TO THE MEMBERS OF
PRABHAT TECHNOLOGIES (INDIA) LIMITED
Report on the Audit of Standalone Financial Statements
Qualified Opinion
We have audited the accompanying statement of standalone financial results of PRABHAT
TECHNOLOGIES (INDIA) LIMITED formerly known as Prabhat Telecom (India) Limited which
comprise the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss, Cash
Flow Statement for the year ended, and 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 the matter described in the "Basis for
Qualified Opinion", the aforesaid 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, its loss,
changes in equity and its cash flow for the year ended on that date.
Basis for Qualified 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 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 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 Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our qualified opinion on the standalone financial statements.
We draw attention to the following matter:
1. Note No. 17.1 of the accompanying Standalone Financial Results, stating therein that
the Impairment of Assets/Liabilities has been worked out on the Basis of Valuation Report
certified by registered valuer. We have relied upon the valuations of assets and
impairment workings as per the Certificate provided to us by the RP pertaining to
valuations of assets and its impairment as Certificate of Valuation Certificate could not
be provided to us as per the terms of Insolvency regulation 35(2) and other relevant
provisions of IBC, 2016. Also, calculation of Deferred Tax has been done accordingly on
the basis of aforesaid mentioned values.
2. Note No. 17.2 of the accompanying Standalone Financial Results which states that the
Company has recognized Non-Sustainable Debt pursuant to CIRP as part of Reserves on the
basis of the decision taken as part of COC resolution meeting approved by 98.15% COC
Members through vote. This adjustment considered to be event after balance sheet date, as
per the COC Committee and is recognized in the financial results. However, such
transactions are subject to NCLT approval and should have been acknowledged on duly
confirmation/acceptance from the NCLT court.
Key Audit Matters
Key audit matters are those matters that in our professional judgement were of most
significance in our audit of the 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 no matters to be reported as the key audit matters to be
communicated in our report.
Emphasis of Matter Paragraph
We draw attention to
a. The Honble National Company Law Tribunal, Mumbai Bench ("NCLT") admitted
an insolvency and bankruptcy petition filed by a financial creditor against Prabhat
Technologies (India) Limited ("the Company") and appointed Resolution
Professional (RP) who has been vested with management of affairs and powers of the Board
of Directors with direction to initiate appropriate action contemplated with extant
provisions of the Insolvency and Bankruptcy Code, 2016 and other related rules.
Our opinion is not modified in respect of above matters.
Information Other than the Standalone Financial Statements and Auditors Report Thereon
The Companys Management is responsible for the preparation of the other information.
The other information comprises the information included in management analysis, company
performance report but does not include the standalone 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 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 financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated.
Managements Responsibilities for the Standalone Financial Results
The Management of the Company is responsible for the matters stated in Section 134(5)
of the
Companies Act, 2013 ("the Act") with respect to the preparation of these
financial statements that give a true and fair view of the financial position, financial
performance including other comprehensive income and changes in equity (reserves) of the
Company in accordance with the Ind AS and other accounting principles generally accepted
in India.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding 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.
In preparing the standalone financial statements, Management of Company 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 the Management of Company either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so. The Management of Company
are responsible for overseeing the Companys financial reporting process.
Auditors Responsibility
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 standalone 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 financial controls 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.
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 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 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 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
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 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.
As required by Section 143 (3) of the Act, based on our audit 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 including other comprehensive
income and
Statement of Changes in Equity (reserves)dealt with by this Report are in agreement
with the books of account
d. In our opinion, the aforesaid financial statements comply with the Indian Accounting
Standards prescribed under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules2014.
e. On the basis of the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 from being appointed as a director in terms of Section
164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial
reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report
in
"Annexure B", and
g. With respect to the matter to be included in the Auditors Report under section
197(16), In our opinion and according to the information and explanations given to us, the
remuneration paid by the Company to its directors during the current year is in accordance
with the provisions of section 197 of the Act. The remuneration paid to any director is
not in excess of the limit laid down under section 197 of the Act. The Ministry of
Corporate Affairs has not prescribed other details under section 197(16) which are
required to be commented upon by us.
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 does not have any pending litigation which would impact its
financial position
ii. The company did not have any long-term contracts including derivatives
contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring the amount, required to be transferred
in accordance with the relevant provisions of the Companies Act, 2013 and the rules made
thereunder, 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, other than as disclosed in the notes to the accounts, no funds have been advanced
or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the company to or in any other person(s) or entity(ies), including
foreign entities ("Intermediaries"), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, 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,
other than as disclosed in the notes to the accounts, no funds have been received by the
company from any person(s) or entity(ies), including foreign entities ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the
company shall, whether,
Page 58 of 86 directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries; and
(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 us to believe that
the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material mis-statement.
v. No dividend have been declared or paid during the year by the company.
