To,
The Members of
RR Metalmakers India Limited
Report on the Audit of the Financial Statements
We have audited thefinancial statements of RR Metalmakers India Limited (‘the
Company) which comprises of Balance sheet as at March 31, 2023, the Statement of Profit
and loss (including Other Comprehensive Income), the Statement of changes in Equity and
the Statement of Cash flows for the year ended on that date 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").
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
CompaniesAct, 2013 ("Act") in the manner so required and give a true and fair
view in conformity with the recognition and measurement principles laid down in the
applicable Indian Accounting Standards and other accounting principles generally accepted
in India of the state of affairs of the Company as at March 31, 2023, of its net loss and
other comprehensive income, changes in equity and its cash flows for the year ended on
that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on
Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under
those Standards are further described in the ‘Auditors Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the
Company in accordance with the ‘Code of Ethics issued by the Institute of Chartered
Accountants of India together with the ethical requirements that are relevant to our audit
of the financial statements under the provisions of the Act 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 audit opinion on the financial statements.
Emphasis of matter
We draw attention to following matters pertaining to RR Metalmakers India Limited,
requiring emphasis by us.
1. The Company has on 31.3.2023 sold rice amounting to Rs.2,40,00,000/- to a customer
named ‘Bhagwati. The said business activity is not recorded in the Memorandum of
Association and Articles of Association of the company as on the date of this report.
2. Debtors amounting to Rs.79,35,333/- are older for a period of more than 3 years on
which impairment loss is not recognized by the management based on lifetime expected
credit losses using provision matrix as per provisions of IND-AS 109 "Financial
Instruments". The management of the company is certain for recovery of the said debts
and has filed recovery suits against these parties.
Our opinion is not modified in respect of the above matters.
Other Information
The Companys Management and Board of Directors are responsible for the other
information. The other information comprises the information included in the Companys
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 during the
course of our audit or otherwise appears to be materially misstated. If, based on the work
we have performed, we conclude that there is a material misstatement of this other
information; we are required to report that fact. We have nothing to report in this
regard.
Managements and Board of Directors Responsibilities for the Financial Statements
The Companys Management and Board of Directors are 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, financial performance, changes
in equity and cash flows 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 financial statements, management and the Board of the Directors are
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 is
responsible for overseeing the Companys financial reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatements, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal 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 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 the Management and Board of
Directors.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the standalone financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the 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 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) as
amended, 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 said order.
2. As required by section 143(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit;
(b) In our opinion, proper books of accounts, as required by law have been kept by the
company, so far as it appears from our examination of the books ;
(c) The Balance Sheet, the statement of Profit and Loss and the cash flow statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the aforesaid IND AS financial statements comply with the
applicable Accounting standards specified under section 133 of the Act read with the Rule
7 of the Companies (Accounts) Rules 2014;
(e) On the basis of written representations received from the directors, as on March
31, 2023 and taken on record by the Board of Directors, none of the directors are
disqualified as on March 31, 2023 from being appointed as a director in terms of section
164(2) of the Act;
(f) With respect to 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". Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting;
(g) With respect to the other matters to be included in the Auditors Report in
accordance with 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, if any during the year is in accordance
with the provisions of section 197 of the Act;
(h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit & Auditors) Rules, 2014, as amended 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 financial statements. Refer Note 29 to the financial statements.
? The Company did not have any long-term contracts pending on the balance sheet date
including derivative contracts; as such the question of commenting on any material
foreseeable losses thereon does not arise and;
? There were no amounts which are required to be transferred to the Investor Education
and Protection Fund by the Company.
(i) (i) 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 or its joint operation
companies incorporated in India 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 its joint operation companies
incorporated in India or provide any guarantee, security or the like to or on behalf of
the Ultimate Beneficiaries;
(ii) The management has represented, that, to the best of its knowledge and belief, no
funds have been received by the Company or its joint operation from any persons or
entities, including foreign entities ("Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the Company or its joint
operation companies incorporated in India 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;
(iii) 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 (i) (i) and (i) (ii) above contain any material
misstatement.
(j) The Company has neither declared nor paid any dividend during the year; hence the
compliance with Section 123 of the Act in respect of dividend does not arise.
(k) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company with effect from 1st April, 2023 and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended 31st March, 2023.
"Annexure A" to the Independent Auditors Report
The Annexure referred to in Independent Auditors Report to the members of the Company
on the IND AS financial statements for the year ended March 31, 2023.
On the basis of such checks as we considered appropriate and according to the
information and explanations given to us during the course of our audit, 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 (PPE).
(B) (a) The Company has maintained proper records showing full particulars of
intangible assets.
(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 a regular programme of physical
verification of its Property, Plant and Equipment by which all property, plant and
equipment are verified in a phased manner over a period of two years. In accordance with
this programme, certain property, plant and equipment were verified during the year. In
our opinion, this periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets. 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 title deeds of immovable properties are
held in the name of the company on the balance sheet date.
