To the Members,
Natraj Proteins Limited
ITARSI (M.P.)
Report on the audit of the Standalone Financial Statements:
We have audited the accompanying Standalone Ind AS Financial Statements
of Natraj Proteins Limited, (the Company) which comprises the Balance Sheet as at March
31, 2023 and 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 ended as on
that date, and notes to the standalone financial statements including a summary of
significant accounting policies and other explanatory notes for the year ended as on that
date.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid Standalone Financial Statements gives the
information required by the Companies Act 2013("the Act") in the manner so
required and gives a true and fair view in conformity with the Indian Accounting Standards
prescribed under section 133 of the Act read with the Companies ( Indian Accounting
Standards Rules 2015, as amended (IND AS) and other accounting principles generally
accepted in India of the state of affairs of the company as on 31stMarch 2023 and its
Profit, Changes in equity and its Cash Flows for the year ended as on that date.
BASIS FOR OPINION
We conducted our audit of the standalone financial statements in
accordance with the Standards on Auditing (SA) 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 standalone 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) Nataj together with the ethical
requirements that are relevant to our audit of the standalone 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 ICAIs Code of
Ethics. We believe that the audit evidence that is obtained by us, is sufficient and
appropriate to provide a basis of our audit opinion on the standalone financial
statements.
Information Other than the Financial Statements and Auditors
Report Thereon
The Companys Board of Directors is responsible for the other
information. The other information comprises the information included in the Board s
Report including Annexure to Boards Report and Shareholders Information, Management
Discussion and Analysis Report and report on corporate governance, but does not include
the financial statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other
information and we do not express any form of assurance conclusion thereon. In connection
with our audit of the financial statements, our responsibility is to read the other
information identified above when it becomes available and, in doing so, consider whether
the other information materially inconsistent with the financial statements or our
knowledge obtained during the course of our audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information; we are required to report that fact. We have
nothing to report in this regard.
Responsibility of Management for the 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 specified under
section 133 of the Act. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the
assets of the company and for preventing and detecting frauds and other irregularities:
selection and application of appropriate implementation and maintenance accounting
policies: making judgments and estimates that are reasonable and prudent : and the 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 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 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 Financial Statements:
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional skepticism 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 ofNinternalt financial control relevant to the
audit in order to design audit procedures that j are appropriate in the circumstances.
Under section 143(3)(i) of the Companies Act, 2013, 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 standalone 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
standalone financial statements, including the disclosures, and whether the standalone
financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone
financial statements that, individually or in aggregate, makes it probable that the
economic decisions of a reasonably knowledgeable user of the standalone 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.
(ii) to evaluate the effect of any identified misstatements in the standalone 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 standalone
financial statements of the current period and therefore the key audit matters. We
describe these matters in our auditors report unless law or regulation precludes public
disclosure about the matters or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequence of doing
so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 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,as a statement on the maters specified
in paragraphs 3 and 4 of the order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the purpose of our audit.
(b) In our opinion proper books of accounts 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, Statement of Profit and Loss (including other
comprehensive income), the statement of Changes in the Equity and the statement of Cash
Flow dealt with by this Report are in agreement with the relevant books of account.
(d) In our opinion, the aforesaid Financial Statements comply with the
Indian Accounting Standards specified under section 133 of the Act. (e) On the basis of
written representations received from the directors as on March 31, 2023, and taken on
record by the Board of Directors, none of the directors are disqualified as on March 31,
2023, from being appointed as a director in terms of section 164(2) of the Act.
(f) With respect to adequacy of the internal financial controls over
financial reporting of the Company and operating effectiveness of such controls, refer our
separate report in Annexure B to this report. Our report expresses an unmodified opinion
on the adequacy and operating effectiveness of the Companys internal financial controls
over financial reporting.
(g) With respect to the other matters to be included in the Auditors
Report in accordance with requirements of section 197(16) of the Act, as amended,
In our opinion and to the best of our information and according to the
explanations given to us, the remuneration paid by the Company to its directors during the
year is in accordance with the provisions of Section 197 of the Act.
