To,
The Members of
VIKRAM THERMO (INDIA) LIMITED
Report on the Audit of the Standalone Financial Statements Opinion
1. We have audited the Standalone financial statements of VIKRAM THERMO (INDIA)
LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March,
2023, and the Statement of Profit and Loss (including other comprehensive income), the
Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and
notes to the financial statements, including a summary of the significant accounting
policies and other explanatory information.
2. 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 Indian Accounting Standards prescribed
under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules,
2015, as amended, ("Ind AS") and other accounting principles generally accepted
in India, of the state of affairs of the Company as at 31 March, 2023, and its profit,
total comprehensive income, its cash flows and the changes in equity for the year ended on
that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing
("SAs") 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 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 Companies Act, 2013 and
the Rules there under and we have fulfilled our ethical responsibilities in accordance
with these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
4. Key audit matters 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.
5. Key audit matter identified in our audit is on assessment of inventories as
follows:
| Key audit matter |
How our audit addressed the key audit matter |
| Measurement of Inventories |
|
| At the Balance Sheet date, the value of inventories amounted to Rs.992.99
Lakhs representing 11.07% of Equity & 7.80% of total assets. |
Our audit procedures included the following: |
| • Reviewing the accounting policy followed for measurement of inventories &
its appropriateness in accordance with the requirements of Ind AS 2 - Inventories. |
| Valuation of Inventories have been considered as a Key Audit Matter due to its size,
nature, process of manufacturing & managements judgment & estimates involved. |
• Understanding & testing the design & operating effectiveness of the
internal controls established by the management in relation to the processes on recording,
verification & valuation of inventories. |
| Refer note 2(x) to accounting policies and note 8 and 31 to the standalone Financial
statements. |
• Obtaining an understanding of determination of cost as well as net realizable
value & evaluating its reasonableness keeping in view the judgments applied by the
management for such valuation. |
|
• Performing an analysis of Net Realisable Value (NRV) & cost of inventories
on a sample basis to ascertain that inventories are carried at lower of Cost and NRV. |
|
• Reviewing the managements physical inventory verification process & its
evaluation considering the nature of inventory, size & complexity involved. |
|
• Performing cut off procedures on test check basis to ensure completeness of
inventory recorded in the books of account. |
Information other than the Standalone Financial Statements and Auditors Report
thereon.
6. The Companys 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 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 identified above when it becomes available 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.
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 as
may be legally advised.
Responsibilities of Management and Those Charged with Governance for the Standalone
Financial Statements
7. The Companys Board of Directors is 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 financial position, financial
performance, changes in equity and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the Indian Accounting
Standards (Ind AS) specified under section 133 of the Act. This responsibility also
includes maintenance of adequate accounting records in accordance with the provisions of
the Act for safeguarding the assets of the Company and for preventing and detecting frauds
and other irregularities; selection and application of appropriate implementation and
maintenance of 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.
8. In preparing the Standalone financial statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
9. Those Board of Directors are also responsible for overseeing the Companys
financial reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
10. 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 reasonably be expected to influence the economic decisions of users
taken on the basis of these Standalone financial statements.
11. 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 of opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for our 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 control 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.
• 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 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 financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
12. 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.
13. 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.
14. 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
15. As required by the Companies (Auditors Report) Order,2020 ("the
Order") issued by the Central Government of India in terms of sub-section (11) of
Section 143 of the Act, we give in "Annexure A" a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
16. 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 and the
Cash Flow Statement 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 Ind AS
Specified under section 133 of the Act. 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 and the operating effectiveness
of such controls, refer to our separate Report in "Annexure B". g) With respect
to the other matters to be included in the 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 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 and Auditors) Rules,
2014, in our opinion and to the best of our information and according to the explanations
given to us: i. The Company has disclosed the impact of pending litigations on its
financial position in the financial statements - Refer Note-38 of financial statement; 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 has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the Company; iv. (i) The
management has represented that, to the best of its knowledge and belief, other than as
disclosed in the notes to the accounts , no funds have been advanced or loaned or invested
(either from borrowed funds or share premium or any other sources or kind of funds) by the
company to or in any other 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 the 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.
(ii) The management has represented, that to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts, no funds have been received by the
Company from any 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 the other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Parties
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
(iii) Based on such audit procedures applied by us, nothing has come to our notice that
has caused us to believe that the representations made under sub clause (i) and (ii)
contain any material misstatement. v. The dividend declared and paid during the year by
the Company is in compliance with Section 123 of the Companies Act, 2013. vi. 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 April 1, 2023, and accordingly, reporting under
Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the
financial year ended March 31, 2023.
| Place : Ahmedabad |
For, J.T. Shah & Co. |
| Date : 29/05/2023 |
Chartered Accountants, |
|
[Firm Regd. No. 109616W] |
|
Sd/- |
|
(A. R. Pandit) |
|
Partner |
|
[M. No. 127917] |
|
UDIN: 23127917BGRPCZ2694 |
ANNEXURE "A" TO INDEPENDENT AUDITORS REPORT
Referred to in paragraph 15 of "Report on Other Legal and Regulatory
Requirements" of our Report of even date to the Members of VIKRAM THERMO
(INDIA) LIMITED for the year ended 31st March, 2023.
