To the members of
M/s. Ashiana lspat Limited
Report on the Audit of the Financial Statement
Opinion
We have audited the financial statements of Ashiana Ispat Limited (hereinafter
referred to as "the Company"), which comprise the Balance Sheet as at 31 March
2023, 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 financial statements, including a summary of the significant accounting
policies and other explanatory information (hereinafter referred to as "the financial
statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013 ("the Act") in the manner so required and give a true and
fair view in conformity with the accounting principles generally accepted in India, of the
state of affairs of the Company as at 31 March 2023, and its profit and 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, as amended ("the
Act"). Our responsibilities under those Standards are further described in the
"Auditors Responsibilities for the Audit of the Financial Results" 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 financial statements under the provisions of the Act
and the Rules there under, 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 by us is sufficient and appropriate to provide a basis for our opinion.
Other Information
The Companys Management and Board of Directors are responsible for the other
information. The other information comprises the information included in the Companys
annual report, but does not include the financial statements and our auditors report
thereon. The Companys annual report is expected to be made available to us after the date
of this auditors report. Our opinion on the financial statements does not cover the other
information and we will not express any form of assurance conclusion thereon. 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 our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the Companys annual report, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to those charged with
governance and take necessary actions, as applicable under the relevant laws and
regulations.
Managements and Board of Directors Responsibilities for the Financial Results
The Statement has been prepared on the annual financial statements. The Board of
Directors of the Company are responsible for the preparation and presentation of the
Statement that gives a true and fair view of the net profit and other comprehensive income
of the Company and other financial information in accordance with the applicable
accounting standards prescribed under Section 133 of the Act, read with relevant Rules
issued there under and other accounting principles generally accepted in India and in
compliance with Regulation 33 of the Listing Regulations. The responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the
Companies Act, 2013 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
the 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 Statement that give a true
and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Statement, The Board of Directors are responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the Board
of Directors either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibility for the Audit of the Financial Results
Our objectives are to obtain reasonable assurance about whether the Statement as a
whole is 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. Misstatement 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 user staken on the basis of
the financial Statement.
As part of an audit in accordance with Standard on Auditings (SAs), we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Statement. whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion, The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls with reference to 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 the Board of Directors.
• Conclude on the appropriateness of the Board of Directors use of the going
concern basis of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists elated 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 financial results 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 Statement,
including the disclosures and whether the Statement represents the underlying transactions
and events in a manner 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 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.
Other Matter
(i) Trade Receivables (Debtors) in the financial statement includes Rs 660.80 Lakhs
outstanding to the company which are under Corporate Insolvency Resolution Process (CIRP)
with NCLT. However in accordance with representation received from the management that
these companys are financial worthy and has sufficient net worth and has financial
capabilities.
Company has classified these debtors in as undisputed trade receivables considered as
good.
(ii) The amount of Advance to suppliers includes Rs. 637 lacs which are subject to
confirmation till signing the report.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government of India in terms of Section 143(11) of the Act, we give
in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
2. (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 purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive
income), the Statement of Changes in Equity and the Cash Flows dealt with by this Report
are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Ind AS specified
under Section133 of the Act subject to segment reporting Ind AS 108 as mentioned in note
no. 39 in the Financial Statements.
e) On the basis of the written representations received from the directors as on 31
March 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March 2023 from being appointed as a director in terms of Section
164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to
financial statements of the Company and the operating effectiveness of such controls,
refer to our separate Report in "Annexure B".
(B) 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:
a) The Company has disclosed the impact of pending litigations as at 31 March 2023 on
its financial position in its financial statements - refer note 41 to the financial
Statements.
b) The Company did not have any long term contracts including derivative contracts for
which there were any material foreseeable losses.
c) There were no amount which are required to be transferred to the Investor Education
and Protection Fund by the company.
d) (i) 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 during the year 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.
(ii) The management has represented, that, to the best of its knowledge and belief, no
funds have been received by the Company from any persons or entities, including foreign
entities ("Funding Parties"), with the understanding, whether recorded in
writing or otherwise, that the company shall:
• directly or indirectly, lend or invest in other persons or entities identified
in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the
Funding Party or
• provide any guarantee, security or the like from or on behalf of the Ultimate
Beneficiaries; and
(iii) 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 subclause (d) (i) and (d) (ii) contain any material mis-statement.
e) The company has not declared or paid any dividend during the year.
f) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company with effect from April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March 31, 2023.