(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 has disclosed the impact of pending litigations on its
financial position in its Ind AS Financial Statements as on 31/03/2023. Refer to Note No
30B (4)to the Financial Statements.
ii. The company did not have any long term contract 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. (a) 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 kinds of funds) by the company to
or in any other person(s) or entities, including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing
otherwise, that the intermediary shall, directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the company
("Ultimate beneficiaries")or provide any guarantee, security or the like on
behalf of the Ultimate beneficiaries.
(b) The management has represented that, to the best of its knowledge
and belief, no funds have been received by the company from the any persons or entities,
including foreign entities ("funding 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 by or on behalf of
the funding parties (" Ultimate Beneficiaries") or provide any guarantee,
security or like on behalf of the Ultimate beneficiaries.
(c) Based on such audit procedures that have been considered reasonable
and appropriate in the circumstances, nothing has come to our notice that has caused to us
to believe that the representations under sub clause (i) and (ii) of the Rule 11 (e), as
provided above contains any material mis- statement.
v. The company has neither declared dividend nor paid any dividend
during the year.
vi. The requirement of having accounting software by the company for
maintaining its books of account which has a feature of recording audit trial is not
applicable, as the same has been extended to 01 April 2023.
For BHUTORIA GANESAN & CO
ICAI Firm Reg No:004465C
Chartered Accountants
(CA .R .GOKULAKRISHNAN) Natraj PARTNER
M.NO 402792
UDIN: 23402792BGYXRQ3869
Place: Bhopal
Date: 30.05.2023
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
[Referred to in paragraph 1 under ‘Report on Other Legal and
Regulatory Requirements in the Independent Auditor Report of even date to the
members of NATRAJ PROTEINS LTD ("The Company") on the financial statements for
the year ended March 31, 2023]
To the best of our information and according to the explanations
provided to us by the Company and the books of accounts and records examined by us in the
normal course of audit, we state that:
(I) (a) (I) The company has maintained proper records showing full
particulars, including quantitative details and situation of Property, Plant and
Equipment.
(a) (ii) The company has maintained proper records showing full
particulars of intangible assets.
(b) The company has a regular program of physical verification of its
fixed assets under which fixed assets are verified in phased manner over a period of three
years, which in our opinion, is reasonable having regard to the size of the company and
the nature of its assets. In accordance with this program, certain fixed assets were
verified during the year and according to the information and explanation given to us, no
material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the
records examined by us and based on the examination of the registered sale deed/ transfer
deed/ conveyance deed provided to us, we report that, the title deeds of all the immovable
properties (which are included under the head ‘Property, Plant and Equipment) (
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) The company has not revalued any of its property, plant and
equipment and intangible assets during the year. Accordingly, the provisions of clause
2(i)(d) of the Order are not applicable.
(e) According to the information and explanation given to us and on the
basis of our examination of the records of the company, there are no proceedings which
have been initiated or pending against the company as at 31st March,2023 for holding any
benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016)
and rules made there under. Accordingly, the provisions of clause 3(i)(e) of the Order are
not applicable.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year. The procedures of physical verification
of inventory followed by the management, in our opinion, is reasonable and adequate in
relation to the size of the company and the nature of its business. The company is
maintaining proper records of inventory and no discrepancies exceeding 10% or more in the
aggregate for each class of inventory between physical inventory and book records were
noticed on physical verification.
(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 been
sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks
or financial institutions on the basis of security of current assets. In our opinion, the
quarterly returns or statements filed by the Company with such banks or financial
institutions are in agreement with the books of account of the company.
(iii) 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
investments, provided guarantee or security or granted any loans or advances in the nature
of loans, securedN taj or unsecured, to companies, firms limited liability partnerships or
any other parties during the year. Accordingly, provisions of clause 3 (iii) (a) (A&B)
and 3 (iii)(b,c,d,e&f) of the Order are not applicable to the Company.
(iv) According to the information and explanations given to us and on
the basis of our examination of records of the Company, the Company has neither made any
investments nor has it given loans or provided guarantee or security during the year and
therefore the relevant provisions of sections 185 and 186 of the Companies Act, 2013
("the Act") are not applicable to the Company. Accordingly, Clause 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 during the year, had no unclaimed
deposits at the beginning of the year and there are no amounts which are deemed to be
deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance
of Deposits) Rules, 2014 (as amended). Accordingly, clause 3 (v) of the order is not
applicable.
