To the Members of
AARVEE DENIMS & EXPORTS LIMITED
Report on the Ind AS standalone financial statements Opinion
We have audited the Ind AS standalone financial statements of AARVEE
DENIMS & EXPORTS LIMITED (‘the Company"), which comprise the balance
sheet as at March 31, 2022, and the statement of profit and loss (including other
comprehensive income), statement of changes in equity and statement of cash flows for the
year then ended, and notes to the standalone financial statements, including a summary of
significant accounting policies and other explanatory information (Collectively referred
to as ‘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 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 (financial position) of the Company as at March 31, 2022, and its
loss (financial performance 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 Companies Act, 2013. 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 thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Emphasis of Matter
We draw attention to note no:51 of the audited financial statements as
regards the managements evaluation of COVID-19 impact on the future performance of
the Company. Attention is invited to note no:49 of the audited financial results regarding
disclosures made under MSMED Act, 2006. We are relied upon and accepted the
information/data prepared and submitted by the management as such.
Our opinion is not modified in respect of these matters.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the financial statements of the current period.
These matters were addressed in the context of our audit of the financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
| The key audit matter |
How the matter was addressed in our audit |
| Recognition of Deferred tax assets, including Minimum
Alternate Tax (MAT) credit entitlement. Deferred tax assets are recognised to the extent
that it is probable that taxable profit will be available against which the deductible
temporary differences and the carry forward of unused tax credits and unused tax losses
can be utilised. The Companys ability to recognise previously un-recognised deferred tax
assets is assessed by the management at the end of each reporting period, taking into
account forecasts of future taxable profits and the applicable tax laws. As at March 31,
2022 the Company has recognised total deferred tax assets (net) amounting to Rs. 2411.08
lacs (including Rs. 1357.45 lacs of Minimum Alternate Tax credit entitlement). The
recognition of deferred tax asset is a key audit matter as its recoverability within the
allowed time frame involves significant estimate of the financial projections,
availability of sufficient taxable income in the future and significant judgements in the
interpretation of tax regulations and tax positions adopted by the Company. |
Our audit procedures to test the recognition of deferred tax
assets (including MAT credit entitlement) included the following: Read and understood the
Companys accounting policies with respect to recognition of deferred taxes and for
assessing compliance with Ind AS 12 Income Taxes. We have evaluated the Companys tax
positions by assessing the prevalent tax laws and compared the current position with prior
years and past precedents. Assessed the consistency of data used in the deferred tax
assets amount calculation and other facts as explained by the senior management of the
Company. We assessed the disclosures in Note:50 of the Ind AS financial statements in
accordance with the requirements of Ind AS 12 Income Taxes. |
Other Information
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 our auditors report
thereon.
Our opinion on the standalone financial statements does not cover the
other information and we do express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements,
our responsibility is to read the information and, in doing so, consider whether the other
information is materially inconsistent with 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.
Responsibilities of Management and Those Charged with Governance for
the Standalone financial statements
The Companys Board of Directors is responsible for the matters
stated in section 134(5) of the Companies Act; 2013 (‘the Act) with
respect to the preparation of these standalone financial statements that give true and
fair view of the financial position, financial performance (including other comprehensive
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 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 and other
irregularities; selection and application of appropriate accounting policies; making 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 accounting records, relevant to the preparation and presentation
of the standalone financial statements give a true and fair view and are free from
material misstatement, whether due to fraud or error. In preparing the standalone
financial statements, the Board of Directors is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going and using the going concern basis of accounting unless the board of
Directors either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those Board of Directors are 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 reasonably be expected to influence the
economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with Standards on Auditing
(‘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 controls
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
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 conditions that may cast significant doubt on the
Companys ability to continue as a going concern 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 and timing of the audit and significant audit findings,
including any significant deficiencies in internal 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 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
sub-section (11) of section 143 of the Act, we give in the "Annexure A" a
statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent
applicable.
2. As requited 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, the Statement of Changes in Equity 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 Indian Accounting Standards prescribed
under Section 133 of the Act read with Companies (Indian Accounting Standard) Rules 2016.
e. On the basis of the written representations received from the directors as on March 31,
2022 taken on record by the Board of Directors, none of the directors is disqualified as
on March 31, 2022 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
"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, the managerial remuneration for the year
ended March 31, 2022 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; 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 does not have
any pending litigations which would impact its financial position ii. The Company did not
have arty long-term contracts including derivative contracts for which there were any
material foreseeable losses. iii. There were no amounts required to be transferred to the
Investor Education and Protection Fund by the Company. iv. (a) The Management has
represented that, to the best of its knowledge and belief, no funds (which are material
either individually or in the aggregate) 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 person or entity, including foreign entity
("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of 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, no funds (which are material either individually or in
the aggregate) have been received by the Company from any person or entity, including
foreign entity ("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 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; (c) Based on the audit procedures
that have been considered reasonable and appropriate in the circumstances, nothing has
come to our notice that has caused us to believe that the representations under sub-clause
(i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material
misstatement. v. No dividend is declared or paid during the year by the company; hence
requirement of this clause is not applicable to the company and hence not commented
thereon.
