To the Members of
VENUS REMEDIES LIMITED
Report on the Audit of the Standalone Financial Statements
OPINION
We have audited the accompanying Standalone Financial Statements of VENUS REMEDIES
LIMITED ("the Company"), which comprise the Standalone Balance Sheet as at 31st
March 2023, and the
Standalone Statement of Profit and Loss (including other comprehensive income),
Standalone Statement of Changes in Equity and Standalone Statement of Cash Flows for the
year then ended, and notes to the Standalone Financial Statements, including a summary of
significant information (hereinafter referred to as "the Standalone Financial
Statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid
Standalone Financial Statements give the information required by the Companies Act,
2013 ("the Act") in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India, of the state of
affairs of the Company as at 31st March 2023, and profit (including other
comprehensive income), changes in equity and its cash flows for the year ended on that
date.
BASIS FOR OPINION
We conducted our audit in accordance with the
Standards on Auditing (SAs) specified under Section
143(10) of the Act. Our responsibilities under those SAs are further described in the
Auditors Responsibilities for the Audit of the Standalone Financial Statements section of
our report. We are independent of the Company in accordance with the Code of Ethics issued
by the Institute of Chartered Accountants of India together with the ethical requirements
that are relevant to our audit of the Standalone 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 sufficientand appropriate to provide a basis
for our opinion.
EMPHASIS OF MATTER
We draw attention to note no. 33 of the Standalone Financial Statements with respect to
review of liability related to FCCB bonds amounting to US $ 4.59 Million
(Rs 3867.89 Lakhs) in the absence of any explicit agreement and based on reassessment
of liability in terms of the provisions of The Limitation Act,1963. Accordingly, the
carrying value of such FCCB liability has not been reinstated at current exchange rate.
No provision for interest payable has been made since 1st February 2015, as
the FCCB Bonds liability becoming ws of the time barred, as per a legal Opinion obtained
by the Company.
Our opinion is not modified in respect of above matter.
KEY AUDIT MATTERS
Key audit matters (‘KAM) are those matters that, in our professional judgment,
were of most significance in our audit of the Standalone Financial Statements of the
current period. These matters were addressed in the context of our audit of the Standalone
Financial
Statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
We have determined that there are no key audit matters to communicate in our report.
INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS AND AUDITORS REPORT THEREON
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 Standalone Financial Statements and our auditors
report thereon.
Our opinion on the Standalone Financial Statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the Standalone Financial Statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated. If, based on the
work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this
regard.
MANAGEMENTS RESPONSIBILITY FOR THE STANDALONE 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 Standalone Financial
Statements that give a true and fair view of the state of affairs, profit / loss
(including other comprehensive income), changes in equityandcash 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 Standalone Financial Statements that give a true and
fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, management and Board of 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.
Board of Directors is also responsible for overseeing the
Companys financial reporting process.
AUDITORS RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the Standalone
Financial Statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonablybeexpectedtoinfluencethe economic
decisions of users taken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also: Identify and assess the
risks of material misstatement of the Standalone Financial Statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the company has
adequate internal financial controls with reference to Standalone Financial Statements in
place and the operating effectiveness of such controls. Evaluate the appropriateness of
accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or on the conditions that may cast significant
Companys ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in
our auditors report to the related disclosures in the Standalone Financial Statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditors report. However, future events
or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the Standalone
Financial Statements, including the disclosures, and whether the Standalone Financial
Statements represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope findings, and timing of the audit and significant control including any
significant that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the Standalone
Financial Statements of the current period and are therefore the key audit matters. We
describe these matters in our auditors report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such
communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government of India in terms of Section 143(11) of the Act, we give
in "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.
(b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and
Loss (including other comprehensive income), the Statement of Changes in Equity and the
Statement of Cash Flows dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the aforesaid Standalone
Financial Statements comply with the specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 st 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 with reference to
Financial
Statements of the Company and the operating effectiveness of such controls, refer to
our separate Report in "Annexure B".
(g) In our opinion, the managerial remuneration for the year ended 31st
March, 2023 has been paid
/ provided by the Company to its directors in accordance with the provisions of Section
197 read with Schedule V to the Act. The Ministry of Corporate Affairs has not prescribed
other details under Section 197(16) of the Act which are required to be commented upon by
us.
(h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, 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 as at 31st
March, 2023 on its financial position in its Standalone
Financial Statements - Refer Note 46 to the Standalone Financial Statements; ii. The
Company has made provision, as required under the applicable law or accounting standards,
for material foreseeable losses, if any, on long-term contracts including derivative
contracts; iii. There is no amount which are 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 (iv) (a) and (iv) (b) above contain any material
misstatement; v. The company has not declared or paid any dividend during the year and
accordingly compliance of Section 123 of the Act is not applicable during the year; and
vi. As per 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 31 st March, 2023.
