TO THE MEMBERS OF ATLANTA LIMITED
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of
Atlanta Limited ("the Company"), which comprises the Balance Sheet as at March
31, 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that
date and a summary of the significant accounting policies and other explanatory
information (hereinafter referred to as "the 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,
the 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 of the standalone financial statements in
accordance with the Standards on Auditing specified under section 143(10) of the Act
(SAs). 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 (ICAI) together with the
independence requirements that are relevant to our audit of the standalone financial
statements under the provisions of the Act and the Rules made thereunder 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 audit opinion on the standalone
financial statements.
We draw attention to the following notes in the standalone Ind AS
financial statements annexed to the auditors report
Emphasis of matters
Material Uncertainty Related to Going Concern:
i. We draw attention to the Statement of Profit and Loss, which
indicate that the Company has incurred a net loss of 3,195.89 Lakhs during the year ended
March, 31, 2023, and has been regularly incurring losses over the previous financial
years. There has also been cash flow constraints due to insufficient order book position
and cancellation of certain on-going projects. These events and conditions indicate
existence of a material uncertainty that may cast significant doubt on the companys
ability to continue as a going concern. The management of the company, however, is of the
opinion that due to the various business revival steps being taken by them, they would be
in a position to overcome the aforesaid adverse situation. The standalone financial
statements of the Company has, accordingly been prepared on the basis of continued going
concern assumption
Our opinion is not modified in respect of the above matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the standalone financial statements of the
current period. These matters were addressed in the context of our audit of the standalone
financial statements as a whole and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. We have not determined any matters described to be
the key audit matters to be communicated in our report.
Information Other than the Financial Statements and Auditors
Report Thereon
The Companys Board of Directors is responsible for the
preparation of the other information. The other information comprises the information
included in the Management Discussion and Analysis, Boards Report including
Annexures to Boards Report, Business Responsibility Report, Corporate Governance and
Shareholders Information, 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 during the course of our 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 Act with respect to the preparation of these standalone
financial statements that give a true and fair view of the financial position, financial
performance, total comprehensive income, changes in equity and cash flows of the Company
in accordance with the Ind AS and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of
the standalone financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
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. The Board of Directors are
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 scepticism 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 financial 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 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 standalone
financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone
financial statements that, individually or in aggregate, makes it probable that the
economic decisions of a reasonably knowledgeable user of the 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.
33
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
As required by the Companies (Auditors Report) Order, 2020
("the Order") issued by the Central Government of India in terms of sub-section
(11) of section 143 of the Act, we give in the "Annexure-A", a statement on the
matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
i. As required by Section 143(3) of the Act, based on our audit 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, Statement of Changes in Equity and the Statement of Cash Flow dealt
with by this Report are in agreement with the relevant books of
d) In our opinion, the aforesaid standalone financial statements comply
with the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
e) On the basis of the written representations 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 over
financial reporting of the Company and the operating effectiveness of such controls, refer
to our separate Report in "Annexure B". Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of the Companys internal
financial controls over financial reporting.
g) With respect to the other matters to be included in the
Auditors Report in accordance with the requirements of section 197(16) of the Act,
as amended: In our opinion and to the best of our information and according to the
explanations given to us, the remuneration paid by the Company to its directors during the
year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the
Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, as amended 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 standalone financial statements. Refer Note no. 4 to the
financial statement;
ii. The Company did not have any long-term contracts including
derivative contract having material foreseeable losses for which provision was required to
be made under the applicable law or the accounting standards.
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 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 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 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 such audit procedures that the auditor has considered
reasonable and appropriate in the circumstances, nothing has come to their notice that has
caused them to believe that the representations under sub-clause (i) and (ii) contain any
material mis-statement.
v. The company has not declared or paid any dividend during the year.
vi. As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is
applicable for the company w.e.f. April 1, 2023, reporting under this clause is not
applicable.
For SURESH C MANIAR & CO CHARTERED ACCOUNTANTS
Firms Registration Number 110663
S.C.MANIAR
PARTNER M. NO. 006759 Place: Mumbai Date: May 22,2023
UDIN: 23006759BGZGAY1634
Annexure - A to the Independent Auditors Report
Referred to in paragraph 1 under the heading ‘Report on Other
Legal & Regulatory Requirement of our report of even date to the financial
statements of the Company for the year ended March 31, 2023, we report that:
(I) (a) (A) The Company has maintained proper records showing full
particulars, including quantitative Details and situation of Property, Plant and
Equipment.
(B) The Company does not have any Intangible assets. Accordingly,
paragraph 3(I) (B) of the order is not applicable.
