To the Members of Mauria Udyog Limited
Report on the Audit of the Ind AS Financial Statements
Qualified Opinion
We have audited the accompanying Ind AS financial statements of Mauria Udyog Limited
("the Company"), which comprise the Balance Sheet as at March 31, 2021, the
Statement of Profit and Loss (including Other Comprehensive Income), the Statement of
Changes in Equity and the Statement of Cash Flows for the year then ended and notes to the
Ind AS financial statements including a summary of significant accounting policies and
other explanatory information (hereinafter referred to as "Ind AS Financial
Statements").
In our opinion and to the best of our information and according to the explanations
given to us, except for the possible effects of the matter described in the Basis for
Qualified Opinion section of our report, the aforesaid Ind AS 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 accounting principles
generally accepted in India including Indian Accounting Standards ("Ind AS ), of the
state of affairs of the Company as at March 31, 2021, its loss including other
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Qualified Opinion
I. The Company has defaulted in repayment of its borrowing taken from various banks/
NBFCs and accordingly these loans have been classified as Non-Performing Assets (NPAs) by
the respective banks/ NBFCs. The Company has not been recognising interest on such loans
from the date of NPA classification by respective banks/ NBFCs. The amount of interest
expenses cannot be ascertained. Further, the balances of borrowings are subject to
confirmation from the respective banks/ NBFCs.
II. The Company has classified its investments in unquoted equity shares of other
entities to be Fair Valued through other comprehensive income (FVTOCI). However, it has
not obtained/ carried out fair valuation of such unquoted equity shares. The Company has
measured investments in unquoted equity shares based on Net Asset Value of such equity
shares as at 31 March 2020 wherever the financial statements of such entities are
available as on such date. The impact of fair valuation cannot be ascertained.
III. The Company has not used expected credit loss model to assess the impairment loss
or gain on trade receivables as required by Ind AS 109 "Financial Instruments. The
impact of such non-compliance cannot be ascertained. However, the Company has made a
provision of Rs. 7,494.41 Lacs against doubtful trade receivables in the current financial
year.
IV. The Company had entered into certain transactions with Amrapali Group of Companies
in past years. In consequent to which forensic audit was conducted as per the Directions
of Honble Supreme Court of India to look into transactions between Amrapali Group of
Companies and Sureka Group of Companies. After which the Honble Supreme Court vide its
order No. Writ Petition{s}(Civil) No. 940/2017 dated 2 December 2019 had directed M/s
Jotindra Steel & Tubes Limited and Mauria Udyog Limited including associated companies
and Directors viz Mr. Navneet Kumar Sureka and Mr. Akhil Kumar Sureka to deposit Rs.
16,700.00 Lacs. In response to the order of the Honble Supreme Court, it had filed an
application on 9 December 2019 before the Honble Supreme Court to accept the Title deeds
of immoveable properties belonging to Sureka family members and associate companies (based
on latest valuation report) worth amounting Rs. 16,897.00 Lacs net off incumbency amount
of Rs. 3,934.00 Lacs including Properties amounting Rs. 10,182.00 Lacs belonging to Mauria
Udyog Limited.
In the previous financial year 2019-20, the Company has charged Rs. 1,500.00 Lacs in
the Statement of Profit and Loss against the above matter on an estimated basis and
reduced the value of properties (property which is deposited to Honble Supreme Court).
The Company has neither provided for liability against this matter, nor any amount has
been shown as contingent liability as required by Ind AS 37 "Provisions, Contingent
Liabilities and Contingent Assets".
We conducted our audit in accordance with Standards on Auditing (SAs) specified under
section 143(10) of the Act. Our responsibilities under those Standards are further
described in the Auditors Responsibilities for the Audit of the 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
("ICAI") together with the ethical requirements that are relevant to our audit
of the Ind AS financial statements under the provisions of the Act and Rules thereunder
and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our qualified opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the Ind AS financial statements of the current period. These
matters were addressed in the context of our audit of the Ind AS 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.
