on Standalone Financial Statements Report on the Audit of the Financial Statements
Qualified
Opinion
We have audited the Standalone financial statements of Oasis Tradelink Limited (in
Liquidation) (“the Company”), which comprise the balance sheet as at 31st March,
2023, and the statement of profit and loss, for the year then ended, the statement of
changes in equity and the statement of cash flows for the year 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, except for the possible effects of matter described in the Basis of Qualified
Opinion paragraph the aforesaid financial statements give the information required by the
Companies Act, 2013 in the manner so required and give a true and fair view in conformity
with the Ind AS and accounting principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2023, and its Loss and its cash flows for the year
ended on that date.
Basis for Qualified Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules there
under, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the Code of Ethics.
We draw attention to:
a. The suspended board has not given the reasonable justifications regarding the fixed
assets they have written off in the last financial year. Moreover in case of sale of Fixed
Assets, the determination of fair value on the date of sale is not determined. The effects
in both cases are not in compliance of IND AS and accordingly we are not able to comment
on the consequential effect, if any, on the Financial Statements. The qualification is
mentioned in the last audit report dated 31.10.2019. Further, the Liquidator had filed an
application with Honble NCLT, Ahmedabad Bench under section 43, 66, 68 and 74 of the
Insolvency and Bankruptcy Code, 2016 in this regard.
b. The receivables from GST and VAT have been written off during the year as due to
deflated sales in the GST returns (being part of forensic report findings) the receivables
in the books of account stands inflated and there has been claims from the State Tax
Department regarding the same and has been considered good. The State Tax Department has
submitted claim of Rs. 59,68,184/- during the corporate insolvency process of the
Corporate Debtor.
c. The receivables from GST has been written off during the year as there is difference
in GST credit in books and at GST online portal as mentioned in the forensic audit. There
is difference in sales value as submitted by the Corporate Debtor in forms GSTR 3B and
GSTR 1 and the sales data available from tally. The Corporate Debtor has deflated in the
GST returns by Rs. 20,01,41, 651.The Liquidator has filed an application u/s 66,43 of
Insolvency and Bankruptcy Code, 2016 covering the above findings.
d. There is no reasonable justification provided by the suspended board regarding the
writing off the inventories at the year end and they are not in conformity of IND AS. The
company does not possess any Inventories. Accordingly we are not able to comment on the
consequential effect, if any, on the Financial Statements. The qualification is mentioned
in the last audit report dated 31.10.2019
Material Uncertainty regarding Going Concern:
Details of ongoing litigations in the matter of Oasis Tradelink Limited (In
Liquidation) are as under:
1. Application was filed by the Resolution Professional (now Liquidator) for seeking
appropriate orders/directions to the Suspended Boards under CIRP, under section 19(2) of
the Insolvency and Bankruptcy Code, 2016
2. Application has been filed by the Liquidator for seeking necessary directions
against respondents under section 43, 66 and 68 of the Insolvency and Bankruptcy Code,
2016 in the matter of Shri Ramchandra D. Choudhary Liquidator of M/s Oasis Tradelink
Limited Vs. Snehal Bharatbhai Patel & Ors.
3. Application has been filed by the Liquidator for seeking necessary directions
against respondents under section 60(5)(b), 35 and 19 of the Insolvency and Bankruptcy
Code, 2016, R/W Regulation 39 of the IBBI (Liquidation Process) Regulations, 2016 in the
matter of Shri Ramchandra D. Choudhary Liquidator of M/s Oasis Tradelink Limited Vs.
Bansal Trading Company & Ors.
4. Application has been filed by the Liquidator for seeking necessary directions
against respondents under section 60(5)(b), 35 and 19 of the Insolvency and Bankruptcy
Code, 2016, R/W Regulation 39 of the IBBI (Liquidation Process) Regulations, 2016 in the
matter of Shri Ramchandra D. Choudhary Liquidator of M/s Oasis Tradelink Limited Vs.
Marshall Multiventures (I) Pvt. Ltd. & Ors.
