To
The Members of
The Orissa Minerals Development Company Limited
Report on the Standalone Financial Statements
Opinion
We have audited the accompanying financial statements of M/s. The Orissa Minerals
Development Company Limited ("the Company") which comprises the Balance Sheet as
at March 31, 2023 and the Statement of Profit and Loss (including Other Comprehensive
Income), statement of changes in Equity and statement of Cash Flows for the year then
ended, and notes to the standalone financial statements, including a summary of
significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Companies Act, 2013 ("the Act") in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards 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 at March 31, 2023, and the Loss, changes in
equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements 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 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 (ICAI) of India together with the independence
requirements that are relevant to our audit of the standalone financial statements under
the provisions of the Companies Act, 2013 and the Rules thereunder, 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 we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone financial
statements.
Emphasis of Matter
i. Reference is invited to the Note No. 28 and note no. 5 of Segment Reporting
wherein it has been stated that Pursuant to the Judgement of Honble Supreme Court dated
02.08.2017, Dy. Director of Mines, Odisha had issued different demand notices dated
02.09.2017, 23.10.2017 & 13.12.2017 to OMDC for OMDC Leases and to BPMEL for BPMEL
Leases towards compensation. The amount of Demand for OMDC Leases is Rs. 70218.46 Lacs and
for BPMEL Leases is Rs. 86157.12 Lacs, totalling Rs. 156375.58 Lacs towards EC, FC and
MP/CTO. OMDC had been operating BPMEL Leases backed by Power of Attorney to sign and
execute all mining leases and other mineral concessions from time to time. OMDC has paid
the compensation of OMDC Leases of Rs.87622.10 Lakhs towards OMDC Leases (Rs. 1479.68
Lakhs on 29.12.2017, Rs. 13093.47 Lakhs on 16.11.2018, Rs. 693.45 Lakhs on 30.01.2019, Rs.
40000.00 Lakhs on 01.03.2019, Rs. 100 Lakhs on 20.09.2019 and Rs. 32255.50 Lakhs on
03.10.2019) in 2017-18, 2018-19 and 2019-20 out
of its own fund of Rs.56622.10 Lac and borrowed fund from Bank Rs.31000.00 Lac . OMDC
has paid a sum of Rs. 2715.14 Lakhs (Rs. 2515.14 Lakhs on 29.12.2017 and Rs. 200.00 Lakhs
on 16.11.2018) towards BPMEL Leases under protest. The remaining amount of compensation
including interest upto 31.03.2023 against BPMEL Leases
amounting Rs. 186061.84 Lac are shown under Contingent Liability.
ii. The mine stock has been assessed by a third party, Superintendence Co. of
India (P) Ltd. for qualitative and quantitative verification as on 31.03.2023. The
certificate of the said third party mentions in a note that for the old stack No.124 which
is located at Thakurani
Iron Ore Mines, was lying along the rail track at No.2 siding earlier and a platform
along the rail track had been prepared by SE Railway by using the mixed iron ore of the
same stack lying along the rail track. The stack could not be assessed as the iron ore has
been mixed up with other waste within the platform. Assessment can be done after
retrieving, screening and stacking of ore from the platform.
The total quantity in the same stake was 18744.124 MT as per physical verification
report for 2015-16. The identified stock in 2022-23 by the third party is 1742.98 MT.
Management has considered the stock lying under the platform for valuation. SE Railway has
issued circular dated 27/10/17 by virtue of which the rights and powers to permit the use
of the Railway Siding for the traffic of any person and to work such traffic over this
siding has been withdrawn.
iii. Reference is invited to the Note 39 to the Standalone Financial Statements.
Mining operation of the Company is continued to remain suspended due to non-renewal of the
leases and non-receipt of requisite clearances from the Government of Odisha and the
Central Government. These conditions indicate the existence of a material uncertainty to
resume the mining operations. These standalone financial statements have been prepared on
a going concern basis mainly for the initiative taken by the Companys management for
opening of the mines and resumption of mining operations.
Our opinion is not modified on account of above matters.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements of the current period.
These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined that there are no key audit matters to communicate in our report. Other
Information
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the "Annual
Report" (as defined in CAS 720), but does not include the standalone financial
statements and our auditors report thereon.
