To the Members
Baroda Extrusion Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying Ind AS financial statements of Baroda
Extrusion Limited
("the Company"), which comprise 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 then ended,
and notes to the Ind AS financial statements including a summary of significant accounting
policies and other explanatory information (hereinafter referred to as Ind AS financial
statements").
In our opinion and to the best of our information and according to the
explanations given to us, except for the possible effects of the matters described in the
Basis for Qualified Opinion section of our report, the aforesaid Ind AS financial
statements give the information required by the
Companies Act, 2013 ("the Act") in the manner so required and
give a true and fair view in conformity with the accounting principles generally accepted
in India including the Indian Accounting Standards ("Ind AS")prescribed under
section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015,
as amended, of the state of affairs of the Company as at March 31, 2023, its
loss(including other comprehensive income), its changes in equity and its cash flows for
the year ended on that date.
Basis for Qualified Opinion
(a)As stated in Note 3 of the Financial Statement, due to the various
litigations and cross litigations between the Company and the Lender- SICOM Ltd
(‘SICOM), the Company has not accounted for the interest liability, for the
past many years and for the year ended March 31, 2023, on outstanding dues payable to
SICOM. Further, as stated in the said Note, in view of the various demands raised by the
Company and on the Company, the interest liability to be accounted for in the books of
accounts is not ascertainable.
(b) As stated in Note 5 of the Financial Statement, the Company has not
de-recognized the Deferred Tax Assets (DTA) amounting to Rs. 512.43 Lakhs as appearing in
its books of accounts as at March 31, 2023 for the reason stated in the said note.
Considering the losses incurred by the Company and since the net worth of the Company is
eroded, there is no reasonable certainty that there will future taxable profit, such
continuation of recognition of DTA has led to departure in terms of the requirements of
Ind AS 12 ‘Income Taxes. Had the Company de-recognised the DTA as at March 31,
2023, loss for the year ended March 31, 2023 would have been higher by Rs. 512.43 Lakhs.
We conducted our audit in accordance with Standards on Auditing (SAs)
specified under section 143(10) of the Act. Our responsibilities under those Standards are
further described in the Auditors Responsibilities for the Audit of the Ind AS
Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India ("ICAI") together with the ethical requirements that are relevant to our
audit of the Ind AS financial statements under the provisions of the Act and Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion on the Ind AS
financial statements.
Material Uncertainty related to Going Concern
We draw attention to Note28D in the Statement, indicating the factors
that have resulted into losses and the net worth of the Company is eroded. It seems that
there is a material uncertainty which casts significant doubt about the Companys
ability to continue as a ‘going concern in the foreseeable future. However, for
the reasons stated in the said note, the Company is hopeful that it would be able to
manage its business operations as usual in future and would be able to meet its financial
commitments and is of the opinion that it is appropriate to prepare the Statement on a
going concern basis.
Our Opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the Ind AS financial statements of the current
year. These matters were addressed in the context of our audit of the Ind AS financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. Except for the matters described in the Basis for
Qualified Opinion section and Material Uncertainty Related to Going Concern section above,
we have determined that there are no other 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 Management
Discussion and Analysis, Boards Report including Annexures to Boards Report,
Corporate Governance and Shareholders Information, but does not include the IndAS
financial statements and our auditors report thereon.
Our opinion on the IndAS 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 Ind AS financial statements, our
responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the IndAS financial statements, or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a
material misstatement of this other information, we are required to report that fact. We
have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for
the Ind AS 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 Ind AS financial
statements that give a true and fair view of the financial position, financial
performance(including other comprehensive income), changes in equity and cash flows of the
Company in accordance with the accounting principles generally accepted in India,
including Ind AS prescribed under section 133 of the Act, read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended. 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 Ind AS financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error.
In preparing the Ind AS 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 also responsible for overseeing the
Companys financial reporting process.
Auditors Responsibilities for the Audit of the Ind AS Financial
Statements
Our objectives are to obtain reasonable assurance about whether the Ind
AS 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 this Ind AS 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 Ind AS
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 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 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, 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
financial statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal 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 Ind AS
financial statements of the current year 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.
Other Matter a) The audit of annual financial results for the
quarter and year ended March 31, 2022, included in the Statement, was carried out and
reported by predecessor auditor, vide their unmodified audit report dated 30th May, 2023,
whose report has been furnished to us by the Management and which has been relied upon by
us for the purpose of our audit of the Statement.
Our opinion is not modified in respect of this matter.
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 report in "Annexure 1", 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 except for the matters described in the Basis for Qualified Opinion
section above, obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit; b. Except for
the possible effects of the matters described in the Basis for Qualified Opinion section
above, 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 Statement of Cash Flows dealt with by this report
are in agreement with the books of account;
d. Except for the possible effects of the matters described in the
Basis for Qualified Opinion section above, in our opinion, the aforesaid Ind AS financial
statements comply with the Ind AS prescribed under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended;
e. The matter described under the Material Uncertainty Related to
Going Concern section above, in our opinion, may have an adverse effect on the functioning
of the Company;
f. On the basis of the written representations received from the
directors as on March 31, 2023, and 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;
g. 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 2";
h. With respect to the other matter 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/ provided by the Company to its directors
during the year is in accordance with the provisions of section 197 of the Act;
k. 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) Except for the matters described in the Basis for Qualified Opinion
section above, the Company has disclosed the impact of pending litigations on its
financial position in its Ind AS financial statements Refer Note 32Bon Contingent
Liabilities to the Ind AS 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, other than as disclosed in the notes to the accounts, 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 person(s) or entity(ies), including foreign
entities ("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;
(iv) (b) The management has represented that, to the best of its
knowledge and belief, other than as disclosed in the notes to the accounts, no funds have
been received by the Company from any person(s) or entity(ies), including foreign entities
("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;
(iv) (c) Based on the audit procedures that are 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) The Company has not declared nor paid any dividend during the year.
