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GOCL Corporation Ltd.

BSE: 506480 Sector: Industrials
NSE: GOCLCORP ISIN Code: INE077F01035
BSE 00:00 | 24 Apr 2020 GOCL Corporation Ltd
NSE 05:30 | 01 Jan 1970 GOCL Corporation Ltd

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OPEN 161.50
PREVIOUS CLOSE 160.05
VOLUME 208
52-Week high 349.80
52-Week low 111.00
P/E 45.79
Mkt Cap.(Rs cr) 746
Buy Price 145.00
Buy Qty 870.00
Sell Price 155.40
Sell Qty 42.00
OPEN 161.50
CLOSE 160.05
VOLUME 208
52-Week high 349.80
52-Week low 111.00
P/E 45.79
Mkt Cap.(Rs cr) 746
Buy Price 145.00
Buy Qty 870.00
Sell Price 155.40
Sell Qty 42.00

GOCL Corporation Ltd. (GOCLCORP) - Auditors Report


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Company auditors report

To The Members of GOCL Corporation Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of GOCL Corporation Limited ('theCompany') which comprise the standalone Balance Sheet as at March 31 2019 and thestandalone Statement of Profit and Loss (including Other Comprehensive Income)standalonestatement of changes in equity and standalone statement of Cash flows for the year endedand notes to the standalone financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2019 and profit and other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditors' Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

KEY AUDIT MATTER RESPONSE TO KEY AUDIT MATTER
Revenue recognition Audit Procedures
Refer note 22 to standalone Ind AS financial statements Our audit procedures in relation to revenue recognition included the following:
 

The Company mainly derives its revenues from sale of energetics and other related products to its domestic and international customers as well as from its property development division.

 

• Obtaining an understanding of and assessing the design implementation and operating effectiveness of the Company's key internal controls in relation to revenue recognition.

Contract with customers can include complex terms and conditions that may impact the timing and amount of consideration expected to be received in exchange for products or services transferred to customers. There exists a risk of recognizing revenue in an inappropriate accounting period or on a basis not consistent with the underlying terms of the arrangement with the customer. • Inspecting the key customer contracts to identify terms and conditions relating to transfer of control over goods acceptance and assessing the Company's timing and revenue recognition with reference to its policies the requirements of the prevailing accounting standards.
 

The Company evaluates the terms of individual contracts in order to determine the appropriate timing and amount for revenue recognition.

• Testing the manual journal entries related to revenue raised during the year and inspecting underlying documentation which were considered to be material or met other specific risk-based criteria.
We have identified recognition of revenue as a key audit matter as it involves management judgement and estimation of the timing and amount of revenue recognition and is a key performance indicator. • We have tested the revenue recorded by using statistical sampling covering different products locations and customers by inspecting the relevant underlying documents including customer orders goods delivery notes and invoices confirming certain customers' receivable balances at the balance sheet date selected considering the amount nature and characteristics of those customers; and
• Comparing the sales transactions recognized shortly before and after the balance sheet date with relevant underlying documentation evidencing delivery and acceptance including credit notes issued after that date to examine whether sales transactions were recorded in the appropriate reporting periods.
Litigations and contingent liabilities Audit Procedures
Refer to note 35 to standalone Ind AS financial statements Our audit procedures included the following:
The Company is subject to a number of tax litigations and other claims which could have an impact on the results if the potential exposures were to materialise. • Obtaining an understanding of and evaluating the processes and the internal controls in place for identifying and assessing litigations by Management
The application of accounting standards to determine the amount involved if any to be provided as a liability or disclosed as a contingent liability is inherently subjective. The Company regularly updates and assesses its legal positions with the use of internal and external legal experts. Based on the legal position the Company estimates and records related accruals at the end of the reporting period which includes assumptions and interpretation of preliminary and pending court rulings. • Making enquiries with Company's in-house legal counsel and reading of Board and sub-committee meeting minutes.
We considered the claims and litigations were important given the size and complexity of the claims and related uncertainty of the outcomes.  

• Obtaining an understanding of the legal positions taken by the Company reviewing the correspondences if any with the Company's external counsels including legal opinions on selected matters.

• Assessing the adequacy of the Company's disclosures for contingent liabilities and financial commitments and relevant facts and circumstances and management assumptions used in the determination of the likelihood and financial outcome of the contingencies.
Valuation of Trade receivable Audit Procedures
As at March 31 2019 trade receivables of the Company amounted to Rs. 2089 Lakhs. The details of trade receivables and their credit risk have been disclosed in Note 11 to the financial statements. Our audit procedures included the following:
 

The Company's provision for doubtful trade receivables is based on the expected credit loss model (ECL). The Company measures the expected credit loss by using various factors including customer credit history current market customer-specific conditions forward looking information on a case to case basis collective assessment based on historical experience of default all of which involve significant management judgement and are inherent subjective.