In terms of the information and explanations sought by us and given by the Company and
the books of account and records examined by us in the normal course of audit and to the
best of our knowledge and belief, we state that:
1. In respect of Property, Plant and Equipment :
(a) (i) The Company has maintained proper records showing full particulars including
quantitative details and situation of Property, Plant & Equipments.
(ii) The Company has maintained proper records showing full particulars of intangible
assets on the basis of available information.
(b) The property, plant and equipments were physically verified by the Management
according to a phased programme at regular intervals which, in our opinion, is reasonable
having regard to the size of the company and the nature of its assets. Pursuant to the
programme, property, plant and equipments have been physically verified by the management
during the year and no material discrepancies have been noticed on such verification.
(c) Based on the examination of the registered sale deed / transfer deed / conveyance
deed provided to us, we report that, the title deeds of all the immovable properties of
land and buildings (other than properties where the Company is the lessee and the lease
agreements are duly executed in favour of the Company) disclosed in the financial
statements included in property, plant and equipment are held in the name of the Company
as at the balance sheet date. In respect of immovable and movable properties that have
been taken on lease and disclosed in the financial statements as right-of use asset as at
the balance sheet date, the lease agreements are duly executed in favour of the Company.
(d) Company has not revalued its Property, Plant & Equipments and intangible assets
during the year.
(e) No proceedings have been initiated or pending against the company for holding any
benami property under the Benami Transaction (Prohibition) Act, 1988 and rules made there
under.
2. In respect of its Inventories :
(a) The physical verification of inventories has been conducted at reasonable intervals
by the management. In our opinion, the coverage and procedure of such verification by
management is appropriate and no material discrepancies of 10% or more in aggregate for
each class of inventories were noticed on such physical verification of inventories when
compared with books of account.
(b) The company has been sanctioned working capital limit in excess of Rs.5.00 Crores
in aggregate. Copies of quarterly statement and return, furnished to bank have also been
made available for our verification. We have verified the same on random sampling basis
and found the same in agreement with books of accounts.
Discrepancies noticed during the verification, were reasonably explained by the
management.
3. During the year, the company has not made any investments in, provided any
guarantee or security or granted any loans or advances in the nature of loans, secured or
unsecured, to companies, firms, Limited Liability Partnerships or any other parties during
the year. Accordingly, the clauses 3 (iii) (a) to (f) of the Companies (Auditors Report)
Order, 2020 are not applicable to the company.
4. The Company has complied with the provisions of Sections 185 and 186 of the
Companies Act, 2013 in respect of loans granted, investments made and guarantees and
securities provided, as applicable.
5. In respect of Deposits:
The company has not accepted any deposits or amount which are deemed to be deposits and
hence the directives issued by the Reserve Bank of India and the provisions of sections 73
to 76 or any other relevant provisions of the Companies Act and the rules framed there
under are not applicable to the company. Accordingly, clause 3(v) of Companies (Auditors
Report) Order, 2020 is not applicable.
6. Cost Records:
Pursuant to the rules made by the central government of India, the Company is required
to maintain cost records as specified under section 148(1) of the Act.
We have broadly reviewed the same, and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. However, we have not made a
detailed examination of the cost records with a view to determine whether they are
accurate or complete.
7. In respect of Statutory Dues :
(a) The Company is by and large regular in depositing with appropriate authorities
undisputed statutory dues including Goods and Service Tax, Provident Fund, Employees State
Insurance, Income Tax, Duty of Excise,Duty of Customs, Value Added tax, cess and any other
material statutory dues with the appropriate authorities. According to the information and
explanations given to us, no undisputed amounts payable in respect statutory dues were
outstanding as at 31st March, 2023 for a period of more than six months from the date they
became payable. (b) There were no dues of Income tax, Sales tax, Provident Fund, Employees
State Insurance, Value Added tax, Duty of Excise, Duty of Customs, cess and any other
statutory dues which have not been deposited on account of any dispute. The particulars of
dues of Goods and Service Tax which have not been deposited on account of disputes and the
forum where the dispute is pending is given below:
| Name of the Statute |
Nature of the Dues |
Year |
Amount (Rs. In Lakhs) |
Forum where dispute is pending |
| Goods and Service Tax Act, 2017 |
Goods and Service Tax Demand |
2018-19 |
1.26 |
Commissioner of GST (Appeals) |
| Goods and Service Tax Interest & Penalty |
2018-19 |
0.90 |
|
8. In respect of Undisclosed Income Discovered in Income tax Assessment:
There were no transactions that were not recorded in books of accounts and have been
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961. Hence, clause 3(viii) of Companies (Auditors Report) Order, 2020 is not
applicable to the company.
9. In respect of Repayment of Loans:
(a) In our opinion, the Company has not defaulted in repayment of loans or other
borrowings or in the payment of interest thereon to any lenders.
(b) The company has not been declared as willful defaulter by any bank or financial
institution or other lenders or government or government authority.