5. Application has been filed by the Liquidator for seeking necessary directions
against respondents under section 60(5)(b), 35 and 19 of the Insolvency and Bankruptcy
Code, 2016, R/W Regulation 39 of the IBBI (Liquidation Process) Regulations, 2016 in the
matter of Shri Ramchandra D. Choudhary Liquidator of M/s Oasis Tradelink Limited Vs. Shree
Umiya Traders & Ors.
6. Application has been filed by the Liquidator for seeking necessary directions
against respondents under section 60(5)(b), 35 and 19 of the Insolvency and Bankruptcy
Code, 2016, R/W Regulation 39 of the IBBI (Liquidation Process) Regulations, 2016 in the
matter of Shri Ramchandra D. Choudhary Liquidator of M/s Oasis Tradelink Limited Vs.
Shreenathji Enterprise
Viewing all the above events it is certain that company will be liquidated as soon as
the process of liquidation is completed and hence may not be continued as “Going
Concern”.
Other Information
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information; we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Pursuant to order dated 26-02-2019 of the Honble National Company Law Tribunal -
Ahmedabad Bench at Ahmedabad (“NCLT Order”), Corporate Insolvency Resolution
Process (“CIR Process”) has been initiated for the Company in accordance with
the provisions of the Insolvency and Bankruptcy Code, 2016, (“Code”) and related
rules and regulations issued there under with effect from 26-022019 (Corporate Insolvency
Resolution Process Commencement Date). Shri Mr. Pinakin Shah was appointed as Interim
Resolution Professional (IRP). The members of the CoC have in their first meeting
appointed Mr. Ramchandra Dallaram Choudhary by replacing the IRP. The Honble NCLT has
appointed Mr. Ramchandra Dallaram Choudhary as Resolution Professional vide order dated
13-06-2019 which was confirmed by the Board (IBBI) on 26-07-2019.
The powers of Board of Directors of the Company stand suspended effective from the CIR
Process commencement date and such powers along with the management of affairs of the
Company are vested with the Resolution professional (“RP”).The RP has relied on
the certifications, representations and statements made by the erstwhile management for
such period and is signing the Financial Statements solely for the purpose of discharging
the powers of the Board of directors which have been conferred upon him by virtue of
section 17 of the Code .
Further, Honble NCLT, Ahmedabad had on 04.12.2019 (certified order copy received on
10.01.2020), in the matter C.P. (I.B) No. 433/NCLT/AHM/2018, passed an order for
initiation of Liquidation against the Corporate Debtor, M/s. Oasis Tradelink Limited (In
liquidation). Vide the same order, Mr. Ramchandra Dallaram Choudhary have been appointed
as the Liquidator by the NCLT u/s 34(1) of the Insolvency and Bankruptcy Code, 2016 (the
Code).
The Companys Board of Directors and Liquidator are responsible for the matters stated
in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the
preparation of the financial statements for the financial year 2020-21 and 2021-22
respectively that give a true and fair view of the financial position, financial
performance, (changes in equity) and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the 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 accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional 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 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 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 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 financial
statements, including the disclosures, and whether the 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 financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditors report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 (“the Order”),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Companies Act, 2013, we give in the Annexure-A, a statement on the matters specified
in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit. However we doubt
on the reasonability of justifications provided by the management.
(b) Except for the possible effects of matters described in the Basis of Qualified
opinion paragraph above , in our opinion, proper books of account as required by the law
have been kept by the company so far as it appears form our examination of the books.
(d) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account.
(e) In our opinion, the aforesaid financial statements except for the matters described
in Basis of qualified opinion paragraph, comply with the Indian Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.
(f) With respect of adequacy of Internal Financial controls, refer to our separate
Report in Annexure B.
(g) The matters described under basis of qualified opinion and Material Uncertainty
Related to Going Concern paragraph above in our opinion may have adverse effect on
functioning of the company and on amount disclosed in Financial Statements of the Company.
