To,
The Members,
ARCHIT ORGANOSYS LIMITED,
Ahmedabad.
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of ARCHIT
ORGAONSYS LIMITED ("the Company"), which comprise the Standalone balance
sheet as at 31st March 2023, and the Standalone statement of Profit and
Loss(Including Other Comprehensive Income), Standalone statement of changes in equity and
Standalone statement of cash flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies and other explanatory
information (hereinafter 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 (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 March 31, 2023, and its profit and
total 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 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
we have fulfilled our other ethical responsibilities in accordance with these requirements
and the ICAIs 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
We have determined that there are no key audit matters to communicate
in our report.
Other Information
The Companys Board of Directors is responsible for the other
information. The other information comprises the information included in the Boards
Report, Management Discussion and Analysis, Report on Corporate Governance, including
Annexures to Boards report but does not include the standalone financial statements
and our auditors report thereon.
Our opinion on the standalone financial statements does not cover the
other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements,
our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the standalone financial statements or
our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a
material misstatement of this other information; we are required to report that fact. We
have nothing to report in this regard.
Managements Responsibility for the Standalone Financial
Statements
The Companys 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 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 accounting Standards specified under section 133 of the Act. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding of the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statement that give
a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the standalone financial statements, management 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.
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 SAs, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
standalone financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate in the circumstances. Under
section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our
opinion on whether the company has adequate internal financial controls with reference to
standalone financial statements in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the
going concern basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or 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.
Materiality is the magnitude of misstatements in the financial
statements that, individually or in aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the standalone financial statements may be
influenced. We consider quantitative materiality and qualitative factors in (i) planning
the scope of our audit work and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we
have complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the standalone
financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditors report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020
("the Order"), issued by the Central Government of India in terms of sub-section
(11) of section 143 of the Companies Act, 2013, 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 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, except
our comment mentioned in clause (i)(a) of "Annexure – A".
(c) The Standalone Balance Sheet, the Standalone Statement of Profit
and Loss (including other comprehensive income), Standalone Statement of Changes in
Equity, and the Standalone Statement of Cash Flows dealt with by this Report are in
agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial Statements
comply with the Ind AS specified under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015, as amended;.
(e) On the basis of the written representations received from the
directors as on 31st March, 2023 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" and
(g) 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 its financial statements – Refer Note 43 to the standalone
financial statements;
(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 (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 the Company ("Ultimate Beneficiaries") or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge
and belief, 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 in any manner whatsoever by or on behalf of the
Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries;
(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) As stated in Note 21 to the standalone financial statements:
(a) The final dividend proposed by the Board of directors and approved
by shareholders of the company at the annual general meeting has been paid by the Company
during the year which is in accordance with Section 123 of the Act, as applicable.
(b) The Board of Directors of the Company have proposed final dividend
for the year which is subject to the approval of the members at the ensuing Annual General
Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as
applicable
(vi) Proviso to Rule 3(1) of the Companies (Accountants) Rules, 2014
for maintaining books of accounts 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 the Companies Audit and
Auditor Rules 2014 is not applicable for the financial year ended March 31, 2023.
(h) 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.
Annexure - A to the Independent Auditors Report of even date on
standalone financial statements of Archit Organosys Limited
(i) (a) (A) According to the information and explanations given to us,
the company is in the process of maintaining and updating the requisite records showing
full particulars, including quantitative details, situation / locations and
additions/deletions, of its Property, Plant and Equipment.
(B) According to the information and explanations given to us, the
company is in the process of maintaining and updating the requisite records showing full
particulars and additions/deletions of its intangible assets.
(b) We were informed that the fixed assets were not physically verified
by the Management at reasonable intervals. Therefore, we are unable to comment on material
discrepancies if any.
(c) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, the title deeds of immovable
properties are held in the name of the Company.
(d) The Company has not revalued any of its Property, Plant and
Equipment and intangible assets during the year.
(e) In our opinion and according to the information and explanations
given to us, no proceedings have been initiated during the year or are pending against the
Company as at March 31, 2023 for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
(ii) (a) According to information and explanation given to us, the
Management of the Company has conducted physical verification of inventory at reasonable
intervals and no material discrepancies were noticed on such physical verification during
the year.