Annexure ‘A
(Referred to in Paragraph 1 under the heading "Report on Other Legal and
Regulatory Requirements" of our report of even date on the accounts of PRABHAT
TECHNOLOGIES (INDIA) LIMITED ,for the year ended March 31, 2023)
We report that:
(i) (a) (A) The company has maintained proper records showing full particulars,
including quantitative details and situation of Property, Plant and Equipment;
(B)The Company does not have any intangible assets. Accordingly, clause 3(i)(a)(B) of
the Order is not applicable to the Company.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Property, Plant and Equipment have been
physically verified by the management at reasonable intervals; no material discrepancies
were noticed on such verification;
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the titledeeds of all the immovable properties
(other than properties where the company is the lessee and the lease agreements are duly
executed in favour of the lessee)disclosed in the financial statements are held in the
name of the company.
(d) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the company has not revalued its Property,
Plant and Equipment (including Right of Use assets) or intangible assets during the year.
Accordingly, the reporting under Clause 3(i)(d) of the Order is not applicable to the
Company.
(e) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there are no proceedings have been initiated or
are pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act,1988 (45 of 1988) and rules made thereunder.
(ii) (a) As explained to us & on the basis of the records examined by us, in our
opinion, physical verification of inventory has been conducted at reasonable intervals by
the management. In our opinion, the coverage and procedure of such verification by the
management is appropriate. No discrepancy of 10% or more in the aggregate for each class
of inventory were noticed on physical verification of stocks by the management as compared
to book records.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the company has not been sanctioned during any
point of time of the year, working capital limits in excess of five crore rupees, in
aggregate, from banks or financial institutions on the basis of security of current assets
and hence reporting under clause 3(ii)(b) of the Order is not applicable.
(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 investments in, nor
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 during the year. Accordingly, provisions of clause 3(iii)(a), 3(iii)(b),
3(iii)(c), 3(iii)(d), 3(iii)(e) and 3(iii)(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 the records, in respect of loans, investments, guarantees, and security,
provisions of section 185 and 186 of the Companies Act, 2013 have been complied with.
(v) The company has not accepted any deposits or amounts which are deemed to be
deposits covered under sections 73 to 76 of the Companies Act, 2013. Accordingly, clause
3(v) of the Order is not applicable.
(vi) As per information & explanation given by the management, maintenance of cost
records has not been specified by the Central Governmentundersub-section(1)ofsection148 of
the Companies Act.
(vii) (a) According to the information and explanations given to us and on the basis of
our examination of the records of the company, the company is regular in depositing
undisputed statutory dues including Goods and Services Tax, provident fund, employees
state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise,
value added tax, cess and any other statutory dues to the appropriate authorities.
According to the information and explanation given to us there were no outstanding
statutory dues as on 31st of March, 2023 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 on the basis of our
examination of the records of the company, following are the statutory dues referred to in
sub-clause (a) that have not been deposited on account of any dispute:
| Nature of Statute |
Nature of dues |
Forum where dispute is pending |
Period to which the amount relates |
Amount Disputed |
| Income Tax |
Income Tax |
CIT Appeals |
AY10-11 |
1,04,10,050 |
|
|
|
AY 11-12 |
2,19,36,167 |
|
|
|
AY 12-13 |
1,50,67,146 |
|
|
|
AY 13-14 |
1,34,23,905 |
|
|
|
AY 16-17 |
45,48,64,130 |
|
|
|
AY 17-18 |
1,96,74,732 |
| Sales Tax Act & VAT Laws |
Value Added Tax |
Deputy Commissioner (Appeal) |
FY 10-11 |
11,46,17,149 |
|
|
|
FY 12-13 |
53,91,00,777 |
|
|
|
FY 13-14 |
29,59,70,586 |
|
|
|
FY 14-15 |
68,93,25,624 |
| Sales Tax Act & VAT Laws |
Central Sales Tax |
Deputy Commissioner (Appeal) |
FY 10-11 |
4,11,15,962 |
|
|
|
FY 11-12 |
5,00,000 |
|
|
|
FY 12-13 |
43,99,195 |
|
|
|
FY 13-14 |
22,02,594 |
|
|
|
FY 14-15 |
12,05,06,332 |
(viii) 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 surrendered or
disclosed any transactions, previously unrecorded as income in the books of account, in
the tax assessments under the Income Tax Act, 1961 as income during the year.