(h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
ii. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company
FOR, PRAKASH TEKWANI AND ASSOCIATES CHARTERED ACCOUNTANTS
CA PRAKASH TEKWANI
(PROPRIETOR)
M. No. 108681 FIRM REG.NO 120253W
UDIN: 23108681BGSXNE1597
PLACE: AHMEDABAD DATE: 29/05/2023
“Annexure A” to the Independent Auditors Report
Referred to in paragraph 1 under the heading ‘Report on Other Legal &
Regulatory Requirement of our report of even date to the financial statements of the
Company for the year ended March 31,
2023:
1) In respect of the Companys Property, Plant and Equipment and Intangible Assets:
(a) The Company has maintained proper records showing full particulars of Property, and
Plant and Equipment and Intangible Assets.
(b) The Property, and Plant and Equipment and Intangible Assets cannot be physically
verified as they all are sold or written off during the year 2018-19. Further, the
Liquidator had filed an application with Honble NCLT, Ahmedabad Bench under section 43,
66, 68 and 74 of the Insolvency and Bankruptcy Code, 2016 in this regard.
(c) According to the information and explanations given to us, there are no immovable
properties, and accordingly, the requirements under paragraph 3(i)(c) of the Order are not
applicable to 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 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 there under.
2) The Company does not possess any inventories.
3) According to the information explanation provided to us, the Company has not made
any investments in, provided any guarantee or security or granted any loans or advances in
the nature of loans, secured or unsecured, to companies, firms, Limited Liability
Partnerships or any other parties. Hence, the requirements under paragraph 3(iii) (a) to
(f) of the Order are not applicable to the Company.
4) In our opinion and according to the information and explanations given to us, the
Company has not either directly or indirectly, granted any loan to any of its directors or
to any other person in whom the director is interested, in accordance with the provisions
of section 185 of the Act and the Company has not made investments through more than two
layers of investment companies in accordance with the provisions of section 186 of the
Act. Accordingly, provisions stated in paragraph 3(iv) of the Order are not applicable to
the Company.
5) In our opinion and according to the information and explanations given to us, the
Company has not accepted any deposits from the public within the meaning of Sections 73,
74, 75 and 76 of the Act and the rules framed there under.
6) The maintenance of cost records has not been specified by the Central Government
under sub-section (1) of section 148 of the Companies Act, 2013 for the business
activities carried out by the Company. Hence, reporting under clause (vi) of the Order is
not applicable to the Company.
7) According to the information and explanations given to us, in respect of statutory
dues:
(a) The Company has generally been regular in depositing undisputed statutory dues,
including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax,
Goods and Service Tax, Value Added Tax, Customs Duty, Excise Duty, Cess and other material
statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees
State Insurance, Income Tax, Sales Tax, Service Tax, Value Added Tax, Goods and Service
Tax, Customs Duty, Excise Duty, Cess and other material statutory dues in arrears as at 31
March , 2023 for a period of more than six months from the date they became payable.
8) According to the information and explanations given to us, there are no transactions
which are not accounted in the books of account which have been surrendered or disclosed
as income during the year in Tax Assessment of the Company. Also, there are no previously
unrecorded income which has been now recorded in the books of account. Hence, the
provision stated in paragraph 3(viii) of the Order is not applicable to the Company.
9) The Company does not have any loans or borrowings and repayment to lenders during
the year. Accordingly, the provision stated in paragraph 3(ix) (a) to (c) and sub clause
(e) and (f)) of the Order is not applicable to the Company.
10) (a) The Company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) during the year and hence reporting under clause
3(x)(a) of the Order is not applicable.
(b)According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully, partly or optionally convertible
debentures during the year. Accordingly, the provisions stated in paragraph 3 (x)(b) of
the Order are not applicable to the Company.
11) (a) During the course of our audit, 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 nor on the Company.
(b) We have not come across of any instance of fraud by the Company or on the Company
during the course of audit of the standalone1 financial statement for the year ended 31
March 2023, accordingly the provisions stated in paragraph (xi)(b) of the Order is not
applicable to the Company.
(c) As represented to us by the management, there are no whistle-blower complaints
received by the Company during the year. Accordingly, the provisions stated in paragraph
(xi)(c) of the Order is not applicable to company.
12) In our opinion, the Company is not a nidhi Company. Therefore, the provisions of
clause 3 (xii) of the Order are not applicable to the Company.
13) In our opinion, all transactions with the related parties are in compliance with
section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the
Financial Statements as required by the applicable accounting standards.