(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 a regular
programme of physical verification of its property, plant and equipment by which all
Property, plant and equipment are verified every year. In accordance with this programme,
Property, plant and equipment were verified during the year. In our opinion, this
periodicity of physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No discrepancies were noticed on such verification.
(c) We have inspected the original title deeds of immovable property of
the company disclosed in the financial statement of the company and held as Property,
Plant and Equipment. Based on our audit procedures and explanations given to us, we report
that all title deeds of immovable property of company disclosed in the financial statement
of the company are held in the name of the company, except details given below However, we
express no opinion on the validity of the title of the company to this property.
(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 revalued
its property, plant and equipment 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) According to the information & explanations given to us
and on the basis of our examination of the records of the Company, the inventories have
been physically verified during the year by the management. In our opinion, having regard
to the nature and location of inventories, the frequency of the physical verification is
reasonable. No discrepancies noticed on physical verification of the inventories of the
Company.
(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 does not have any
working capital limit sanctioned during the year. Accordingly, provisions of clauses 3(ii)
(b) of the Order are not applicable to the Company.
(iii) (a) The company has provided loans to one subsidiary and one
other party during the year:
(A) the aggregate amount of 27.80 Lakhs interest free loan given
during the year, and balance outstanding of 27.80 Lakhs at the balance sheet date with
respect to such loans to subsidiaries;
(B) the aggregate amount of 50.00 lakhs loan given during the year,
and balance outstanding of 52.00 Lakhs at the balance sheet date with respect to such
loan to party other than subsidiary, joint venture and associates;
(b) The loan given to other party during the year and the terms and
conditions of the loans provided are not prejudicial to the companys interest;
(c) The schedule of repayment of principal and payment of interest of
such loan to other party are regular;
(d) There is no amount overdue more than ninety days; (e) The loans
given to other party are repayable on demand; (f) The aggregate amount of 27.80 Lakhs
loan granted to related party is 35% of total loan granted
(iv) According to the information and explanations given to us and on
the basis of our examination of records of the Company, the Company has compiled with the
relevant provisions of Sections 185 and 186 of the Companies Act, 2013 ("the
Act").
(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 Companies (Cost records and audit) Rules 2014 and as prescribed by
the Central Government under section 148(1) of the Act and are of the opinion that
prima-facie, the prescribed accounts and cost records have been made and maintained by the
Company. We have not however made a detailed examination of the cost records with a view
to determining whether they are accurate or complete.
(vii) (a) According to the information & 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
provident fund, income tax, sales tax, wealth tax, duty of excise, service tax, duty of
customs, employees state insurance, value added tax, cess and other material
statutory dues have been regularly deposited by the Company with the appropriate
authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax, sales tax, wealth
tax, service tax, duty of excise, duty of customs, value added tax, 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.
(c)According to the information and explanations given to us there are
no dues of income tax, sales tax, service tax, duty of customs, duty of excise, valued
added tax, goods and service tax and other material statutory dues which have not been
deposited with the appropriate authorities on account of any dispute except for the
following:
| Name of the statute |
Nature of dues |
Amount in lakhs. |
Period to which the amount
relates |
Forum where dispute is
pending |
| Income Tax Act,1961 |
Income Tax |
922.12 |
AY 2017-18 |
CIT(A), Mumbai |
| Income Tax Act,1961 |
Income Tax |
344.08 |
AY 2018-19 |
CIT(A), Mumbai |
| Income Tax Act,1961 |
Income Tax |
1,245.29 |
AY 2021-22 |
CIT(A), Mumbai |
| Sales Tax & Value Added Tax Laws |
Sales Tax |
492.91 |
F.Y.2011-12 |
Bombay High Court |
| Sales Tax & Value Added Tax Laws |
Sales Tax |
930.10 |
F.Y.2012-13 |
Bombay High Court |
| Sales Tax & Value Added Tax Laws |
Sales Tax |
578.17 |
F.Y.2013-14 |
Bombay High Court |
| Sales Tax & Value Added Tax Laws |
Sales Tax |
930.10 |
F.Y.2014-15 |
Bombay High Court |
| Finance Act,1994 |
Service Tax |
27.60 |
F.Y.2009-10 |
The Commissioner (Appeals),
Customs, Central Excise & Service Tax |
| Finance Act,1994 |
Service Tax |
363.00 |
F.Y.2007-08-09 July-2004to |
The Assistant Registrar,
Customs, Excise & Service Tax Appellate Tribunal Customs, Excise & |
| Finance Act,1994 |
Service Tax |
283.25 |
November,2006 |
Service Tax Appellate
Tribunal,Kolkata |
(viii) According to the information and explanations given to us and
records of the Company, the Company has not surrendered or disclosed any transactions,
previously un recorded as income in the books of account, in the tax assessments under the
Income-tax Act,1961 as income during the year.
