To the Members of PRIYA LIMITED Report on the Audit of the Financial Statements
Qualified Opinion
We have audited the Financial Statements of PRIYA LIMITED ("the
Company"), which comprise 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 Financial
Statements, including a summary of the significant accounting policies and other
explanatory information (hereinafter referred to as "the Financial Statements").
In our opinion and to the best of our information and according to the explanations
given to us, except for the possible effects of the matter described in the Basis for
Qualified Opinion paragraph and read together with matter described in the Emphasis of
Matters paragraph, the aforesaid Ind AS Financial Statements give the information required
by the Act in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India including the Ind AS specified under
Section 133 of the Act, of the state of affairs (financial position) as at March 31, 2023,
and its losses (financial performance including other comprehensive loss), its cash flow
and the changes in equity for the year ended on that date.
Basis for Qualified Opinion
1. We draw your attention to note no. 36 of Financial Statements regarding the
Company’s account being declared as Non-Performing Asset (NPA) and received a notice
under Section 13(4) of Securitization and Reconstruction of Financial assets and
Enforcement of Security Interest Act, 2002 (‘the Act’) for symbolic attachment
of properties. The Company has incurred net losses in the current period as well as in the
past years. The Company has accumulated losses which exceeds its net worth at the balance
sheet date resulting in negative net worth and due to blockage of bank accounts, revenue
from operation during the current year is nil. During the FY 2020-21, the Company has also
closed down all its branches except Mumbai branch, had written off/ sold fixed assets
located at such branches and has also laid off maximum employees across all branches since
the business operations are nil. Further, the Company has also received summons from Debts
Recovery Tribunal (DRT) Mumbai applied by one of the lender banks.
As informed by the Management of the Company, during the previous quarter, as a
result of nonpayment and despite of demand notices, the Authorised Officer took physical
possession of the properties situated in Chennai and Kolkata, out of which Chennai
property was sold in e-auction on 29th December, 2022. However, in the absence of
information available in relation to the auction amount, the accounting adjustment between
borrowing and the asset sold is pending as at 31st March, 2023.
Further, the company has also received a notice dated 13th January, 2023 for
auction sale of Mumbai properties which was conducted on 07th February 2023 by e-auction
mode however, as per the information received from the management, e-auction held was not
materialised.
Based on the facts mentioned above and in the absence of the information regarding
future business plan of the Company, we are unable to comment on the going concern of the
Company.
2. The Company had made aggregate provision of Rs. 3,269.64 lakhs for doubtful
debts (expected credit loss) as at March 31, 2023 relating to export sales. The Management
has not approached RBI for approval of writing off the said amount from books of accounts.
In the absence of any information regarding penal consequences, we are unable to comment
on the impact of the same on the Loss / net worth of the Company.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under
those Standards are further described in the Auditor’s Responsibilities for the Audit
of the Financial Results 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 Results 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 opinion.
Emphasis of Matters
a. The Company has provided interest amounting to Rs. 357.05 lakhs on NPA accounts
for the year ended March 31, 2023. The total outstanding interest payable as at 31st
March 2023 amounts to Rs.1,691.69 lakhs. In the absence of Bank statements in respect of
these NPA accounts and confirmation from bank regarding rate of penal interest, we are
unable to comment upon the booking of provision of such interest and closing account
balances.
b. As at March 31, 2023, the Company has rent income receivable amounting to
Rs.77.93 lakhs from its group company. The said rent has not been received during the
year. The company has been booking the rent income in compliance with the rental
agreement. We are given to understand that the management is confident of receiving this
outstanding from the company in the near future. Hence, no provision for the amount of
rent receivable has been considered necessary by the management.
c. As at March 31 2023, the Company has Advance tax refund receivable amounting to
Rs.27.95 Lakhs pertaining to five assessment years. As per Income tax records the same has
been refunded to the company. In the absence of Bank statements in respect of NPA
accounts, the Company is unable to record the amount of refunds actually received.