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For Vinod Kumar & Associates |
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Chartered Accountants |
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FRN-002304N |
|
Mukesh Dadhich |
|
Partner |
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M.No. 511741 |
|
UDIN: 23511741BGTHHV5208 |
Place: Panchkula |
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Date: 29th May, 2023 |
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Annexure A to the
Independent Auditors Report
With reference to the Annexure A referred to in the
Independent Auditors Report to the members of the Company on the Standalone Financial
Statements for the year ended 31st March 2023, we report the following: (i) In
respect of the Companys Property, Plant and Equipment and Intangible Assets: (a) (A) The
company has maintained proper records showing full particulars, including quantitative
details and situation of Property Plant & Equipment.
(a) (B) The Company has maintained proper records showing full particulars is 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
equipment verification by which all Property, plant and equipment areverifiedin a phased
manner. In accordance with this programme, certain Property, plant and equipment were
verified
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 onsuchverification (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 (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
Standalone 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 the 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) verified Theinventoryhasbeenphysically by the management during the year. In
our opinion, the frequency of such verification reasonable and procedures and coverage as
followed by management were appropriate.
No discrepancies were noticed on verification between the physical stocks and the book
records that were 10% or more in the aggregate for each class of inventory.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not been sanctioned any working
capitalduring the year. limits in excess of 5 crore, in aggregate, at any points of time
during the year, from banks or financial institutions on the basis of security of current
assets and hence reporting under clause 3(ii)(b) of the Order is not applicable.
(iii) (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 guarantee or
security or granted any loans or advances in the nature of loans, secured or unsecured, to
companies, limited liability partnerships or any other firms, parties during the year. The
company has made investments during the year.
(b) According to the information and explanations given to us and based on the audit
procedures conducted by us, in our opinion, investment made during the year are, prima
facie, not prejudicial to the interest of the Company.
(c) The Company has not granted any loans and advances in the nature of loans to
companies, firms, Limited Liability Partnerships or any other parties. Accordingly, the
requirement to report on clause 3(iii)(c), (d), (e) and (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 the records, the Company has not given any loans, or provided any guarantee
or security as specified under Section 185 of the Companies Act, 2013 and the Company has
not provided any guarantee or security as specified under Section 186 of the
Companies Act, 2013. Thus, clause 3(iv) of the Order is not applicable.
(v) The Company has not accepted any deposit or amounts which are deemed to be
deposits. Hence, reporting under clause 3(v) of the Order is not applicable.
(vi) On the basis of records produced we are of the opinion that prima facie cost
records and accounts prescribed by the central government under section 148 of the act in
respect of the products of "the company" covered under the rules under said
section have been maintained. However, we are neither required to carry out nor have
carried out any detailed examination of such accounts and records.
(vii) (a) 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, sales-tax, service tax, duty of
customs, duty of excise, value added tax, cess and other material statutory dues have been
generally deposited during the year by the Company with the appropriate authorities.
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, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess
and other material statutory dues were in arrears as at 31st March 2023 for a
period of more than six months from the date they became payable except provident fund of
Rs.2.06 lakhs which has not been paid due to technical glitch in respect of non-resident
employees.
(b) According to the information and explanations given to us, 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 or other material
statutory dues which have not been deposited with the appropriate authorities on account
of any disputes, except for the following dues:
|
|
Period to |
Forum where |
Demand |
|
Nature of statute |
Nature of the dues |
which the amount relates |
dispute is pending |
Amount (Rs. In lakhs) |
Remarks |
Income Tax Act, 1961 |
Income Tax |
AY 2011-12 |
Commissioner of Income Tax (Appeals) |
16.34 |
The Disputed demand of Rs 16.34 lakhs was deducted by the Income Tax
Department from refund due to the Company. |
Income Tax Act, 1961 Rs. 209.43 lakhs. |
Income Tax |
AY 2012-13 |
Commissioner of Income Tax (Appeals) |
1047.14 |
The company has deposited |
Income Tax Act, 1961 |
Income Tax |
AY 2013-14 |
Commissioner of Income Tax (Appeals) |
2067.50 |
|
(viii)According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not surrendered or disclosed
any transactions, previously unrecorded as income in the books of account, in the tax
assessments under the Income-tax Act, 1961 as income during the year. (ix) (a) According
to the information and explanations given to us and on the basis of our examination of the
records of the Company, the Company has not defaulted in repayment of loans and borrowing
or in the payment of interest thereon to any lender.
(b) The Company has not been declared wilful defaulter by any bank or financial
institution or other lender.
(c) The Company has not taken any term loan during the year and there are no
outstanding term loans at the beginning of the year and hence, reporting under clause
3(ix)(c) of the
Order is not applicable.
(d) On an overall examination of the Financial
Statements of the Company, the company has not raised funds on short-term basis.
Hence, reporting under clause 3(ix)(d) of the
Order is not applicable.
