To
The Members of
FEDDERS ELECTRIC AND ENGINEERING LIMITED
Report on the audit of Standalone Financial Statements
Disclaimer of Opinion
We were engaged to audit the accompanying standalone financial
statements of Fedders Electric and Engineering Limited (“the Company”), which
comprise the standalone balance sheet as at March 31, 2022, the standalone statement of
profit and loss (including other comprehensive income), standalone statement of changes in
equity and standalone statement of cash flows for the year then ended, and notes to the
standalone financial statements, including a summary of the significant accounting
policies and other explanatory information (hereinafter referred to as “the
standalone financial statements”). We do not express an opinion on the accompanying
standalone financial statements of the Company. Because of the significance of the matter
described in the Basis for Disclaimer of Opinion section of our report, we have not been
able to obtain sufficient appropriate audit evidence to provide a basis for an audit
opinion on these standalone financial statements. Basis for Disclaimer of Opinion
1. Asper“Indian Accounting Standard 36” which describe about
impairmento fasset, if the carrying amount oft he assetis more than recoverable amount the
nassetneedtobeimpairedandasper“IndianAccountingStandard 109” on financial
instruments which also contains provisions of impairment of financials assets through
expected credit loss method the same is not followed.
2 Asper“IndianAccountingStandard109” Company was required to
get the Investment at fair value but the same has not been done by the company;
accordingly we are unable to ascertain the effect of the same on the Financialstatements.
We were not provided documentations for FDRs and accrued interest.
3 We had not performed counting of physical inventories and Fixed
assets at the beginning and end of the year. The Company has not maintained proper records
with respect to inventory including reconciliation of goods purchased / sold in terms of
quantities and valuation held at 31.03.2022 and 31.03.2021, we were not provided fixed
Asset Register and basis for charging depreciation on fixed assets.
4 Trade Receivables and Payables are subject to confirmations for the
year ended 31.03.2022. The Company does not have process in place to perform periodical
reconciliation of balances with customers and vendors, we were unable to comment on
recoverability of account receivable balance and advance given to suppliers and
completeness of account payable balances.
5 The company has not filed its financial results for the year ended 31
st March 2022 on or before the due date as prescribed under regulation 33 of the SEBI
(listing obligations and Disclosure Requirements) Regulations, 2015 and thus violated the
aforementioned regulations.
6 During the course of our audit, we found that all books, vouchers,
records and other necessary registers for its sites, offices and units were not in the
custody of the management and same were not presented for audits.
Material Uncertainty Related to Going Concern
The Company has been continuously making losses, consequently its net
worth is negative and the Companys total liabilities exceeded its total assets., the
meeting of consortium Bankers convened on dated 21.07.2018 declaring the Bank Accounts as
Non- Performing Asset, the aforesaid non-performance was resulted into Corporate
Insolvency Resolution Process under the provisions of IBC, 2016.This indicates the
existence of material uncertainty that may cast significant doubt on the Companys
ability to continue as a going concern. Under the CIRP, resolution plan submitted IM+
Capitals Limited has been approved by the Honble NCLT vide its order dated October
06th, 2021. Now the operations of the company have been taken over by the management of
IM+ Capitals Ltd and Management of the IM+ Capitals Limited has assessed that there is no
uncertainty exists that may cast significant doubt on the companys ability to
continue as going concern and all the necessary steps has been taken by the new management
to continue the company for unforeseeable future. Our opinion on the standalone financial
statements is not modified in respect of this matter.
Emphasis of Matter
We draw attention to note 34 to the standalone financial statements
regarding:
> Exceptional Items (net) for the year ended 31?" March 2022
comprises of :
a) De-recognition of liabilities amounting to Rs. 1450.57 crore.
b) Impairment of Capital Work in Progress and Property, Plant and
Equipment and Intangible Assets and non realizable investments of Rs. 64.85 crore.
c) Impairment of refund receivable against Commercial Tax / VAT and
Central Sales Tax and Income Tax (Advance Tax and TDS) amounting toRs 8.55 crore.
d) De-recognition Other current assets and financial assets of Rs.
656.31 crore
The above adjustments, having one- time, non-routine material impact on
the financial results hence, the same has been disclosed as “Exceptional Items"
of Rs. 720.85 crore in the Financial Results.
> As per management evaluation of COVID - 19 impact on future
performance of the company it may not have major effect on the business of the company.
Whereas our opinion on the standalone financial statements is not modified in respect of
the above matters.
Managements Responsibility for the Standalone Financial
Statements
The Companys management and Board of Directors are responsible
for the matters stated in section 134(5) of the Companies Act 2013 (“Act”) with
respect to the preparation of these standalone financial statements that give a true and
fair view of the state of affairs, losses and other comprehensive income, changes in
equity and cash flows 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.
