TO THE MEMBERS OF INFRA INDUSTRIES LIMITED
Opinion
We have audited the financial statements of INFRA
INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2023, the Statement of Profit and Loss (including other Comprehensive Income),
Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and a
summary of significant accounting policies and other explanatory information.
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 Indian Accounting Standards
(Ind AS) prescribed under Section 133 of the Act read with Companies (Indian Accounting
Standards) Rules, 2015, and amended and other accounting principles generally accepted in
India, of the state of affairs (financial position) of the Company as at 31st March, 2023,
and its profit (financial performance including other comprehensive income), the changes
in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in
accordance with the Standards on Auditing 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 independence 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 ICAIs Code of Ethics. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the financial statements.
Emphasis of Matter
We draw attention to Note No.47 of the Financial Statements
stating that the Company is in the process of obtaining the information from the
Resolution Professional (RP) with respect to party wise details of assets and liabilities.
Accordingly, accounting effect for Waiver of Creditors dues, Deferred Tax, Post
Retirement Benefit Liability, Impairment of Assets will be given on receipt of the
information from RP.
Our opinion is not modified in respect of this matter.
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
for the year ended March 31, 2023. 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. We have determined the matters described
below to be the Key Audit Matters to be communicated in our report:
| Sr. No. |
Key Audit Matter |
Our Response |
| 1 |
Going Concern |
In assessing the appropriateness of the going
concern assumption used in preparing the financial statements, our procedures included,
amongst others: |
|
The financial statements have been prepared on
a going concern basis as discussed in Note No. 45. |
| Understanding what forecast expenditure is
committed and what could be considered discretionary. |
|
We included the going concern assumption as a
key audit matter as it relies on debt from related parties and borrowings to cover
necessary expenditure. |
| Considering the liquidity of existing assets on the
balance sheet. |
| Considering the terms of the bank loan and trade finance
facilities and the amount available for drawdown. |
| Considering potential downside scenarios and the resultant
impact on available funds. |
| The Company continues to incur loss, current liabilities
exceed current assets and it has defaulted in payment of regulatory and statutory dues,
these events indicate that material uncertainty exists that may cast significant doubt on
Groups ability to continue as a going concern. |
Other Information
The Companys Board of Directors is responsible for the
preparation of the other information. The other information comprises the information
included in the Boards Report including Annexures to Boards Report, Management
Discussion and Analysis, Report on Corporate Governance, Business Responsibility 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 during the course of our 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.
Managements Responsibility 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 with the Ind AS
and other accounting principles generally accepted in India. 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 statements 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 are responsible for overseeing the
Companys financial reporting process.
Auditors Responsibility 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 judgement and maintain professional scepticism 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 financial
controls 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 upto 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 a 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,
2016("the Order") issued by the Central Government in terms of Section 143 (11)
of the Act, we give in "Annexure A" - a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report
that:
a) We have sought and obtained all the information and
explanations which to the 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
including other comprehensive income, 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 prescribed under Section 133 of the Act.
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 the requirements of Section 197(16) of the Act, as
amended.
In our opinion and to the best of our information and
according to the explanations given to us, the Company has not paid/provided any
managerial remuneration and hence provisions of Section 197 of the Act are not applicable
to the Company.
h) 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, as amended, in our opinion and to the best of our information and according to the
explanations given to us:
i. The Company, as detailed in Note No. 32 to the financial
statements, has disclosed the impact of its pending litigation on its financial position;
ii. The Company does not have any long-term contracts
including derivative contracts for which there were any material foreseeable losses; and
iii. There has been no delay in transferring amounts,
required to be transferred to the Investor Education and Protection Fund by the company.
iv. (a) As per the information and explanation given to us
by the
management, 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) As per the information and explanation given to us by
the management, no funds have been received by the company from any person or entity,
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) On the basis of above representations, nothing has come
to our notice that has caused us to believe that the above representations contained any
material mis-statement.
v. The Company has not declared or paid any dividend during
the year; and
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
April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and
Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.
For and on behalf of KARNAVAT & CO.