Our opinion on the standalone financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility
is to read the other information, and in doing so, consider whether the other information
is materially inconsistent with the standalone financial statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibility of Management for the Standalone 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
and presentation of these standalone financial statements 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 Ind AS and the other 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 implementation and
maintenance of 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 standalone financial statement that give a true and
fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone 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.
The Board of Directors are also responsible for overseeing the companys financial
reporting process.
Auditors Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
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 standalone
financial statements.
As part of an audit in accordance with Standards on Auditing (SAs), we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone
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 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.
• Obtain sufficient appropriate audit evidence regarding the financial
information of the entities within the Company to express an opinion on the standalone
financial statement. We are responsible for the direction, supervision and performance of
the audit of the financial statements of such entities included in the standalone
financial statements of which we are the independent auditors.
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 financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating
the results of our work; and (ii) to evaluate the effect of any identified
misstatements in the financial statements.
We communicate with those charged with governance of the company and such other
entities included in the standalone financial statements of which we are the independent
auditors, 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 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, 2020 ("the
Order") issued by the
Central Government of India in terms of Section 143(11) of the Companies Act 2013, we
give in Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the
Order to the extent applicable.
2. We have complied with the Directions and Sub-Direction given by the
Comptroller & Auditor General of India under section 143(5) of the Act while
conducting the audit, and on the basis of information and explanations given to us in this
regard by the Company, we give in
Annexure B to this report, a statement on the matters specified in such Directions and
Sub-Directions.
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 Cash Flow
Statement and statement of changes in equity dealt with by this Report are in agreement
with the books of account.
d. In our opinion, the aforesaid standalone Ind-AS financial statements comply
with the Indian
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
e. The provisions of section 164(2) are not applicable to the Company as it is a
Government
Company.
f. With respect to the adequacy of the internal financial controls over
financial reporting of the
Company and the operating effectiveness of such controls, we refer to our separate
report in
Annexure C; and
g. 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:
• The Company has disclosed the impact of pending litigations on its
financial position in its standalone financial statements Refer Note 36 to the Standalone
Ind AS financial statements.
• The Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses.
For O. M. Kejriwal & Co. Chartered Accountants
FRN No.314144E Sd/-
(CA Swati Kejriwal) Partner
Place: Bhubaneswar M. No.067891 Date: 07.07.2023 UDIN: 23067891BGYBUC3272
ANNEXURE A TO THE INDEPENDENT AUDITORS
REPORT
To the Members of The Orissa Minerals Development Company Limited
[Referred to in paragraph 1 under head Report on Other Legal and Regulatory
Requirements of the Auditors Report of even date]
1.
a. The Company is maintaining proper records showing full particulars including
quantitative details and situation of fixed assets.
b. The fixed assets of the Company have been physically verified by the
management during the year and discrepancies noticed during the course of physical
verification have been duly
adjusted in the accounts. In our opinion, the frequency of verification is reasonable.
Physical verification of fixed assets has been conducted as on 31.03.2023.
c. The title deeds of immovable properties including leasehold were made
available for our examination,
• Out of 263.237 acres land OMDC owns 59.395 acres (freehold 3.023 acre
leasehold 56.372 acre), 196.539 acres land in the name of BPMEL, 3.91 acres in the name of
Bird & Co and 3.393 acres as encroachment.
• Registration of the building of HO located at AG-104, 2nd Floor, Sourav
Abasan, Sector-II, Salt Lake City, Kolkata 700 091 which is not yet completed.
d. As per the information the management has conducted the physical verification
of inventory at reasonable intervals.
e. Valuation of inventory has been done based on cost or net realizable value
(Average Sales Price
as per Indian Bureau of Mines) whichever is lower.
f. According to the information and explanations given to us the Company has not
granted any loan, secured or unsecured to companies, firms, limited liability partnership
or other parties covered in the register maintained under section 189 of the Companies Act
2013. Accordingly,
the provision of clauses 3(iii) (a), (b) and (c) of the order is not applicable to the
companies and hence not commented upon.