(e) On an overall examination of the Financial
Statements of the Company, the Company has not taken any funds from any entity or
person on account of or to meet the obligations of its subsidiary. The Company did not
have any associate or joint venture during the year ended March 31, 2023.
(f) The Company has not raised any loans during the year and hence reporting on clause
3(ix)(f) of the Order is not applicable.
(x) (a) The Company has not raised any moneys by way of initial public offer or further
public offer (including debt instruments) during the year.
Accordingly, clause 3(x)(a) of the Order is not applicable.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year.
Accordingly, clause 3(x)(b) of the Order is not applicable.
(xi) (a) Based on examination of the books and records of the Company and according to
the information and explanations given to us, 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 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 Companies Act, 2013 has been filedby the auditors
in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government, during the year and upto the date of this report.
(c) Based on examination of the books and records of the Company and according to the
information and explanations given to us, 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
Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not
applicable.
(xiii)According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act, where applicable, and details of such
transactions have been disclosed in the Standalone Financial Statements as required by the
applicable Indian 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, the
Company has not entered into any non-cash transactions with its directors or persons
connected to its directors and hence, provisions of Section 192 of the Companies Act, 2013
are not applicable to the Company.
(xvi) (a) In our opinion, the Company is not required to be registered under
section 45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause
3(xvi)(a), (b) and (c) of the Order is not applicable.
(b) In our opinion, there is no core investment company within the Group (as defined in
the
Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting
under clause 3(xvi)(d) of the Order is not applicable.
(xvii)The Company has not incurred cash losses in the current and in the immediately
preceding financial year.
(xviii)There has been no resignation of the statutory auditors during the year.
Accordingly, clause 3(xviii) of the Order is not applicable.
(xix)On the basis of the financial ratios, ageing and expected dates of realisation of
financial assets payment of financial liabilities, other information accompanying the
Financial Statements and 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 indicating 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,
(a) There are no unspent amounts in respect of other than ongoing projects requiring a
transfer to a Fund specified in Schedule VII to the Companies Act in compliance with
second proviso to sub-section (5) of Section 135 of the said Act.
(b) There are no unspent amounts under sub-section (5) of section 135 of the Companies
Act in respect of any ongoing projects requiring a transfer to special account in
compliance with provisions of
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For Vinod Kumar & Associates |
|
Chartered Accountants |
|
FRN-002304N |
|
Mukesh Dadhich |
|
Partner |
|
M.No. 511741 |
|
UDIN: 23511741BGTHHV5208 |
Place: Panchkula |
|
Date: 29th May, 2023 |
|
Annexure B to the
Independent Auditors Report
(Referred to in paragraph 2(f) under ‘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 with reference to Standalone Financial
Statements of VENUS REMEDIES LIMITED ("the Company") as of 31st
March, 2023 in conjunction with our audit of the Standalone Financial Statements of the
Company for the year ended on that date.
MANAGEMENTS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control with reference to Standalone Financial
Statements 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 (the "Guidance Note") 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 the 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 Act.
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on the Companys internal financial
controls with reference to Standalone Financial Statements based on our audit. We
conducted our audit in accordance with the Guidance Note and the Standards on Auditing,
issued by ICAI and deemed to be prescribed under Section
143(10) of the Act, to the extent applicable to an audit of internal financial
controls, of Internal Financial Controls and, both issued by 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
with
Standalone Financial Statements 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
Financial Statements and their operating effectiveness.
Our audit of internal financial controls with to Standalone Financial Statements
included obtaining an understanding of internal financial controls with reference to
Standalone 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 judgement, including
the assessment of the risks of material misstatement of the Standalone Financial
Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
with reference to Standalone Financial Statements.
MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO STANDALONE FINANCIAL
STATEMENTS
A companys internal financial control with reference to
Standalone Financial Statements is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of Standalone
Financial Statements for external purposes both applicable to an audit in accordance with
generally accepted accounting principles. A companys internal financial control with
reference to Standalone 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
Standalone Financial Statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorisations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorised acquisition,
use, or disposition of the companys assets that could have a material effect on to the
Standalone Financial Statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO STANDALONE
FINANCIAL STATEMENTS
Because of the inherent limitations of internal financial systemwith
referencetoStandalone controls with reference to Standalone 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
Standalone Financial Statements to future periods are subject to the risk that the
internal financial control with reference to Standalone Financial Statements may become
inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system with reference to Standalone Financial Statements and such
internal financial controls with reference to Standalone
Financial Statements were operating effectively as at 31st March 2023, based
on the internal control with reference to Standalone Financial Statements criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note issued by the ICAI.
|
Chartered Accountants |
|
FRN-002304N |
|
Mukesh Dadhich |
|
Partner |
|
M.No. 511741 |
|
UDIN: 23511741BGTHHV5208 |
Place: Panchkula |
|
Date: 29th May, 2023 |
|
+91-9892691696
