<dhhead>INDEPENDENT AUDITOR’S REPORT</dhhead>
To the Members of
Jet Freight Logistics Limited
Report on the Audit of Standalone Financial Statements
Opinion
We have audited the Standalone financial statements of Jet Freight
Logistics Limited ("the Company"), which comprise the Standalone Balance Sheet
as at March 31, 2023, the Standalone Statement of Profit and Loss, Standalone Statement of
Cash Flows and Standalone Statement of Changes in Equity for the year then ended, and
notes to the financial statements, including 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 standalone financial statements ("the
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’) specified under Section 133 of the Act
read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting
principles generally accepted in India, of the state of affairs of the Company as at 31
March 2023, its profit (including other comprehensive income), its cash flows and the
changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing
(SAs) specified under section 143(10) of the Act. Our responsibilities under those
Standards are further described in the Auditor’s 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 there under, and we
have fulfilled our other ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidencewehaveobtainedissufficient and
appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the financial statements of the
current period. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
We have determined that there are no key audit matters to be
communicated in our report.
Information Other than the Financial Statements and Auditor’s
Report Thereon
The Company’s Board of Directors is responsible for the other
information. The other information comprises the information included in the management
discussion and analysis, report on corporate governance, director’s report, etc. but
does not include the standalone financial statements and our auditors report thereon 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, we conclude that there is a material misstatement of
this other information; we are required to report that fact. We have nothing to report in
this regard.
Responsibilities of management and those charged with governance for
the standalone financial statements.
The accompanying standalone financial statements have been approved
by the Company’s Board of Directors. The Company’s 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 including other comprehensive income, changes in equity
and cash flows of the Company in accordance with the Ind AS specified under section 133 of
the Act 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 statement that give
a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the board of directors are
responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the board of directors either intends to liquidate the Company
or to cease operations, or has no realistic alternative but to do so. The Board of
Directors are also responsible for overseeing the Company’s financial reporting
process.
Auditor’s responsibilities for the audit of the standalone
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 auditor’s 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 standards on auditing
specified under Section 143(10) of the Act we exercise professional judgment 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 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 systems 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 Board of Directors 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 Company’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s
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 auditor’s 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 financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatement in the standalone
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 misstatement 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 auditor’s 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
As required by Section 197(16) of the Act based on our audit, we
report that the Company has paid remuneration to its directors during the year in
accordance with the provisions of and limits laid down under Section 197 read with
Schedule V to the Act. As required by the Companies (Auditor’s Report) Order, 2020
("the Order"), issued by the Central Government of India in terms of sub-section
(11) of section 143 of the Act, we give in "Annexure A" a statement on the
matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
Further to our comments in Annexure A, as required by Section 143(3)
of the Act, we report, to the extent applicable 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
of the accompanying standalone financial statements.
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 standalone financial statements dealt with by this report are
in agreement with the books of account
d) In our opinion, the aforesaid standalone financial statements
comply with the Ind AS specified under Section 133 of the
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
with reference to financial statements of the Company as on 31 March 2023 and the
operating effectiveness of such controls, refer to our separate Report in Annexure B
wherein we have expressed an unmodified opinion; and
g) With respect to the other matters to be included in the Auditor’s
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 as at 31st March 2023 in the standalone financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
iv. The management has represented that, to the best of its knowledge
and belief, other than as disclosed in the notes to the accounts,
a. No funds have been advanced or loaned or invested (either from
borrowed funds or share premium or any other sources or kind of funds) by the company to
or in any other person(s) or entity(ies), including foreign entities ‘Intermediaries’,
with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend or invest in other persons or entities
identifiedin 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; and
b. no funds have been received by the company from any person(s) or
entity(ies), including foreign entities ‘Funding Parties’, with the
understanding, whether recorded in writing or otherwise, that the company shall, whether,
directly or indirectly, lend or invest in other persons or entities identifiedin any
manner whatsoever by or on behalf of the Funding Party ‘Ultimate Beneficiaries’
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries and
c. Based on audit procedures carried out by us, that we have
considered reasonable and appropriate in the circumstances, nothing has come to our notice
that has caused us believe that the representations under sub-clause (a) and (b) contain
any material misstatement.
v. In our opinion and according to the information and explanations
given to us, No Dividend declared or paid during the year by the company under section 123
of the Companies Act, 2013.
