<dhhead>INDEPENDENT AUDITOR’S REPORT</dhhead>
To The Members Of
Aimco Pesticides Limited
Report on the Audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying standalone financial statements of Aimco
Pesticides Limited (‘the Company’), which comprise the standalone Balance
Sheet as at March 31, 2023, the standalone Statement of Profit and Loss (including Other
Comprehensive Income), the standalone Cash Flow Statement and the standalone Statement of
Changes in Equity for the year then ended, and a summary of significant accounting
policies and other explanatory information (‘the Financial Statements’).
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 accounting principles
generally accepted in India, including Indian Accounting Standards (‘Ind AS’)
specified under Section 133 of the Act, of the state of affairs of the
Company as at March 31, 2023, its loss including other comprehensive
loss, its cash outflows and the changes in equity for the year ended on that date.
Basis for Opinion
3. We conducted the audit in accordance with the Standards on Auditing
(‘SAs’) specified under Section 143(10) of the Act. Our responsibility under
those Standards is further described in the Auditor’s Responsibilities for the Audit
of the Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India (‘ICAI’) together with the ethical requirements that are relevant to our
audit of the Financial Statements under the provisions of the Act and the rules
thereunder, and We have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence obtained is
sufficient and appropriate to provide a basis for our opinion.
Key Audit Matter
4. Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the consolidated financial statements
of the current period. These matters were addressed in the context of our audit of the
consolidated 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 the matter described below to be the key audit
matter to be communicated in our report.
| Key Audit Matter |
How the matter was addressed in the audit |
| Information Technology (IT) Systems and controls over
financial reporting |
In view of the significance of the matter, we applied the
following audit procedures among others, to obtain sufficient and appropriate audit
evidence: |
| We identified IT systems and controls over financial
reporting as a key audit matter for the Company because its financial accounting and
reporting systems are fundamentally reliant on IT systems and IT controls to process
significant transaction volumes, specifically with respect to revenue, inventories and raw
material consumption. Also, due to large transaction volumes and the increasing challenge
to protect the integrity of the Company’s systems and data, cyber security has become
more significant. |
• Assessed the complexity of the IT environment through
discussion with the IT team and identified IT applications that are relevant to our audit; |
| Automated accounting procedures and IT environment controls,
which include IT governance, IT general controls over program development and changes,
access to program and data and IT operations, IT application controls and interfaces
between IT applications are required to be designed and to operate effectively to ensure
accurate financial reporting. |
• Evaluated the operating effectiveness of IT general
controls over program development and changes, access to program and data and IT
operations; |
|
• Performed inquiry procedures with the IT team of the
Company in respect of the overall security architecture and any key threats addressed by
the Company in the current year; |
|
• Evaluated the operating effectiveness of IT
application controls in the key processes impacting financial reporting of the Company; |
|
• Assessed the operating effectiveness of controls
relating to data transmission through the different IT systems to the financial reporting
systems |
Other information
5. The Company’s Management and Board of Directors are responsible
for the other information. The other information comprises the information included in the
Annual Report but does not include the Financial Statements and the auditor’s report
thereon. The Annual report is expected to be made available after the date of this
auditor’s report.
6. Our opinion on the Financial Statements does not cover the other
information and we will not express any form of assurance conclusion thereon.
7. In connection with our audit of the 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 knowledge obtained during the audit, or
otherwise appears to be materially misstated. When we read the Annual Report and conclude
that there is a material misstatement therein, we are required to communicate the matter
to those charged with governance.
Management’s Responsibility for the Standalone Financial
Statements
8. The Company’s Management and Board of Directors are responsible
for the matters stated in Section 134(5) of the Act with respect to the preparation of the
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 Ind AS specified under
section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015.
9. 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 Financial Statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
10. In preparing the Financial Statements, the Company’s
Management and Board of Directors are responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends
to liquidate the Company or to cease operations, or has no realistic alternative but to do
so. 11. The Management and Board of Directors are also responsible for overseeing the
Company’s financial reporting process.
Auditor’s Responsibility for the audit of the Financial Statements
12. Our objective is to obtain reasonable assurance about whether the
Financial Statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these Financial Statements.
13. As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism throughout the audit. we also
• Identify and assess the risks of material misstatement of the
Financial Statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal controls relevant to the
audit in order to design audit procedures that are appropriate in the circumstances. Under
section 143(3)(i) of the Act, we are also responsible for expressing our opinion on
whether the Company has adequate internal financial controls system in place and the
operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by the Management and
the Board of Directors.