(C) With respect to the matter to be included in the Auditors Report under Section
197(16) of the Act:
In our opinion and according to the information and explanations given to us, the
remuneration paid by the Company to its directors during the current year is in accordance
with the provisions of Section 197 of the Act. The remuneration paid to any director is
not in excess of the limit laid down under Section 197 of the Act. The Ministry of
Corporate Affairs has not prescribed other details under Section 197(16) of the Act which
are required to be commented upon by us.
For S.SINGHAL AND COMPANY
Chartered Accountants
Firm Regn. No.: 001526C
(Rakesh Kumar Gupta)
Partner
M.No.: 073846
Place: Bhiwadi
Date: 30.05.2023
UDIN: 23073846BGWWUM3331
Annexure A to the Independent Auditors Report on the financial statement of Ashiana
Ispat Limited for the year ended 31 March 2023
(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory
Requirements section of our report of even date)
(i) (a) (A) The Company has maintained proper records regarding Property Plant and
Equipment in List form Only.
(B) The Company does not have any intangible asset, therefore maintenance proper
records showing full particulars of Intangible assets is not applicable on the company.
(b) The Property Plant and equipment have been physically verified by the management at
the reasonable intervals in which is in our opinion, is considered reasonable having
regard to the size of the Company and the nature of its assets. No material discrepancies
were noticed on such verification.
(c) According to the information and explanation given to us and on the basis of an
examination of the records of the company the title deed of the immovable properties are
held in the name of the company.
(d) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not revalue its Property, plant
and equipment (including Right-of-use assets) or Intangible assets or both during the
year.
(e) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there are no proceedings initiated or pending
against the Company for holding any benami property under the Prohibition of Benami
Property Transactions Act, 1988 and rules made thereunder.
(ii) (a) Physical verification of inventory has been conducted at reasonable intervals
by the management and the coverage and procedure of such verification by the management is
appropriate. There are no discrepancies of 10% or more in the aggregate for each class of
inventory and have been properly dealt in the books of Accounts.
b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has been sanctioned working capital
limits in excess of five crore rupees, in aggregate, from banks on the basis of security
of current assets. The quarterly returns of 3 quarters or statements filed by the Company
with such banks have not been made available to us and details of 4th Quarter
as follows:
|
|
|
|
|
(in lacs) |
| Quarter ending |
Name of Bank |
Particulars of Securities Provided |
Amount as per Books of Account s |
Amount as reported in the quarterly return /statement |
Amount of Difference in (%) |
| 31st March 2023 |
YES Bank & SBI |
Stock |
3412.48 |
3451.61 |
1.14% |
| 31st March 2023 |
YES Bank & SBI |
Debtors |
7323.97 |
7298.56 |
0.34% |
(iii) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not made any investments,
provided guarantee or security or granted any advances in the nature of loans, secured or
unsecured, to companies, firms, limited liability partnerships or any other parties during
the year. However the Company has granted unsecured loan repayable on demand to a party in
earlier years, a part of which is still outstanding as on the date of balance sheet,
details of the loan is stated in sub-clause (a) below.
a. 1. Based on the audit procedures carried on by us and as per the information and
explanations given to us, the Company has not granted any loans to subsidiaries. 2. Based
on the audit procedures carried on by us and as per the information and explanations given
to us, the Company has granted loans to a party other than subsidiaries as below:
|
Guarantee |
Security |
Loans |
Advance in Nature of Loan |
| Aggregate amount granted / provided during the year |
NIL |
NIL |
NIL |
NIL |
| - Subsidiary |
NIL |
NIL |
NIL |
NIL |
| - Associates |
|
|
|
|
| - Joint Venture |
|
|
|
|
| - Others |
|
|
|
|
| Balance Outstanding as at balance sheet date in respect of above cases |
|
|
|
|
| - Subsidiary |
-NIL- |
-NIL- |
-NIL- |
-NIL- |
| - Associates |
-NIL- |
-NIL- |
-NIL- |
-NIL- |
| - Joint Venture |
-NIL- |
-NIL- |
-NIL- |
-NIL- |
| - Others |
-NIL- |
-NIL- |
-NIL- |
-NIL- |
b. According to the information and explanations given to us and based on the audit
procedures conducted by us, we are of the opinion that the terms and conditions of the
loans are, prima facie, not prejudicial to the interest of the Company.
c. According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there is no overdue amount for more than ninety
days in respect of loans given.