For S C Mehra & Associates LLP Chartered Accountants
Firm Registration No.106156W
CA S C Mehra Partner
M. No. 039730
Place: Mumbai
Date: 25-05-2023 UDIN: 23039730BGWHBK5372
ANNEXURE A TO INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE
FINANCIAL STATEMENTS OF JET FREIGHT LOGISTICS LIMITED FOR THE YEAR ENDED MARCH 31, 2023
[Referred to in paragraph under ‘Report on Other Legal and
Regulatory Requirements’ in the Independent Auditors’ Report] i. (a) (A) The
Company has maintained proper records showing full particulars, including quantitative
details and situation of Property, Plant and Equipment and right of use assets.
(B) The Company has maintained proper records showing full
particulars of intangible assets. (b) The Companyhas verificationof its Property, Plant
and Equipment (PPE), right of use regularprogramme physical assets (ROU) under which the
assets are physically verified in a phased manner over a period of three years, which, in
our opinion, is reasonable having regards to the size of the Company and nature of its
assets. As per information & explanation provided to us, the company has verified
certain PPE and ROU during the year In accordance with the programme of physical
verification and no material discrepancies were noticed on such physical verification.
(c) The title deeds of all the immovable properties classified as PPE
are 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) 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 not revalued
any of its property, plant and equipment (including Right-of-use assets) or Intangible
assets or both during the year.
(e) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, there are no proceedings
initiated or pending against the Company for holding any benami property under the
Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
ii. (a) The Company is a service company, primarily rendering
logistics services. Accordingly, it does not hold any physical inventories. Accordingly,
paragraph 3(ii) of the Order is not applicable.
(b) The Company has a working capital limit in excess of Rs. 5 crores
sanctioned by banks or financial on the security of current assets. The quarterly
statements, in respect of the working capital limits have been filed by the Company with
such banks and financial institutions andsuchstatementsarenothavingsignificantdifference,
detail as under:
Quarter
Value of Book Debts as per
Remark
Quarterly Statement (Rs.in Lakhs)
Book of Accounts (Rs.in Lakhs)
Difference (Increase in Book Debts) (Rs.in Lakhs)
Q1
4,501.92
6,394.53
1,892.61
In Quarterly Drawing Power (DP) Statement Debtors are considered up
to 180 days, Difference amount is Debtors above 180 days.
Q2
4,094.34
5,352.09
1,257.75
Q3
4,225.14
5,476.28
1,251.14
Q4
4,138.62
5,561.25
1,422.63
iii. During the year, the company has 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.
(a) In our opinion and according to information and explanation given
to us, during the year, the company has provided loans or provided advances in the nature
of loans, or stood guarantee, or provided security to any other entity , details as under:
(A) The aggregate amount during the year and balance outstanding at
the balance sheet date with respect to loans or advances to wholly owned subsidiaries are
Rs.123.90 Lakhs and Rs.327.74 Lakhs respectively
(B) The aggregate amount during the year and balance outstanding at
the balance sheet date with respect to loans or advances to other than subsidiaries, joint
ventures and associates are Rs. NIL and Rs. NIL Lakhs respectively.
(b) In our opinion and according to information and explanation given
to us, the investments made, guarantees provided, security given and the terms and
conditions of the grant of all loans and advances in the nature of loans and guarantees
provided are not prejudicial to the company’s interest.
(c) In our opinion and according to information and explanation given
to us, in respect of loans and advances in the nature of loans, the schedule of repayment
of principal and payment of interest has been stipulated and the repayments or receipts
are regular.
(d) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, there are no amount overdue
for more than ninety days.
(e) In our opinion and according to information and explanation given
to us, there are no loans or advances in the nature of loan granted which has fallen due
during the year, has been renewed or extended or fresh loans granted to settle the
overdues of existing loans given to the same parties.
