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Setco Automotive Ltd.

BSE: 505075 Sector: Auto
NSE: SETCO ISIN Code: INE878E01021
BSE 00:00 | 24 Apr 2020 Setco Automotive Ltd
NSE 05:30 | 01 Jan 1970 Setco Automotive Ltd

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OPEN 9.50
PREVIOUS CLOSE 9.78
VOLUME 11962
52-Week high 31.75
52-Week low 5.45
P/E 6.87
Mkt Cap.(Rs cr) 129
Buy Price 9.41
Buy Qty 20.00
Sell Price 10.17
Sell Qty 1000.00
OPEN 9.50
CLOSE 9.78
VOLUME 11962
52-Week high 31.75
52-Week low 5.45
P/E 6.87
Mkt Cap.(Rs cr) 129
Buy Price 9.41
Buy Qty 20.00
Sell Price 10.17
Sell Qty 1000.00

Setco Automotive Ltd. (SETCO) - Auditors Report


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Company auditors report

TO THE MEMBERS OF SETCO AUTOMOTIVE LIMITED

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

OPINION

We have audited the standalone financial statements of Setco Automotive Limited("the Company") which comprise the balance sheet as at 31st March 2019 and theStatement of Profit and Loss (including Other Comprehensive Income) Statement of Changesin Equity and Statement of Cash Flows for the year then ended and notes to the standalonefinancial statements including a summary of significant accounting policies and otherexplanatory information (the standalone financial statements).

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 ("the Act') in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rule 2015 as amended("Ind AS) and other accounting principles generally accepted in India of the stateof affairs of the Company as at March 31 2019 and profit and total comprehensive incomechanges 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 Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theStandalone Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules madethereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on thestandalone financial statement

EMPHASIS OF MATTER

We draw attention to the following matters in the Notes to the standalone Ind ASfinancial statements :

a) Trade payables' balances are under reconciliation process. Necessary adjustments ifany will be accounted when the same is reconciled. In respect of trade receivables andother debit/ credit balances for which balance confirmation have been received are underreconciliation process and necessary adjustment if any will be accounted when the same isreconciled. While others are subject to reconciliation and adjustment if any. (Refer NoteNo. 42 of Standalone Ind AS Financial Statements).

b) The Company has invested Rs. 2217.19 lakhs (Rs. 2199.44 lakhs) in Equity &Preference shares of wholly owned ultimate foreign subsidiaries and also has outstandingreceivables in form of loans & advances and debts (net) aggregating Rs. 7236.56 lakhs(Rs. 7178.59 lakhs) from them as at 31.03.2019. Apart from company's direct investmentsinto these wholly owned ultimate foreign subsidiaries referred to above the company'sultimate wholly owned subsidiary M/s Setco Automotive (UK) Ltd has an exclusiveinvestment of Rs. 1483.11 lakhs into equity shares of its step down wholly ownedsubsidiary M/s. Setco Automotive (N.A.) Inc. These wholly owned ultimate foreignsubsidiaries incurred consolidated accumulated losses of Rs. 3747.23 lakhs (Rs. 2884.60lakhs) as at 31.03.2019 resulting into erosion of fair portion of their consolidated networth. The management is of the opinion that this is a temporary phase consideringbusiness plans future projected profitable operations asset base the investment beingstrategic in nature going concern basis and solvency of subsidiaries supported by theParent company (i.e. Setco Automotive Ltd) no provision is required to be made fordiminution in value of these investments made in loans & advances & debts duefrom the said subsidiaries and they are considered good. The carrying value of company'sinvestment in equity is supported by valuation report of Independent Valuer. (Refer NoteNo. 45 (ii) of Standalone Ind AS Financial Statements).

c) The company has in earlier years invested Rs. 1535.00 lakhs in 3070000 equityshares of SE Transstadia Private Limited a sports and entertainment infrastructurecompany. The said company has completed the project and has commenced commercialoperations in March 2017. The company has accumulated loss of Rs. 11180.08 lakhs (Rs.1768.86 lakhs in F.Y. 2016-17) as per latest audited financial statements as at31.03.2018. In the opinion of the management this investment is strategic in nature whichhas long term perspective and has comparatively long gestation period. This situationbeing a temporary phase and considering the future business plans assets base and otherdevelopments despite accumulated losses the management firmly believes that there is noerosion in value of its investment in said related entity. The carrying value of Company'sinvestment in equity shares of said related entity is also supported by valuation reportobtained from independent Valuer. (Refer Note No. 45 (iii) of Standalone Ind AS FinancialStatements).

d) The company has invested Rs. 9209.00 lakhs (Rs. 8359.00 lakhs) in 92090000(83590000) equity shares of Rs. 10/- each in its partly owned subsidiary Lava CastPrivate Limited. The company's third year of commercial production ended on 31stMarch 2019 resulting in accumulated loss of Rs. 7487.97 lakhs (Rs. 4659.36 lakhs). Themanagement is of the opinion that this being a temporary phase and company is in initialyears of operations and considering the future business plans assets base etc. noprovision is required to be made for diminution in the value of this investment made inthe said subsidiary. The carrying value of Company's investment in equity shares of saidrelated entity is also supported by valuation report obtained from independent Valuer.(Refer Note No. 45 (iv) of the Standalone Ind AS Financial Statements).