• Conclude on the appropriateness of the Management and the Board
of Directors use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our
report to the related disclosures in the Financial Statements or, if such disclosures are
inadequate, to modify our opinion. My conclusions are based on the audit evidence obtained
up to the date of our report. However, future events or conditions may cause the Company
to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the
Financial Statements, including the disclosures, and whether the Financial Statements
represent the underlying transactions and events in a manner that achieve fair
presentation.
14. 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 the
audit. 15. 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.
16. From the matters communicated with those charged with governance,
we determine those matters that were of most significance in the audit of the Financial
Statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
17. As required by the Companies (Auditor’s Report) Order, 2020
(‘the Order’) issued by the Central Government of India in terms of section
143(11) of the Act, a statement on the matters specified in paragraphs 3 and 4 of the
Order is given, to the extent applicable, in ‘Annexure A’. 18. As
required by Section 197(16) of the Act we report that in our opinion and according to the
information and explanation given, the remuneration paid by the Company to its directors
is in accordance with the provisions of Section 197 of the Act.
19. Further to the comments in Annexure A, 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 purpose of the 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 the examination of those books. c) The Financial
Statements dealt with by this Report are in agreement with the books of account. d) In our
opinion, the aforesaid Financial Statements comply with the Indian Accounting Standards
specified under section 133 of the Act read with Companies (Indian Accounting Standard)
Rules, 2015 as amended.
e) On the basis of the written representation received from the
directors as on March 31, 2023, taken on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2023 from being appointed as a director in terms
of section 164(2) of the Act. f) With respect to the adequacy of the internal financial
controls with reference to Financial Statements 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 Auditor’s 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 its Financial StatementsinNote39.2totheFinancialStatements. ii. The
Company did not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses. iii. There were no amounts which were 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.
(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-clauses (iv) (a) and (iv) (b) contain any
material misstatement.
v. The dividend declared and paid during the year by the Company is in
compliance with Section 123 of the Act. 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 01, 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.
Annexure A
To Independent Auditors’ Report on Standalone Financial Statements
of Aimco Pesticides Limited as of and for the year ended March 31, 2023
Report on the matters specified in paragraphs 3 and 4 of the Companies
(Auditor’s Report) Order, 2020 (‘the Order’)
[Referred to in paragraph 18 under ‘Report on Other Legal and
Regulatory Requirements’ in the Independent Auditors’ Report of even date to the
members of Aimco Pesticides Limited ("the Company") on the Standalone Financial
Statements as of and for the year ended March 31, 2023]
On the basis of such checks as considered appropriate and in terms of
the information and explanation furnished, we state as under:
(i) In respect of the Company’s Property, Plant and Equipment: (a)
(A) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment;
(B) The Company has maintained proper records showing full particulars
of intangible assets.
(b) The Property, Plant and Equipment have been physically verified by
the Management at reasonable intervals. Considering the size of the Company and nature of
assets, in our opinion, the frequency of verification is reasonable. No material
discrepancies were noticed on such verification;
(c) Based on the examination of the registered sales deeds provided, we
report that the title deeds of all the immovable properties (other than immovable
properties where the Company is the lessee and the leases agreements are duly executed in
favour of the lessee) disclosed in the Financial Statements are held in the name of the
Company as at the balance sheet date;
(d) The Company has not revalued its Property, Plant and Equipment
(including right-of-use assets) or intangible assets during the year;
(e) There are no proceedings initiated or pending against the Company
for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and
rules made thereunder.
(ii) (a) The inventories, except goods in transit, have been physically
verified by the Management during the year. In our opinion, the frequency of verification
is reasonable. Considering the size of the Company and nature of its operations, the
coverage and procedures of such verification by the management were appropriate. No
discrepancies were noticed on physical verification, between the physical stock and the
book records, that were 10% or more in the aggregate, for each class of inventory;
(b) The Company has been sanctioned working capital limits in excess of
five crores rupees from a bank on the basis of security of current assets. In our opinion
and according to the information and explanations given to us, the quarterly statements
filed by the Company with the bank are in agreement with the books of account of the
Company.