(iv) According to the information and explanations given to us and on the basis of our
examination of the records, the Company has not given any loans, or provided any guarantee
or security as specified under Section 185 of the Companies Act, 2013 and the Company has
not provided any guarantee or security as specified under Section 186 of the Companies
Act, 2013.
(v) The Company has not accepted any deposits or amounts which are deemed to be
deposits from the public. Accordingly, clause 3(v) of the Order is not applicable.
(vi) We have broadly reviewed the books of accounts maintained by the company pursuant
to the rules made by the Central Government for the maintenance of cost records under
section 148 of the Act, and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained, however we have not made a detailed examination
of such records.
(vii) In respect of statutory dues :
(a) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, amounts deducted/ accrued in the books of
account in respect of undisputed statutory dues including Goods and Services Tax
(‘GST), Provident fund, Employees State Insurance, Income-tax, Duty of Customs,
Cess and other material statutory dues have generally been regularly deposited with the
appropriate authorities except delays in few cases.
According to the information and explanations given to us, no undisputed amounts
payable in respect of GST, Provident fund, Employees State Insurance, Income-tax, Duty of
Customs, Cess and other material statutory dues were in arrears as at 31 March 2023 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of
GST, Provident fund, Employees State Insurance, Income-tax, Sales tax, Service tax, Duty
of Customs, Value added tax, Cess or other statutory dues which have not been deposited by
the Company on account of disputes, except for the following:
| Name of the Statute |
Nature of the dues |
Amount (INR) |
Period |
Forum where dispute is pending |
| Income Tax Act, 1961 |
Income Tax |
1,16,111 |
AY 201314 |
CIT (A), Alwar |
| Income Tax Act, 1961 |
Income Tax |
632032 |
AY 2013-14 |
CIT (A) NFAC Delhi |
| Income Tax Act, 1961 |
Income Tax |
2237907 |
AY 2014-15 |
CIT (A) NFAC Delhi |
| Income Tax Act, 1961 |
Income Tax |
202640 |
AY 2015-16 |
CIT (A) NFAC Delhi |
| Income Tax Act, 1961 |
Income Tax |
518241 |
AY 2018-19 |
CIT (A) NFAC Delhi |
(viii) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, the Company has not surrendered or
disclosed any transactions, previously unrecorded as income in the books of account, in
the tax assessments under the Income-tax Act, 1961 as income during the year.
(ix)(a) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, the Company has not made any default in
repayment of loans or other borrowings or interest thereon from any lender during the
year.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not been declared a wilful
defaulter by any bank or financial institution or government or government authority.
(c) According to the information and explanations given to us by the management, the
Company has obtained term loan of Rs.50 lacs during the year.
(d) According to the information and explanations given to us and on an overall
examination of the balance sheet of the Company, we report that fund raised on short term
basis have prima facie, not been used during the year for the long term purpose of the
company
(e) According to the information and explanations given to us and on an overall
examination of the financial statements of the Company, we report that the Company do not
have any subsidiaries as defined under the Companies Act, 2013. Accordingly, clause
3(ix)(e) of the Order is not applicable.
(f) According to the information and explanations given to us and on an overall
examination of the financial statements of the Company, we report that the Company do not
have any subsidiaries as defined under the Companies Act, 2013. Accordingly, clause
3(ix)(f) of the Order is not applicable.
(x)(a) The Company has not raised any moneys by way of initial public offer or further
public offer (including debt instruments).
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year.
(xi)(a) Based on examination of the books and records of the Company and according to
the information and explanations given to us, considering the principles of materiality
outlined in Standards on Auditing, we report that no fraud by the Company or on the
Company has been noticed or reported during the course of the audit.
(b) According to the information and explanations given to us, no report under
subsection (12) of Section 143 of the Companies Act, 2013 has been filed by the auditors
in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government.