(vi) We have broadly reviewed the books of account maintained by the
company pursuant to rules made by the Central Government for the maintenance of cost
records under section 148(1) of the Companies Act 2013and we are of the opinion that prima
facie, the prescribed accounts and records have been made and maintained. However, We have
not carried out a detailed examination of the records with a view to determining whether
they are accurate or complete.
(vii) (a) According to the information and explanations given to us,
during the year the company generally been regular in depositing undisputed statutory dues
including GST, provident fund, income-tax, sales tax, service tax, Duty of customs, Duty
of Excise , value added tax, Cess, Electricity Duty and any other material statutory dues
with the appropriate authorities to the extent applicable to it with the appropriate
authorities.
According to the information and explanations given to us, there were
no undisputed amounts payable in respect of provident fund, income tax, sales tax, value
added tax, GST, duty of customs, service tax, cess, electricity duty and other material
statutory dues were in arrears as on 31st March 2022 for a period of more than six months
from the date they became payable.
(b) According to the information and explanations given to us, and as
per the records of the company, there are no material dues which have not been deposited
with the appropriate authorities on account of any dispute. However, according to
information and explanations given to us, the following dues of income tax, VAT and cess
which have not been deposited on account of dispute are given below:
| Name of the Statue |
Nature of the dues |
Amount (Rs. in lakhs) |
Year to which it pertains |
Forum at which case is pending |
| Income Tax Act 1961 |
IncomeTax |
15.90 |
1994-95 |
Before Settlement/ Commission Petition filed
before MP High Court Jabalpur for stay. MP Commercial Appellate Board, Bhopal |
|
|
|
1995-96 |
|
|
|
|
1996-97 |
|
| MP VAT Act 2002 |
VAT |
5.05 |
2006-07 |
|
| Income Tax Act 1961 |
Income Tax |
0.73 |
AY 2021-2022 |
CPC |
| Income Tax Act 1961 |
Income Tax |
0.70 |
2004-2005 |
CPC |
| Income Tax Act 1961 |
Income Tax |
0.37 |
AY 2006-2007 |
Assistant Commissioner of Income Tax 1(1),
Bhopal |
| Income Tax Act 1961 |
Income Tax |
26.88 |
AY 2013-2014 |
Vivad Se Vishwas Scheme/ACIT, Circle- Itarsi |
| Income Tax Act 1961 |
Income Tax |
0.82 |
AY 2018-2019 |
CPC |
| Income Tax Act 1961 N Income Tax |
traj 0.03 |
AY 2010-2011 |
CPC |
|
| Income Tax Act 1961 |
Income Tax |
0.17 |
AY 2018-2019 |
CPC |
(viii) In our opinion and according to the information and explanations
given to us, there are no such transactions which were not recorded in the books of
account earlier and have been surrendered or disclosed as income during the year in the
tax assessments under the Income Tax Act, 1961 (43 of 1961). Accordingly, the provisions
of Clause 3(viii) of the Order are not applicable.
(ix) (a) In our opinion and according to the information and
explanations given to us, the Company has not defaulted in repayment of loans or other
borrowings or in the payment of interest thereon to any lender.
(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
declared a willful defaulter by any bank or financial institution or government or
government authority.
(c) In our opinion and according to the information and explanations
given to us by the management, the term loans were applied for the purpose for which the
loans were obtained.
(d) According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that no funds raised on
short term basis have been used for long term purposes by the Company.
(e) According to the information and explanations given to us, since
the Company does not have subsidiaries, associates or joint ventures. Accordingly, the
provisions of clause 3(ix)(e) of the Order are not applicable.
(f) According to the information and explanations given to us, since
the Company does not have subsidiaries, associates or joint ventures. Accordingly, the
provisions of clause 3(ix)(f) of the Order are not applicable.
(x) (a) The Company did not raise any money by way of initial public
offer or further public offer (including debt instruments) during the year were applied
for the purpose for which those are raised during the year. Accordingly, paragraph 3
(X)(a) of the Order is not applicable.
(b) During the year, the company has not made any preferential
allotment or private placement of shares or convertible debenture (fully or partly or
optionally) and hence reporting under clause 3(X)(b) of the order is not applicable.