Therefore, we are unable to comment upon the closing balances of advance taxes and loans
appearing in the books of accounts.
d. Due to unavailability of funds, the Company is unable to pay gratuity (statutory
liability) amounting to Rs. 58.52 lakhs which is outstanding at March 31,2023 to the
employees resigned during the year.
Our opinion is not modified in respect of these matters.
Other Matter
The company is in the process of appointing a new Chief Financial Officer in
replacement of the Chief Financial Officerwho resigned in November2022.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, 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 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 be communicated in our
report.
Other Information
The Company’s Management and the Board of Directors are responsible for the
other information. The other information comprises the information included in the
Company’s annual report, but does not include the Financial Statements and our
auditors’ report thereon.
Our opinion on the Financial Statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
In connection with our audit of the Financial Statements, our responsibility is to
read the other information 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
The Company’s management and the Board of Directors is responsible for the
matters stated in Section 134(5) of the Act with respect to the preparation of these
Financial Statements that give a true and fair view of the financial position, the
financial performance, the changes in equity and the cash flows of the Company in
accordance with the accounting principles generally accepted in India, including the
Indian Accounting Standards (Ind AS) 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.
In preparing the Financial Statements, the Management and the Board of Directors
are responsible for assessing the Company’s 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 is also responsible for overseeing the Company’s
financial reporting process. Auditor’s 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 auditor’s 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 management’s use of the going
concern basis of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s 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 auditor’s 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 auditor’s 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
Act, 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 of the
aforesaid Financial Statements.
b) In our opinion, proper books of account as required by law relating to
preparation of the aforesaid Financial Statements 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), the Statement of Changes in Equity and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account maintained for the
purpose of preparation of the Financial Statements.
d) In our opinion, except for the possible effects of the matter described in the
Basis for Qualified Opinion paragraph and read together with matter described in the
Emphasis of Matters paragraph, the aforesaid Financial Statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the
Companies (Account) Rules, 2014.
e) On the basis of the written representations received from the directors as on
March 31,2023 and taken on record by the Board of Directors, none of the directors is
disqualified as on March 31,2023 from being appointed as a director in terms of Section
164(2) of the Act.
f) With respect to 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".
g) With respect to the other matters to be included in the Auditor’s Report in
accordance with the requirements of section 197(16) of the Act, as amended, in our opinion
and to the best of our information and according to the explanations given to us, the
remuneration paid by the Company to its directors during the year is in accordance with
the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor’s 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. There were no pending litigations which would impact the financial position of
the Company.
ii. The Company did not have any material foreseeable losses on long-term contracts
including derivatives contracts.
iii. There has been no delay in transferring amounts, required to be transferred,
to the Investor Education and Protection Fund by the company.
iv. a. The management has represented that, to the best of its knowledge and
belief, no funds have been advanced or loaned or invested (either from borrowed
funds or share premium or any other sources or kind of funds) by the Company to or in any
other persons or entities, including foreign entities ("Intermediaries"), with
the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
• directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf
of the Company or
• provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.
b. The management has represented, that, to the best of its knowledge and belief,
no funds have been received by the Company from any persons or entities, including foreign
entities ("Funding Parties"), with the understanding, whether recorded in
writing or otherwise, that the Company shall:
• directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf
of the Funding Party or
• provide any guarantee, security or the like from or on behalf of the
Ultimate Beneficiaries; and
c. Based on such audit procedures as 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 (d) (i) and (d) (ii) contain any material mis-statement.
v. The Company has not declared dividend during the year.
ANNEXURE A TO THE AUDITOR’S REPORT
Referred to in paragraph 2 of Report on other Legal and Regulatory
Requirements’ in our Report of even date on the accounts of PRIYA LIMITED for the
year ended March 31,2023
i. (a) (A) The Company is maintaining proper records showing full particulars
including quantitative details and situation of Property, plant and equipment.
(B) The Company does not have any Intangible assets. Hence sub clause (B) of clause
3(i)
(a) is not applicable to the Company.