| Key Audit Matters |
How our audit addressed the key audit matter |
| Loss allowance for Trade receivables (refer note 1 (v) of Note 13 to the accompanying
financial statements and point iii of Basis for Qualified Opinion para) |
Our audit procedures included the following: |
| The Company has trade receivables of Rs. 17,270.11 lacs as at 31 March 2021 (net of
impairment loss of Rs 7,494.41 lacs). During the year, the Company has recorded a charge
of Rs 7,494.41 lacs towards provision for doubtful debts for such trade receivables. |
• Understanding the trade receivables process with regards to valuation and
testing of controls designed and implemented by the management. |
| Owing to the nature of operations of the Company and related customer profiles, the
Company has significant long standing trade receivable balances, for which appropriate
loss allowance is required to be created for expected credit losses using simplified
approach in accordance with the requirements of Ind AS 109, Financial Instruments,
measuring the loss allowance equal to lifetime expected credit losses. |
• Testing the accuracy of ageing of trade receivables at year end on sample
basis. |
| For the purpose of expected credit loss assessment of trade receivables, significant
judgment is required by the management to estimate the timing and amount of realization of
these receivables basis the past history, customer profiles, and consideration of other
internal and external sources of information, including the impact of COVID 19 pandemic in
aforesaid estimates. |
• Obtained a list of outstanding receivables, with the identified significant
long outstanding receivables, and discussed plan of recovery lifetime with management. |
| Considering the significant judgement involved, increased complexities due to the
pandemic, high estimation uncertainty and materiality of the amounts involved, we have
identified loss allowance on trade receivables as a key audit matter for current year
audit. |
• Circularized balance confirmations to a sample of trade receivables and
reviewed the reconciling items, if any. |
|
• Verified the appropriateness of judgments regarding provisions for trade
receivables and assess as to whether these provisions were calculated in accordance with
the Companys provisioning policies. |
|
• Tested subsequent settlement of trade receivables after the balance sheet date
on a sample basis, as applicable. |
|
• Verified the related disclosures made in notes to the financial statements in
accordance with Ind AS 115 and Ind AS 109. |
|
• The Company has not used expected credit loss model to assess the impairment
loss or gain on trade receivables as required by Ind AS 109 "Financial
Instruments". |
| Litigation, Claims and Contingent Liabilities (Refer Notes 39, read along with point
iv of Basis for Qualified Opinion paragraph in Independent Auditors Report to the Ind AS
financial statements) |
Principal audit procedures performed: |
| The Company is exposed to a variety of different laws, regulations and interpretations
thereof which encompasses indirect taxation and legal matters. In the normal course of
business, provisions and contingent liabilities may arise from legal proceedings,
including regulatory and other Governmental proceedings, constructive obligations as well
as investigations by authorities and commercial claims. |
• We understood the processes, evaluated the design and implementation of
controls and tested the operating effectiveness of the Companys controls over the
recording and reassessment of uncertain legal positions, claims and contingent
liabilities. |
| Based on the nature of regulatory and legal cases management applies significant
judgement when considering whether, and how much, to provide for the potential exposure of
each matter. These estimates could change substantially over time as new facts emerge as
each legal case or matters progresses. |
• We held discussions with senior management including the person responsible for
legal and compliance to obtain an understanding of the factors considered by management in
classification of the matter as probable, possible and remote; |
| Given the different views, possible basis the interpretations, complexity and the
magnitude of the potential exposures, and the judgement necessary to determine required
disclosures, this is a key audit matter. |
• Examined the Companys legal expenses on sample basis and read the minutes of
the board meetings and the legal compliance committee in order to ensure completeness. |
|
• We read the correspondence from Court authorities and considered legal opinion
obtained by the Management from external law firms to evaluate the basis used for
provisions recognised or the disclosures made in the Ind AS financial statements. |
|
• We also obtained direct legal confirmations for significant matters from the
law firms handling such matters to corroborate managements conclusions. |
|
• For those matters where Management concluded that no provision should be
recorded, we also considered the adequacy and completeness of the Companys disclosures
made in relation to contingent liabilities. |
Emphasis of Matter
We draw attention to note 53 to the Statement, which describes the uncertainties
relating to COVID- 19 pandemic outbreak and managements evaluation of its impact on the
operations of the Company and accompanying Statement as at and for the year ended 31 March
2021, the extent of which is significantly dependent on future developments as they
evolve.
Our opinion is not modified in respect of this matter.
Responsibilities of Management and Those Charged with Governance for the Ind AS
Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these Ind AS 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 accounting principles generally accepted in India, including Ind AS specified
under section 133 of the Act, read with relevant rules issued thereunder 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 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, management is responsible for assessing
the Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the 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 this 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 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 with reference to Ind AS financial statements 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 management’s 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 Ind AS 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.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the Ind AS 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.
