TO THE MEMBERS OF ADVANI HOTELS & RESORTS (INDIA) LIMITED
Report on the Audit of the Financial Statements Opinion
We have audited the financial statements of Advani Hotels &
Resorts (India) Limited ("the Company"), which comprise the Balance Sheet as
at 31st March 2023, and the Statement of Profit and Loss, Statement of Changes
in Equity and Statement of Cash Flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies and other explanatory
information (hereinafter referred to as "the financial statements").
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the information required
by the Companies Act, 2013 ("the Act") in the manner so required and give a true
and fair view in conformity with the accounting principles generally accepted in India, of
the state of affairs of the Company as at 31st March, 2023, and profit and
other comprehensive income, 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) specified under section 143(10) of the Act. Our responsibilities under those SAs are
further described in the Auditors Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with
the Code of Ethics issued by the Institute of Chartered Accountants of India
together with the ethical requirements that are relevant to our audit of the financial
statements under the provisions of the Act and the Rules thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and the Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the financial statements of the current period.
These matters were addressed in the context of our audit of the financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
| S.No. Key Audit Matter |
Response to Key Audit Matter |
| 1 Refer Note 32 of the financial statements. |
For legal, regulatory and tax matters our procedures included
examining external legal opinions obtained by management, meeting and discussions with the
management and examining relevant correspondence; discussing litigations with the
Companys legal and tax consultants assessing managements conclusions through
understanding precedents set in similar cases. |
| The Company has significant tax and other litigations against
it. There is a high level of judgement required in estimating the level of provisioning
required and appropriateness of disclosure of those litigations as contingent liabilities. |
We also involved our internal tax specialists to gain an
understanding and to determine the level of exposure for direct and indirect tax
litigations of the Company. |
|
Considering the above, we examined the level of provisions
recorded and assessed the adequacy of disclosures in financial statements. |
Information Other than the Financial Statements and Auditors
Report Thereon
The Companys management and Board of Directors are responsible
for the other information. The other information comprises the information included in the
Companys annual report but does not include the Financial Statements and our
auditors report thereon. Our opinion on the financial statements does not cover the
other information and we do not express any form of assurance conclusion thereon. In
connection with our audit of the Financial Statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for
the Financial Statements
The Companys Board of Directors is responsible for the matters
stated in Section 134(5) of the Act with respect to the preparation of these financial
statements that give a true and fair view of the financial position, financial
performance, changes in equity and cash flows of the Company in accordance with6 the
accounting principles generally accepted in India, including the Indian Accounting
Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as
amended) under Section 133 of the Act. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding
of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statement that give a true and fair view and
are free from material misstatement, whether due to fraud or error. In preparing the
financial statements, management is responsible for assessing the Companys ability
to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends
to liquidate the Company or to cease operations, or has no realistic alternative but to do
so. The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial
Statements
Our objectives are to obtain reasonable assurance about whether the
Financial Statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these Financial Statements. As part of an audit in
accordance with SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under Section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going
concern basis of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the
Companys ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors report to the
related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditors report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
Evaluate the overall presentation, structure, and content of the
financial statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation. Materiality is the magnitude of misstatements in the financial statements
that, individually or in aggregate, makes it probable that the economic decisions of
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work: and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we
have complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards. From the matters
communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditors report
unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020
("the Order"), issued by the Central Government of India in terms of sub-section
(11) of section 143 of the Act, we give in the "Annexure-A" a statement
on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. In our opinion and according to the information and explanations
given to us, the remuneration paid by the Company to its directors during the current year
is in accordance with the provisions of Section 197 of the Act. The remuneration paid to
any director is not in excess of the limit laid down under Section 197 of the Act. The
Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of
the Act, which are required to be commented upon by us.
3. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, the Statement
of Changes in Equity and the Cash Flow Statement dealt with by this Report are in
agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Indian Accounting Standards specified in the Companies (Indian Accounting Standards)
Rules, 2015 (as amended) under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2023 taken on record by the Board of Directors, none of the
Directors is disqualified as on 31st March, 2023 from being appointed as a director in
terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls
over financial reporting of the Company and the operating effectiveness of such controls,
refer to our separate Report in "Annexure B".
(g) With respect to the other matters to be included in the
Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and according to the
explanations given to us:
i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements Refer Note 32(f) to the financial
statements.
ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable losses.
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the Company.
iv) The management of the Company has represented to us that to the
best of its knowledge and belief, other than as disclosed in the notes to the
accounts:
(a) no funds have been advanced or loaned or invested (either from
borrowed funds or share premium or any other sources or kind of funds) by the Company to
or in any other person(s) or entity(ies), including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(b) no funds have been received by the Company from any person(s) or
entity(ies), including foreign entities ("Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the Company shall, whether,
directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries; and
(c) Based on such audit procedures we considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub clause (a) and (b) above, contain any material
misstatement. v) The Company has paid interim dividendsfor the year ended 31st
March, 2022 and for 31 st March, 2023 during the year. The amount of such
dividend paid is in accordance with section 123 of the Act, applicable. vi) Proviso to
Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining Books of Account using
accounting software which has a feature of recording audit trail (edit log) facility is
applicable to the Company with effect from 1stApril, 2023, and accordingly,
reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable
for the Financial Year ended 31st March, 2023.
|
For J. G. Verma & Co. |
|
Chartered Accountants |
|
(Firm Registration No. 111381W) |
|
Arun G. Verma |
|
Partner |
|
Membership No. 031898 |
| Mumbai: 19th May 2023 |
UDIN: 23031898BGWMOZ4473 |
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
The Annexure referred to in paragraph 1 under ‘Report on Other
Legal and Regulatory Requirements in our report of even date to the members of
ADVANI HOTELS & RESORTS (INDIA) LIMITED for the year ended March 31, 2023. We report
that:
1. (a) (A). The Company has maintained proper records showing full
particulars including quantitative details and situation of Property, Plant and
Equipment.
(B). The Company has maintained proper records showing full particulars
of intangible assets.
(b) Some of the Property, Plant and Equipment were physically
verified at the end of the financial year by the management in accordance with a phased
programme of verification, which in our opinion, provides for physical verification of all
the fixed assets at reasonable intervals. No material discrepancies were noticed on such
verification.
(c) According to the records of the Company examined by us and the
information and explanations given to us, the title deeds of immovable properties (other
than properties where the company is the lessee and the lease agreements are duly executed
in favour of the Company) disclosed in the financial statements are held in the name of
the Company.
(d) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not revalued its Property, Plant
and Equipment (including Right of Use Assets) or intangible assets or both during the
year.
(e) According to the records of the Company examined by us and the
information and explanations given to us, no proceedings have been initiated or are
pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
2 (a) Physical verification of inventories has been conducted by the
management at reasonable intervals. In our opinion, the coverage and procedure of such
verification is appropriate. There were no discrepancies of 10% or more in the aggregate
noticed on such verification.
(b) The Company has not been sanctioned working capital limits in
excess of five crore rupees, in aggregate, from banks or financial institutions on the
basis of security of current assets during any point of time of the year hence our
comments on the quarterly returns or statements filed by the company with such banks or
financial institutions and details thereof are not given.
3 According to the records of the Company examined by us and the
information and explanations given to us, the Company has not made investments in,
provided any guarantee or security, or granted any loans or advances in the nature of
loans, secured or unsecured, to companies, firms, Limited Liability Partnerships, or any
other parties hence sub-clauses (a) to (e) of clause (3) (iii) of the Order are not
applicable to the Company except that the Company has made investments in mutual funds as
per details given in Note 7 to the financial statements, which are not prejudicial to the
Companys interest.
4 In respect of investment made by the Company in acquisition of units
of certain mutual funds as mentioned in Note 7 to the financial statements, it has
complied with the provisions of Section 186 of the Act. The Company has not given any
loans or issued any guarantee or provided any security covered under section 185 and 186
of the Act during the year.
5 The Company has not accepted any deposits from the public or received
amounts which are deemed to be deposits within the meaning of Section 73 to 76 of the Act
and the rules framed there under. We are informed that the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any court has not passed any Order.
6 The maintenance of cost records has not been prescribed for any of
the products of the Company under sub-section (1) of section 148 of the Act.
