To The Members of Tanfac Industries Limited
Report on the Audit of the Financial Statements
OPINION
We have audited the accompanying financial statements of Tanfac
Industries Limited ("the Company"), which comprise the Balance Sheet as at
31st March, 2023, the Statement of Profit and Loss, including the statement of
Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity
for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies and other explanatory information (hereina3er referred to
as "the financial statements").
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 Companies Act 2013 ("The Act" or "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 a3airs of the Company as at 31st
March, 2023, its profit including other comprehensive income, its cash flows and the
changes in equity 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 ‘Auditor?s
Responsibilities for the Audit of the Financial Statements? section of our report. We
are independent of the Company in accordance with the ‘Code of Ethics? issued by
the Institute of Chartered Accountants of India together with the ethical requirements
that are relevant to our audit of the financial statements under the provisions of the
Companies Act, 2013 and the Rules 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 su3icient and appropriate to provide a basis
for our audit opinion on the financial statements.
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 for the financial year
ended 31st March, 2023. 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. Based on our judgement, we have
determined that there is no key audit matter to be communicated in our report.
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITOR?S
REPORT THEREON
The Company?s management and Board of Directors is responsible for
the other information. The other information comprises the information included in the
Annual report, but does not include the financial statements and our auditor?s report
thereon. The Annual Report is expected to be made available to us a3er the date of this
auditor?s report.
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. When we read the Annual Report, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to those charged with
governance and take necessary actions, as applicable under the applicable laws and
regulations.
RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTS
The Company?s management and 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, financial
performance including other comprehensive income, cash flows and changes in equity 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
read with [the Companies (Indian Accounting Standards) Rules, 2015, as amended]. 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
the design, implementation and maintenance of adequate internal financial controls, that
were operating e3ectively 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 is 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.
Those charged with governance are 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 su3icient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate in the circumstances. Under
section 143(3) (i) of the Act, we are also responsible for expressing our opinion on
whether the Company has adequate internal financial controls system in place and the
operating e3ectiveness 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.
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 e3ect 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 for the financial year ended 31st March, 2023 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 (Auditor?s Report) Order, 2020,
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act, (hereina3er referred to as the "Order"), we give in the "Annexure
A" statement on the matters specified in paragraphs 3 and 4 of the Order.
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;
(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 the
Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes
in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the
directors and 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 with reference to these financial statements and
the operating e3ectiveness of such controls, refer to our separate Report in
"Annexure B" to this report;
(g) With respect to the matter to be included in the Auditors?
Report under Section 197(16) of the Act, 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.
(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, as amended in our opinion and to the best of our information and according to
the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements – Refer Note 28.4 to the financial
statements;
ii. The Company has accounted for material foreseeable losses, if any,
for long-term contracts including derivative 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, other than as disclosed in the notes to the accounts, if any, 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 Intermediaries 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, if any, 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, whether, 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, we have considered reasonable and
appropriate in the circumstances, nothing has come to their notice that has caused them to
believe that the representations under sub-clause (i) and (ii) contain any material
mis-statement.
(i) The dividend declared or paid during the year as well as the
dividend proposed (which is subject to members approval at the ensuing Annual General
Meeting) by the Company are in compliance with Section 123 of the Act.
(j) As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is
applicable for the Company only w.e.f. 1st April , 2023, reporting under this
clause is not applicable.
Annexure – A to the Independent Auditor?s Report
(Referred to in paragraph 1 of the Independent Auditors? Report of
even date to the members of TANFAC INDUSTRIES LIMITED on the financial Statements as of
and for the year ended 31st March, 2023)
We report that:
i. In respect of its Property Plant and Equipment and Intangible
Assets:
a) (A) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its property, plant and
equipment.
(B) The Company has maintained proper records showing full particulars
of intangible assets.
b) The Company has a regular program of physical verification of its
property, plant and equipment by which all such assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of physical verification is
reasonable having regard to the size of the Company and the nature of its assets. Pursuant
to the program, certain property, plant and equipment were physically verified by the
Management. In our opinion, and according to the information and explanations given to us,
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, title deeds of the immovable property (other than properties
where the Company is the lessee and the lease agreements are duly executed in favour of
the lessee) as disclosed in schedule of Property, Plant and Equipment to the financial
statements, are held in the name of the Company.
d) The Company has not revalued its property, plant and equipment
(including right of use assets) and intangible assets during the year. Therefore, the
provisions of clause 3(i)(d) of the Order are not applicable to the Company.
e) According to information and explanations given by the management,
no proceedings have been initiated or are pending against the Company for holding any
benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules
made thereunder. Therefore, provisions of clause 3(1)(e) of the Order are not applicable
to the Company
ii. In respect of its Inventories:
a) As per information and explanations provided to us, physical
verification has been conducted by the management at reasonable intervals during the year
in respect of inventory of raw materials, work in progress, finished goods and by products
and no material discrepancies were noticed on such physical verification.