Chartered Accountants Firm Regn No. 104863W
|
Sd/- |
|
(Viral Joshi) |
| Place : Mumbai |
Partner |
| Dated : September 25, 2023 |
Membership No. 137686 |
INFRA INDUSTRIES LIMITED ANNEXURE-A TO INDEPENDENT
AUDITORS REPORT
The Annexure referred to in paragraph 1 under the Report
on Other Legal and
Regulatory Requirements our report to the members of INFRA
INDUSTRIES LIMITED,
(the Company) for the year ended on March 31, 2023. We
report that:
i. In respect of its Property, Plant & Equipment:
(a) (A) In the absence of information from the Resolution
Professional, the
management is not in a position to provide proper records
showing full particulars including quantitative details and situation of fixed assets. The
Company will update the same on receipt of information from the Resolution Professional;
(B) The Company does not have any intangible assets;
(b) The Company is under Resolution Plan in which affairs
of the Company are being carried out by the Resolution Professional. Therefore, current
management not in a position to carry physical verification of fixed assets. Accordingly,
we are not in a position to comment on the reasonableness of programme of physical
verification of fixed assets;
(c) As per the information and explanation given to us by
the management, the immovable properties as disclosed in Property, Plant & Equipments
(Note No.2 to the financial statements) were acquired pursuant to the Resolution Plan. The
management is in the process of availing the title deeds of the immovable properties from
the Resolution Professional. Accordingly, we are not in a position to comment on whether
the title deeds of immovable properties are in the name of the Company;
(d) As per the information and explanation given to us by
the management, the Company has not revalued its Property, Plant and Equipment (including
Right of Use assets) or intangible assets or both during the year and hence provisions of
Clause 3(i)(d) of the Order are not applicable to the Company;
(e) As per the information and explanation given to us by
the management, 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 and hence provisions of Clause 3(i)(e) of the Order are
not applicable to the Company.
ii. In respect of its inventories:
(a) As per the information and explanation given to us by
the management, The Company is under Resolution Plan in which affairs of the Company are
being carried out by the Resolution Professional. Therefore, current management not in a
position to carry physical verification of the inventories. Accordingly, we are not in a
position to comment on the frequency of verification;
(b) As per the information and explanation given to us by
the management, the Company has not availed any working capital facility from any banks or
financial institutions exceeding rupees five crores on the basis of security of current
assets and hence provisions of Clause 3(ii)(b) of the Order are not applicable to the
Company.
iii. The Company has not granted any loans, secured or
unsecured to companies,
firms, limited liability partnerships or other parties and
hence provisions of Clause
3(iii)(a) to (f) of the Order are not applicable to the
Company.
iv. In our opinion and according to the information and
explanations given to us, the Company has not made any investments or granted any loans or
provided any guarantee or security to the parties covered under Section 185 and hence
provisions of Clause 3(iv) of the aforesaid Order in this regard are not applicable to the
Company.
v. In our opinion and according to the information and
explanations given to us, the Company has not accepted deposits or amounts which are
deemed to be deposits from the public within the meaning of Sections 73, 74, 75 and 76 of
the Act and the Rules framed thereunder to the extent notified.
vi. In our opinion and according to the information and
explanations given to us maintenance of cost records under sub-section (1) of the Section
148 of the Companies Act, 2013 has not been prescribed by the government.
vii. (a) According to the records of the Company, the
Company is delays have
been observed in depositing undisputed statutory dues
including provident fund, employees state insurance, income-tax, GST, sales tax, wealth
tax, duty of customs, duty of excise, value added tax or cess and other statutory dues
applicable to it. According to the information and explanations given to us, no undisputed
amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2023 for
a period of more than six months from the date of becoming payable except for the below
mentioned;
| Sr. No. |
Particulars |
Amount (?) |
| 1 |
Value Added Tax |
64,327 |
| 2 |
CST Liability |
3,43,168 |
| 3 |
GST Liability |
22,64,042 |
| 4 |
Provident Fund |
10,29,867 |
| 5 |
Profession Tax |
15,400 |
| 6 |
Employee State Insurance |
1,76,417 |
| 7 |
TDS |
6,03,992 |
| 8 |
Sales Tax Deferral Loan |
8,76,880 |
|
Total |
54,74,093 |
(b) According to the records of the Company and information
and explanations given to us no dues of income tax, GST, sales tax, wealth tax, service
tax, duty of customs, duty of excise, value added tax or cess that have not been deposited
on account of any disputes.
viii. According to the information and explanations given
to us, there are no transactions that are not recorded in the books of accounts and have
been surrendered of disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961.
ix. (a) Based on our audit procedures and according to the
information and explanations given to us by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial institutions and bank;
(b) According to the information and explanations given to
us, the company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority;
(c) According to the information and explanations given to
us, term loans have been applied for the purpose for which it is taken;
(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 no funds raised on short-term basis have been
used for long-term purposes by the company;
(e) The Company does not have any subsidiaries, associates
or joint ventures and hence provisions of Clause 3(ix)(e) of the Order are not applicable
to the Company;
(f) The Company does not have any subsidiaries, associates
or joint ventures and hence provisions of Clause 3(ix)(f) of the Order are not applicable
to the Company.
x. (a) Based on our audit procedures and according to the
information and
explanations given to us by the management, the Company has
not raised any money by way of initial public offer or further public offer (including
debt instruments) and hence provisions of Clause 3(x)(a) of the Order are not applicable
to the Company;
(b) The Company has not made any preferential allotment or
private placement of shares or fully or partly convertible debentures during the year
under audit and hence provisions of Clause 3(x)(b) of the Order are not applicable to the
Company
xi. 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 explanations 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. Clause 3(xi)(a) to (c) of the Order is, therefore, not applicable to the
Company for the year under audit.
xii. The Company is not a Nidhi Company and the Nidhi
Rules, 2014 are not applicable to the Company and hence provisions of Clause 3(xii) (a) to
(c) of the Order are not applicable to the Company.