e) In F.Y. 2017-18 The Company has recognised Rs. 398 Lakhs as income beingreimbursement of Central Goods & Service Tax (CGST)/Integrated Goods & Service Tax(IGST) share of State for the Uttarakhand unit pending notification of incentives by theState Government. The Company believed the issuance of notification for Goods &Service Tax (GST) benefits by the State Government was certain based on the notificationalready issued by the Central Government. In absence of any notification in the saidmatter till date and based on legal opinion the Company has filed writ petition claimingrefund of said amount & has continued to show this as asset recoverable in accounts.(Refer Note No. 13 of the Standalone Ind AS Financial Statements).

Our opinion is not modified in respect of these matters.

KEY AUDIT MATTERS

Key audit matters are those matters that in our professional judgment 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 MATTERS

Accuracy of recognition measurement presentation and disclosure of revenue and otherrelated balances in view of adoption of Ind AS 115 " Revenue from contracts withcustomers" (New revenue accounting standarad)

The company has adopted IND AS - 115 "Revenue from contracts with customer"From 1st April 2018 using the modified retrospective approach with cumulative effect ofinitially applying the standard to be adjusted to the opening retained earning underequity on 1 April 2018 and therefore the comparative information has not been restatedand continues to be reported under Ind AS - 18.

HOW THE MATTER WAS ADDRESSED IN THE AUDIT

Our audit procedures on adoption of Ind AS 115 includes-

• Evaluation of Internal control policy and process designed to recognise revenueas per Ind AS - 115.

• Analysed existing contract with customers performance obligation assumed termsof delivery and current revenue recognition policy with respect to those contract.

• Analysed the cumulative effect of IND AS 115 adjustment and its recognition inaccounts.

• Analysed the complete appropriate and arithmetical accuracy of disclosure asper IND AS 115.

Refer to note no. 35 of the accompanying standalone financial statement.

KEY AUDIT MATTERS

Intangible Assets: Product development The Company conducts a significant level ofdevelopment activities and has to apply judgments in identifying product developmentexpenses meeting the criteria for capitalization under the requirements of accountingstandards. Expenditure Identifiable and reliably measurable incurred on productdevelopment yielding future economic benefits is capitalized as Product DevelopmentExpenses. We identified the capitalization of Product development costs as a key auditmatter due to significant management judgments about the future performance and viabilityof the products.

HOW THE MATTER WAS ADDRESSED IN THE AUDIT

• Testing management's controls over capitalization of Product development costs.

• Evaluating the nature of the type of development expenses incurred that arecapitalized into product development expenses;

• Assessing the reasonableness of the capitalization based on success of theproduct

• Verifying amortization of capitalization after commercial production commencesas per consistent policy of company to amortise it in 10 years.

• Fair valuation of product development expenses was done by independent valuer.

Refer to note no. 2 (ii) of the accompanying standalone financial statement.

INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS AND AUDITOR'S REPORT THEREON

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Company's annual report i. e.Corporate Information Board of Directors Management Discussion and Analysis DirectorsReport and Corporate Governance Report but does not include the standalone financialstatements and our auditors' report thereon. The above information is yet to be providedto us.

MANAGEMENT'S RESPONSIBILITIES FOR THE STANDALONE FINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

AUDITOR'S RESPONSIBILITIES 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 judgment 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 Companies Act 2013 we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls system in place and theoperating 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 auditor's 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.

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 section 143 (11) of the Act we givein "Annexure A" a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable.

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 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 Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books 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 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B". Our report express an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's 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 on its financialposition in its standalone financial statements - Refer Note 41 B to the financialstatements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any 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.

For V. Parekh & Associates
Chartered Accountants
(Firm Registration No. 107488W)
(Rasesh V. Parekh)
Partner
Membership No. 038615
Place : Mumbai
Date : 30th May 2019

ANNEXURE A TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph under the heading "Report on Other Legal and RegulatoryRequirements" of our report of even date to the Members of Setco Automotive Limitedon the Standalone Financial Statements as of and for the year ended on March 31 2019

1. In respect of its fixed assets :

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

b) The Company has a program of verification to cover all the items of fixed assets inphased manner which in our opinion is reasonable having regard to the size of the companyand the nature of its assets. During the year the company has verified certain fixedassets in accordance with this program. According to the information and explanation givento us no material discrepancies were noticed on such verification.

c) The title deeds of immovable properties disclosed in Note No. 2 on Fixed Assets tothe Standalone Financial Statements are held in the name of the company. In respect ofleased hold land that have been taken on lease and disclosed as fixed assets in thestandalone financial statements the lease agreements are in the name of the company.

