEN 68.00
PREVIOUS CLOSE 68.80
VOLUME 148064
52-Week high 128.60
52-Week low 49.85
P/E 10.95
Mkt Cap.(Rs cr) 4,332
Buy Price 67.35
Buy Qty 100.00
Sell Price 68.55
Sell Qty 516.00
OPEN 68.00
CLOSE 68.80
VOLUME 148064
52-Week high 128.60
52-Week low 49.85
P/E 10.95
Mkt Cap.(Rs cr) 4,332
Buy Price 67.35
Buy Qty 100.00
Sell Price 68.55
Sell Qty 516.00

Engineers India Ltd. (ENGINERSIN) - Auditors Report


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Company auditors report

TO

THE MEMBERS OF ENGINEERS INDIA LIMITED

Report on the Audit of Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of ENGINEERSINDIA LIMITED ("the company") which comprise the Balance Sheet as at 31March 2019 the statement of Profit and Loss (including other comprehensive income) theStatement of Changes in Equity and the Cash Flow Statement for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as "the standalonefinancial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the company as at 31 March 2019its profit (including other comprehensive income) changes in equity and its cash flowsfor the year ended on that date.

Basis for Opinion

We conducted our audit of standalone financial statements in accordancewith the Standards on Auditing ("SAs") specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in theAuditor's Responsibilities for the Audit of the Standalone Financial Statementssection of our report. We are independent of the company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India ("ICAI")together with the ethical requirements that are relevant to our audit of the standalonefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report:

1. Estimation in relation to Percentage Completion Method

The company recognizes revenue using the percentage of completionmethod. This method involves management estimates w.r.t cost and outcomes of long-termconstruction and service contracts. Revenue recognition in this regard is complex becauseit is based on the management estimates assessments and judgements of:

• estimated contract revenue and estimated costs;

• the assessment of stage of completion of respective jobs;

• total efforts incurred till date and balance efforts required tocomplete the remaining contract performance obligations;

• changes in work scope;

• the probability of customer approval of variations and claims;and

• probability of levy for liquidated damages warranty/guaranteeand price reduction for delay or waiver/ reduction of such levies. Audit procedures werecarried out for verifying the revenue recognized from such contracts and for thatpurpose we:

• selected a sample of contracts and evaluated the design ofinternal controls relating to recording of efforts incurred and estimation of effortsrequired to complete the performance obligations;

• assessed management's estimates of total contract revenueand contract costs and recalculated the stage of completion based on actual costs incurredtill date for a sample of contracts;

• selected a sample of contracts and performed a review of effortsincurred with estimated efforts to identify significant variations if any and verifywhether those variations have been considered while estimating the remaining effortsrequired to complete the respective contract;

• reviewed a sample of contracts with unbilled revenues toidentify possible delays in achieving milestones and change if any required in estimatedefforts to complete the remaining performance obligations by the company;

• performed analytical procedures and test of details forreasonableness of incurred and estimated efforts.

This has been considered as a key audit matter because of theinvolvement of management's judgement and estimates in recognizing revenue from suchcontracts and potential variations that may have consequential impact on the profitabilityof the company.

2. Arbitration Proceedings in case of M/s Fernas Construction IndiaPrivate Limited

In April 2016 the company terminated an existing contract with M/sFernas Construction India Private Limited ("contractor") consequent to thefindings of an investigating agency that certificates submitted for qualifying thecontract was bogus. Subsequent to termination of the contract the company is completingthe project at the risk and cost of contractor in terms of provisions of the contract. Thematter has been referred to the Arbitral Tribunal wherein the contractor has filed itsclaim amounting to र 40960.75 Lakhs against the company. The company has filed itsreply along with its counter claim and application to implead the parent company of thecontractor decisions on which is pending with the Arbitral Tribunal.

During the current financial year a third party creditor of thecontractor has filed an application against the contractor with National Company LawAppellate Tribunal (NCLAT) under Insolvency and Bankruptcy Code 2016 (IBC). InterimResolution Professional (IRP) has been appointed and hence arbitration proceedings havebeen stayed sine die. The company has filed its claim before the IRP. Refer Note 52 to thestandalone financial statements.

This has been considered as a key audit matter given uncertain outcomeof legal/arbitral proceedings and the involvement of management judgement and estimates inrelation to the same and any variation may have consequential impact on the profitabilityof the company.

The status of such job has been reviewed on regular basis. Also outcomeof the legal proceedings was reviewed time to time. Based on the management'sassessment the Management has not considered any possible obligation on this accountrequiring future probable outflow of resources of the company and accordingly no provisionhas been made nor disclosed as Contingent Liability in the standalone financial statementsof the company.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for thepreparation of other information. The other information comprises the ManagementDiscussion and Analysis Director's Report including annexures to Director'sReport Business Responsibility Report Corporate Governance Ten years' Performanceat a Glance and Chairman's Statement included in the Annual Report of the companybut does not include the Standalone Financial Statements and our Auditor's Reportthereon. The Annual Report is expected to be made available to us after the date of thisAuditor's Report.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained during thecourse of audit or otherwise appears to be materially misstated.