(iii) (a) The Company has, during the year, made investments in four
mutual fund schemes advances in nature of loan to a wholly owned subsidiary and granted
unsecured loan to seventeen employees. During the year the Company has not provided
guarantee or security to companies, firms, limited liability partnership or any other
parties. The aggregate amount during the year, and balance outstanding at the balance
sheet date with respect to such investments, advances in nature of loan and loans are as
per the details hereunder:
| Particulars |
Aggregate amount invested/advanced during
the year (Rs in lakh) |
Balance outstanding as at March 31, 2023
(Rs in lakh) |
| Investments in Mutual Fund schemes |
739.99 |
1.53 |
| Advances in nature of Loan |
Nil |
182.79 |
| Unsecured loan to employees |
26.00 |
14.77 |
(b) In respect of the aforesaid investments loans and advances, the
terms, and conditions under which such investments were made, and loans and advances were
granted, the same are not prejudicial to the Company’s interest, based on the
information and explanations provided by the Company; (c) In respect of loans given to
employees the schedule of repayment of principal has been stipulated and receipt of the
same are regular. The loans to employees are interest-free. In respect of Advances in
nature of loan to a wholly owned subsidiary, the same is interest free and repayment
schedule is not stipulated; (d) There are no loans that have fallen due during the year
which have been renewed or extended or fresh loans granted to settle the overdue of
existing loans given to same parties;
(e) The Company has not granted any loans or advances in the nature of
loans, either repayable on demand or without specifying any terms or period of repayment
except in respect of Advances in nature of loan to a wholly owned subsidiary.
(iv) In our opinion, the Company has complied with the provisions of
sections 185 and 186 of the Act in respect of investments made.
The Company has not granted any loan or provided any guarantee to which
the provisions of sections 185 or 186 of the Act would apply.
Based on our verification of the documents provided to us and according
to the information and explanations given by the Management, the Company has not accepted
any deposits or the amounts which are deemed to be deposits within the provisions of
sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the
rules framed there under, therefore, the provisions of paragraph 3(v) of the Order are Not
Applicable to the Company.
(v) We have broadly reviewed the books of account maintained by the
Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the
Central Government under section 148(1) of the Act and we are of the opinion that
prima-facie, the prescribed accounts, and cost records have been made and maintained.
However, we have not made a detailed examination of the same with a view to determine
whether they are accurate or complete.
(vi) (a) On the basis of the examination of records and according to
the information and explanations given to us, no undisputed statutory dues including
provident fund, income-tax, goods and service tax, duty of customs, duty of excise, sales
tax/value added tax, cess or other material statutory dues were in arrears as at March 31,
2023, for a period of more than six months from the date they became payable, except dues
as hereunder:
| Statute |
Nature of dues |
Amount (Rs in lakh) |
Year to which the amount relates |
| Central Goods and Services Tax Act, 2017 |
Integrated Goods and Service
Tax |
1.14 |
2020-21 |
(b) According to the records of the Company examined, there are no dues
of provident fund, income-tax, goods and service tax, duty of customs, duty of excise,
sales tax/value added tax, cess or other material statutory dues which have not been
deposited on account of any dispute, except dues under the Customs Act, 1962 as hereunder:
| Nature of dues |
Amount (Rs in lakh) |
Year to which the amount relates |
Forum where dispute is pending |
| Custom duty |
21.27 |
2011-12 |
Commissioner of Customs (Appeal) |
| Custom duty |
12.35 |
2011-12 |
Joint Commissioner of Customs (Appeal) |
(vii) According to the information and explanations given to us and on
the basis of the examination of the records of the Company, the Company has not
surrendered or disclosed any transactions, previously unrecorded in the books of account,
in the tax assessments under the Income Tax Act, 1961 as income during the year.
Accordingly, the requirement to report on clause 3(viii) of the Order is Not Applicable.
(viii) On the basis of examination of records and according to the
information and explanation given to us: (a) The Company has not defaulted in repayment of
loans or other borrowings or in the payment of interest thereon, to any lender; (b) The
Company is not declared wilful defaulter by any bank or financial institution or other
lender during the year; (c) The Company has not received any term loan, accordingly, the
requirement to report on clause 3(ix)(c) of the Order is Not Applicable; (d) On an
overall examination of the Financial Statements of the Company, we report that, prima
facie. no funds raised on short-term basis were used for long-term purposes by the
Company;
(e) On an overall examination of the Financial Statements of the
Company, we report that the Company has not taken any funds from any entity or person on
account of or to meet the obligations of its subsidiaries. The Company does not have any
associate, nor it has entered into joint ventures with any party; (f) The Company has not
raised loans during the year on the pledge of securities held in its subsidiaries. The
Company does not have any associate Company, nor it has entered into joint ventures with
any party.
(ix) (a) The Company has not raised moneys by way of initial public
offer or further public offer including debt instruments during the year. Hence, clause
3(x)(a) of the Order is Not Applicable;
(b) The Company has not made any preferential allotment or private
placement of shares or fully or partly or optionally convertible debentures during the
year under review. Therefore, clause 3(x)(b) of the Order is Not Applicable.
