Report on the Audit of the Standalone Financial Statements Qualified Opinion
We have audited the accompanying standalone financial statements of The Baroda Rayon
Corporation Limited (“the Company”), which comprise the Balance Sheet as at
March 31, 2023, the Statement of Profit and Loss (including Other Comprehensive Income),
the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on
that date, notes to financial statements and the significant accounting policies and other
explanatory information (hereinafter referred to as “the standalone financial
statements”).
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Companies Act, 2013 (“the Act”) in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended, (“Ind AS”) and other accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31, 2023, its Profit and total
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Qualified Opinion
(i) Attention is drawn to Note 33(i) to the statement regarding non provision of
interest on loan of
197,76,91,423/- of overdue debts availed under the Modified Draft Restructuring Scheme
(MDRS) till March, 2023. These stipulated overdue debts were not settled due to legal
hurdle. Now the Company is in process to create the security of overdue unsecured loans
along with the secured loans, which shall rank paripassu, with existing debt if any, after
the interest is finalized on negotiation with lenders. Since the interest is not
ascertained it is not provided in the books. To that extent the reported profit is
overstated and other equity balance is overstated.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under Section 143(10) of the Act. Our responsibilities under those standards are further
described in the Auditors Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Company in accordance with the Code
of Ethics issued by the Institute of Chartered Accountants of India (‘ICAI) together
with the ethical requirements that are relevant to our audit of the 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.
Emphasis of matter
i) We draw attention to Note 38 of accompanying standalone financial statements, as
regards to the exceptional item of unsecured loan of Rs. 16,74,98,673/- which was
forfeited pursuant to violation of agreement as per sanctioned BIFR scheme.
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.
The Key Audit Matter |
How the matter was addressed in our audit |
Refer Note 28 & 29 to the accompanying standalone financial
statements: |
Our audit procedures included the following: |
|
Our procedures included, but were not limited to the following: |
| As on 31st March, 2023, the Company has recognised liabilities
relating pending litigation, employees gratuities, wage settlement to the extent it is
crystallised. |
(i) Obtained an understanding of managements process and evaluated
design and tested operating effectiveness of controls around identification of indicators
of various crystallized and contingent liabilities under Ind AS. |
| Considering the materiality of the amounts involved, the significant
management judgement required in estimating various liabilities being inherently
subjective, this matter has been identified as a key audit matter for the current year
audit. |
(ii) Financial liabilities at fair value through profit or loss include
financial liabilities held for trading and designated upon initial recognition as at fair
value through profit or loss. |
Information Other than the Standalone Financial Statements and Auditors Report Thereon
The Companys Management and Board of Directors are responsible for the other
information. The other information comprises of Management Reports such as Boards Report,
Management Discussion and Analysis, Corporate Governance Report and Business
Responsibility Report (but does not include the Standalone Financial Statements and our
Auditors Report thereon) which we obtained prior to the date of this Auditors Report,
and the remaining section of the Companys Annual Report, which are expected to be made
available to us after that date.
Our opinion on the standalone 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 standalone financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior
to the date of this Auditors Report, 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.
When we read the other sections of Annual Report (other than those mentioned above), if
we conclude that there is a material misstatement therein, we are required to communicate
the matter to those charged with governance and take necessary actions, as applicable
under the applicable laws and regulations.
Responsibilities of Management for the Standalone Ind AS Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these standalone Ind AS financial
statements that give a true and fair view of the financial position, financial performance
including other comprehensive income, cash flows and changes in equity of the Company in
accordance with the accounting principles generally accepted in India, including the
Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 the design,
implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the standalone Ind AS financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the standalone Ind AS 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.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone Ind AS
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these standalone Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone Ind AS
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 standalone Ind
AS financial statements, including the disclosures, and whether the standalone Ind AS
financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the standalone Ind AS financial
statements for the financial year ended March 31, 2023 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 exercise of powers conferred by sub-section
11 of section 143 of the Act, and on the basis of such checks of books and records of the
Company as we considered appropriate and according to the information and explanations
given to us, we give in the “Annexure-A” attached hereto our comments on the
matters specified in the paragraphs 3 and 4 of the said Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, Statement of Changes in Equity
and the Cash Flow Statement dealt with by this Report are in agreement with the books of
account.
(d) Except for the possible effects of the matter described in the Basis for Qualified
Opinion Paragraph, in our opinion, the aforesaid financial statements comply with the Ind
AS specified under Section 133 of the Act, read with Companies (Indian Accounting
Standards) Rules, 2015, as amended.
(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 March 31, 2023 from being appointed as a director in terms 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 29 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; and
(iii) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
(iv) (a) The management has represented that, to the best of its knowledge and belief,
no funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the company to or in any other person or
entity, including foreign 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) In financial year 2021-2022, the company has started real estate business by
converting its existing land reported under Property, plant & equipment into
inventory. In the current year under review, the company has again done fair valuation of
real estate held as inventory on the basis of valuation report obtained from Government
Approved Valuer. This revised net realization value has resulted in increase in profit of
Rs. 233,40,50,189/- for details refer to note 7 of financial statements.