On reading the Annual Report if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance and take necessary actions as per applicable laws and regulations.

Responsibilities of Management and those Charged with Governance forthe Standalone Financial Statements

The company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance (including other comprehensive income) changes in equity and cash flows ofthe company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards specified in the Companies (Indian AccountingStandards) Rules 2015 (as amended) under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing thecompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

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

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(I) of the Act we are also responsible for expressingour opinion on whether the company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the "Annexure A" a statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. The Comptroller and Auditor General of India has issued Directionsindicating the areas to be examined in terms of sub section (5) of section 143 of the Actcompliance of which are set out in "Annexure B".

3. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen 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 (includingother comprehensive income) the Statement of Changes in Equity and the Cash FlowStatement dealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statementscomply with the Indian Accounting Standards specified in the Companies (Indian AccountingStandards) Rules 2015 (as amended) under Section 133 of the Act.

(e) As per notification number G.S.R. 463(E) dated 5 June 2015 issuedby Ministry of Corporate Affairs section 164(2) of the Act regarding thedisqualifications of Directors is not applicable to the Company since it is a GovernmentCompany;.

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure C". Our Report expresses anunmodified opinion on the adequacy and operating effectiveness of the company'sinternal financial controls over financial reporting.

(g) With respect to the other matters to be included in theAuditor's Report as per notification number G.S.R. 463(E) dated 5 June 2015 issuedby Ministry of Corporate Affairs section 197(16) of the Act regarding the Managerialremuneration is not applicable to the company since it is a Government Company.

(h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 (as amended) in our opinion and to the best of our information and accordingto the explanations given to us:

i. The company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements – Refer Note 40 to thestandalone financial statements;

ii. the company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long termcontracts including derivative contracts - Refer Note 54 to the standalone financialstatements; and

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the company.

For Arun K Agarwal & Associates
Chartered Accountants
(Firm's Registration No. 003917N)
Sd/-
Arun Kumar Agarwal
Place: New Delhi (Partner)
Date: 17 May 2019 M. No. 082899

Annexure A to Independent Auditors' Report

Referred to Paragraph 1 under the heading of "Report on OtherLegal and Regulatory Requirements" of our report of even date

i. (a) The company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The company has a regular programme of physical verification of itsfixed assets by which fixed assets are verified in a phased manner over a period of threeyears which in our opinion is reasonable having regard to the size of the company andthe nature of its assets. In accordance with this programme certain fixed assets werephysically verified by the Management during the year and according to information andexplanations given to us no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the company the title deeds of immovableproperties are held in the name of the Company except the following:

(र in Lakhs)
PARTICULARS GROSS BLOCK NET BLOCK
4 Flats at Naranpura Ahmedabad 10.31 3.30
Land at Memnagar Ahmedabad 69.21 53.10
2 Flats at Viman Nagar Pune 8.45 2.84
84 Flats at Gokuldham Goregaon Mumbai 238.19 32.38
6 Flats in Andheri East Mumbai 9.93 0.16
1 Floor at CBD Belapur Navi Mumbai 101.68 37.34

ii. The Company has carried out physical verification of inventory atthe year end. In our opinion frequency of physical verification is reasonable.

As per the information and explanations given to us the discrepanciesnoticed on physical verification of inventories as compared to book records were notmaterial and the same have been dealt with in the books of account.

iii. In our opinion and according to the information and explanationsgiven to us the Company has not granted any loan secured or unsecured to companiesfirms or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Accordingly paragraphs 3 (iii) (a) (b) and (c) of the order are notapplicable.

iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct with respect to the grant of loan making investment providing guarantees andsecurities as applicable.

v. The Company has not accepted any deposits from the public within themeaning of Sections 73 74 75 and 76 of the Companies Act 2013 and Rules framed thereunder. Accordingly paragraphs 3 (v) (a) (b) and (c) of the order are not applicable.

vi. As per the information and explanations given to us themaintenance of cost records has not been prescribed by the Central Government undersection 148(1) of the Companies Act 2013 for services rendered by the Company.

vii. (a) According to the information and explanations given to us andon the basis of our examination of the books of account of the Company amountdeducted/accrued in the books of account in respect of undisputed statutory dues includingProvident Fund Income Tax GST Sales Tax Service Tax Custom Duty Value Added TaxCess and any other statutory dues have been regularly deposited during the year by thecompany with appropriate authorities as applicable.