14) (a) In our opinion the Company has an adequate internal audit system commensurate
with the size and the nature of its business.
(b) We have considered, the internal audit reports for the year under audit, issued to
the Company during the year and till date, in determining the nature, timing and extent of
our audit procedures.
15) According to the information and explanations given to us, in our opinion during
the year the Company has not entered into non-cash transactions with directors or persons
connected with its directors and hence, provisions of section 192 of the Act are not
applicable to company. Accordingly, the provisions stated in paragraph 3(xv) of the Order
are not applicable to the Company.
16) (a) In our opinion, the Company is not required to be registered under section 45
IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions stated in
paragraph clause 3 (xvi)(a) of the Order are not applicable to the Company.
(b) In our opinion, the Company has not conducted any Non-Banking Financial or Housing
Finance activities without any valid Certificate of Registration from Reserve Bank of
India. Hence, the reporting under paragraph clause 3 (xvi)(b) of the Order are not
applicable to the Company.
(c) The Company is not a Core investment Company (CIC) as defined in the regulations
made by Reserve Bank of India. Hence, the reporting under paragraph clause 3 (xvi)(c) and
(d) of the Order are not applicable to the Company.
17) Based on the overall review of financial statements, the Company has not incurred
cash losses in the current financial year and in the immediately preceding financial year.
Hence, the provisions stated in paragraph clause 3 (xvii) of the Order are not applicable
to the Company.
18) There has been no resignation of the statutory auditors during the year. Hence, the
provisions stated in paragraph clause 3 (xviii) of the Order are not applicable to the
Company
19) 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 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, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that Company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date.
We, however, state that this is not an assurance as to the future viability of the
Company. We further state that our reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor any assurance that all liabilities
falling due within a period of one year from the balance sheet date, will get discharged
by the Company as and when they fall due.
20) According to the information and explanations given to us, the provisions of
section 135 of the
Act are not applicable to the Company. Hence, the provisions of paragraph (xx)(a) to
(b) of the Order are not applicable to the Company.
21) According to the information and explanations given to us, the Company does not
have any Subsidiary, Associate or Joint Venture. Accordingly, reporting under clause
3(xxi) of the Order is not applicable.
FOR, PRAKASH TEKWANI AND ASSOCIATES CHARTERED ACCOUNTANTS
CA PRAKASH TEKWANI
(PROPRIETOR)
M. No. 108681 FIRM REG.NO 120253W
UDIN: 23108681BGSXNE1597
PLACE: AHMEDABAD DATE: 29/05/2023
“Annexure B” to the Independent Auditors Report of even date on the
Standalone Financial Statements of Oasis Tradelink Limited (in Liquidation)
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 OASIS
TRADELINK LIMITED (in Liquidation) (“the Company”) as of March 31, 2023 in
conjunction with our audit of the standalone 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 qualified 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 authorizations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition,
use, or disposition of the companys assets that could have a material effect on the
financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting:
Because of the inherent limitations of internal financial controls over financial
reporting, including 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:
According to the information and explanations given to us and based on our audit,
following material weakness have been identified in operating effectiveness of the
companys internal financial controls over financial reporting as at March 31, 2023 :
a. Balances of trade receivable, trade payable other liabilities are subject to
confirmation. These are old balances outstanding even before 01.04.2019.
A material weakness is a deficiency or combination of deficiencies in internal
financial controls over financial reporting such that there is a reasonable possibility
that a material misstatement of Companys annual or interim financial statements will not
be prevented or detected on timely basis.
In our opinion, except for the possible effects / effects of material weakness
described above under Qualified Opinion paragraph on the achievement of objectives,
company in all respects has an adequate internal financial controls.
We have considered material weakness identified and reported above in determination of
the nature, time and extent of audit tests applied in our audit of March 31,2023 financial
statements.
FOR, PRAKASH TEKWANI AND ASSOCIATES CHARTERED ACCOUNTANTS
CA PRAKASH TEKWANI (PROPRIETOR)
M. No. 108681
FIRM REG.NO 120253W
UDIN: 23108681BGSXNE1597
PLACE: AHMEDABAD DATE: 29/05/2023
+91-9892691696