(f) The Company has not granted any loans or advances in the nature
of loans, which are repayable on demand or without specifying any terms or period of
repayment.
iv. In our opinion and according to information and explanation given
to us, the company has not granted any loans or provided any guarantees or given any
security or made any investments to which the provision of section 185 and 186 of the
Companies Act, 2013. Accordingly, paragraph 3 (iv) of the order is not applicable.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public within the meaning
of the directives issued by the Reserve Bank of India, provisions of section 73 to 76 of
the Act, any other relevant provisions of the Act and the relevant rules framed
thereunder.
vi. The Central Government of India has not prescribed the
maintenance of cost records under sub-section (1) of section 148 of the Act for any of the
activities of the company and accordingly paragraph 3 (vi) of the order is not applicable.
vii. (a) According to the information and explanations given to us
and on the basis of our examination of the records of the Company, amounts deducted/
accrued in the books of account in respect of undisputed statutory dues including Goods
and Services Tax (‘GST’), Provident fund, Employees’ State Insurance,
Income-tax, Duty of Customs, Cess and other material statutory dues have generally been
regularly deposited with the appropriate authorities. Further, no undisputed amounts
payable in respect thereof were outstanding at the year-end for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, there
are no statutory dues referred in sub-clause (a) which have not been deposited with the
appropriate authorities on account of any dispute except for the following:
Name of the statute
Nature of thedues
Amount (Rs.)
Period to which the amount related
Remark
Income Tax Act 1961
Demand
50,06,08,953
AY 2018-19
There is stay on Demand by the Assessing officer.
viii. 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 not
surrendered or disclosed any transactions, previously unrecorded as income in the books of
account, in the tax assessments under the Income-tax Act, 1961 as income during the year.
ix. (a) According to the information and explanations given to us,
the Company has not defaulted in repayment of its loans or borrowings or in the payment of
interest thereon to any lender.
(b) According to the information and explanations given to us
including representations received from the management of the Company, and on the basis of
our audit procedures, we report that the Company has not been declared a wilful defaulter
by any bank or financials institution or other lender.
(c) In our opinion and according to the information and explanations
given to us, the term loans obtained during the year were applied for the purpose for
which they were availed.
(d) In our opinion and according to the information and explanations
given to us, and on overall examination of the financial statements of the Company, funds
raised by the Company on short term basis have not been utilised for long term purposes.
(e) According to the information and explanations given to us and on
an overall examination of the financial statements of the Company, 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, the
Company has not raised any loans during the year on the pledge of securities held in its
subsidiaries, associates or joint ventures.
x. (a) In our opinion and according to the information and
explanations given to us, the Company has not raised any money by way of initial public
offer or further public offer (including debt instruments) during the year. Accordingly,
paragraph 3 (x) (a) of the Order is not applicable.
(b) 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 not made any
preferential allotment or private placement of shares or fully or partly convertible
debentures during the year except the Company has raised money of Rs. 37,70,30,745/- by
way of Right issue of Equity Shares 2,32,01,892 at the rate of Rs. 16.25 per share ( Face
Value Rs 5 + Share Premium Rs 11.25 ) allotted to equity shareholder During the year.
The requirements of section 42 and section 62 of the Companies Act,
2013 have been complied with and the funds raised have been used for the purposes for
which the funds were raised, except following (details in respect of deviation is here in
under mentioned):
Sr No End use as per Letter of Offer dated 5th Jan, 2023
Proposed to be used as per letter of offer (Rs. In Lakhs)
Actual end use
Actual end use (Rs. In Lakhs)
Deviation (Rs. In Lakhs)
A
B
(A-B)
1 To finance the requirement of working capital
820.31
To finance the Requirement of working capital
1,080.06
(259.75)
2 To meet general corporate purposes
900 .00
To meet general corporate purposes
83.00
817.00
3 To meet the expenses of the Issue
50.00
To meet the expenses of the Issue
39.25
10.75
4 To finance the capital expenditure for purchase of Warehouse
2,000.00
Advance for Construction of Warehouse
2,568.00
(568.00)
3,770.31
3,770.31
0.00
xi. (a) To the best of our knowledge and according to the information
and explanations given to us, no fraud by the Company or on the Company has been noticed
or reported during the period covered by our audit.
(b) No report under Section 143(12) of the Act has been filed with
the Central Government for the period covered by our audit.