b) Based on our examination of the books of accounts of the Company,
with respect to the sanctioned working capital limits availed from banks or financial
institutions, the Quarterly return/statements have been regularly submitted by the Company
and no material discrepancies were noticed.
iii. According to the information and explanations provided to us, the
Company has not made investments in, provided guarantee or security or granted loans or
advances in the nature of loans, secured or unsecured to companies, firms, limited
liability partnership or any other parties during the year. Therefore, the provisions of
clause 3(iii) of the Order are not applicable to the Company.
iv. In our opinion and according to the information and explanations
given to us and records examined by us, Company has not given any loan, made investments
or given Guarantee and Securities and covered under Section 185/186. Therefore, the
provisions of clause 3(iv) of the Order are not applicable to the Company.
v. According to the information and explanations given to us, the
Company has not accepted any deposits from the public or amount which are deemed to be
deposits within the meaning of sections 73 to 76 of the Act and the Companies (Acceptance
of Deposits) rules 2014 (as amended).
vi. We have broadly reviewed the books of account maintained by the
Company in respect of products for which maintenance of prescribed cost records is
mandated by Government of India U/S 148 (1) of the Act and are of the opinion that, prima
facie, the prescribed records have been made and maintained. We have, however, not made a
detailed examination of these records with a view to determine whether they are accurate
or complete.
vii. According to the information and explanations given to us and the
records of the Company examined by us:
a) The Company has been generally regular in depositing amounts
deducted/accrued in the books of accounts in respect of 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 material statutory dues, as applicable. There was no material undisputed
outstanding statutory dues as at the year end, for a period of more than six months from
the date they became payable.
b) There are no dues of 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 material statutory dues which have not been
deposited with the appropriate authorities on account of any dispute, except as stated
below:
| Name of the Statute |
Nature of the dispute |
Period to which the amount relates |
Forum where Dispute is Pending |
Amount Unpaid/ (refund) Rs in lakhs |
| TNGST Act, 1959 |
Levy of sales tax from sales a3ected through Pondicherry |
1989-90 & 1990-91 |
Appeal before Tamil Nadu Sales Tax Appellate Tribunal |
52.77 |
| Custom Act, 1962 Income Tax Act, 1961 |
Duty on fluorspar shipment shortage Replacement of equipment
claimed as revenue expenditure, reclassified by Dept. as capital expenditure [tax
demanded] (Including Interest) |
1998-99 2002-03 |
Customs O3icer Income Tax Appellate Tribunal |
10.79 85.39 |
| Central Sales Tax Finance Act, 1994 (Service Tax) |
Appeal Against Assessment Orders for shortfall of Form C
Service Tax on Lease Rent |
FY 2014-15 to 2017-18 2001-02 to 2004-05 |
Appellate Deputy Commissioner CT Additional Commissioner of
Central Excise, Puducherry |
246.86 12.30 |
| Finance Act, 1994 (Service Tax) |
Reversal of ITC on sales to SEZ in other state |
2012-13 |
Hon?ble High Court of Madras |
1.51 |
viii. According to the information and explanation given to us, there
were no transactions which have not been recorded in the books of account, which have been
surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961
(43 of 1961) during the year. Therefore, provisions of clause 3(viii) of the Order are not
applicable to the Company.
ix. In respect of its Borrowings:
a) According to the information and explanations given to us and based
on our examination of the records of the Company, the Company has not defaulted in
repayment of loans or borrowings to any financial institution, bank, Government or
debenture holders.
b) Basis of the information and explanation provided to us, the Company
has not been declared a wilful defaulter by any bank or financial institution or other
lender.
c) According to the information and explanations given to us and based
on our examination of the records of the Company, the Company has availed loans from banks
and financial institutions. The amount of loan was applied for the purpose for which the
loan was obtained. Further the Company has not availed any loans from Government or has
not issued any debenture during the year.
d) Based on the information and explanation given to us, and the books
of account examined by us, short term funds raised during the year have not been utilized
for long term purposes.
e) The Company does not have any subsidiaries, joint ventures or
associate companies. Therefore, provisions of clause 3(ix)(e) and 3(ix)(f) of the Order
are not applicable to the Company.
x. a) According to the information and explanations given to us and
based on our examination of the records of the Company, the Company did not raise any
money by way of initial. public o3er or further public o3er (including debt instruments)
during the year. Thus, the. provisions of clause 3(x)(a) of the order are not applicable
to the Company.
b) According to the information and explanations given to us and based
on our examination of the records of the Company, the Company has not made any
preferential allotment or private placement of shares or convertible debentures (fully,
partially or optionally convertible) during the year. Therefore, the provisions of clause
3(x)(b) of the Order are not applicable to the Company.
xi. a) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and according to the
information and explanations given to us, we have neither come across any instance of
fraud by the Company or on the Company noticed or reported during the year nor have we
been informed of any such case by the management.
b) We have not come across any instance of fraud, therefore report
under sub-section 12 of section 143 of the Companies Act, 2013 is not required to be filed
by us in Form ADT-4 as prescribed under rule 13 of the Companies (Audit and Auditors)
Rules, 2014 with the Central Government.
c) As reported to us by the management, there are no whistle-blower
complaints received by the Company during the year. xii. In our opinion and according to
the information and explanations given to us, the Company is not a Nidhi Company.
Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
xiii. According to the information and explanations given to us and
based on our examination of the records of the Company, the Company has entered into
transactions with related parties in compliance with the provisions of sections 177 and
188 of the Act. The details of such related party transactions have been disclosed in the
financial statements as required under the Indian Accounting Standards (Ind AS) 24,
Related Party Disclosures specified under section 133 of the Act, read with Rule 4 of the
Companies (Indian Accounting Standards) Rules, 2015 (as amended).
xiv. In our opinion and based on our examination, the Company has an
internal audit system commensurate with the size and nature of its business; We have
considered internal audit reports of the Company issued till date for the period under
audit.
xv. 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
non-cash transactions with directors or persons connected with him. Accordingly, paragraph
3(xv) of the Order is not applicable.
xvi. a) The Company is not required to be registered under section
45-IA of the Reserve Bank of. India Act 1934.
Accordingly, paragraph 3 (xvi)(a) of the Order is not applicable to the
Company.
b) In our opinion, the Company has not conducted any Non-Banking
Financial or Housing Finance activities during the year. Therefore, the provisions of
clause 3(xvi)(b) of the Order are not applicable to the Company;
c) In our opinion, the Company is not a Core Investment Company (CIC)
as defined in the regulations made by the Reserve Bank of India. Therefore, the provisions
of clause 3(xvi)(c) of the Order are not applicable to the Company;
d) According to the representations given by the management, the Group
does not have any CIC. Therefore, the provisions of clause 3(xvi)(d) of the Order are not
applicable to the Company; xvii. The Company has not incurred cash losses in the financial
year and in the immediately preceding financial year. Therefore, the provisions of clause
3(xvii) of the Order are not applicable to the Company.
xviii. There has been no resignation of statutory auditors during the
year. However, during the previous financial year, the existing statutory auditors of the
Company had rotated out on completion of their term. We had taken into consideration the
issue, objections or concern raised, if any, by the out-going auditors.
xix. According to the information and explanations given to us and on
the basis of the financial ratios, ageing and expected dates of realization 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 the 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 respect of Corporate Social Responsibility Expenditure:
a) According to the information and explanations given to us and based
on our examination of the records of the Company, in respect of CSR Expenditure other than
ongoing CSR projects, there were no amount remaining unspent u/s 135 (5) of the Companies
Act, 2013. Hence no amount was required to be transferred to a Fund specified in Schedule
VII to the Companies Act, 2013.
b) According to the information and explanations given to us and based
on our examination of the records of the Company, there were no amount remaining unspent
u/s 135 (5) of the Companies Act pursuant to any ongoing CSR project. Therefore, no amount
was required to be transferred to a special account in compliance with provision of sub
section (6) of section 135 of the said Act, 2013
Annexure-BtotheIndependentAuditor?sReport
(Referred to in paragraph 2 (f) of the Independent Auditors?
Report of even date to the members of TANFAC INDUSTRIES LIMITED on the financial
Statements as of and for the year ended 31st March, 2023)
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF
SUB-SECTION 3 OF SECTION 333 OF THE COMPANIES ACT, 3333 (‘THE ACT?)
1. We have audited the internal financial controls over financial
reporting of Tanfac Industries Limited (‘the Company?) as of 31st
March, 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
2. The Company?s management is responsible for establishing and
maintaining internal financial controls based on the internal control over financial
reporting criteria established by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting issued by the Institute of Chartered Accountants of India
(‘ICAI?). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating e3ectively for
ensuring the orderly and e3icient 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 Act.
AUDITOR?S RESPONSIBILITY
3. 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 e3ectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence
about the adequacy of the internal financial controls system over financial reporting and
their operating e3ectiveness. 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 e3ectiveness 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.
5. We believe that the audit evidence we have obtained is su3icient and
appropriate to provide a basis for our audit opinion on the Company?s internal
financial controls system over financial reporting.
MEANINGOFINTERNALFINANCIALCONTROLS OVER FINANCIAL REPORTING
6. 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
7. (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 e3ect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL
REPORTING
8. 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
9. In our opinion, the Company has, in all material respects, an
adequate internal financial controls system over financial reporting and such internal
financial controls over financial reporting were operating e3ectively 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 Institute of Chartered Accountants of India.
|
For Singhi & Co. |
|
Chartered Accountants |
|
Firm Registration No: 302049E |
| Date: 21st April, 2023 |
Sudesh Choraria |
| Place: Mumbai |
Partner |
|
Membership No: 204936 |
|
UDIN: 23204936BGYIRO1598 |
+91-9892691696