2. In our opinion and according to information and explanations given to us, the
Company has not granted any loan and given guarantee and security to any companies, as
such the provision of section 185 and 186 of the Companies Act 2013 not applicable.
3. The Company has not accepted any deposits from the public and hence the
directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or
any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules,
2015 with regard to the deposits accepted from the public are not applicable.
4. The Central Government of India has prescribed maintenance of cost records
under subsection (1) of Section 148 of the Act for the products of the company. However,
as the turnover of such products is lower than the prescribed threshold limits, in our
opinion, maintenance of cost records is not applicable.
5. .
a. According to the information and explanations given to us and the records of
the Company examined by us, the Company is not paying regular dues regarding the
undisputed statutory dues including Income-tax, Sales-tax, Provident Fund, Service tax,
Goods and Service Tax, Duty of customs, Duty of excise, Value Added Tax, Cess and any
other statutory dues with the
appropriate authorities. The details are as follows:
Name of the Statutory dues |
Amount in (Rs.) outstanding as on |
|
31.03.2023 |
Employee Pension fund |
66,928 |
Employee Provident Fund |
66,98,164 |
Superannuation Fund |
68,45,089 |
Professional Tax |
1,85,250 |
Tax Deducted at Source |
9,29,444 |
Goods & Service Tax (RCM) |
39,55,250.8 |
GST TDS |
90,952 |
Tax Collected at Source (Sales) |
7,02,003 |
b. According to the information and explanations given to us and the records of
the Company examined by us, the particulars of dues of sales-tax, service tax, duty of
excise and value added tax as at 31st March 2023 which have not been deposited on account
of disputes, are as follows-
Name of the statute |
Nature of dues |
Amount (Rs in Lacs) |
Period to which the amount relates |
Forum where the dispute is pending |
The Central Sales Tax Act,1956 |
Central Sales Tax |
4.44 |
2003-04 |
Sales Tax Tribunal |
Odisha Value Added Tax Act, 2004 |
VAT |
2.45 |
2005-06 |
Odisha High Court |
Odisha Entry Tax Act, 1999 |
Entry Tax |
11.77 |
2005-06 |
Odisha High Court |
Odisha Entry Tax Act, 1999 |
Entry Tax |
1.26 |
2006-07 |
Commissioner of Commercial Taxes (Appeal) |
Finance Act, 1994 |
Service Tax |
6.29 |
2012-13 |
Commissioner of Service Tax (Appeal) |
6. The Company has not defaulted in repayment of loans and borrowings.
7. Based upon the audit procedures performed and the information and
explanations given by the management, the Company has neither raised any money by public
issues of shares or debentures.
8. 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
information and explanations given to us, we have not come across any instances of
material fraud by the Company or on the Company by its officers or employees, noticed or
reported during the year, nor we have been informed of any such case by the management.
9. In our opinion and according to the information and explanations given to us
the provisions of section 197 read with Schedule V to the Act are not applicable to the
Company.
10. As the Company is not a Nidhi Company, the Nidhi rules 2014 are not
applicable to it. The provisions of clause 3 (xii) of the Order are not applicable to the
Company.
11. According to the information and explanations given to us and the records of
the Company examined by us, the requirements of sections 177 and 188 of the Act is not
applicable to this Company.
12. According to information and explanations given to us and on an overall
examination of the Balance Sheet of the Company has not made a preferential allotment/
private placement of shares or fully or partly convertible debentures during the year
under review, and hence, reporting requirements under clause 3(xiv) of the order are not
applicable to the Company and not commented upon.
13. Based upon the audit procedures performed and the information and
explanations given by the management, we have not come across any instances where the
Company has entered into any non-cash transactions with its directors or persons connected
with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to
the Company.
14. 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 of clause 3 (xvi) of
the Order are not applicable to the Company.
15. Based upon the audit procedures performed and the information and
explanations given by the management Company has incurred cash losses for Rs. 2395.07
lakhs in the F.Y. 22-23.
16. This clause is not applicable because, the statutory auditor has not given
resignation during the year.
17. On the basis of financial ratios, ageing and expected dates of realization
of financial assets and payment of financial liabilities we are of the opinion that no
material uncertainty exists as on the date of audit report.