(b) According to information and explanation given to us, the Company
has been sanctioned working capital limits in excess of 5 crore, in aggregate, during
the year, from banks on the basis of security of current assets. Quarterly return and
statement filed by the Company with such banks or financial institutions are materially in
agreement with the books of account of the company.
(iii) In respect of investment made by the company, providing 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:
(a) During the year, the company has not provided any guarantee or
security to companies, firms, limited liability partnership or any other parties. However,
the Company has granted unsecured loans to subsidiary and other parties. The aggregate
amount during the year, and balance outstanding at the balance sheet date with respect to
such loans to subsidiary and other parties are as per the table given below:
[ in Lakhs]
| Aggregate amount granted / provided during the year |
Loans |
| Subsidiary |
343.75 |
| Others |
487.40 |
| Balance outstanding as at balance sheet date in respect of
the above case |
|
| Subsidiary |
338.77 |
| Others |
9.32 |
(b) In respect of the investments and loans, the terms and conditions
under which such loans were granted and investments were made are not prejudicial to the
Companys interest.
(c) In respect of the loans, no schedule for repayment of principal and
payment of interest has been stipulated by the Company as such loans are repayable on
demand. Therefore, in the absence of stipulation of repayment terms we are unable to
comment on the regularity of repayment of principal and payment of interest.
(d) As per explanation given to us, the above loans granted are
repayable on demand, hence there is no amount which is overdue more than ninety days.
(e) There were no loans which fell due during the year and were
renewed/extended. Further, no fresh loans were granted to same parties to settle the
existing overdue loans.
(f) The Company has granted loans to related parties as defined in
section 2(76) of Companies Act, 2013, which are repayable on demand or without specifying
any terms or period of repayment of principal and payment of interest as detailed
hereunder:
| Particulars |
Promoters |
Related Parties |
Other Parties |
All Parties |
| Aggregate amount of loans given and outstanding |
|
|
|
|
| - Repayable on demand (A) |
— |
338.77 |
9.32 |
348.09 |
| - Agreement does not specify any terms or period of repayment
(B) |
— |
— |
— |
— |
| TOTAL (A+B) |
— |
338.77 |
9.32 |
348.09 |
| Percentage of such loans to the total loans |
-- |
97.32 |
2.68 |
100.00 |
(iv) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of section 185 and 186 of the
Act, wherever applicable with respect to the loans, investments, guarantees and
securities.
(v) According to information and explanations given to us, the Company
has not accepted any deposits as defined in the Companies (Acceptance of Deposits) Rules
2014. Accordingly, the provisions of Clause 3(v) of the Order are not applicable to the
Company.
(vi) 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
in respect of its products. We have broadly reviewed the same, and are of the opinion
that, prima facie, the prescribed accounts and records have been made and maintained. We
have not, however, made a detailed examination of the records with a view to determine
whether they are accurate or complete.
(vii) (a) According to the information given to us, In our opinion, the
Company has generally been regular in depositing undisputed statutory dues, including
Goods and Services tax, Provident Fund, Employees State Insurance, Income Tax, duty
of Custom, Cess and other material statutory dues applicable to it with the appropriate
authorities and There were no undisputed amounts payable in respect of Goods and Service
tax, Provident Fund, Employees State Insurance, Income Tax, duty of Custom, Cess and
other material statutory dues in arrears as at March 31, 2023 for a period of more than
six months from the date they became payable except the followings:
| Statutory Due |
in Lacs |
| Provident Fund |
0.81 |
| Total : |
0.81 |
(b) According to the information and explanations given to us, the
company has no disputed outstanding statutory dues as at 31st March, 2023 other
than stated below:
| Name of the Statute |
Nature of Dues |
Amount in lacs |
Period to which the amount relates |
Forum where dispute is pending |
| Income Tax Act, 1961 |
Income Tax |
29.15 |
A.Y. 2014-2015 |
CIT(A), Ahmedabad |
|
|
9.09 |
A.Y. 2015-2016 |
CIT(A), Ahmedabad |
|
|
0.04 |
A.Y. 2016-2017 |
CIT(A), Ahmedabad |
(viii) According to information and explanations given to us, the
Company has not surrendered or disclosed any unrecorded transaction as income during the
year in the tax assessments under the Income Tax Act, 1961.
Accordingly, the provisions of Clause 3(viii) of the Order are not
applicable to the Company.