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 standalone 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 financial statements, management and Board
of Directors are 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 Standalone Financial Statements
Our responsibility is to conduct an audit of the standalone financial
statements in accordance with Standards on Auditing and to issue an auditors report.
However, because of the matter described in the Basis for Disclaimer of Opinion section of
our report, we were not able to obtain sufficient appropriate audit evidence to provide a
basis for an audit opinion on these standalone financial statements.
We are independent of the Company in accordance with the Code of Ethics
and provisions of the Act that are relevant to our audit of the standalone financial
statements in India under the Act, and we have fulfilled our other ethical
responsibilities in accordance with the Code of Ethics and the requirements under the Act.
Other Matters
i. As per section 148 of the Companies Act,2013, Cost Audit is
applicable on the Company for which Cost Auditor is appointed for the financial year
2021-22 our report is subject to the observations mentioned in his report. ii. As per
Section 204 of the Companies Act, 2013, Company is required to obtain Secretarial Audit
Report from independent practicing Company Secretary, our report is subject to
observations mentioned in his report. iii. Multiple bank accounts were opened by bankers
due to devolvement of various letter of credits, the company is not having the complete
accounts statements in possession. Therefore, we were unable to comment on the
transactions happened with those accounts during the year. iv. Reconciliation of sales and
purchases with GST returns is not available due to locked user IDs in GST portal and
change of various accounting staff.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020
(“the Order”) issued by the Central Government in terms of section 143 (11) of
the Act, and except for the possible effects, of the matter described in the Basis for
Disclaimer of Opinion section, 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. (A) As required by section 143(3) of the Act, we report that:
As described in the Basis for Disclaimer of Opinion section, we were
unable to obtain all the information and explanations which to the best of our knowledge
and belief were necessary for the purposes of our audit.
Due to the effects / possible effects of the matter described in the
Basis for Disclaimer of Opinion section, we are unable to state whether 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. The standalone balance sheet, the standalone statement of
profit and loss (including other comprehensive income), the standalone statement of
changes in equity and the standalone statement of cash flows dealt with by this Report are
in agreement with the books of account.
Due to the effects / possible effects of the matter described in the
Basis for Disclaimer of Opinion section, we are unable to state whether the financial
statements comply with the Indian Accounting Standards specified under section 133 of the
Act.
The matter described in the Basis for Disclaimer of Opinion section may
have an adverse effect on the functioning of the Company.
The Company has defaulted in repayment of the obligations to its
lenders which is outstanding as at March 31, 2022. Based on the legal opinion obtained by
the Company and based on the written representations received from the directors as on
March 31, 2022 taken on record by the Board of Directors, none of the directors is
disqualified as on March 31, 2022 from being appointed as a director in terms of section
164{2) of the Act..
The reservation relating to maintenance of accounts and other matters
connected therewith are as stated in the Basis for Disclaimer Opinion section.
With respect to the matter to be included in the Auditors Report
under section 197(16) of the Act: 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.
With respect to the adequacy of the internal financial controls with
reference to standalone financial statements of the Company and the operating
effectiveness of such controls, refer to our separate Report in “Annexure B”.
{B) 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:
Except for the possible effects of the matter described in the Basis
for Disclaimer of Opinion section, the Company has disclosed the impact of pending
litigations as at March 31, 2022 on its financial position in its standalone financial
statements - Refer Note 33 to the standalone financial statements.
Except for the possible effects of the matter described in the Basis
for Disclaimer of Opinion section, the Company did not have any long-term contracts
including derivative contracts for which there were any material foreseeable losses.
We were not provided proper records with respect to that there has been
no delay in transferring amounts, required to be transferred, to the Investor Education
and Protection Fund by the Company.
(a)Management has represented to us that, to the best of its
knowledge and belief, as disclosed in the notes to the accounts 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 persons or entities, 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)Management has represented to us that, to the best of its
knowledge and belief, as disclosed in the notes to the accounts 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;
(c)Based on our audit procedure conducted that are considered
reasonable and appropriate in the circumstances, nothing has come to our attention that
cause us to believe that the representation given by the management under paragraph (2)
(B) (iv) (a) & (b) contain any material misstatement.
Vv. The Company has not declared or paid any dividend during the year.
For Rajiv Malhotra & Associates CharteredAccountants FRN:021479N
Sd/-
CA Sunil Kr Sakral [Partner]
Membership Number: 509537
Place: Sikandrabad, U.P.