(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 or intangible assets or both during the year.
(e) According to information and explanations given to us and on the basis of our
examination of the records of the Company, there are no proceedings initiated or pending
against the Company for holding any Benami property under the Prohibition of Benami
Property Transactions Act, 1988 and rules made there under.
ii. (a) The inventory has been physically verified by the management during the year.
There are no stocks which are in transit. However the stock of iron ore is lying with the
third party seller of the item. In our opinion, the frequency of such verification is
reasonable and procedure and coverage as followed by the management were appropriate. No
discrepancies were noticed on verification between the physical stocks and book records
that were more than 10% in the aggregate of each class of inventory.
(b) Further we have broadly reviewed the books of accounts maintained by the Company,
whereby the Company has been sanctioned working capital limits in excess of five crore
rupees in aggregate from banks and financial institutions on the basis of security of
current assets. We state that the quarterly returns or statements filed by the company
with such banks or financial institutions are not in agreement with the books of account
of the Company, details of which are as under:-
| Sr. No. Particulars |
Details Submitted to bank - March 2023 |
Balance Sheet as on 31/03/2023 |
| 1 Stock |
2,575.32 |
1,996.18 |
| 2 Debtors |
5,36.79 |
632.35 |
| 3 Creditors |
1,620.46 |
1,401.37 |
iii. (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 not provided any guarantee
or security or granted any advances in the nature of loans, secured or unsecured, to
companies, firms, limited liability partnership or any other parties during the year. The
Company has not made any investments in or granted any loans, secured or unsecured, to
firms and limited liability partnership. Other than this, para 3 clause (iii) (b) to (f)
of the Order is not applicable to the Company.
iv. According to the information and explanations given to us and on the basis of our
examination of records of the Company, the Company has not provided any guarantee or
security as specified under Sections 185 and 186 of the Act. In respect of the investments
made and loans given by the Company, in our opinion the provisions of Sections 185 and 186
of the Act have been complied with.
v. The Company has not accepted any deposits or amounts which are deemed to be deposits
from the public. Accordingly, para 3 clause (v) of the Order is not applicable to the
Company.
vi. We have broadly reviewed the books of accounts maintained by the Company pursuant
to the rules prescribed by the Central Government for maintenance of cost records under
Section 148(1) of the Act. Accordingly, para 3 clause (vi) of the Order is not applicable
to the Company.
vii. (a) The Company does not have liability in respect of Service tax, Duty of excise,
Sales tax and Value added tax during the year. Since 1st July 2017, these statutory dues
have been subsumed into Goods and Services Tax.
According to the information and explanations given to us and on the basis of our
examination of the records of the Company, amounts deducted / accrued in the books of
account in respect of undisputed statutory dues including Goods and Services Tax,
Provident fund, Employees State Insurance, Income Tax and other Statutory dues have been
regularly deposited by the Company with the appropriate authorities.
Also, preceding year undisputed dues are still pending to be deposited by the company
which are as follows:-
| Type of Statutory Dues |
Particulars |
Amount (Rs.) |
| TDS-Various years |
TDS default |
3,26,666 |
| TOTAL UNDISPUTED DUES UNDER INCOME TAX ACT 1961 |
|
3,26,666 |
According to the information and explanations given to us, no undisputed amounts
payable in respect of Goods and Services Tax, Provident fund, Employees State Insurance,
Income-Tax, Duty of Customs, Cess and other statutory dues were in arrears as at 31st
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, there are no disputed
amounts payable in respect of statutory dues relating to Sales Tax, Value Added Tax,
Service Tax, Goods and Services Tax, Provident Fund, Employees State Insurance, Income
Tax, Duty of Customs, Duty of Excise or Cess or other statutory dues which have not been
deposited on account of any dispute, except the following dues which are as under:-
| Name of the Statute |
Nature of dues |
Amount Demanded |
Amount Paid |
Period to which the amount relates |
Forum where dispute is pending |
| Income Tax Act, 1961 |
Income tax including interest and Penalty u/s. 271DA |
Rs.5,09,000 |
NIL |
A.Y. 2018-19 |
Commissioner of Income tax (Appeals), Faceless Appeals Scheme |
(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 not recorded as income in the books of accounts, in
the tax assessments under the Income Tax Act, 1961 as income during the year.
(ix) (a) We have broadly reviewed the books of accounts maintained by the Company and
on the basis of our examination of the records of the Company, the Company has not
defaulted in repayment of loans or other borrowings or in the payment of interest thereon
to any lender.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not been declared a wilful
defaulter by any bank or financial institution or government or governmental authority.