18. Mining operation of the Company is continued to remain suspended due to
non-renewal of the leases and non-receipt of requisite clearances from the Government of
Odisha and the Central Government. These conditions indicate the existence of a material
uncertainty to resume the mining operations. Therefore, in such circumstances, there is a
reasonable doubt
that the company may not be capable of meeting its liabilities existing at the balance
sheet date as and when they fall due within a period of 1 year from the balance sheet
date.
19. According to the information and explanations given to us the Company is not
earning any profit during the last 3 Financial Year, hence sub-section (5) of section 135
of the Companies Act, 2013 related CSR expenditure is not applicable to the company.
20. This CARO based on the standalone financial statements of the Company, hence
the clause is not applicable.
For O. M. Kejriwal & Co.
Chartered Accountants FRN No.314144E
Sd/-
(CA Swati Kejriwal)
Partner Place: Bhubaneswar M. No.067891 Date: 07.07.2023 UDIN: 23067891BGYBUC3272
ANNEXURE B TO THE AUDITORS REPORT
Report on the Directions by the Comptroller & Auditor General of India (C&AG)
under section 143(5) of the Companies Act, 2013 for the Financial Year 2022-23
1. Whether the Company has system in place to process all the accounting
transactions through
IT system? If yes, the implication of processing of accounting transactions outside IT
system on the integrity of the accounts along with the financial implications, if any may
be stated.
Yes, all the accounting transactions are accounted for through IT System. However, as
explained to us, there are operations/transactions which takes place outside the system
but have a bearing on the accounts of the Company.
As per past practice, all transactions are manually entered in the software which
maintains regular books of account.
As per existing practice, there are chances of some aforesaid transactions being missed
to be accounted as the flow of accounting transactions are not automated at the point of
generation of transaction. The financial implications of transactions outside the IT
system are unascertainable.
2. Whether there is any restructuring of an existing loan or cases of
waiver/write off of debts/loans/interest etc. made by a lender to the company due to the
companys inability to repay the loan? If yes, the financial impact may be stated. Whether
such cases are properly accounted for? (In case, lender is a government company, then this
direction is also applicable for statutory auditor of lender company).
To the best of our knowledge and according to the explanations and information given to
us, there are no cases of waiver/write off of debts/loans/interest etc. or any
restructuring of an existing loan during the period under audit.
3. Whether funds (grants/subsidy etc.) received/receivable for specific schemes
from Central/State Government or its agencies were properly accounted for/utilized as per
its term and conditions? List the cases of deviation.
As explained to us and on the basis of information available, the Company has not
received any
funds from Central/State agencies.
For O. M. Kejriwal & Co. Chartered Accountants FRN No.314144E
Sd/-
(CA Swati Kejriwal)
Partner Place: Bhubaneswar M. No.067891
Date: 07.07.2023 UDIN: 23067891BGYBUC3272
ANNEXURE- C TO THE INDEPENDENT AUDITORS
REPORT
To
The Members of
The Orissa Minerals Development Company Limited
[Referred to in paragraph 3 (f) under head Report on Other Legal and Regulatory
Requirements of the Auditors Report of even date]
Report on the Internal Financial Control under Clause (i) of Sub sections 3 of Section
143 of the
Companies Act, 2013("the Act")
We have audited the internal financial controls over financial reporting of The Orissa
Minerals
Development Company Limited ("the Company") as of 31st March, 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 Control
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". 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 Standalone 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 Control 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 standalone financial statement 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 the records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the
company;
2. Provide reasonable assurance that the transactions are recorded as necessary
to permit preparation of standalone financial statement in accordance with generally
accepted
accounting principles, and that receipts and expenditure of the Company are being made
only in accordance with authorization of management and directors of 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 standalone financial statement.
Inherent Limitations of Internal Financial Control over Financial Reporting
Because of inherent limitation of internal financial control over financial reporting,
including the possibility of collusion or improper management override of controls,
material misstatements due
to errors or fraud may occur and not be detected. Also, projections of any evaluations
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 31st March 2022, 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 O. M. Kejriwal & Co.
Chartered Accountants FRN No.314144E
Sd/-
(CA Swati Kejriwal)
+91-9892691696