(c) During the year under consideration, no new term loan has been taken by the
company.
(d) On an overall examination of the standalone financial statements of the Company,
prima facie, the company has not utilized any funds raised on short term basis for long
term purpose.
(e) The company has not taken any funds from any entity or person to meet obligations
of its subsidiaries, associates or joint ventures. Hence reporting under clause 3(ix)(e)
of the Companies (Auditors Report) Order, 2020 is not applicable to the Company.
(f) The company has not has raised any loans during the year on the pledge of
securities held in its subsidiaries, joint ventures or associate companies. Hence, clause
3 (ix)(f) of the Companies (Auditors Report) Order, 2020 is not applicable to the
Company.
10. In respect of Public Offerings:
(a) The Company has not raised moneys by way of initial public offer or further public
offer (including debt instruments). Accordingly, clause 3 (x)(a) of the Companies
(Auditors Report) Order, 2020 is not applicable to the Company.
(b) The company has not made any preferential allotment or private placement of shares
or convertible debentures during the year. Accordingly, clause 3(x)(b) of the Companies
(Auditors Report) Order, 2020 is not applicable to the Company.
11. (a) To the Best of our knowledge, no fraud by the Company or no material fraud on
the company has been noticed or reported during the year.
(b) To the best of our knowledge, no report under sub-Section (12) of Section 143 of
the Companies Act,2013 has been filed by the auditors in Form ADT-4 as prescribed under
rule 13 of Companies (Auditor and Auditor) Rules 2014 with the Central Government, during
the year and up to the date of this report.
(c) As represented to us by the management, there were no whistle-blower complaints
were received during the year and up to the date of this report by the company.
12. As the company is not a Nidhi Company, the Nidhi Rules, 2014 are not applicable
to it. Accordingly, provisions of clause 3(xii) (a) to (c) of the Companys (Auditors
Report) Order, 2020 are not applicable to the Company.
13. The company has entered into transactions with related parties in compliance
with the provisions of section 177 and 188 of the Companies Act 2013 where applicable and
the details of related part transactions have been disclosed in the standalone financial
statements as required under Indian Accounting Standard (Ind AS) 24 "Related Party
Disclosure" specified under section 133 of the act.
14. In respect of Internal Audit:
(a) In our opinion, the company has an internal audit system commensurate with the size
and nature of its business of the company.
(b) We have considered the report of the internal auditor for the period under audit.
15. The Company has not entered in to any non-cash transactions with its directors
or persons connected with him.
Accordingly, clause 3(xv) of the Companies (Auditors Report) Order, 2020 is not
applicable to the Company.
16. In Respect to the Provisions of Reserve Bank Of India Act 1934:
(a) The company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934. Accordingly, clause 3(xvi)(a) of the Companys (Auditors Report)
Order, 2020 is not applicable to the company.
(b) The company has not conducted any Non-Banking Financial or Housing Finance
activities. Accordingly, clause 3(xvi)(b) of the Companys (Auditors Report) Order, 2020
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. Hence, clause 3(xvi)(c) & (d) of the Companys
(Auditors Report) Order, 2020 is not applicable to the company.
17. The Company has not incurred any cash losses in the financial year under review
and immediately preceding financial year. Accordingly, clause 3(xvii) of the Companys
(Auditors Report) Order, 2020 is not applicable to the company. 18. There has been
no resignation of the statutory auditors during the year under consideration. Accordingly,
clause 3(xviii) of the Companys (Auditors Report) Order, 2020 is not applicable to the
company.
19. 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 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. 20. According
to the information and explanation given to us and the records of the company examined by
us, there were no unspent amount required to be transferred to special account as required
by Section 135 of the Companies Act,2013. Accordingly, provisions of sub clause (a) and
(b) of clause 3(xx) of the Companys (Auditors Report) Order, 2020 are not applicable to
the company.
|
For, J.T. Shah & Co. |
|
Chartered Accountants, |
|
[Firm Regd. No. 109616W] |
|
Sd/- |
| Place: Ahmedabad |
(A. R. Pandit) |
| Date: 29/05/2023 |
Partner |
|
[M. No. 127917] |
|
UDIN: 23127917BGRPCZ2694 |
ANNEXURE "B" TO INDEPENDENT AUDITORS REPORT
Referred to in paragraph 16(f) of "Report on Other Legal and Regulatory
Requirements" of our Report of even date to the Members of VIKRAM THERMO
(INDIA) LIMITED for the year ended 31st March, 2023.
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 VIKRAM
THERMO (INDIA) LIMITED 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 over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India. These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to companys policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under
the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) Pertain to the maintenance of
records that, in reasonable detail ,accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) Provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
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 effectively as at 31st March 2023, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
|
For, J.T. Shah & Co. |
|
Chartered Accountants, |
|
[Firm Regd. No. 109616W] |
|
Sd/- |
| Place: Ahmedabad |
(A. R. Pandit) |
| Date: 29/05/2023 |
Partner |
|
[M. No. 127917] |
|
UDIN: 23127917BGRPCZ2694 |
+91-9892691696