2. According to the information and explanations given to us inventories (excludingstocks with third parties) were physically verified during the year by the management atreasonable intervals. The discrepancies noticed on verification between the physical stockand book records were not material. In respect of inventory lying with third partiesthese have substantially been confirmed by them.

3. According to the information and explanations given to us the Company has notgranted any loanssecured or unsecured to companies firms limited liability partnershipsor other parties covered in the register maintained under section 189 of the CompaniesAct 2013 except loans given to its wholly owned ultimate foreign subsidiary companies andIndian subsidiary company.

a) The terms and conditions of such loans are not prima facie prejudicial to theCompany's interest.

b) No schedule of repayment of principal or interest has been stipulated for suchloans.

c) In view of (b) above the question of any overdue amount does not arise.

4. According to the information and explanations given to us the Company has compliedwith the provisions of section 185 and 186 of the Act with respect to Loans &Investments made.

5. According to the information and explanations given to us the Company has notaccepted any deposits under the directives issued by the Reserve Bank of India or withinthe meaning of section 73 to 76 or any other relevant provisions of the Act and the rulesframed there under.

6. We have been informed that company is not required to maintain cost records u/s. 148(1) of the Act.

7. According to the information and explanations given to us and on the basis of ourexamination of books of account :

a) The Company has been generally regular in depositing undisputed statutory dues withappropriate authorities including Provident Fund Employees' State Insurance Income TaxProfessional Tax Custom Duty Cess and Tax Deducted at source except few Instances ofdelays observed in deposition of Provident Fund Income Tax Professional Tax TaxDeducted at Source Custom Duty and Goods and Service Tax. According to the informationand explanations given to us there are no undisputed items outstanding as at 31st March2019 for more than six months from the date they became payable.

b) According to information and explanations given to us and records of the companyexamined by us there were disputed dues of Income Tax as of 31st March 2019which have not been deposited as per following details :

Sr. No. Name of the Statute Nature of the dues Amount (Rs. In Lakhs) Period to which the amount related Forum where dispute Is pending Remark If any
1. Income Tax Act 1961 Penalty u/s. 271(l)(c) 12.01 A. Y. 04-05 ITAT Ahmedabad Refer Note no. 41 (B) of
2. Income Tax Act 1961 Demand u/s 156 590.13 A. Y. 11-12 CIT (A) - Vadodara
3. Income Tax Act 1961 Income Tax dues as per 394.48 A. Y. 15-16 CPC Bengluru. Financial Statements.
4. Income Tax Act 1961 Intimation u/s 143(1} 486.02 A. Y. 16-17 CPC Bengluru.
5. Income Tax Act 1961 6.07 A. Y. 17-18 CPC Bengluru.

8. In our opinion and according to the information & explanations given to us thecompany has not defaulted in repayment of loans or borrowing obtained from banks andfinancial institutions. The company has neither taken any loan from government nor issuedany debentures.

9. In our opinion and according to the information and explanations given to us andexamination of records of the company the company has not raised moneys by way initialpublic offer or further public offer (including debt instruments) during the year. In ouropinion and according to the information and explanations given to us the money raised byway of term loans have been applied for the purpose for which they were obtained.

10. During the course of our examination of the books and records of the company andaccording to the information and explanations given to us no fraud by the Company or onthe Company by its officers or employees were noticed or reported during the year.

11. The company has paid/provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with schedule V of theAct.

12. As the company is not a Nidhi Company and hence reporting under clause 3(xii) ofthe Order is not applicable to the Company.

13. As per the information and explanation given to us the transactions with therelated parties are in compliance with Section 177 and 188 of the Act and the detailsthere of have been disclosed in the standalone financial statements as per Ind AS 24"Related Party Disclosures". (Refer Note No. 36 of the Standalone FinancialStatements).

14. As per the information and explanation given to us the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the period under review.

15. As per the information and explanation given to us the Company has not enteredinto any non-cash transactions with directors or persons connected with him.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For V. Parekh & Associates
Chartered Accountants
(Firm Registration No. 107488W)
(Rasesh V. Parekh)
Partner
Membership No. 038615
Place : Mumbai
Date : 30th May 2019

ANNEXURE B TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph (g) under the heading "Report on Other Legal andRegulatory Requirements" by Section 143(3) of the Act" of our report of evendate.

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER SECTION 143(3)(I) OF THE ACT.

We have audited the internal financial controls over financial reporting of SetcoAutomotive Limited ("the Company") as of 31st March 2019 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the 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 of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. 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 about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing 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 Ind AS financial statements whether due to fraud or 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 systemover financial- reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of standalone financial statements for external purposes in accordance withgenerally 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 standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the standalonefinancial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

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

OPINION

In our opinion 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 31st 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 ICAI. However suchinternal financial controls over financial reporting need to be improved and strengthenedfurther in future.

For V. Parekh & Associates
Chartered Accountants
(Firm Registration No. 107488W)
(Rasesh V. Parekh)
Partner
Membership No. 038615
Place : Mumbai
Date : 30th May 2019


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