(x) (a) There are no instances of fraud by the Company or on the
Company noticed or reported during the year;
(b) According to the information and explanations given to us, no
report under sub-section (12) of Section 143 of the Act has been filed by us/other
auditors in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and Auditors)
Rules, 2014 with the Central Government;
(c) As represented to us by the management, there are no whistle blower
complaints received by the Company during the year.
(xi) The Company is not a Nidhi Company and hence the reporting under
paragraph 3(xii) of the Order is Not Applicable. (xii) The Company is in compliance with
Sections 177 and 188 of the Act where applicable, for all transactions with the related
parties and the details of related party transactions have been disclosed in the Financial
Statements as required by the applicable accounting standards.
(xiii) (a) 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 auditors reports of the Company
issued till date for the period under audit.
(xiv) The Company has not entered into any non-cash transactions with
its directors or persons connected with him. Accordingly, clause 3(xv) of the Order is Not
Applicable to the Company.
(xv) (a) The Company is not required to be registered under Section
45-IA of the Reserve Bank of India Act, 1934 and therefore, clauses 3(xvi)(a), (b) and (c)
of the Order are Not Applicable to the Company;
(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.
(xvi) The Company has not incurred any cash losses in the financial
year and in the immediately preceding financial year.
(xvii) There has been no resignation of the statutory auditors during
the year and accordingly, clause
3(xviii) of the Order is Not Applicable.
(xviii) On the basis of the financial ratios, ageing and expected dates
of realization of financial assets and payment of financial liabilities, other information
accompanying the Financial Statements, our knowledge of the Board of Directors and
Management plans and based on the 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 the Company is not
capable of meeting its liabilities existing at the date of balance sheet as and when they
fall due within a period of one year from the balance sheet date. However, 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.
(xix) In our opinion and according to the information and explanations
given to us, there is no unspent amount under sub-section (5) of Section 135 of the Act
pursuant to any on-going project or otherwise. Accordingly, clauses 3(xx)(a) and 3(xx)(b)
of the Order are Not Applicable.
Annexure B
To Independent Auditors’ Report on Standalone Financial Statements
of Aimco Pesticides Limited as of and for the year ended March 31, 2023
Report on the Internal Financial Controls under Section 143(3)(i) of
the Companies Act, 2013
[Referred to in paragraph 20(f) under ‘Report on Other Legal and
Regulatory Requirements’ in our Report of even date to the members of Aimco
Pesticides Limited on the standalone Financial Statements as at and for the year ended
March 31, 2023]
We have audited the internal financial controls with reference to
Financial Statements of Aimco Pesticides Limited ("the Company") as of
March 31, 2023 in conjunction with the audit of the standalone Financial Statements of the
Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s Management and Board of Directors are responsible
for establishing and maintaining internal financial controls based on the internal
controls with reference to 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 ICAI. These responsibilities include 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
Company’s policies, the safeguarding of its assets, the prevention and detection of
frauds and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Act.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s
internal financial controls with reference to the Financial Statements based on the audit.
We conducted the audit in accordance with the Guidance Note and the Standards on Auditing
specified under Section 143(10) of the Act, to the extent applicable to an audit of
internal financial controls with reference to the Financial Statements, issued by the
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 reference to the Financial Statements were
established and maintained and if such controls operated effectively in all material
respects.
The audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls with reference to the Financial Statements
and their operating effectiveness. Our audit of internal financial controls with reference
to the Financial Statements included obtaining an understanding of internal financial
controls with reference to the 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
auditor’s 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 Company’s internal
financial controls with reference to the Financial Statements.
Meaning of Internal Financial Controls with reference to Financial
Statements
A Company’s internal financial control with reference to the
Financial Statements is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of the Financial Statements for
external purposes in accordance with generally accepted accounting principles. A
Company’s internal financial control with reference to the 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 the 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 the Management and Board of Directors of the
Company; and 3. provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the Company’s assets that could have
a material effect on the Financial Statements.
Inherent Limitations of Internal Financial Controls with reference to
Financial Statements
Because of the inherent limitations of internal financial controls
withreferencetotheFinancialStatements,includingthepossibility 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 the Financial Statements to future periods are subject to the
risk that the internal financial control with reference to the 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 financial statements and such
internal financial controls with reference to financial statements were operating
effectively as at March 31, 2023, based on the internal controls with reference to the
Financial Statements criteria established by the Company, considering the essential
components of internal control stated in the Guidance Note.
| For C N K & Associates LLP |
| Chartered Accountants |
| FRN: 101961W/W-100036 |
| Sd/- |
| Vijay Mehta |
| Partner |
| Membership No.: 106533 |
| UDIN: 23106533BGXNHG1778 |
| Date: May 29, 2023 |
| Place: Mumbai |
+91-9892691696