(b) The fixed assets of the company are physically verified by the Management
according to a phased programme designed to cover all the items over a period of three
years, which, in our opinion, is reasonable having regard to the size of the company and
the nature of its assets. Pursuant to the programme, a portion of the fixed assets has
been physically verified by the management during the year and discrepancies noticed
between the book records and the physical inventories were not material and have been
properly dealt with in the accounts.
(c) According to information and explanations given to us and on the basis of our
examination of the records of the Company, the title deeds of immovable properties (other
than immovable 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 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 thereunder.
ii. (a) During the year, there were no inventories maintained by the company.
Accordingly, clause
3(ii)(a) of the Order is not applicable.
(b) According to information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has been declared as Non-Performing
Asset in earlier years and thus has not made any quarterly submissions to the bank in the
current year.
iii. (a) The Company has not provided loans or advances in the nature of loans, or
stood guarantee
or provided security to any other entity during the year. Hence sub clause (a) to
(f) of clause 3(iii) is not applicable to the Company.
iv. The Company has complied with provisions of Section 186 of the Companies Act,
2013 in respect of investments made and Section 185 of the Companies Act, 2013 is not
applicable as there were no such loans, securities or guarantees provided during the year.
v. 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 to the extent
notified and therefore clause 3(v) is not applicable.
vi. The Central Government has not prescribed the maintenance of cost records under
sub-Section (1) of Section 148 of the Companies Act, for any of the products of the
Company.
vii. (a) The Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employees’ State Insurance,
Income Tax, Customs Duty, Cess, Goods & Service Tax and any other material statutory
dues applicable to it and there were no arrears as at March 31, 2023 for a period of more
than six months from the date they became payable.
(b) There are no disputed amounts payable in respect of Provident Fund,
Employees’ State Insurance, Income Tax, Sales Tax, Service Tax, GST, Custom Duty,
Value Added Tax, Cess and any other material statutory dues in arrears, as at March
31,2023.
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
tax assessments under the Income tax Act, 1961 as income during the year.
ix. (a) In our opinion and according to the information and explanations given to
us, except for the
loans, borrowings, and dues mentioned below, the Company has not defaulted in
repayment of loans or borrowings to any financial institution or bank or Government.
Further, the Company does not have any debentures issued / outstanding any time during the
year.
| Particulars |
Amount of Default (Rs in Lakhs) |
Total |
Period Of |
|
Principal |
Interest |
|
Default |
| Term Loan |
|
|
|
|
| Bank of Maharashtra (C/A) |
328.81 |
203.75 |
532.56 |
1 to 1734 Days |
| Indian Bank (C/A) |
219.49 |
169.21 |
388.70 |
1 to 1703 Days |
| Indian Bank (ADOVEXBIR A/C) |
751.70 |
551.28 |
1302.97 |
1 to 1736 Days |
| Union Bank of India (L/C A/C) |
254.10 |
217.47 |
471.57 |
1 to 1758 Days |
| Union Bank of India (ADOVEXBIR A/C) |
726.83 |
549.98 |
1276.82 |
1 to 1752 Days |
(b) According to the information and explanation given to us and on the basis of
our examination of the records of the Company, the Company has been declared a wilful
defaulter by the banks due to the loans outstanding as above.
(c) According to the information and explanations given to us by the management,
the Company has not obtained any term loans during the year. Accordingly, clause 3 (ix)
(c) of the Order is not applicable.
(d) According to the information and explanation 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 utilized for long term purposes. Accordingly, clause 3(ix)(d) of the
Order is not applicable.
(e) According to the information and explanation given to us and on an overall
examination of the financial statements of the Company, we report that the Company does
not have any subsidiary. Accordingly, clause 3(ix) (e) of the Order is not applicable.
(f) According to the information and explanation given to us and procedures
performed by us, we report that the Company has not raised loans during the year on the
pledge of securities held in its subsidiaries as defined under the Companies Act, 2013.