(c) Based on such audit procedures that we considered reasonable and appropriate in the
circumstances, nothing has come our notice that has caused us to believe that the
representations under sub-clause (a) and (b) above contain any material mis-statement
For Kansariwala & Chevli Chartered Accountants (FRN 123689W)
Date: 30th May, 2023 |
A. H. Chevli |
Place: Surat |
Partner |
|
Membership No. 038259 |
|
UDIN - 23038259BGWHEF6256 |
Annexure A to the Independent Auditors Report on Ind AS Financial Statements for the
year ended 31st March, 2023.
With reference to the Annexure referred to in paragraph 1 in Report on Other Legal and
Regulatory Requirements of the Independent Auditors Report to the members of the Company
on the standalone Ind AS financial statements for the year ended March 31,2023, we report
that:
i. (a) (A) The Company has generally maintained proper records showing full particulars
including quantitative details and situation of its property, plant & equipment.
(B) As informed to us, the Company does not have any intangible assets.
(b) According to the information given to us, the management has physically verified
the property, plant & equipment of the Company in every financial year, which in our
opinion is reasonable, having regards to the size of the Company and nature of its assets.
Pursuant to the program, certain items of the Property, Plant and Equipments has been
physically verified by the Management during the year, and no material discrepancies
between the book records and the physical assets were noticed on such verification.
(c) The title deeds of all the immovable properties classified as Property, Plant &
Equipment held by the Company (other than properties where the Company is the lessee and
the lease agreements are duly executed in favour of the lessee) are held in the name of
the Company.
(d) The company has not revalued any of its Property, Plant and Equipment during the
year.
(e) As explained 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.
ii. (a) Physical verification of inventories has been conducted at reasonable intervals
by the management during the year. In our opinion, the coverage and procedure of such
verification by the management is appropriate and no discrepancies of 10% or more in
aggregate for each class of inventories were noticed on verification between physical
stock and book records.
(b) In our opinion, the coverage and procedures for physical verification of
inventories followed by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has been sanctioned Long term
working capital in the nature of Term loan. Which are in excess of five crore rupees, in
aggregate, from banks on the basis of security of current assets. In our opinion, the
quarterly returns or statements filed by the Company with such banks or financial
institutions are in agreement with the books of accounts of the Company for the respective
quarters.
iii. 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 other clauses are not
applicable.
iv. In our opinion and according to the information and explanations provided to us,
the Company has not granted any loans or provided any guarantees or security to the
parties covered under Section 185 of the Act. The Company has complied with the provisions
of Section 186 of the Act in respect of investments made or loans or guarantee or security
provided to the parties covered under Section 186 of the Act.
v. The Company has not accepted any deposits from the public within the meaning of
Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent
notified. As informed by management, deposits of 1.95 lakhs which were under litigation
before EXE SM-EXECUTION PETITION no. 21/2016 filed at SMALL CAUSE COURT, SURAT before the
2nd Addl. Judge has been paid during the year. There are no outstanding
deposits as on 31st March, 2023.
vi. Pursuant to the rules made by the Central Government of India, the Company is not
required to maintain cost records as specified under Section 148(1) of the Act in respect
of its products. Since there are no manufacturing activities since August 2008, the
Company has not maintained the same.
vii. (a) The statutory liabilities are restructured and deferred as per the
comprehensive rehabilitation scheme approved by the BIFR, however various statutory
agencies are in process of granting their sanction as per said scheme for deferment and
settlement of said liabilities. Hence, we are reporting the Undisputed Statutory dues,
which is subject to confirmation from respective departments and shown as per the ledger
account including Employees State Insurance, Income tax, Custom duty, cess and other
statutory dues with appropriate authorities for a period more than six months from the
date they became payable, which are as under;
Sr. No. Statutory Dues |
Amount (in Rsr) |
a. Custom Duty (Refer note 29) |
6,85,96,547/- |
b. Water Tax & interest thereon |
16,11,45,144/- |
c. Electricity Duty (Captive Power plant) & interest thereon |
16,78,01,202/- |
d. Revenue Tax - Mamlatdar Surat |
1,58,76,202/- |
(b) According to the information and explanation given to us, the company has disputed
dues of Excise duties and Income Tax, which are given below.
Sr. Name of No. Statue |
Nature of Dues |
Amount |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise 1. Act, 1944 |
Excise Duty |
44,24,28,525/- |
2006-2008 |
Tribunal (CESTAT) |
2. Income Tax Act, 1961 |
Income Tax |
8,09,43,740/- |
2013-2014 |
CIT (Appeal) |
3 Income Tax Act, 1961 |
Income Tax |
4,12,97,850/- |
2013-2014 |
CIT (Appeal) |
Note:
(i) . In the matter of Item No. 1, CESTAT has ordered to deposit the amount of Rs. 25
lakhs and company had deposited the same amount and final order is awaited.