Dated: 19” Sep, 2022
UDIN: 22509537BCVNYI9993
“ANNEXURE A” TO THE INDEPENDENT AUDITORS REPORT ON THE
STANDALONE FINANCIAL STATEMENTS OF FEDDERS ELECTRIC & ENGINEERING LIMITED. (Referred
to in Paragraph 1 under the heading of “Report on other legal and regulatory
requirements” of our report of even date)
i) a) (A) The Company is not maintaining proper records showing full
particulars including quantitative details and situation of Property, Plant and Equipment
on the basis of available information. (B) The Company is not maintaining proper records
showing full particulars of intangible assets on the basis of available information. As
explained to us, Property, Plant & Equipment have been physically verified by the
management in a phased manner over a period, which in our opinion is not reasonable,
having regard to the size of the Company and nature of its assets. Management do not have
proper WDV and other details of the Property, plant & Equipment. According to the
information and explanations given to us,we are unable to report that, whether the title
deeds of all the immovable properties comprising of land and buildings other than
self-constructed properties recorded as Property, Plant and Equipment, which are freehold,
are held in the name of the Company as at the balance sheet date. d) According to
information and explanations given to us and books of accounts and records examined by us,
During the year the Company has revalued its Property, Plant and Equipment (including
Right of Use assets) and intangible assets. We were not provided the proper
basis/valuation reports from the management for doing so. In our opinion and subject to
the effects of matters explained under paragraph Basis for Disclaimer of opinion and
According to information & explanations and representation given to us by the
management, we are unable to comment upon that,no proceedings have been initiated or are
pending against the Company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 and rules made thereunder. As explained to us & on the basis
of the records examined by us, in our opinion, physical verification of the inventories
havenot been conducted at reasonable intervals by the management and having regard to the
size and nature of business of the Company and nature of its inventory, the coverage and
procedures of such verification by the management is not appropriate. As explained to us
and on the basis of the records examined by us, the value of the discrepancies noticed on
physical verification by management did exceed 10% or more in aggregate of each class of
inventory. In our opinion and according to information and explanation given to us, the
Company has been sanctioned working capital limits in excess of rupees Five Crores, in
aggregate, from Banks which are secured on the basis of security of current assets. The
company was undergoing to the process of CIRP and the whole amount is settled as per the
resolution plan submitted by IM+ capital Limited.
iii) With respect to investments made in or any guarantee or security
provided or any loans or advances in the nature of loans, secured or unsecured, granted
during the year by the Company to companies, firms, Limited Liability Partnerships or any
other parties: During the year, the Company has provided loans, advances in the nature of
loans, provided guarantees and securities to companies are as follows :
| Particulars |
Guarantees(crore : Loans
(crores) |
|
s) |
|
| Aggregate amount |
granted/ |
provided during the year |
| Subsidiaries |
- |
- |
| Joint Ventures |
- |
- |
| Associates |
- |
- |
| Others |
- |
- |
| Balance outstanding as at balance sheet date in respect of
above cases |
| Subsidiaries |
- |
2.18 |
| Joint Ventures |
- |
- |
| Associates |
- |
- |
| Others |
- |
- |
In our opinion and according to information and explanations given us
and on the basis of our audit procedures, except for the matter referred to in the Basis
for Disclaimer of Opinion section in the audit report, in respect of which we are unable
to comment for the reasons described therein, the investments made, guarantee provided,
security given and the terms and conditions of all loans and advances in the nature of
loans and guarantee provided are, prima facie, not prejudicial to Companys interest.
According to the books of accounts and records examined by us in respect of the loans and
advances in the nature of loans, where the schedule of repayment of principal and payment
of interest has been stipulated, the repayments or receipts are not regular, as per
stipulated term. According to the books of accounts and records examined by us in respect
of the loans, there is no amount overdue for more than ninety days, except for the matter
referred to in the Basis for Disclaimer of Opinion section in the audit report in respect
of which we are unable to comment for the reasons described therein. In absence of
sufficient and appropriate evidence, we are unable to comment on reasonable steps have
been taken by the company for recovery of the principal and Interest thereon. In our
opinion and according to information and explanation given and the books of accounts and
records examined by us, no loans granted which have fallen due during the year and have
not been renewed or extended. The Company has not granted any loans or advances in the
nature of loans, either repayable on demand or without specifying any terms or period of
repayment to Companies, firms, Limited Liability Partnerships or any other parties.
Accordingly, the requirement to report on clause 3(iii)(f) of the order is not applicable
to the Company.