(c) In our opinion and according to the information and explanations given to us, no
whistle blower complaints received by the Company during the year.
(xii) According to the information and explanations given to us, the Company is not a
Nidhi Company. Accordingly, clause 3(xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us,
the transactions with related parties are in compliance with Sections 177 and 188 of the
Companies Act, 2013, where applicable, and the details of the related party transactions
have been disclosed in the financial statements as required by the applicable Indian
Accounting Standards.
(xiv)(a) Based on information and explanations provided to us and our audit procedures,
in our opinion, the Company has an internal audit system commensurate with the size and
nature of its business.
(b) No specific internal audit reports have been made available to us by the Company.
(xv) In our opinion and according to the information and explanations given to us, the
Company has not entered into any non-cash transactions with its directors or persons
connected to its directors and hence, provisions of Section 192 of the Companies Act, 2013
are not applicable to the Company.
(xvi)(a) The Company is not required to be registered under Section 45-IA of the
Reserve Bank of India Act, 1934.
(b) The Company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934.
(c) Non of the company in the group is a Core Investment Company (CIC) as defined in
the regulations made by the Reserve Bank of India.
(xvii) The Company has not incurred cash losses in the current and in the immediately
preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year except
retirement by rotation.
(xix) According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dates of realisation 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 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 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.
We, however, state that this is not an assurance as to the future viability of the
Company. We further state that our reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor any assurance that all liabilities
falling due within a period of one year from the balance sheet date, will get discharged
by the Company as and when they fall due.
(xx) In our opinion and according to the information and explanations given to us, as
per Section 135 of the Companies Act, 2013 the company is not required to incurred CSR
expenses during the financial year covered.
For S. Singhal and Company
Chartered Accountants
Firm Regn. No.: 001526C
(Rakesh Kumar Gupta)
Partner
M.No.: 073846
Place: Bhiwadi
Date: 30.05.2023.
Annexure B to the Independent Auditors Report on the financial statements of Ashiana
Ispat Limited for the year ended 31 March 2023
Report on the internal financial controls with reference to the aforesaid financial
statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
(Referred to in paragraph 2(A)(f) under ‘Report on Other Legal and Regulatory
Requirements section of our report of even date)
Opinion
We have audited the internal financial controls with reference to financial statements
of Ashiana Ispat Limited ("the Company") as of 31 March 2023 in conjunction with
our audit of the financial statements of the Company as at and for the year ended on that
date.
In our opinion, the Company has, in all material respects, adequate internal financial
controls with reference to financial statements and such internal financial controls were
operating effectively as at 31 March 2023, based on the internal financial 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 issued by the Institute of Chartered
Accountants of India (the "Guidance Note").
Managements and Board of Directors Responsibilities for Internal Financial Controls
The Companys Management and the Board of Directors are responsible for establishing
and maintaining internal financial controls with reference to financial statements based
on the criteria established by the Company considering the essential components of
internal control stated in the Guidance Note. These responsibilities include the design,
implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business, including
adherence to the Companys policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness of the accounting records,
and the timely preparation of reliable financial information, as required under the Act.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls with reference to financial statements based on our audit. We conducted our audit
in accordance with the Guidance Note and the Standards on Auditing, prescribed under
Section 143(10) of the Act, to the extent applicable to an audit of internal financial
controls with reference to financial statements. 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
financial statements were established and maintained and whether 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 with reference to financial statements and their operating
effectiveness. Our audit of internal financial controls with reference to financial
statements included obtaining an understanding of such internal financial controls,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the 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 with
reference to financial statements.
Meaning of Internal Financial Controls with Reference to Financial Statements
A companys internal financial controls with reference to financial statements 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 controls
with reference to financial statements include 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 with Reference to Financial
Statements
Because of the inherent limitations of internal financial controls with reference to
financial statements, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls with
reference to financial statements to future periods are subject to the risk that the
internal financial controls with reference to financial statements may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
For S. Singhal and Company
Chartered Accountants
Firm Regn. No.: 001526C
(Rakesh Kumar Gupta)
Partner
M.No.: 073846
Place: Bhiwadi
Date: 30.05.2023.
+91-9892691696