xiii. The Company has not entered into the transaction with
the related parties as stated in provisions of the Section 188 of the Act and hence
provisions of Clause 3(xiii) of the aforesaid Order are not applicable to the Company.
xiv. Consequent to the fact that the Company is under the
Resolution Plan, we are informed by the management that company has an internal audit
system being carried out by the management which commensurate with the size and nature of
its business;
xv. The Company has not entered into any non-cash
transactions with its directors or the persons connected with him and hence provisions of
Clause 3(xv) of the Order are not applicable to the Company.
xvi. (a) The Company is not required to be registered
Section 45-IA of the Reserve
Bank of India Act, 1934 and hence provisions of Clause
3(xvi)(a) of the Order are not applicable to the Company;
(b) The company has not conducted any Non-Banking Financial
or Housing Finance activities which requires the Company to obtain Certificate of
Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act
1934 and hence provisions of Clause 3(xvi)(b) of the Order are not applicable to the
Company;
(c) The company is not a Core Investment Company (CIC) as
defined in the regulations made by the Reserve Bank of India and hence provisions of
Clause 3(xvi)(c) of the Order are not applicable to the Company;
(d) The Company does not have any CIC as part of the Group,
and hence provisions of Clause 3(xvi)(d) of the Order are not applicable to the Company.
xvii. According to the information and explanations given
to us, the company has incurred cash losses amounting to ? 31.72 Lacs during the year and
? 28.44 Lacs in the immediately preceding financial year.
xviii. There has been no resignation of the statutory
auditors during the year, and hence provisions of Clause 3(xviii) 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 the assumptions and 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 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. According to the information and explanations given to
us, the Company does not fall under the ambit of Section 135 of the Act. Accordingly,
provisions of Clause 3(xx) (a) and (b) of the Order are not applicable to the Company.
xxi. According to the information and explanations given to
us, the Company need not prepare consolidated financial statements. Accordingly,
provisions of Clause 3(xxi) (a) and (b) of the Order are not applicable to the Company.
For and on behalf of KARNAVAT & CO.
Chartered Accountants Firm Regn No. 104863W
|
Sd/- |
|
(Viral Joshi) |
| Place : Mumbai |
Partner |
| Dated : September 25, 2023 |
Membership No. 137686 |
INFRA INDUSTRIES LIMITED
ANNEXURE-B TO INDEPENDENT AUDITORS REPORT
Annexure referred to in paragraph 2(f) under the Report on
Other Legal and Regulatory Requirements of our report to the members of INFRA INDUSTRIES
LIMITED, (the Company) for the year ended on March 31, 2023.
Report on Internal Financial Controls under Clause (i) of
Sub-Section 3 of Section 143 of the Act
Disclaimer of Opinion
We have audited the internal financial controls over
financial reporting of INFRA INDUSTRIES LIMITED ("the Company") as of March 31,
2023 in conjunction with our audit of the financial statements of the Company for the year
ended on that date.
The information and explanations provided by the management
on system of Internal Financial Controls over financial reporting were not complete to
enable us to determine if the Company has established adequate Internal Financial Controls
over financial reporting and whether such Internal Financial Controls were operating
effectively as at March 31, 2023.
We have considered the disclaimer reported above in
determining the nature, timing, and extent of audit tests applied in our audit of the
financial statements of the Company, and the disclaimer does not affect our opinion on the
financial statements of the Company. 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 Guidance Note on Audit of Internal Financial Controls over
Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI).
These responsibilities includes design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and
efficient conduct of business, including adherence to Companys policies, safeguarding of
the assets, prevention and detection of frauds and errors, accuracy and completeness of
the accounting records, and 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 over financial reporting 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
deemed to be prescribed under Section 143(10) of the Act to the extent applicable to an
audit of internal financial controls, both applicable to an audit of internal financial
controls and both issued by the ICAI. Those Standards and Guidance note require that we
comply with ethical requirements and plan and perform audit to obtain reasonable assurance
about whether adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in all material
respects.
Our audit involved performing procedures to obtain audit
evidence about the adequacy of the internal financial controls system over financial
reporting and their operating effectiveness. Our audit of internal financial controls over
financial reporting included obtaining an understanding of internal financial controls
over financial reporting, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal controls based on the
assessed risk. The procedures selected depend on the auditors judgement, including
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 preparation of financial statements for external purpose 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 the transactions are
recorded as necessary to permit preparation of financial statements in accordance with the
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.
Inherent Limitations of Internal Financial Controls over
Financial Reporting
Because of the inherent limitations of internal financial
controls over financial reporting, including 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 control
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.
For and on behalf of KARNAVAT & CO.
Chartered Accountants Firm Regn No. 104863W
|
Sd/- |
|
(Viral Joshi) |
| Place : Mumbai |
Partner |
| Dated : September 25, 2023 |
Membership No. 137686 |
+91-9892691696
