The Members of
M/s. Lakhotia Polyesters (India) Limited
Report on the Audit of Ind AS Standalone Financial Statements
Opinion
We have audited the accompanying Ind AS Standalone Financial Statements of M/s.
Lakhotia Polyesters (India) Limited ("the Company"), which comprise the balance
sheet as at March 31, 2023, the Statement of Profit and Loss, (including the statement of
Other Comprehensive Income), the Statement of Cash Flows and the 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 Ind AS financial statements give the information required by
the Companies Act, 2013, as amended ("the Act") in the manner so required and
give a true and fair view in conformity withthe Ind AS & accounting principles
generally accepted in India:
a) in the case of the balance sheet, of the state of affairs of the Company as at March
31, 2023; and
b) in the case of the statement of profit and loss, of the loss including other
comprehensive income for the year ended on that date.
c) in the case of the statement of cash flows, of the cash flows for the year ended on
that date.
d) in the case of the statement of changes in equity, of the changes in equity share
capital and other equity for the year ended on that date.
Basis for Opinion
We have conducted our audit of the Ind AS financial statements in accordance with the
Standards on Auditing as 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 Ind AS financial statements section of our report. We are independent of the
company in accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India together with the ethical requirements that are relevant to our audit
of the financial statements under the provision of the Act and the Rules thereunder, and
we have fulfilled our ethical responsibilities in accordance with these requirements and
the ICAI 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 Ind AS financial
statements.
Other Information
The Companys Board of Directors is responsible for the other information. The other
information comprises the Board of Directors Report, but does not include the Ind AS
financial statements and our Auditors report thereon.
Our opinion on the Ind AS 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 Ind AS financial statements, our responsibility is
to read the other information and, in doing so, consider whether such other information is
materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
Managements Responsibility for the Ind AS Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these Ind AS financial statements that give a true and fair view of the financial
position, financial performance including other comprehensive income, cash flows and
changes in equity of the Company in accordance with the accounting principles generally
accepted in India, including the Indian Accounting Standards (Ind AS) specified under
Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015,
as amended. This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding of the assets of the Company
and for preventing and detecting the 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 control, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of
the Ind AS financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the Ind AS financial statements, the 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 also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibility for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Ind AS financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal 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 system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the Ind AS financial
statements, including the disclosures, and whether the Ind AS financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit. We also
provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act, we give in the Annexure A, a statement on the matters specified in
paragraph 3 and 4 of the order.
2. (A) 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 purpose of our audit;
b) in our opinion, proper books of account as required by law have been kept by the
Company so far as appears from our examination of those books.
c) the balance sheet, the statement of profit and loss including the statement of other
comprehensive income, the statement of cash flows, and Statement of Changes in Equity
dealt with by this report are in agreement with the books of account.
d) in our opinion, the aforesaid Ind AS financial statements comply with the Indian
Accounting Standards specified under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015, as amended;
e) on the basis of written representations received from the directors as on 31 March,
2023 and taken on record by the Board of Directors, none of the directors is disqualified
as on 31 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 the financial
reporting 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 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 explanations given to us:
a) The Company does not have any pending litigations which would impact its financial
position;
b) The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses;
c) The Company was not required to transfer any amount to Investor Education and
Protection Fund,
d) i. The management has represented that, to the best of its knowledge and belief, no
funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other persons
or entities, including foreign entities ("Intermediaries") with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall:
• Directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company;
or
• Provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.
ii. The management has represented that, to the best of its knowledge and belief, no
funds have been received by the Company from any persons or entities, including foreign
entities ("Fund Parties") with the understanding, whether recorded in writing or
otherwise that the Company shall:
• Directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding
Party; or
• Provide any guarantee, security or the like from or on behalf of the Ultimate
Beneficiaries; and
iii. Based on such audit procedures as considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause d (i) and d (ii) contain any material misstatement.
e) During the year, the Company has not declared or paid any dividend.
C) 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. The remuneration paid to any director is
not in excess of the limit laid down under Section 197 of the Act.
The Ministry of Corporate Affairs has not prescribed other details under Section
197(16) of the Act which are required to be commented upon by us.
For M/S. SHARP AARTH & CO LLP
Chartered Accountants
FRN: 132748W / W100823
CA Praveen Purohit
Partner
Membership No.: 429231
UDIN:23429231BGXFEU7707
Place: Nashik
Date: May 15, 2023.
Annexure A to the Independent Auditors Report on the Standalone Financial Statements
ofM/s. Lakhotia Polyesters (India) Limitedfor the year ended 31st March, 2023
Referred to in paragraph 1 of the section on "Report on other legal and regulatory
requirements" of our report of even date
On the basis of such checks as we considered appropriate and according to the
information and explanation given to us during the course of our audit, we report that:
(i) (a)(A) The Company has maintained proper records showing full particulars,
including quantitative details and situation of Property, Plant and Equipment;
(B) The Company has maintained proper records showing full particulars of Intangible
Assets;
(b) 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 a regular programme of physical
verification of its property, plant and equipment by which all Property, plant and
equipment are verified in a phased manner over a period of three years. In accordance with
this programme, certain Property, plant and equipment were verified during the year. In
our opinion, this periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets. No material discrepancies were noticed
on such verification.