7 (a) According to the records of the Company, the Company is generally
regular in depositing with appropriate authorities undisputed statutory dues, including
goods and service tax, provident fund, employees state insurance, income-tax, sales
tax, service tax, duty of customs, duty of excise, value added tax, cess and other
statutory dues applicable to it. According to the information and explanations given to
us, there are no arrears of undisputed amounts payable in respect of above statutory dues
which were outstanding as on the last day of the financial year 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 cases of non-deposit with appropriate authorities of disputed statutory dues
referred to in sub-clause (a) above, except the following:
| Name of the statute |
Nature of dues |
Amount (Rs. in lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
| Income-tax Act, 1961 |
Tax on regular assess- ment under Section 143 (1)(a) |
22.52 |
AY 2017-18 |
Commissioner (Appeals) (*) |
| Income-tax Act, 1961 |
Tax on regular assess- ment under Section 143 (1)(a) |
60.31 |
AY 2018-19 |
Commissioner (Appeals) |
| Income-tax Act, 1961 |
Tax on regular assess- ment under Section 143 (3) |
33.22 |
AY 2020-21 |
Commissioner (Appeals) |
| Customs Act, 1962 |
Differential duty on equipment imported under EPCG Scheme and
Penalty |
42.60 49.60 Plus Interest |
2000 |
Customs, Excise and Service Tax Appellate Tribunal |
8. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not surrendered or disclosed any
transactions not recorded in the books of account as income during the year in the tax
assessments under the Income Tax Act, 1961 (43 of 1961), hence clause (3)(viii) of the
Order is not applicable to the Company.
9. According to the records of the Company examined by us and the
information and explanations given to us:
(a) the Company has not defaulted in repayment of loans or other
borrowings or in the payment of interest thereon to any lender. (b) the Company has not
been declared willful defaulter by any bank or financial institution or other lender.
(c) the vehicle term loans taken by the Company in earlier years were
applied for the purpose for which the loans were obtained.
(d) funds raised on short term basis have not been utilised for long
term purposes.
(e) the Company does not have any subsidiaries, joint ventures or
associate companies hence the question of taking any funds from any entity or person on
account of or to meet the obligations of its subsidiaries, associates, or joint ventures,
does not arise.
(f) the company does not have any subsidiaries, joint ventures, or
associate companies hence question of raising loans during the year on the pledge of
securities held in its subsidiaries, joint ventures or associate companies does not arise.
10. (a) The Company has not raised any money by way of initial public
offer or further public offer (including debt instruments) during the year, hence the
question of application of funds and delays and defaults and subsequent rectification does
not arise.
(b) The Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully, partially, or optionally
convertible) during the year hence the question of compliance of the requirements of
Section 42 and Section 62 of the Act and use of funds raised does not arise.
11. (a) During the course of our examination of the books of account
and records of the Company carried out in accordance with the generally accepted auditing
practices in India and according to the information and explanations given to us, we have
neither come across any instances of fraud by the Company or any fraud on the Company
which were noticed or reported during the year, nor have we been informed of any such
instances by the management.
(b) We have not filed any fraud report under sub-section (12) of
section 143 of the Act in Form ADT-4 as prescribed under rule 13 of Companies (Audit and
Auditors) Rules, 2014 with the Central Government during the year.
(c) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not received any whistle-blower
complaints during the year.
12 The Company is not a Nidhi Company, hence our comments as required
under sub-clauses (a) (b) and (c) of clause 3 (xii) of the Order are not given.
13 In our opinion and according to the records of the Company examined
by us and the information and explanations given to us, the transactions entered by the
Company during the year with related parties are in compliance with the provisions of
Section 177 and 188 of the Act, where applicable and the details thereof have been
disclosed in the Financial Statements, etc. as required by the accounting standards.
14 (a) In our opinion and based on our examination, the Company has an
internal audit system commensurate with the size and nature of its business.
(b) We have considered the internal audit reports of the Company issued
till date for the period under audit.
15 According to the information and explanations given to us, in our
opinion, the Company has not entered into any non-cash transactions with directors or
persons connected with him during the year hence provisions of section 192 of Act are not
applicable to the Company.
16 According to the information and explanations given to us, in our
opinion:
(a) the Company is not required to be registered under Section 45-IA of
the Reserve Bank of India Act, 1934. (b) the Company has conducted any Non- Banking
Financial or Housing Finance activities during the year.
(c) the Company is not a Core Investment Company (CIC) as defined in
the regulations made by the Reserve Bank of India.
(d) In view of comments in sub-clauses (a), (b) and (c) above, the
sub-clause (d) of clause 3 (xvi) of the Order is not applicable to the Company.