(xi) (a) Based on our audit procedures performed, and according to the
information and explanations given by the management to us, no fraud by the Company or on
the Company has been noticed or reported during the period covered by our audit.
(b) In our opinion and according to the information and explanations
given to us, no report under sub section 12 of section 143 of Companies Act has been filed
in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government, during the year and upto the date of this report.
Accordingly, the provisions of clause 3(xi) (b) of the Order are not applicable.
(c) As represented to us by the management, there are no whistle blower
complaints received by the Company during the year.
(xii) According to the information and explanations given to us, the
Company is not a Nidhi company. Accordingly, paragraph 3(xii) (a,b,c) of the Order is not
applicable.
(xiii) In our opinion and according to the information and explanations
given to us and based on our examination of the records of the Company, the transactions
with the related parties are in compliance with sections 177 and 188 of the Act where
applicable and details of such transactions have been disclosed in the notes to the
financial statements as required by the applicable accounting standards.
(xiv) (a) Based on information and explanations provided to us and our
audit procedures, in our opinion, the company has an Internal audit system commensurate
with the size and nature of its business.
(b) We have considered the internal audit reports of the Company issued
till date for the period under audit. N traj (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 as per section 192 of Companies Act. Accordingly, paragraph 3(xv) of the Order is
not applicable.
(xvi) (a) In our opinion, the Company is not required to be registered
under section 45-IA of the Reserve Bank of India Act 1934. (2 of 1934). Hence reporting
under clause 3(xvi)(a & b) of the order is not applicable.
(b) The Company is not a core investment Company (CIC) within the group
(as defined in the core investment companies (Reserve Bank) Directions, 2016) and
accordingly reporting under clause 3(xvi)(c & d )of the order is not applicable.
(xvii) The company has not incurred cash losses in the financial year
and in the immediately preceding financial year. Accordingly, provisions of clause 3(xvii)
of the Order are not applicable.
(xviii) There has been no resignation of the statutory auditors of the
company during the year, Accordingly, provisions of clause 3 (xviii) of the order are 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 realisations of financial
assets and payment of financial liabilities, other information accompanying the financial
statements and 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, is causes us to believe that any material uncertainty exists as on the date of
the audit report indicating 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 upto the date 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) The Company does not have any projects other than ongoing
projects towards Corporate Social Responsibility (CSR), and therefore, there are no
unspent CSR amount for the year requiring a transfer to a Fund specified in Schedule VII
to the Companies Act, 2013 within a period of six months of the expiry of the financial
year in compliance with section 135(5) of the said Act. Accordingly, reporting under
clause (xx)(a) of the Order is not applicable for the year.
(b) In respect of ongoing projects, the Company has transferred unspent
Corporate Social Responsibility (CSR) amount, to a Special account before the date of this
report and within a period of 30 days from the end of the financial year in compliance
with the provisions of Section 135(6) of the Act.
(xxi) There is no consolidation of financial statements, accordingly
reporting under clause 3(xxi) is not applicable.
For BHUTORIA GANESAN & CO ICAI Firm Reg No:004465C Chartered
Accountants
(CA .R .GOKULAKRISHNAN)
PARTNER
M.NO 402792
UDIN: 23402792BGYXRQ3869
Place: Bhopal
Date: 30.05.2023
Natraj ANNEXURE :B TO THE INDEPENDENT AUDITORS REPORT
[Referred to in paragraph 2(f) under ‘Report on Other Legal and
Regulatory Requirements in the Independent Auditors Report of even date to the
members of NATRAJ PROTIENS LIMITED on the Financial Statements for the year ended March
31, 2023]
Report on the Internal Financial Controls 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 NATRAJ PROTEINS LIMITED ("the Company") as of 31 March 2023 in
conjunction with our audit of the Standalone 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 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.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting and 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 Over Financial
Reporting N r j
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 control over
financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, 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 31 March 2023, 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.
For BHUTORIA GANESAN & CO ICAI Firm Reg No:004465C Chartered
Accountants
(CA .R .GOKULAKRISHNAN)
PARTNER
M.NO 402792
UDIN: 23402792BGYXRQ3869
Place: Bhopal
Date: 30.05.2023
+91-9892691696