According to the information and explanation given to us and on thebasis of our examination of the books of accounts no undisputed amounts payable inrespect of Provident Fund Income Tax GST Sales Tax Service Tax Custom Duty ValueAdded Tax Cess and any other statutory dues were in arrears as at 31 March 2019 for aperiod more than six months from the date they became payable.

(b) According to the information and explanations given to us thefollowing dues of Income Tax Sales Tax Service Tax have not been deposited by theCompany on account of disputes:

S. No. Name of Statue Nature of dues Forum where dispute is pending Period to which amount relates Amount including interest (र in Lakhs)
1. Income Tax Act 1961 TDS Under section 201(1) CIT (Appeals) F.Y. 2008-09 (A.Y. 2009-10) 0.70
2. Income Tax Act 1961 Income Tax Income Tax Appellate Tribunals F.Y. 2001-02 (A.Y. 2002-03) 620.84
F.Y. 2003-04 (A.Y. 2004-05) 213.00
F.Y. 2011-12 (A.Y. 2012-13) 78.60
F.Y. 2013-14 (A.Y. 2014-15) 119.44
3. Sales Tax Entry Tax Sales Tax Tribunal Noida F.Y. 1999-2000 59.26
4. Sales Tax VAT Andhra Pradesh High Court April 2014 to June 2017 219.88
5. Sales Tax VAT Karnataka High Court F.Y. 2009-10 3589.12
6. Sales Tax VAT Karnataka High Court F.Y. 2010-11 28572.56
7. Sales Tax VAT Karnataka High Court F.Y. 2013-14 584.89
8. Sales Tax VAT Karnataka High Court F.Y. 2014-15 718.74

viii. The company does not have any loan or borrowings from anyfinancial institution bank government or debenture holders during the year.

Accordingly paragraph 3(viii) of the order is not applicable.

ix. The company did not raise any money by way of Initial Public Offeror Further Public Offer (including debt instruments) and term loans during the year.Accordingly paragraph 3 (ix) of the Order is not applicable.

x. According to the information and explanation given to us by themanagement and based on audit procedures performed no material fraud by the Company or onthe Company by its officers or employees has been noticed or reported during the year.

xi. As per Notification dated 05.06.2015 Section 197 of the Act is notapplicable in case of a Government Company. Accordingly paragraph 3 (xi) of the Order isnot applicable.

xii. In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.

xiii. According to the information and explanations given to us andbased on our examination of the records of the company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the standalone financial statements asrequired by the applicable accounting standards.

xiv. According to the information and explanations give to us and basedon our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly paragraph 3(xiv) of the Order is not applicable.

xv. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with them. Accordinglyparagraph 3(xv) of the Order is not applicable.

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

For Arun K Agarwal & Associates
Chartered Accountants
(Firm's Registration No. 003917N)
Sd/-
Arun Kumar Agarwal
Place: New Delhi (Partner)
Date: 17 May 2019 M. No. 082899

Annexure B to Independent Auditors' Report

Referred to Paragraph 2 under the heading of "Report on OtherLegal and Regulatory Requirements" of our report of even date

According to the information and explanations given to us we report asunder:

S. No. Areas Examined Observations/Findings
1. Whether the Company has system in place to process all the accounting transactions through IT system? If yes the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications if any may be stated. The Company has in-house developed IT software and systems in place to process all the accounting transactions. The Company has adequate internal control system to process all the accounting transactions through IT system.
2. Whether there is any restructuring of an existing loan or cases of waiver/write off of debts/ loans/ interest etc. made by a lender to the Company due to the Company's inability to repay the loan? If yes the financial impact may be stated. There is no restructuring of loan or cases of waiver/write off of debts/loans/interest etc. taken by the Company.
3. Whether funds received/ receivable for specific schemes from Central/State agencies were properly accounted for/ utilized as per its term and conditions? List the cases of deviation. Funds received/receivable for specific schemes from Central/State agencies were properly accounted for/utilized as per its term and conditions.

 

For Arun K Agarwal & Associates
Chartered Accountants
(Firm's Registration No. 003917N)
Sd/-
Arun Kumar Agarwal
Place: New Delhi (Partner)
Date: 17 May 2019 M. No. 082899

Annexure C to Independent Auditors' Report

Referred to Paragraph 3(f) under the heading of "Report on OtherLegal and Regulatory Requirements" of our report of even date

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

We have audited the internal financial controls over financialreporting of ENGINEERS INDIA LIMITED ("the Company") as of 31 March 2019in conjunction with our audit of the standalone financial statements of the company forthe year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Arun K Agarwal & Associates
Chartered Accountants
(Firm's Registration No. 003917N)
Sd/-
Arun Kumar Agarwal
Place: New Delhi (Partner)
Date: 17 May 2019 M. No. 082899