(c) According to the information and explanations given to us,
including the representation made to us by the management of the Company, there are no
whistleblower complaints received by the Company during the year.
xii. In our opinion and according to the information and explanations
given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the
Order is not applicable.
xiii. In our opinion and according to the information and
explanations given to us, all transactions entered into by the Company with the related
parties are in compliance with Sections 177 and 188 of the Act, where applicable. Further,
the details of such related party transactions have been disclosed in the standalone
financial statements, as required under Indian Accounting Standard (Ind AS) 24, Related
Party Disclosures specified in Companies (Indian Accounting Standards) Rules 2015 as
prescribed under Section 133 of the Act.
xiv. (a) Based on information and explanations provided to us and our
audit procedures, in our opinion, the Company has an internal audit system as required
under Section 138 of the Act which is 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 explanations given to us and
based on our examination of the records of the Company, the Company has not entered into
non-cash transactions with directors or persons connected with him. Accordingly, paragraph
3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA
of the Reserve Bank of India Act 1934. Accordingly, paragraph 3(xvi) of the Order is not
applicable to the Company.
xvii. The Company has not incurred cash losses in current and
previous year. Accordingly, there are no cash losses to be reported under paragraph
3(xvii) of the Order. xviii. There has been no resignation of the statutory auditors
during the year. Accordingly, clause 3(xviii) of the Order is not applicable.
xix. According to the information and explanations given to us and on
the basis of the financial ratios, ageing and expected dates of realisation of financial
assets and payment of financial financial statements, our knowledge of the plans of the
Board of Directors and management and based on 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 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. (a) In our opinion and according to the information and
explanations given to us, in respect of other than ongoing projects, there are no unspent
amounts to be transferred to a fund specified in Schedule VII to the Act.
(b) In our opinion and according to the information and explanations
given to us, there are no amount remaining unspent under sub-section (5) of section 135 of
the Act, pursuant to any ongoing project, to be transferred to special account in
compliance with the provision of sub-section (6) of section 135 of the said Act.
xxi. The reporting under clause (xxi) is not applicable in respect of
audit of standalone financial statements of the Company. Accordingly, no comment has been
included in respect of said clause under this report.
For S C Mehra & Associates LLP Chartered Accountants
Firm Registration No.106156W
CA S C Mehra Partner
M. No. 039730
Place: Mumbai
Date: 25-05-2023
UDIN: 23039730BGWHBK5372
ANNEXURE B TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON
THE STANDALONE FINANCIAL STATEMENTS OF JET FREIGHT LOGISTICS LIMITED
[Referred to in paragraph 1(f) under ‘Report on Other Legal and
Regulatory Requirements’ in the Independent Auditors’ Report]
Independent Auditor’s Report on the internal financial controls
with reference to the standalone financial statements under Clause (i) of Sub-section 3 of
Section 143 of the Companies Act, 2013 (‘the Act’)
In conjunction with our audit of the standalone financial statements
of Jet Freight Logistics Limited ("the Company") as at and for the year ended
31st March 2023, we have audited the internal financial controls with reference to the
standalone financial statements of the Company.
Management’s Responsibility for Internal Financial Controls
The Company’s Management is responsible for establishing and
maintaining internal financial controls based on the internal control with reference to
financial statements criteria established by the Company considering 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 (ICAI) (the
"Guidance Note"). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that of its business, including
adherence to Company’s policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness of the accounting records,
and the timely preparation of reliable financial information, as required under the Act.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s
internal financial controls with reference to financial statements based on our audit. We
conducted our audit in accordance with the Guidance Note and the Standards on Auditing,
issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent
applicable to an audit of internal financial controls. 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 internal financial controls with reference to
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 internal financial controls with reference to financial statements and their
operating effectiveness. Our audit of internal financial controls with reference to
financial statements included obtaining an understanding of internal financial controls
with reference to 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 auditor’s
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 Company’s internal
financial controls with reference to financial statements.
Meaning of Internal Financial Controls With Reference to Financial
Statements
A Company’s internal financial control with reference to
financial statements is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for
external generally accepted accounting principles. A Company’s internal financial
control with reference to financial 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
company’s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls With Reference to
Financial Statements
Because of the inherent limitations of internal financial controls
with reference to financial statements, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation of the internal financial
controls with reference to financial statements to future periods are subject to the risk
that the internal financial control with reference to financial statements may become
inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, adequate
internal financial controls with reference to standalone financial statements and such
controls were operating effectively as at 31st March 2023, based on the internal financial
controls with reference to standalone financial statements criteria established by the
Company considering the control stated in the Guidance Note issued by the ICAI.
For S C Mehra & Associates LLP Chartered Accountants
Firm Registration No.106156W
CA S C Mehra Partner
M. No. 039730
Place: Mumbai
Date: 25-05-2023
UDIN: 23039730BGWHBK5372
+91-9892691696