(ii) . In the matter of Item No. 2, the company has submitted rectification Request to
the Income Tax
Department to delete the demand in view of past brought forward losses.
viii. According to the information and explanations given to us, no transactions were
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of 1961) which have not been recorded in the books of account.
ix. (a) The Company has not defaulted in the repayment of loans or other borrowings
or in the payment of interest thereon to any lender except interest amount as specified in
Note 33(i) of the notes to financial statements.
(b) The Company is not declared willful defaulter by any bank or financial institution
or other lender.
(c) The term loans taken during the year and outstanding term loan at the beginning of
the year have been applied for the purposes for which those were obtained.
(d) On an overall examination of financial statements of the company, funds raised on
short-term basis have not been utilized for long term purposes.
(e) The company has not any subsidiary, associates and joint ventures, therefore clause
(e) and (f) are not applicable to the company.
x. (a) The Company has not raised moneys by way of initial public offer or further
public offer during the year and hence reporting under clause 3(x)(a) of the Order is not
applicable.
(b) During the year, the Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully or partly or optionally) and hence
reporting under clause 3(x)(b) of the Order is not applicable.
xi. (a) During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanation given to us, we have neither come across any
instance of material fraud by the Company or on the Company, noticed or reported during
the year, nor have we been informed of any such case by the management.
(b) During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanation given to us, a report under Section 143(12)
of the Act in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)
Rules, 2014 was not required to be filed with the Central Government. Accordingly, the
reporting under clause 3(xi)(b) of the Order is not applicable to the Company.
(c) As represented to us by the management, the Company has not received any
whistle-blower complaint during the year and upto the date of this report.
xii. The Company is not a Nidhi Company. Therefore, the provisions of clause 3 (xii) of
the Order are not applicable to the Company.
xiii. The Company has not entered into transactions with related parties in compliance
with the provisions of Sections 177 and 188 of the Act. Hence the details of such related
party transactions are not required to be disclosed in the financial statements as
required by the applicable Ind AS.
xiv. In our opinion, the Company does not have an adequate internal audit system
commensurate with the size and nature of its business.
xv. The Company has not entered into any non-cash transactions with its Directors or
persons connected with its directors and hence provisions of section 192 of the Companies
Act, 2013 are not applicable to the Company.
(a) the Company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934;
(b) the Company has not conducted any Non-banking Financial or Housing 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.
Accordingly, reporting under clauses 3(xvi)(a), 3(xvi)(b) and 3(xvi)(c) of the Order
are not applicable to the Company.
xvii. The Company has not incurred cash losses during the financial year covered by our
audit and the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors of the Company during
the year.
xix. On the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that Company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date. 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 up to the date of the 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.
xx. the Company is not required to spent CSR under Section 135 of the companies Act,
2013. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the Order are not applicable.
For Kansariwala&Chevli Chartered Accountants (FRN 123689W)
Date: 30th May, 2023 |
A. H. Chevli |
Place: Surat |
Partner |
|
Membership No. 038259 |
|
UDIN -23038259BGWHEF6256 |
ANNEXURE B TO INDEPENDENT AUDITORS REPORT
Report on the internal financial controls under clause (i) of subsection 3 of section
143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of The Baroda
Rayon Corporation Limited (“the Company”) as of March 31, 2023 in conjunction
with our audit of the standalone financial statements of the Company for the year ended on
that date.
Managements Responsibility for Internal Financial Controls
The Companys Management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India. 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 the 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 Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting with reference to these standalone Ind AS financial
statements based on our audit. We conducted our audit in accordance with the Guidance Note
on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance
Note”) and the Standards on Auditing as specified under section 143(10) of the
Companies Act, 2013, to the extent applicable to an audit of internal financial controls
and, both issued by the Institute of Chartered Accountants of India. 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 over financial reporting with reference to these standalone Ind AS financial
statements was established and maintained and if such controls operated effectively in all
material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls over financial reporting with reference to these
standalone Ind AS financial statements and their operating effectiveness. Our audit of
internal financial controls over financial reporting included obtaining an understanding
of internal financial controls over financial reporting with reference to these standalone
Ind AS financial statements, 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 system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting 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 over financial
reporting includes those policies and procedures that
(1) Pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) Provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with 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 over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, 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 over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Qualified Opinion
Subject to our qualification & other comments of our main report along with
Annexures thereon & various comments regarding closure of operation & loss of key
personnel, in our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2023, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
For Kansariwala & Chevli Chartered Accountants (FRN 123689W)
Date: 30th May, 2023 |
A. H. Chevli |
Place: Surat |
Partner |
|
Membership No. 038259 |
|
UDIN -23038259BGWHEF6256 |
+91-9892691696