(ix) (a) According to the information and explanations given to us, the
Company has raised loans and other borrowings from banks. As per the information and
explanation given and represented by the management, we report that there are no default
in case of any repayment of loans and borrowing.
(b) According to the information and explanations given to us, the
Company has not been declared as willful defaulter by any bank or financial institution or
other lender.
(c) According to the information and explanations given to us, term
loans were applied for the purpose for which the same were obtained.
(d) On an overall examination of the Ind AS Financial Statements of the
Company, funds raised on short-term basis 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) The Company has not raised any loans during the year on the pledge
of securities held in its subsidiaries and hence reporting on clause (ix)(f) of the Order
is not applicable.
(x) (a) Accordingly to information and explanation provided to us, the
Company has not raised moneys by way of initial public offer or further public offer
(including debt instruments) during the year. Accordingly, the reporting under Clause
3(x)(a) of the Order is not applicable to the Company.
(b) According to the information and explanations give to us, the
Company has not made preferential allotment of shares during the year. Accordingly, the
reporting under Clause 3(x)(b) of the Order is not applicable to the Company.
(xi) (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) 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, a report under
Section 143(12) of the Act, in Form ADT-4, as prescribed under rule 13 of Companies (Audit
and Auditors) Rules, 2014 was not required to be filed with the Central Government.
Accordingly, the reporting under clause 3(xi)(b) of the Order is not
applicable to the Company
(c) 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, the Company has not
received whistle- blower complaints during the year.
(xii) In our opinion and according to the information and explanations
given to us, the Company is not a Nidhi Company.
Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us,
transactions with the related parties are in compliance with section 177 and 188 of the
Act, where applicable and details have been disclosed in the Ind AS Financial Statements
as required by the applicable accounting standards.
(xiv) (a) In our opinion and according to the information and
explanation provided to us, the Company has an internal audit system commensurate with the
size and nature of its business.
(b) The internal audit reports furnished by the internal auditors for
the period under audit have been considered by us.
(xv) In our opinion and according to the information and explanations
given to us during the year the Company has not entered into any non-cash transactions
with its Directors or persons connected with its directors and hence provisions of section
192 of the Companies Act, 2013 are not applicable to the Company.
(xvi) (a) In our opinion, the Company is not required to be registered
under section 45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause
3(xvi)(a), (b) and (c) of the Order is not applicable.
(b) In our opinion, there is no core investment company within the
Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and
accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.
(xvii) In our opinion and according to the information and explanation
provide to us, the Company has not incurred cash losses during the current financial year
and in the immediately preceding financial year.
(xviii) As per the applicable provisions under the Companies Act, 2013
for rotation of auditors, statutory auditor of the Company has mandatorily resigned and we
have adequately considered the views expressed by the previous auditor in their
communication.
(xix) According to the information and explanations given to us and on
the basis of the financial ratios, ageing and expected dates of realization of financial
assets and payment of financial liabilities, other information accompanying the financial
statements, our knowledge of the Board of Directors and management plans and based on our
examination of the evidence, nothing has come to our attention, which causes us to believe
that any material uncertainty exists as on the date of the audit report that 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 information available and explanation provided up to
the date of the audit report and we neither give any guarantee nor any assurance that all
liabilities falling due within a period of one year from the balance sheet date, will get
discharged by the Company as and when they fall due." (xx) As at balance sheet date,
the Company does not have any amount remaining unspent under Section 135(5) of the Act.
Accordingly, reporting under clause 3(xx)(a) and (b) of the Order is not applicable.
(xxi) 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.
Annexure B" to the Auditors Report
(Referred to in our Report of even date to the members of Archit
Organosys Limited)
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 Archit Organosys Limited ("the Company") as of 31 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
(‘ICAI). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business, including adherence to
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 authorisations of management and directors of the
company; and
(3) provide reasonable assurance regarding prevention or timely
detection of unauthorised acquisition, use, or disposition of the companys assets
that could have a material effect on 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 G. K. CHOKSI & CO. |
|
[Firm Registration No. 101895W] |
|
Chartered Accountants |
|
SANDIP A. PARIKH |
| Date : 12th May, 2023 |
Partner |
| Place : Ahmedabad |
Mem. No. 040727 |
|
UDIN:23040727BGUVZU7006 |
+91-9892691696