(ix) (a) During the year the Company has not availed any term loans
from lenders. Accordingly, the, provisions of clauses 3(ix) (a) of the Order are not
applicable to the Company.
(b) According to the information and explanations given to us and on
the basis of our examination of their 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 not obtained any term loans during the year. Accordingly,
clause3 (ix)c of the Order is not applicable.
(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 no funds have been
raised on short term basis by the Company. Accordingly, clause3 (ix)(d) of the Order is
not applicable.
(e) The Company have not taken funds from any entities and person to
meet the obligation of its subsidiary, associate or joint venture, as defined under the
Companies Act, 2013 during the year ended March 31, 2023. Accordingly, clause3(ix)(e) is
not applicable.
(f) According to the information and explanations given to us and
procedures performed by us, we report that the Company has not raised loans during the
year on the pledge of securities held in its subsidiaries as defined under the Companies
Act, 2013.Accordingly, clause3(ix)(f) of the 0rder is not applicable.
(x) (a) The Company has not raised any moneys by way of initial public
offer or further public offer (incl. debt instruments). Accordingly, clause3(x) (a) of the
Order is not applicable.
(b) According to the information and explanations given to us and on
the basis of our examination of their 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. Accordingly, clause3(x)(b) of the order is not applicable.
(xi) (a) Based on examination of the books and records of the Company
and according to the information And explanations given to us, no fraud by the Company or
on the Company has been notice do reported during the course of the audit.
(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 the auditors in
Form ADT-4 as prescribed under Rule 13 of Companies Audit and Auditors Rules, 2014 with
the Central Government
(c) Establishment of vigil mechanism is not mandated for the Company.
As represented to us by the management, there are no whistle blower complaints received by
the Company during the year under the vigil mechanism established voluntarily.
(xii) The Company is not a Nidhi Company, therefore, the provisions of
clause 3 (xii) of the Order are not applicable to the Company.
(xiii) The Company has entered into transactions with the related
parties in compliance with Provisions of section 177 and 188 of Act, the details of such
related party transactions have been disclosed in the financial statements as required
under applicable accounting standards.
(xiv) 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.
(xv) Based upon the audit procedures performed and the information and
explanations given by the management, the company has not entered into any non-cash
transactions with directors or persons connected with him. Accordingly, the provisions of
clause 3 (xv) of the Order are not applicable to the Company.
(xvi) In our opinion, the company is not required to be registered
under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions
of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented
upon.
(xvii) The Company has incurred cash losses in the current year;
however, the Company has not incurred cash losses in the previous year.
(xviii) There has been no resignation of the statutory auditors during
the year. Accordingly, clause3 (xviii) of the Order is not applicable.
(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 supporting assumption though the material uncertainty exists
as on the date of the audit report, the Company is 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.
(xx) In our opinion and according to the information and explanations
given to us, clauses3 (xx)(a) and3(xx)(b) of the Order are not applicable.
For SURESH C MANIAR & CO CHARTERED ACCOUNTANTS
Firm Registration Number 110663W
S.C.MANIAR
PARTNER M. NO. 006759 Place: Mumbai Date: May 22,2023 UDIN:
23006759BGZGAY1634
ANNEXURE "B" TO THE INDEPENDENT AUDITORS
REPORT
(Referred to in paragraph 1(f) under ‘Report on Other Legal and
Regulatory Requirements section of our report to the Members of Atlanta Limited of
even date)
Report on the Internal Financial Controls Over Financial Reporting
under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the
Act")
We have audited the internal financial controls over financial
reporting of ATLANTA LIMITED ("the Company") as of March 31, 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 Board of Directors of the Company is responsible for establishing
and maintaining internal financial controls based on the internal control over financial
reporting criteria established by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered Accountants of India. These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to respective 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 internal financial
controls over financial reporting of the Company based on our audit. We conducted our
audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting (the "Guidance Note") issued by the Institute of Chartered
Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the
Companies Act, 2013, to the extent applicable to an audit of internal financial controls.
Those Standards and the Guidance Note require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established 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 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 internal financial controls system over
financial reporting of the Company.
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, to the best of our information and according to the
explanations given to us, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 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 SURESH C MANIAR & CO CHARTERED ACCOUNTANTS
Firm Registration Number 110663W
S.C.MANIAR
PARTNER M. NO. 006759 Place: Mumbai Date: May 22, 2023
UDIN: 23006759BGZGAY1634
Atlanta Limited
+91-9892691696