• Testing the methodology applied in the expected credit loss provision calculation by comparing it to the requirements of Ind AS 109 Financial Instruments key underlying assumptions used in the process of estimation of expected credit losses and the mathematical accuracy of management's model used to calculate impairment provision.
The determination of the provision required to be made involves significant management judgement estimations of recoverable amounts and hence we have identified the audit risk surrounding the impairment losses on trade receivables as a key audit matter. • Obtaining an understanding of and assessing the design implementation and operating effectiveness of management's key internal controls relating to credit control debt collection and making provisions for doubtful debts;
• Making inquiries with the management and obtaining an understanding of the process in place identification of current market factors customer specific conditions and testing the basis and assumptions for management's judgement of the recoverability and the amount of provision required for the doubtful trade receivables
• For statistically selected samples of year end trade receivables we have tested subsequent receipts underlying documentation and ageing of receivables.

Other Information

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the company'sannual report but does not include the financial statements and our auditors' reportthereon.

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

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Management's Responsibility for the Standalone Financial Statements

The Company's management and Board of Directors are responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the state of affairs profit or loss andother comprehensive income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act.This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safe guarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgements and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the standalone financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management and Board of Directors areresponsible 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.

Board of Directors is also responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign 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 thecompany has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors' report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Other Matters

We did not audit the financial statements of two subsidiaries whose annual financialstatements reflect total assets of Rs. 202.53 Lakhs as at March 312018 as well as totalrevenues of Rs. 29.09 Lakhs for the year ended on that date. These annual financialstatements had been audited by other auditors' whose report had been furnished to us andour opinion on the annual consolidated financial results in so far as it relates to theaforesaid subsidiaries is based solely on the report of such other auditors'. Our opinionis not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

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

(A) As required by Section143 (3) of the Act we report that:

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

c) The standalone balance sheet the standalone statement of profit and loss (includingother comprehensive income) the standalone statement of changes in equity and thestandalone statement of cash flows dealt with by this Report are in agreement with thebooks of account.

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on March312019 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312019 from being appointed as a director in terms of Section164(2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

(B) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 March 31 2019 onits financial position in its standalone financial statements - Refer Note 35 to thestandalone financial statements.

ii. The Company has long-term contracts other than derivative contracts for whichthere were no material foreseeable losses.

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

iv. The disclosures in the standalone financial statements regarding holdings as wellas dealings in specified bank notes during the period from November 8 2016 to December30 2016 have not been made in these financial statements since they do not pertain to thefinancial year ended March 312019.

(C) With respect to the matter to be included in the Auditors' Report under section197(16):

In our opinion and according to the information and explanations given to us theremuneration paid by the company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.

for B S R & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 116231W/W-100024
Sriram Mahalingam
Partner
Membership number: 049642
Place: Hyderabad
Date: May 30 2019

Annexure A to the Independent Auditor's Report on the standalone financial statements

With reference to the Annexure A referred to in the Independent Auditor's Report to theMembers of the Company on the standalone financial statements for the year ended March 312019 we report the following:

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

(b) The property plant and equipment are physically verified by the Managementaccording to a phased programme designed to cover all the items over a period of threeyears which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets. Pursuant to the programme a portion of the property plant andequipment has been physically verified by the management during the year and no materialdiscrepancies have been noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties asdisclosed in Note 3 on property plant and equipment to the standalone financialstatements are held in the name of the Company. In respect of immovable property of landthat has been taken on lease the lease agreement is in the name of the Company where theCompany is the lessee in the agreement and is under dispute [Refer note 35(4)].

(ii) The inventory apart from goods in transit and inventory lying with outside partieshave been physically verified by the Management during the year and the discrepanciesnoticed on such verification between the physical stock and book records were notmaterial. In our opinion the frequency of such verification is reasonable. Inventorieslying with outside parties have been substantially confirmed by them as at the year- endand no material discrepancies were noticed in respect of such confirmations.

(iii) The Company has granted loans to Companies covered in the register maintainedunder Section 189 of the Companies Act 2013 ('the Act'):

(a) In our opinion and according to the information given to us the terms andconditions of the loans given by the Company are prima facie not prejudicial to theinterest of the Company.

(b) The schedule of repayment of principal and payment of interest has been stipulatedand repayments of principal amounts and/or receipts of interest have been regular as perstipulations.

(c) There are no overdue amounts as at the year-end in respect of both principal andinterest.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable.