Other Matter
The Ind AS financial statements of the Company for the year ended 31 March 2020 were
audited by another auditor, M/s LK Bohania & Co. - Chartered Accountants, who have
expressed a qualified opinion on those Ind AS financial statements vide their audit report
dated 4 September 2020.
Report on Other Legal and Regulatory Requirements
(1) 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 of the Act.
(2) As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government of India in terms of section 143(11) of the Act, we give
in "Annexure 1", a statement on the matters specified in paragraphs 3 and 4 of
the Order, to the extent applicable.
(3) 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, and the Statement of Cash Flows
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 Ind AS
specified under section 133 of the Act read with relevant rules issued thereunder except
for the matters described in Basis for Qualified Opinion paragraph;
e) the matters described in Basis for Qualified Opinion & Emphasis of Matter
paragraphs, in our opinion, may have an adverse effect on the functioning of the Company;
f) On the basis of the written representations received from the directors as on March
31, 2021, and taken on record by the Board of Directors, none of the directors is
disqualified as on March 31, 2021 from being appointed as a director in terms of section
164(2) of the Act;
g) With respect to the adequacy of the internal financial controls with reference to
Ind AS financial statements of the Company and the operating effectiveness of such
controls, we give our separate report in "Annexure 2".
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, 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 55 to the Ind AS financial statements, has
disclosed the impact of pending litigations on its financial position as at March 31,
2021;
ii. The Company did not have any long-term contracts including derivative contracts.
Hence, the question of any material foreseeable losses does not arise;
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
Annexure 1lto!the Independent Auditors Report
[Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements
in the Independent Auditors Report of even date to the members of Mauria Udyog Limited on
the Ind AS financial statements for the year ended March 31, 2021.]
(i) (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of the fixed assets
which, in our opinion, is reasonable having regard to the size of the Company and the
nature of its assets. However, during the year, fixed assets have not been physically
verified by the management as per the programme of verification.
(c) The title deeds of immovable properties recorded in the books of account of the
Company are held in the name of the Company except for the details given below:
| Land/ Building |
Total number of cases |
Leasehold/ Freehold |
Gross Block as at March 31, 2021 |
Net Block as at March 31, 2021 |
Remarks |
| Land |
2 |
Freehold |
8,681.90 Lacs |
8,681.90 Lacs |
Refer Note No. 9 of accompanying Ind AS Financial Statements |
| Land |
1 |
Freehold |
54.00 Lacs |
54.00 Lacs |
Not registered in the name of the Company |
| Building |
1 |
Leasehold |
336.40 Lacs |
293.06 Lacs |
Not registered in the name of the Company |
(ii) The inventory has been physically verified by the management during the year. In
our opinion, the
frequency of verification is reasonable. As informed, no material discrepancies were
noticed on physical verification carried out during the year.
(jjj) According to the information and explanations given to us, the Company has
granted unsecured
loans to companies, firms, Limited Liability Partnerships or other parties covered in
the register maintained under Section 189 of the Act.
(a) 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 terms and conditions of the
aforesaid loans granted by the Company are not prejudicial to the interest of the Company.
1 (b) The schedbte of repayment of principal in respect of such loans has not
been stipulated thus we are unable to comment whether the repayments are regular and
report amounts overdue for more than ninety days, if any, as required under paragraph
3(iii)(c) of the Order.
(iv) Based on information and explanation given to us in respect of loans, investments,
guarantees and securities, the Company has complied with the provisions of section 185 and
186 of the Act.
(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 provisions of Sections 73
to 76 of the Act and the rules framed there under.
(vi) We have broadly reviewed the books of accounts maintained by the Company in
respect of products where the maintenance of cost records has been specified by the
Central Government under sub-section (1) of Section 148 of the Act and the rules framed
there under and we are of the opinion that prima facie, the prescribed accounts and
records have been made and maintained. We have, however, not made a detailed examination
of the records with a view to determine whether they are accurate or complete.
(vii) (a) The Company is not regular in depositing with appropriate authorities,
undisputed statutory dues including provident fund, employees state insurance, income
tax, sales tax, service tax, value added tax, customs duty, excise duty, cess and any
other material statutory dues applicable to it, and there have been serious delays in a
large number of cases.