(ix) (a) 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 defaulted in repayment of
loans or other borrowings or in the payment of interest thereon to all lender in the year
2018 and the matter in pending in NCLT Mumbai.
(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 other lender;
(c) According to the information and explanations given to us by the management, the
Company has utilized the money obtained by way of term loans during the year for the
purposes for which they 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) The Company does not hold any investment in any subsidiary, associate or joint
venture (as defined under the Act) during the year ended 31 March 2023. Accordingly,
clause 3(ix)(e) is not applicable.
(f) The Company does not hold any investment in any subsidiary, associate or joint
venture (as defined under the Act) during the year ended 31 March 2023. Accordingly,
clause 3(ix)(f) is not applicable.
(x) (a) The company has not raised any money by way of initial public offer or further
public offer (including debt instruments) during the year. Accordingly, clause 3(x)(a) of
the Order is not applicable.
(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 made any preferential
allotment or private placement of shares or convertible debentures (fully, partially or
optionally convertible) during the year.Accordingly, clause 3(x)(b) of the Order is not
applicable.
(xi) (a) Based on examination of the books and records of the Company and according to
the information and explanations given to us, no fraud by the company or any fraud on the
company has been noticed or reported during the course of audit.
(b) According to the information and explanations given to us, no report under
subsection (12) of section 143 of the Companies Act has been filed by the auditors in Form
ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the
Central Government;
(c) According to the information and explanations given to us by the management, no
whistle-blower complaints had been received by the company.
(xii) The company is not a Nidhi Company. Accordingly, clause 3(xii)(a), 3(xii)(b) and
3(xii)(c) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us,
all transactions with the related parties are in compliance with sections 177 and 188 of
Companies Act, where applicable and the details have been disclosed in the financial
statements, as required by the applicable accounting standards;
(xiv) (a) Based on information and explanations provided to us and our audit
procedures, 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.
(xv) In our opinion and according to the information and explanations given to us, the
company has not entered into any non-cash transactions with directors or persons connected
with him and hence, provisions of Section 192 of the Companies Act, 2013 are not
applicable to the Company.
(xvi) (a) In our Opinion and based on our examination, the Company is not required to
be registered under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934).
Accordingly clause 3(xvi)(a) of the Order is not applicable.
(b) In our Opinion and based on our examination, the Company has not conducted any
Non-Banking Financial or Housing Finance activities without a valid Certificate of
Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act,
1934. Accordingly, clause 3(xvi)(b) of the Order is not applicable. ,
(c) In our Opinion and based on our examination, the Company is not a Core Investment
Company (CIC) as defined in the regulations made by the Reserve Bank of India.
Accordingly, clause 3(xvi)(c) of the Order is not applicable.
(d) According to the information and explanations given by the management, the Group
does not have any CIC as part of the Group.
(xvii) Based on our examination, the company has not incurred cash losses in the
financial year and in the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year.
Accordingly, clause 3(xviii) of the Order is 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 realisation of financial assets and payment
of financial liabilities, our knowledge of the Board of Directors and management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report that company is not capable of meeting its liabilities existing
at the date of balance sheet as and when they fall due within a period of one year from
the balance sheet date.
We, however, state that this is not an assurance as to the future viability of the
company. We further state that our reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor any assurance that all liabilities
falling due within a period of one year from the balance sheet date, will get discharged
by the company as and when they fall due.
(xx) Based on our examination, the provision of section 135 are not applicable on the
company. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the Order are not applicable.
(xxi) There have been no qualifications or adverse remarks by the respective auditors
in the Companies (Auditors Report) Order (CARO) reports of the companies included in the
consolidated financial statements except following:
"Annexure B" to the Independent Auditors Report of even date on the
Standalone Financial Statements of PRABHAT TECHNOLOGIES (INDIA) LIMITED
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 Prabhat
Technologies (India) Limited 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.
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 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 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.
Basis for Qualified Opinion
The Companys internal financial controls relating to review of Impairment of
Assets/Liabilities and Non-Sustainable Debt for appropriate valuation did not operate
effectively which resulted in non-ascertainment of adequate provision pertaining to such
impairment.
Qualified Opinion
In our opinion, except for the effects of the described in the Basis for Qualified
Opinion paragraph above, 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 March 31, 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 Harish Arora& Associates |
| Chartered Accountants |
| CA Harish Arora |
| M.No. 407420 |
| FRN 015226C |
| Date: 22/05/2023 |
| Place: Mumbai |
+91-9892691696