17 The Company has not incurred cash losses during the financial
year covered by our audit and the immediately preceding financial year.
18 There has been no resignation of the statutory auditors during the
year, hence clause 3 (xviii) of the Order is not applicable to the Company.
19 According to the information and explanations given to us and on the
basis of the financial ratios, ageing and expected dates of realization of financial
assets and payment of financial liabilities, other information accompanying the financial
statements, our knowledge of the Board of Directors and management plans and based on our
examination of the evidence supporting the assumptions, in our opinion, nothing has come
to our attention, which causes us to believe that any material uncertainty exists as on
the date of the audit report that the Company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date. We however, state that this is not an assurance as to
the future viability of the Company. We further state that our reporting is based on the
facts upto the date of our present audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the Company as and when they fall due.
20 According to the records of the Company examined by us and the
information and explanations given to us:
(a) in respect of CSR activities other than ongoing projects, there
wasnt any unspent amount which was required to be transferred by the Company to a
Fund specified in Schedule VII to the Act within a period of six months of the expiry of
the financial year in compliance with second proviso to sub-section (5) of section 135 of
the said Act.
(b) the Company has neither initiated an ongoing project nor there was
any amount remaining unspent under section of section 135 of Companies Act, pursuant to
any ongoing project, that was required to be transferred to special account in compliance
with provision of sub-section (6) of section 135 of the said Act.
|
For J. G. Verma & Co. |
|
Chartered Accountants |
|
(Firm Registration No. 111381W) |
|
Arun G. Verma |
|
Partner |
|
Membership No. 031898 |
| Mumbai: 19th May 2023 |
UDIN: 23031898BGWMOZ4473 |
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
The Annexure referred to in paragraph 2 (f) under "Report on Other
Legal and Regulatory Requirements" in our report of even date to the members of ADVANI
HOTELS & RESORTS (INDIA) LIMITED for the year ended March 31, 2023. We report
that: We have audited the internal financial controls over financial statements of Advani
Hotels & Resorts (India) Limited ("the Company") as of March 31, 2023 in
conjunction with our audit of the Ind AS financial statements of the Company for the year
ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and
maintaining internal financial controls based on the internal control with reference to
financial statements criteria established by the Company considering the essential
components of internal control stated in the Guidance Note issued by the Institute of
Chartered Accountants of India ("the Guidance Note"). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets,
the prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Act.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys
internal financial controls with reference to the financial statements based on our audit.
We conducted our audit in accordance with the Guidance Note and the Standards on Auditing
prescribed under section 143(10) of the Act, to the extent applicable to an audit of
internal financial controls with reference to the financial statements. Those Standards
and the Guidance Note require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether adequate internal financial
controls with reference to financial statements were established and maintained and if
such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls with reference to financial statements and
their operating effectiveness. Our audit of internal financial controls with reference to
financial statements included obtaining an understanding of internal financial controls,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the Companys internal financial controls with
reference to financial statements.
Meaning of Internal Financial Controls with Reference to Financial
Statements
A Companys internal financial control with reference to Financial
Statements is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of Financial Statements for external purposes
in accordance with generally accepted accounting principles. A companys internal
financial control with reference to Financial Statement includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the
Company; (2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of Financial Statements in accordance with generally accepted
accounting principles, and that receipts and expenditure of the company are being made
only in accordance with authorizations of management and directors of the company; and (3)
provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the Companys assets that could have a material
effect on the Financial Statements.
Inherent Limitations of Internal Financial Controls with Reference to
Financial Statements
Because of the inherent limitations of Internal Financial Controls with
reference to Financial Statements, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation of the internal financial
controls with reference to financial statements to future periods are subject to the risk
that the internal financial control with reference to financial statements may become
inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate
Internal Financial Controls system with reference to financial Statements and such
Internal Financial Controls were operating effectively as at 31st March, 2023,
based on the internal control with reference to Financial Statements criteria established
by the Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by
the Institute of Chartered Accountants of India.
|
For J. G. Verma & Co. |
|
Chartered Accountants |
|
(Firm Registration No. 111381W) |
|
Arun G. Verma |
|
Partner |
|
Membership No. 031898 |
| Mumbai: 19th May, 2023 |
UDIN: 23031898BGWMOZ4473 |
+91-9892691696