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the title deeds of immovable properties (other
than immovable properties where the Company is the lessee and the lease agreements are
duly executed in favour of the lessee) disclosed in the standalone financial statements
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 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 inventory has been physically verified by the management during the year.
In our opinion, the frequency of such verification is reasonable and procedures and
coverage as followed by management were appropriate. No discrepancies were noticed on
verification between the physical stocks and the book records that were 10% or more in the
aggregate for each class of inventory.
(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 been sanctioned working
capital limits in excess of five crore rupees, in the aggregate, hence reporting under
this clause is not required.
(iii) According to the information and explanations are given to us and on the basis of
our examination of the records of the Company, the Company has not made any investments,
provided guarantee or security except for advances in the nature of loans, secured or
unsecured, to companies, firms, limited liability partnerships or any other parties during
the year. The Company has granted loans secured or unsecured to companies, firms, limited
liability partnerships or any other parties during the year the details of which are as
under:
(a) A. Based on the audit procedures carried on by us and as per the information and
explanations given to us, the Company has not granted any loans to subsidiaries.
B. Based on the audit procedures carried on by us and as per the information and
explanations given to us, the Company hasgranted loans to parties other than subsidiaries.
| Particulars |
Amount (INR Lakhs) |
| Aggregate amount of loan provided during the year |
- |
| Subsidiaries |
- |
| Joint Ventures |
- |
| Associates |
- |
| Others |
105.00 |
| Particulars |
Amount (INR Lakhs) |
| Balance outstanding as at the balancesheet date in respect of the above loans |
- |
| Subsidiaries |
- |
| Joint Ventures |
- |
| Associates |
|
| Others |
20.00 |
(b) According to the information and explanations given to us and based on the audit
procedures conducted by us, we are of the opinion that 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
companys interest;
(c) According to information and explanations given to us and on the basis of our
examination of the records of the Company, the repayment of principal and payment of
interest has been stipulated and the repayments or receipts are regular.
(d) According to information and explanations given to us and on the basis of our
examination of the records of the Company, no amount is overdue.
(e) According to information and explanations given to us and on the basis of our
examination of the records of the Company, there is no loan given falling due during the
year, which has been renewed or extended, or fresh loans given to settle the overdue of
existing loans given to the same party.
(f) According to information and explanations given to us and on the basis of our
examination of the records of the Company, no loans are given by the Company, which is
repayable on demand and without specifying any terms or period of repayment.
(iv) According to information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not given any loans or provided
any guarantee or security as specified under Section 185 of the Companies Act, 2013 and
the Company has not provided any guarantee or security as specified under Section 186 of
the Companies Act, 2013.
Further, the Company has complied with the provisions of Section 186 of the Companies
Act, 2013 in relation to loans given and investments made.
(v) The Company has not accepted any deposits or amounts which are deemed to be
deposits from the public. Accordingly, clause 3(v) of the Order is not applicable.
(vi) According to information and explanations given to us, the Central Government has
not prescribed the maintenance of cost records under Section 148 (1) of the Companies Act,
2013 for the products manufactured by it (and / or services provided by it). Accordingly,
clause 3 (vi) of the order is not applicable.
(vii) (a) The Company does not have liability in respect of Sales Tax, Service Tax,
Duty of Excise and Value Added Tax during the year since effective 1st July, 2017, these
statutory dues have been subsumed into GST.
According to the information and explanation are 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 or other
material statutory dues have generally been regularly deposited (except as described
below) with the appropriate authorities.
According to the information and explanations given to us, there are no undisputed
amounts payable in respect of GST, Provident fund, Employees State Insurance, Income-tax,
Duty of Customs, Cess, and other material statutory dues were in arrears as at 31 March
2023 for a period of more than six months from the date they became payable.
(b) According to the information and explanations are given to us, there are nodues of
GST, Provident fund, Employees State Insurance, Income-tax, Sales tax, Service tax, Duty
of Customs, Value added tax, Cess or other statutory dues which have not been deposited by
the Company on account of disputes.
(viii) According to the information and explanation 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
assessments under the Income Tax Act, 1961 as income during the year.
(ix) (f) According to the information and explanation given to us and on the basis of
our examination of the records of the Company, the Company has not defaulted in repayment
of loans or other borrowings or in payment of interest thereon to any lender.
(g) According to the information and explanation given to us and on the basis of our
examination of the records of the Company, the Company has not been declared a wilful
defaulter by any bank or financial institution or government or government authority.
(h) According to information and explanations given to us by the management, the term
loans availed by the company were applied for the purpose for which the loans were
obtained.
(i) According to the information and explanations given to us and on an overall
examination of the balance sheet of the Company, we report that funds raised on short-term
basis have not been utilised for long term.