According to the information and explanations given to us, undisputed dues in respect
of provident fund, employees state insurance, income tax, sales tax, service tax, value
added tax, customs duty, excise duty, cess and any other material statutory dues
applicable to it, which were outstanding, at the year-end for a period of more than six
months from the date they became payable are as follows:
| Name of the statute |
Nature of the dues |
Amount (Rs. In Lacs) |
Period to which the amount relates |
Due Date |
Date of Payment |
| The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 |
Provident Fund |
3.28 |
2019-20 |
Various dates |
Various dates |
| The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 |
Provident Fund |
5.07 |
2019-20 |
Various dates |
Not yet paid |
| The Employees Provident Funds and Miscellaneous Provisions Act, 1952 |
Provident Fund |
4.99 |
2020-21 |
Various dates |
Various dates |
| State Insurance Act, 1948 |
Employee State Insurance |
6.37 |
2019-20 |
Various dates |
Various dates |
| Employees’ State Insurance Act, 1948 |
Employee State Insurance |
1.29 |
2019-20 |
Various dates |
Not yet paid |
| Employees State Insurance Act, 1948 |
Employee State Insurance |
1.90 |
2020-21 |
Various dates |
Not yet paid |
| Labour Welfare Fund |
Labour Welfare Fund |
1.43 |
2018-19 |
January 15, 2019 |
Various dates |
| Labour Welfare Fund |
Labour Welfare Fund |
0.41 |
2019-20 |
January 15, 2020 |
Various dates |
| Labour Welfare Fund |
Labour Welfare Fund |
0.20 |
2019-20 |
January 15, 2020 |
Not yet paid |
(b) According to the information and explanation given to us, there are no dues with
respect to income tax, sales tax, service tax, value added tax, customs duty, excise duty,
which have not been deposited on account of any dispute.
(viii) According to the information and explanations given to us, the Company has
defaulted in repayment of loans to banks and financial institutions during the year. The
details of which is as follows.
| Bank/Financial Institution Name |
Amount |
Period of Delay |
|
(Rs. In Lacs) |
|
| Deewan Housing Finance Limited |
326.27 |
1 -22 months |
| Housing Development Finance Limited |
453.45 |
1-20 months |
| Kotak Mahindra Bank Limited |
435.11 |
1-17 months |
| Total |
1,214.83 |
|
In addition to above during the year, there were defaults aggregating Rs. 115.42 Lacs
which were made good through payments. Further, there are no dues in respect of debenture
holders.
(ix) Based upon the audit procedure performed and the information and explanations
given by the management, the Company has not raised money by way of initial public offer
or further public offer including debt instruments and term loans. Accordingly, the
provisions of clause 3 (ix) of the order are not applicable to the Company.
(x) 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 fraud by the Company or any fraud on the Company by its officers or employees,
noticed or reported during the year, nor have we been informed of any such instance by the
management.
: (k&d / According to the information and explanations given to us, managerial
remuneration has been paid in accordance with the requisite approvals mandated by the
provisions of Section 197 read with Schedule V to the Act.
(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 to the Company.
(xiii) According to the information and explanation given to us, all transactions
entered into by the Company with the related parties are in compliance with Sections 177
and 188 of Act, where applicable and the details have been disclosed in the Financial
Statements etc., as required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement of
shares or fully or partly convertible debentures during the year under review.
Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us, the Company has not
entered into any non-cash transactions with directors or persons connected with him.
(xvi) According to the information and explanation given to us the Company is not
required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Annexure 2 to the Independent Auditors Report
[Referred to in paragraph 2 under Report on Other Legal and Regulatory Requirements
in the Independent Auditors Report of even date to the members of Mauria Udyog Limited
(on the Ind AS financial statements for the year ended March 31, 2021]
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Mauria
Udyog Limited ("the Company") as of March 31, 2021 in conjunction with our audit
of the Ind AS financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India ("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 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 specified under section
143(10) of the Act to the extent applicable to an audit of internal financial controls,
both issued by the ICAI. 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 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 opinion on the Companys internal financial controls system over
financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company’s 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 company’s assets that could have
a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting with reference to Ind AS financial
statements and such internal financial controls over financial reporting with reference to
financial statements were operating effectively as at March 31, 2021, 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 ICAI.
+91-9892691696