Based on the information and explanations given to us in respect of
loans, investments, guarantees and Ss ecurities, except for the matter referred to in the
Basis for Disclaimer of Opinion section in the audit report in respect of which we are
unable to comment for the reasons described therein, the Company has complied with the
provisions of Section 185 and 186 of the Act, to the extent applicable. Further, as the
Company is engaged in the business of providing infrastructural facilities, the provisions
of Section 186 [except for sub-section (1)] are not applicable to it. According to the
information and explanations given to us, the Company has not accepted any deposits or
amounts which are deemed to be deposits within the meaning of provisions of sections 73 to
76 or any other relevant provisions of the Act and the rules framed there under.
Therefore, the clause (v) of paragraph 3 of the Order is not applicable to the Company.
vi) We were not provided the books of accounts maintained by the
company pursuant to the rules made by the central Government for the maintenance of cost
records under section 148 of the Act and we are unable to report whether, the prescribed
accounts and records have been made and maintained.
vii) In respect of Statutory dues :
a) The company is not in regular in depositing undisputed dues to
various authorities.
b) According to the information and explanations given to us, there
were no undisputed amounts payable in respect of the aforesaid dues, which were
outstanding as March 31, 2022 for a period of more than six months from the date they
became payable.
c)According to the information and explanations given to us, all the
claims against the company / disputed liabilities which was not acknowledged as debt has
been reduced to Zeero( NIL) on pursuant to the order of Honble NCLT approving the
resolution plant by IM + capitals Ltd.
viii) According to the information and explanations given to us and
representation given to us by the management,there were no transactions relating to
previously unrecorded income that were surrendered or disclosed as income in the tax
assessments under the Income Tax Act, 1961 (43 of 1961) during the year.
ix) a) According to the information and explanations given to us and
based on examination of the records of the Company, the Company has defaulted in repayment
of loans or borrowings to financial institution or bank or dues to debenture holders for
the following instances in repayment of principal and interest amount. The Company did not
have any loans or borrowings from government during the year.
i) The Company has not defaulted in repayment of dues to the banks
during the year, further old dues were repaid as per the order of the Honble NCLT
dt. 06.10.2021.
ii) The Company has not defaulted in repayment of dues to the banks
during the year, matter is explained in point i) as stated.
b) In our opinion, and according to the information and explanations
given to us, the Company was in the process of CIRP from past 4 years due to non-payment
of principal and interest of the financial institutions whereas during the year amount
settled as per the order passed by Honble NCLT dt. 06.10.2021.
c) The Company has not taken any term loan during the year and there
are no unutilised term loans at the beginning of the year and hence, reporting under
clause 3{ix)(c) of the Order is not applicable to the Company. d) According to the
information and explanations given to us, and the procedures performed by us, and on an
overall examination of the financial statements of the Company, we report that, prima
facie, no funds raised on short-term basis have been used during the year for long-term
purposes by the Company.
e) According to the information and explanations given to us and on an
overall examination of the financial statements of the Company, we report that the Company
has not taken any funds from any entity or person on account of or to meet the obligations
of its subsidiaries, associates or joint ventures.
f) According to the information and explanations given to us and
procedures performed by us, we report that theCompany has not raised loans during the year
on the pledge of securities held in its subsidiaries, joint ventures or associate
companies.
x) a) The Company has not raised money by way of initial public offer
or further public offer (including debt instruments) and hence clause (x}(a) of paragraph
3 of the Order is not applicable to the Company.
b) The Company has not made any preferential allotment or Private
placement of shares/ Fully or Partially or optionally convertible debenture during the
year under audit and hence, the requirement to report on clause 3(x)(b) of the order is
not applicable to the Company.
xi) a) According to the information and explanation given to us and on
the based on our examination of the records of the company, except for the matter referred
to in the Basis for Disclaimer of Opinion section in the audit report, in respect of which
we are unable to comment on potential implications for the reasons described therein, no
fraud by the Company or fraud on the Company has been noticed or reported during the year.
b) During the year, no report under sub-section 12 of section 143 of the Companies Act,
2013 has been filed by cost auditor/Secretarial auditor or by us in Form ADT-4 as
prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central
Government.
c) As represented to us by the management, there are no whistle blower
complaints received by the Company during the year.
xii) In our opinion, the Company is not a nidhi company. Therefore, the
provisions of clause (xii) of paragraph 3 of the Order are not applicable to the Company.
xiii) According to the information and explanation given to us and on
the based on our examination of the records of the company, except for the matter referred
to in the Basis for Disclaimer of Opinion section in the audit report in respect of which
we are unable to comment for the reasons described therein, transactions entered into by
the Company with the related parties are in compliance with sections 177 and 188 of the
Act, where applicable and the details of related party transactions as required by the
applicable accounting standards have been disclosed in the standalone financial
statements.