Accordingly, clause 3(ix)
(f) of the Order is not applicable.
x. (a) The Company has not raised any money by way of public issue/ further offer
(including debt instruments) and through term loans during the year. Accordingly, clause 3
(x)(a) of the order is not applicable to the Company.
(b) According to the information and explanation given to us and on the basis of
our examinations of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year. Accordingly, clause 3(x)(b) of the Order is not applicable.
xi. (a) Based upon the audit procedures performed and information and explanation
given by the
management, considering the principles of materiality outlined in Standards on
Auditing, we report that no fraud by the Company or on the Company has been noticed or
reported during the year.
(b) According to the information and explanations given to us, no report under
Section 143 (12) of the Companies Act, 2013 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) The Company has not received any whistle blower complaints during the year.
xii. In our opinion and according to the information and explanations given to us,
the nature of the activities of the company does not attract any special statue applicable
to Nidhi Company. Accordingly, clause 3(xii) of the order is not applicable to the
company.
xiii. According to the information and explanation given to us, and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with Sec 177 and 188 of Companies Act, 2013 where applicable and details of
such transactions 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, in our opinion, the Company has an internal audit system commensurate with the
size and nature of its business.
(b) We have considered the internal audit reports of the Company issued till date
for the period under audit.
xv. In our opinion and according to the information and explanations given to us
and based on our examination of the records of the Company, the company has not entered
into any non-cash transactions with directors or persons connected with him. Accordingly,
clause 3 (xv) of the Order is not applicable to the Company.
xvi. (a) The company is not required to be registered under Sec 45-IA of the
Reserve Bank of India
Act, 1934. Accordingly, clause 3 (xvi)(a) of the Order is not applicable to the
Company.
(b) The company is not required to be registered under Sec 45-IA of the Reserve
Bank of India Act, 1934. Accordingly, clause 3 (xvi)(b) of the Order is not applicable to
the Company.
(c) The Company is not a Core Investment Company (CIC) as defined in the
regulations is made by the Reserve Bank of India. Accordingly, clause 3 (xvi)(c) of the
Order is not applicable to the Company.
(d) According to the information and explanations provided to us during the course
of audit, the Group does not have any CIC. Accordingly, clause 3 (xvi)(d) of the Order is
not applicable to the Company.
xvii. The Company has incurred cash losses in the current year as well as in the
immediately preceding financial year amounting to Rs. 390.68 lakhs and 396.76 lakhs
respectively.
xviii. There has been no resignation of the statutory auditors during the year.
Accordingly, clause 3 (xviii) of the Order is not applicable to the Company.
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, other information accompanying the financial statements,
our knowledge of the Board of Directors and management plans and based on our examination
of the evidence supporting the assumptions and based on the matters described in
"Basis of Qualified Opinion" paragraph of this report, we are unable to comment
on the capability of the Company for 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.
xx. In our opinion and according to the information and explanations given to us,
Section 135 of the Companies Act, 2013 is not applicable to the Company. Accordingly,
clauses 3(xx) (a) and 3(xx) (b) of the Order are not applicable.
ANNEXURE B TO THE AUDITORS’ REPORT
(Referred to in paragraph 2(f) of ‘Report on Other Legal and Regulatory
Requirements’ section of our report of even date)
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 PRIYA
LIMITED ("the Company") as of March 31, 2023 in conjunction with our audit of
the Financial Statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s Board of Directors are 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
Company’s 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 Company’s 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 issued by the ICAI.
Those Standards and the Guidance Note require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the
adequacy of the internal financial controls system over financial reporting and their
operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the Company’s internal financial controls
system over financial reporting. Meaning of Internal Financial Controls over Financial
Reporting
A Company’s internal financial control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of Financial Statements for external purposes in accordance with
generally accepted accounting principles. A Company’s 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
Company’s assets that could have a material effect on the Financial Statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations
given to us, 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, 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 ICAI.
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