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, term loans were applied for the purpose for
which they were obtained. No amount of loan have been diverted for the purpose other than
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) According to the information and explanations given to us and on an overall
examination of the financial statements of the Company, we report that the Company has not
taken any funds from any entity or person on account of or to meet the obligations of its
subsidiaries or associates as defined under the Act. The Company does not hold any
investments in any joint venture (as defined under the Act) during the year ended 31st
March, 2023.
(f) According to the information and explanations 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 or associate companies (as defined under the Act). The
Company does not hold investment in any joint venture (as defined under the Act) during
the year ended 31st March 2023.
(x) (a) The Company has not raised any moneys by way of initial public offer or further
public offer (including debt instruments). Accordingly, para 3 clause (x)(a) 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 Company has made preferential allotment of
equity shares to promoters. No private placement of fully or partly convertible debentures
was made during the year. Accordingly the requirement of section 42 and section 62 of the
Act had been complied with and the funds raised had been used for the purpose for which
they were raised.
xi) (a) Based on examination of the books and records of the Company and according to
the information and explanations given to us, considering the principles of materiality as
outlined in the Standards on Auditing, we report that no fraud by the Company or on the
Company has been noticed or reported during the course of the audit.
(b) According to the information and explanations given to us, no report under
sub-section (12) of Section 143 of the 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) No whistle blower complaints was received by the Company during the year while
determining the nature, timing and extent of our audit procedures and accordingly
provisions of para 3 clause (xi)(c) are not applicable to the company.
(xii) According to the information and explanations given to us, the Company is not a
Nidhi Company. Accordingly, para 3 clause (xii) of the Order is not applicable to the
Company.
(xiii) In our opinion and according to the information and explanations given to us,
the transactions with related parties are in compliance with Sections 177 and 188 of the
Act, where applicable, and the details of the related party 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 for the period
under audit, we did not find any material misstatement.
(xv) In our opinion and according to the information and explanations given to us, the
Company has not entered into non-cash transactions with its directors and accordingly
provisions of para 3 clause (xv) is not applicable to the company.
(xvi) (a) The Company is not required to be registered under Section 45-IA of the
Reserve Bank of India Act, 1934. Accordingly, para 3 clause (xvi)(a) of the Order is not
applicable to the Company.
(b) The Company had not conducted any Non-banking Financial or Housing financial
activities, as mentioned above the company is not required to be registered under Section
45-IA of the Reserve Bank of India Act, 1934. Accordingly, para 3 clause (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
made by the Reserve Bank of India. Accordingly, para 3 clause (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 (as per the provisions of the Core Investment Companies (Reserve Bank)
Directions, 2016) does not have any CIC. Accordingly, para 3 clause (xvi)(d) of the Order
is not applicable to the Company.
(xvii) The Company has incurred cash loss Rs. 102.95 lakhs in F.Y. 2022-23 and cash
loss Rs. 190.22 lakhs in the immediately preceding financial year i.e. F.Y. 2021-22.
(xviii) There has been no resignation of the statutory auditors during the year.
Accordingly, para 3 clause (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, 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) In our opinion and according to the information and explanations given to us,
there is no unspent amount under sub-section (5) of Section 135 of the Act pursuant to any
project other than ongoing projects. Accordingly, para 3 clause (xx) of the Order is not
applicable.
(xxi) According to the information and explanations given to us the company does not
have any subsidiary company as on the date of audit report.
"Annexure B" to the Independent Auditors Report on the financial statements
of RR Metalmakers 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 RR
Metalmakers India Limited (‘the Company) as of March 31, 2023 in conjunction with
our audit of the IND AS financial statements of the Company for the year ended on that
date.
Opinion
In our Opinion, the Company has, in all material respects, adequate internal financial
controls with reference to financial statements and such internal financial controls were
operating effectively as at 31st March 2023, based on the internal controls with reference
to financial statements criteria established by the company considering the essentials
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 (the "Guidance Note").
Managements Responsibility for Internal Financial Controls
The Companys management and the 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. 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 (hereinafter referred to as "the Act").
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 Standards on Auditing prescribed under section 143(10) of the Act and the
Guidance Note, to the extent applicable to an audit of internal financial controls. 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 with reference to financial statements and their operating
effectiveness. Our audit of internal financial controls with reference to financial
statements included obtaining an understanding of internal financial controls with
reference to financial statements, 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 IND AS 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 with
reference to financial statements.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial controls with reference to financial statements 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 controls
with reference to financial statements 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 with reference to
financial statements, 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 with
reference to financial statements to future periods are subject to the risk that the
internal financial controls with reference to financial statements may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
| For M. A. Chavan& Co. |
| Chartered Accountants |
| Firm Registration Number: 115164W |
| CA Romit M. Chavan |
| Partner |
| Membership No.: 171005 |
| Thane, 29.5.2023 |
| UDIN: 23171005BGSYMK1865 |
| Certificate No. : MAC/2023-24/042 |
+91-9892691696