|
For SHAH & SHAH ASSOCIATES |
|
Chartered Accountants |
|
FRN:113742W |
|
SUNIL K.DAVE |
|
PARTNER |
| Place : Ahmedabad |
Membership Number: 047236 |
| Date : May 30, 2022 |
UDIN: 22047236AJXRTA2073 |
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under ‘Report on Other Legal and
Regulatory Requirements section of our report of even date)
Report of even date on Companies (Auditors Report) Order, 2016
("the Order") issued by the Central Government in terms of Section 143(11) of
the Act
1. 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 and Equipment
and relevant details of right- of- use assets.
(B) the Company has maintained proper records showing full particulars
of intangible assets. b) As explained to us, all the Property, Plant and Equipment and
right-of-use assets have been physically verified by the management in a phased periodical
manner, which in our opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such physical
verification. c) According to the information and explanations given to us and on the
basis of our examination of the records of the Company and based on the examinations of
the registered sale deed/transfer deed provided to us, we report that, the title deeds,
comprising all the immovable properties of land and buildings, are held in the name of the
Company as at balance sheet date. Immovable properties of land and buildings whose title
deeds have been pledged as security for loans are held in the name of the Company based on
confirmations received from landers. Pursuant to lease deed agreement entered in to by the
company with lessors, the company had acquired immovable property i.e. Land and building
on lease hold basis and therefore the question of title deeds of immovable properties in
the name of the company does not arise. In respect of immovable properties of land and
buildings that have been taken on lease, the lease agreements are in the name of the
company, where the company is the lessee in the agreement.
d) The Company has not revalued any of its Property, Plant and
Equipment (including right-of-use assets) and intangible assets during the year.
e) As explained to us, no proceedings have been initiated during the
year or are pending against the Company as at March 31, 2022 for holding any Benami
property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and
rules made thereunder.
2. (a) As explained to us, physical verification of the inventories
have been conducted at reasonable intervals by the management, which in our opinion is
reasonable, having regard to the size of the Company and nature of its inventories. As
explained to us, the discrepancies noticed on such verification between the physical
stocks and book records were not significant and the same have been properly dealt with in
the books of account.
(b) As disclosed in note no:23, the company has been sanctioned working
capital limits in excess of Rs.5.00 Crores from banks on the basis of security of current
assets. As explained to us and on the basis of test-check of relevant records/subsidiary
records/books of accounts as produced before us and as per the information and
explanations furnished to us, the amounts of current assets as reported are generally in
agreement with the unaudited books of accounts of the company.
3. The company has not made 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. Accordingly, the
provisions of clause 3 (iii) (a) to (c) of the Order are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, during the year under review, the company has not made any investments or
granted any loans or provide guarantees or securities and therefore, the question of
compliance as to the provisions of Section 185 and 186 of the Act, does not arise.
Accordingly, the provisions of clause 3 (iv) of the Order are not applicable to the
Company.
5. According to the information and explanations given to us, the
company has generally complied with the provisions of Sections 73 to 76 of the Companies
Act, 2013 and the Companies (Acceptance of Deposit) Rules, 2014 (as amended) except there
was a shortfall in investing in "Liquid Assets. According to the information
and explanations given to us, no order has been passed by the Company Law Board or the
National Company Law Tribunal or The Reserve Bank of India or any Court or any other
Tribunal.
6. In respect of business activities of the Company, The maintenance of
cost records has been specified the Central Government under section 148(1) of the
Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Records and Audit) Rules, 2014 as amended prescribed by
the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013,
and are of the opinion that, prima facie, the prescribed cost records have been made and
maintained. We have, however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
7. a) As per information and explanations given to us, the company is
regular in depositing undisputed statutory dues including Goods and service tax, Provident
fund, Employees State Insurance, Income tax, Sales-tax, Wealth tax, Service tax,
Duty of Customs, Duty of Excise, Value added tax, cess and any other statutory dues with
the appropriate authorities wherever applicable. There are no outstanding statutory dues
as at the last day of the financial year under audit for a period of more than six months
from the date they became payable.
b) According to the information and explanation given to us, there are
no dues of Goods and Service Tax, sales tax, income tax, custom duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of any dispute except
for the following:
| Statute |
Nature of Dues |
Forum where Dispute is
pending |
Period to which the amount
relates |
Amount involved (Rs. in
Lakhs) |
Amount Unpaid (Rs. In
Lakhs) |
| Income Tax Act,1961 |
Income Tax |
Commissioner of Income Tax
(Appeal) |
2011-12 |
19.45 |
19.45 |
| Income Tax Act,1961 |
Income Tax |
Commissioner of Income Tax
(Appeal) |
2010-11 |
5.36 |
5.36 |
| Income Tax Act,1961 |
Income Tax |
Commissioner of Income Tax
(Appeal) |
2013-14 |
1161.03 |
1161.03 |
disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 (43 of 1961).