(j) 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 as defined under the Companies Act, 2013. Accordingly, clause 3(ix)(e) of the
Order is not applicable.
(k) According to the information and explanations given to us and procedures performed
by us, we report that the Company has not raised loans during the year on the pledge of
securities held in its subsidiaries as defined under the Companies Act, 2013. Accordingly,
clause 3(ix)(f) of the Order is not applicable.
(x) (a) The Company has not raised any moneys by way of initial public offer or further
public offer (including debt instruments). Accordingly, clause 3(x)(a) of the Order is not
applicable.
(b) According to the information and explanation 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. Accordingly, clause 3(x)(b) of the Order is not applicable.
(xi)(a) Based on examination of the books and records of the Company and according to
the information and explanations given to us, considering the principles of materiality
outlined in Standards on Auditing, we report that no fraud by the Company or on the
Company has been noticed or reported during the course of the audit.
(b) According to the information and explanations given to us, no report under
sub-section (12) of Section 143 of the Companies Act, 2013 has been filed by the auditors
in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government.
(c) We have taken into consideration the whistle blower complaints received by the
Company during the year while determining the nature, timing and extent of our audit
procedures.
(xii) According to the information and explanations given to us, the Company is not a
Nidhi Company. Accordingly, clause 3(xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us,
the transactions with related parties are in compliance with Sections 177 and 188 of the
Companies Act, 2013, where applicable, and the details of the related party transactions
have been disclosed in the standalone financial statements as required by the applicable
Indian Accounting Standards.
(xiv) (a) Based on the information and explanations provided to us and our audit
procedures, in our opinion, as per Section 138 of the Companies Act, 2013 read with Rule
13 of the Companies (Accounts) Rules, 2014, the Company has an Internal Audit System that
commensurate with the size and nature of its business.
(b) The Internal Audit Reports of the company issued till date of the audit report, for
the period under audit have been considered by us.
(xv) In our opinion and according to the information and explanations given to us, the
Company has not entered into any non-cash transactions with its directors or persons
connected to its directors and hence, provisions of Section 192 of the Companies Act, 2013
are not applicable to the Company.
(xvi) (a) The Company is not required to be registered under Section 45-IA of the
Reserve Bank of India Act, 1934.
Accordingly, clause 3(xvi)(a) of the Order is not applicable.
(b) The Company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934. Accordingly, clause 3(xvi)(b) of the Order is not applicable.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India. Accordingly, clause 3(xvi)(c) of the Order is not
applicable.
(d) According to the information and explanations provided to us during the course of
the audit, the Group does not have any CIC. Accordingly, the requirements of clause
3(xvi)(d) are not applicable.
(xvii) The Company has not incurred cash losses in the current and in the immediately
preceding financial year.
(xviii) The Statutory Auditor for previous financial year has resigned and there are no
objections or concerns raised by the outgoing auditor.
(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 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, nothing has come to our attention, which causes
us to believe that any material uncertainty exists as on the date of the audit report that
the Company is not capable of meeting its liabilities existing at the date of balance
sheet as and when they fall due within a period of one year from the balance sheet date.
We, however, state that this is not an assurance as to the future viability of the
Company. We further state that our reporting is based on the facts 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) In our opinion and according to the information and explanations given to us,
there is no unspent amount under sub-section (5) of Section 135 of the Companies Act, 2013
pursuant to any project. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the Order are not
applicable.
(xxi) The requirements of reporting on consolidated financial statements are not
applicable to the Company. Accordingly, the requirements of clause 3(xxi) are not
applicable.
For M/S. SHARP AARTH & CO LLP
Chartered Accountants
FRN: 132748W / W100823
CA Praveen Purohit
Partner
Membership No.: 429231
UDIN:23429231BGXFEU7707
Place: Nashik
Date: May 15, 2023
Annexure B to the Independent Auditors Report
(Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
(Referred to in paragraph 2(A)(f) under Report on Other Legal and Regulatory
Requirements section of our report of even date)
Opinion
We have audited the internal financial controls over financial reporting of M/s.
Lakhotia Polyesters (India) 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.
In our opinion, to the best of our information and according to the explanations given
to us, the Company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at 31st March, 2023, based on the criteria for
internal financial control over financial reporting established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting issued by the Institute of Chartered
Accountants of India.
Managements and Board of Directors Responsibility for Internal Financial Controls
The Companys management and the Board of Directors 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 Financial Controls over
Financial Reporting 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.
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, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, 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 Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls 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 control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting with reference to standalone financial statements.
Meaning of Internal Financial Controls with Reference to Standalone Financial
Statements
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with 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 with Reference to Standalone
Financial Statements
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
For M/S. SHARP AARTH & CO LLP
Chartered Accountants
FRN: 132748W / W100823
CA Praveen Purohit
Partner
Membership No.: 429231
UDIN:23429231BGXFEU7707
Place: Nashik
Date: May 15, 2023.
+91-9892691696