(v) The Company has not accepted any deposits from the public in accordance with theprovisions of Section 73 to 76 of the Act and Rules framed thereunder. Accordinglyparagraph 3(v) of the Order is not applicable to the Company.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Companies (Cost Records and Audit) Rules 2014 as amended prescribed by theCentral Government under section 148 of the Act and are of the opinion that prima faciethe prescribed accounts and records have been made and maintained. However we have notmade a detailed examination of such records.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Employees' StateInsurance Income- tax Duty of CustomsGoods and Services tax Cess and other materialstatutory dues have been regularly deposited during the year by the Company with theappropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident fund Employees' state insurance Income-tax goods andservices tax duty of Customs Cess and other material statutory dues were in arrears asat March 31 2019 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 ofincome tax sales tax service tax goods and services tax duty of customs duty ofexcise or value added tax which have not been deposited by the Company on account ofdisputes except for the following:

Name of the Statute Nature of Dues Forum where Dispute is Pending

Period To Which The Amount Relates

Amount Involved Amount Deposited
(Lakhs) (Lakhs)
Central Excise Act 1944 Excise Duty Assistant Commissioner 1980-81 to 1986-87 2001-02 and 2002-03 18.14 12.02
Commissioner (Appeals) 1992-93 to 1995-9 6 2.87 1.00
High Court of Andhra Pradesh & Telangana 2003-04 1.91 -
Central Sales Tax Act 1956 Sales Tax Assistant Commissioner 1977-78 to 1983-84 2000-01 to 2003-04 and 2007-08 to 2009-10 246.25 197.06
Deputy Commissioner 2008-09 2010-11 and 2011-12 52.25 4.50
Additional Commissioner 2011-12 to 2012-13 68.26 60.92
Commissioner 1997-98 51.70 -
Joint Commissioner 2006-07 to 2007-08 and 2009-10 to 2010-11 162.74 55.53
Central Sales Sales Tax Sales Tax Tribunal of 1992-93 1994-95 to 1995-96 1800.66 269.00
Tax Act 1956 Orissa Cuttack 1998-99 and 2002-03 to 2005-06
High Court of Odisha 1976-77 to 1987-88 and 1989- 90 to 1990-91 2787.94 537.40
Finance Act 1994 Service Tax Central Excise and Service Tax Appellate Tribunal 2012-13 to 2014-15 352.29 13.21
Income-tax Act 1961 Income Tax Commissioner Appeals 1996-97 2002-03 2008-09 2009-10 and 2010-11 1766.28 1600.35
Income Tax Appellate Tribunal 2011-12 7.46 2.73
High Court of Andhra Pradesh & Telangana 2010-11 6.28 6.28
Supreme Court of India 2005-06 14.89 14.89

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowings to banks. The Companydid not have any outstanding loans or borrowings from financial institutions or governmentand there are no dues to debenture holders during the year.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instrument) or term loans during the year. Accordinglyparagraph 3(ix) of the Order is not applicable to the Company.

(x) According to the information and explanations given to us no material fraud on theCompany by its officers and employees or fraud by the Company has been noticed or reportedduring the course of our audit.

(xi) According to the information and explanations given to us and based on examinationof the records of the Company the Company has paid/ provided for managerial remunerationin accordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

(xii) I n our opinion and according to the information and explanations given to usthe Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone financial statements as required by theapplicable Indian accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year. Accordingly paragraph3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransaction with the directors or person connected with him. Accordingly paragraph 3(xv)of the Order is not applicable to the Company

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is not applicable tothe Company.

for B S R & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 116231W/W-100024
Sriram Mahalingam
Partner

Membership No: 049642

Place: Hyderabad
Date: May 30 2019

Annexure B to the Independent Auditor's Report on the Standalone Ind AS financialstatements

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls with reference to financial statementsof GOCL Corporation Limited ('the Company') as of March 31 2019 in conjunction with ouraudit of the Standalone Ind AS financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management and Board of Directors are responsible for establishing andmaintaining internal financial controls based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India ('ICAI'). These responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013(hereinafter referred to as "the Act").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the 'Guidance Note') and the Standards on Auditing prescribed undersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols with reference to financial statements. Those Standards and the GuidanceNoterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements were established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of such internal financial controlsassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls withreference to financial statements.

Meaning of Internal Financial controls with Reference to Financial Statements

A company's internal financial controls with reference to standalone Ind AS financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial control with reference to financial statements includes those policies andprocedures that:

1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company.

2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial controls with Reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls with reference to financial statements and such internal financialcontrols were operating effectively as at March 31 2019 based on the internal financialcontrolswith reference to financial statements criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the ICAI.

for B S R & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 116231W/W-100024
Sriram Mahalingam
Partner
Membership number: 049642
Place: Hyderabad
Date: May 30 2019


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