9. (a) Based on our audit procedures and as per the information and
explanations given by the management, the company has not defaulted in repayment of loans
or borrowings or in the payment of interest thereon from any lender.
(b) The Company has not been declared wilful defaulter by any bank or
financial institution or other lender.
(c) As explained to us, the Company has applied term loan for the
purpose for which the loans were obtained.
(d) On an overall examination of the financial statements of the
Company, funds raised on short termbasis have, prima facie, not been used during the year
for long-term purposes by the Company.
(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 subsidiaries.
(f) On an overall examination of the financial statements of the
Company, the company has not raised loans during the year on the pledge of securities held
in subsidiaries.
10. (a) The company has not raised money by way of initial public offer
or further Public offer (including debt instruments) during the year and hence reporting
under clause 3(x)(a) of the Order is not applicable.
(b) During the year under review, the Company has not made any
preferential allotment or private placement of shares or convertible debentures (fully or
partly or optionally) and hence reporting under clause 3(x)(b) of the Order is not
applicable.
11. (a) During the course of our examination of the books and records
of the Company, carried out in accordance with the generally accepted auditing practices
in India, and according to the information and explanations given to us, we have neither
come across any instance of material 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)
No report under sub-section (12) of section 143 of the Companies Act has been filed in
ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) 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 are no whistle blower
complaints received by the company during the year.
12. In our opinion, the Company is not a Nidhi Company. Therefore, the
provisions of clause 3 (xii) of the Order are not applicable to the Company.
13. The Company has entered in to transactions with related parties in
compliance with Sections 177 188 of Act. The details of such related party transactions
have been disclosed in the standalone Ind AS financial statements as required under
Accounting Standard (AS) 24, Related Party Disclosures specified under Section 133 of the
Act.
14. (a) As explained to us and in our opinion, the Company has adequate
internal audit system commensurate with the size and the nature of its business.
(b) We have considered power point presentation/reports considered by
the Board of Directors of the company for the period under audit.
15. Based upon the audit procedures performed and the information and
explanations given by the management, the company has not entered into any non-cash
transactions with directors or persons connected with him. Accordingly, the provisions of
clause 3(xv) of the Order are not applicable to the company.
16. 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), (c) and (d) of the Order are not applicable. 17. The Company has incurred
cash losses during the current financial year covered by our audit and the immediately
preceding financial year amounting to Rs. 1499.12 lacs & Rs. 3120.52 lacs
respectively. 18. There has been no resignation of the statutory auditors of the Company
during the year. 19. 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 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 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 period
of one year from the balance sheet date.
20. (a) There are no unspent amounts towards Corporate Social
Responsibility (CSR) on 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. Accordingly, reporting under clause
3(xx)(a) of the Order is not applicable for the year. (b) There is no on-going projects as
at 31st March, 2022 in respect of which the Company is required to transfer unspent
Corporate Social Responsibility (CSR) amount as at the end of the previous financial year
to a Special account within a period of 30 days from the end of the said financial year in
compliance with the provision of section 135(6) of the Act. 21. The reporting under clause
3(xxi) of the Order is not applicable in respect of audit of Standalone Financial
Statements. Accordingly, no comment in respect of the said clause has been included in
this report.
|
For SHAH & SHAH ASSOCIATES |
|
Chartered Accountants |
|
FRN:113742W |
|
SUNIL K.DAVE |
|
PARTNER |
| Place : Ahmedabad |
Membership Number: 047236 |
| Date : May 30, 2022 |
|
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 Over Financial Reporting
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 AARVEEof DENIMS & EXPORTS LIMITED ("the Company") as
of March 31, 2022 in conjunction with our audit of the Ind AS 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 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 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, required
under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys
internal financial controls over financial reporting of the Company 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") issued by the Institute
of Chartered Accountants of India and the Standards on Auditing prescribed under Section
143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal
financial controls. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls over financial reporting was established
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 financial controls over financial reporting included
obtaining an understanding of internal financial over financial reporting, assessing the
risk that a material weakness exists, and testing and evaluating design and operating
effectiveness of internal control based on the assessed risk. The procedures 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 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 standalone 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) 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 assets that could have a material effect on the standalone financial
statements.
Inherent Limitations of Internal Financial Controls Over Financial
Reporting
Because of the inherent limitations of internal financial controls over
financial reporting, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the
explanations given to us, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2022, the criteria for
internal financial control over financial reporting 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 SHAH & SHAH ASSOCIATES |
|
Chartered Accountants |
|
FRN:113742W |
|
SUNIL K.DAVE |
|
PARTNER |
| Place : Ahmedabad |
Membership Number: 047236 |
| Date : May 30, 2022 |
|
+91-9892691696