xiv) a) In our opinion, and according to the information and
explanations given to us, 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.
xv) According to the information and explanation given to us and based
on our examination of the records of the Company, except for the matter referred to in the
Basis for Disclaimer of Opinion section in the audit report, in respect of which we are
unable to comment on any potential implications for the reasons described therein, the
Company has not entered into any non-cash transaction with directors or persons connected
with him as referred to in Section 192 of the Act.
xvi) a) To the best of our knowledge and as explained, the Company is
not required to be registered under section 45- IA of the Reserve Bank of India Act, 1934.
b) In our opinion, and according to the information and explanations provided to us, the
Company is not a Core Investment Company (CIC) as defined in the regulations made by the
Reserve Bank of India.
c) As represented by the management, the group does not have any core
investment company({CIC) as part of the group as per the definition of group contained in
Core Investment Companies (Reserved Bank) Directions, 2016.
xvii) In our opinion, and according to the information and explanations
provided to us, the Company has incurredcash losses of Rs. 62.34 Crore in the current
financial year and 25.72 Crore in the immediately preceding financial year. Unquantified
impact in the Basis of Disclaimer of Opinion section in audit report has not been taken
into consideration for the purpose of making comments in respect of this clause.
xviii) There has been no resignation of the statutory auditors during
the year. Therefore, provisions of clause
(xviii) of Paragraph 3 of the Order are not applicable to the Company.
xix) 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 and the various conditions specified under paragraph
“Material uncertainty related to Going Concern” above, which indicates and
causes us to believe that material uncertainty exists as on the date of the audit report
that the Company is capable of meeting all 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.
xx) According to the information and explanations given to us and on
the basis of our audit procedures, The Corporate Social Responsibility (CSR) contribution
under section 135 of the Act is not applicable to the Company. Therefore, the provisions
of clause (xx) (a) & (b) of paragraph 3 of the Order are not applicable to the
Company.
For Rajiv Malhotra&Associates CharteredAccountants FRN:021479N
Sd/-
CA Sunil Kr Sakral [Partner]
Membership Number: 509537 Place: Sikandrabad, U.P.
Dated: 19" Sep, 2022
UDIN: 22509537BCVNYI9993
Annexure B to Auditors Report
Annexure B to the Independent Auditors Report on the standalone
financial statements of FEDDERS ELECTRIC AND ENGINEERING LIMITEDfor year ended March 31,
2022
Report on the internal financial controls with reference to the
aforesaid standalone financial statements under Clause (i) of Sub-section 3 of Section 143
of the Companies Act, 2013
We were engaged to audit the internal financial controls over financial
reporting of Fedders Electric and Engineering Limited (hereinafter referred to as
“the Company”) as of March 31, 2022, 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 are 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 Controls over Financial
Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants
of India (‘ICAI). 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 Companies Act,2013
(hereinafter referred to as “the Act”).
Auditors Responsibility
Our responsibility is to express an opinion on the Companys
internal financial controls over financial reporting with reference to standalone
financial statements based on our audit conducted in accordance with the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting (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, both issued by the
Institute of Chartered Accountants of India.
Because of the matter described in the Disclaimer of Opinion section
below, we were not able to obtain sufficient appropriateaudit evidence to provide a basis
for an audit opinion on internal financial controls over financial reporting with
reference to the standalone financial statements of the Company.
Meaning of Internal Financial controls over financial reporting with
Reference to Financial Statements
A companys internal financial controls over financial reporting
with reference to financial statements is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of
standalone financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial controls over
financial reporting with reference to standalone financial statements include 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 authorisations of management and directors of the company; and (3)
provide reasonable assurance regarding prevention or timely detection of unauthorised
acquisition, use, or disposition of the companys assets that could have a material
effect on the financial statements.
Disclaimer of Opinion
We are unable to obtain sufficient appropriate audit evidence to
provide a basis for our opinion whether the Company had adequate internal financial
controls over financial reporting with reference to standalone financial statements and
whether such internal financial controls were operating effectively as at March 31, 2022.
We have considered the disclaimer reported above in determining the
nature, timing, and extent of audit tests applied in our audit of the standalone financial
statements of the Company, and the disclaimer has affected our opinion on the standalone
financial statements of the Company and we have issued a Disclaimer of Opinion on the
standalone financial statements of the Company.
For Rajiv Malhotra&Associates CharteredAccountants FRN:021479N
Sd/-
CA Sunil Kr Sakral [Partner]
Membership Number: 509537 Place: Sikandrabad, U.P.
Dated: 19" Sep, 2022
UDIN: 22509537BCVNYI9993
+91-9892691696