Hence, reporting the compliance with section 123 of the Act is not applicable.
(vi) As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is
applicable for the company only w.e.f. April 1, 2023, reporting under this clause is not
applicable.
|
For Haribhakti & Co.LLP |
|
Chartered Accountants |
|
(F.R.No.103523W/W100048) |
|
Purushottam Nyati |
|
Partner |
Place: Mumbai |
M No. 118970 |
Date: 30thMay, 2023 |
UDIN: 23118970BGWTMS4036 |
ANNEXURE "1" TO THE INDEPENDENT AUDITORS REPORT
[Referred to in paragraph 1under ‘Report on Other Legal and
Regulatory Requirements section in the Independent Auditors Report of even
date to the members of Baroda Extrusion Limited("the Company") on the Ind AS
financial statements for the year ended 31st March 2023]
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the Ind AS financial statements of the Company and taking into
consideration the information, explanations and written representation given to us by the
management and the books of account and other records examined by us in the normal course
of audit, we report that:
(i)
(a)(A) The Company has not maintained proper records showing full
particulars, including quantitative details and situation of Property, Plant and Equipment
However, the Company is in the process of preparing / updating the same.
(B)The Company has maintained proper records showing full particulars
of Intangible Assets.
(b) During the year, the management has not physically verified the
Property, Plant and Equipment of the Company and as such, we cannot comment on material
discrepancies existing, if any. In our opinion, the frequency of verification is not
reasonable having regard to the size of the Company and the nature of its assets.
(c)The title deeds of all the immovable properties (other than
properties where the Company is the lessee and the lease agreements are duly executed in
favour of lessee), disclosed in the Ind AS financial statements are held in the name of
the Company.
(d) The Company has not revalued its Property, Plant and Equipment and
Intangible Assets during the year. Accordingly, reporting under clause (i)(d) of paragraph
3 of the Order is not applicable.
(e)No proceedings have been initiated or are pending against the
Company as at March 31, 2023for holding any Benami property under the Prohibition of
Benami Property Transactions Act, 1988and rules made thereunder.
(ii)
(a) The management has conducted physical verification of inventory at
reasonable intervals during the year. In our opinion, the coverage and procedure of such
verification by the management is appropriate.
(b) The Company has been sanctioned working capital limits in excess of
five crore rupees
During the year, in aggregate from financial institution, on the basis
of security of current assets. Due to ongoing dispute and litigation between the Company
and the Lender, no quarterly returns/statements have not been filed by the Company with
such financial institutions.
(iii)The Company has not made any investments in, provided any
loans or provided advances in the nature of loans, or stood guarantee, or provided
security to companies, firms, Limited Liability Partnerships or any other parties.
Accordingly, reporting under clause (iii) of paragraph 3 of the Order is not applicable.
(iv) The Company has complied with the provisions of sections 185
and 186 of the Act in respect of grant of loans, making investments and providing
guarantees and securities, as applicable.
(v) In our opinion, the Company has not accepted any deposits or
amounts which are deemed to be deposits. Accordingly, reporting under clause (v) of
paragraph 3 of the Order is not applicable.
(vi) The maintenance of cost records has been specified by the
Central Government under sub-section (1) of section 148 of the Act and rules there under.
We have broadly reviewed such records and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have, however, not made
a detailed examination of the cost records with a view to determine whether they are
accurate or complete.
(vii)
(a)The Company is regular in depositing with the appropriate
authorities, undisputed statutory dues including Goods and Services tax (GST), provident
fund, employees state insurance, income-tax, sales-tax, service tax, duty of
customs, duty of excise, value added tax, cess and any other material statutory dues
applicable to it, in all cases during the year.
AND
No undisputed amounts payable in respect of provident fund,
employees state insurance, income tax, GST, customs duty, cess and any other
material statutory dues applicable to it, were outstanding, at the year end, for a period
of more than six months from the date they became payable.
(b) The dues outstanding with respect to provident fund,
employees state insurance, income tax, GST, sales tax, service tax, value added tax,
customs duty, excise duty and cess, on account of any dispute, are as follows:
Statement of Disputed Dues
Name of the statute |
Nature of the dues |
Amount Rs. (In
Lakhs) |
Period to which the
amount relates |
Forum where dispute is
pending |
Gujarat VAT Act, 2003 |
VAT demand |
7.52 3.86 |
FY 2016-17 FY 2017-18 |
Commissioner, Commercial
Taxes, |
Central Sales Tax Act |
CST demand |
6.24 |
FY 2016-17 |
Vadodara, Gujarat |
Central Excise Act, 1944 |
Excise demand |
289.39 70.83 |
- |
Central Excise, Customs and
Service Tax Appellate Tribunal, Ahmedabad, Gujarat (The Company is in process to file
appeal before the authority against the order and limitation period for the appeal has not
expired) |
(viii)We have not come across any transaction which was previously
not recorded in the books of account of the Company that have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
(ix)(a)The Company has not defaulted in repayment of loans or other
borrowings or in the payment of interest thereon to any lender, except for the details
given below:
Nature of Borrowing
including debt securities |
Name of lender* |
Amount not paid on due
date (Rs in Lakhs) |
Whether principal or
interest |
No of days delay or
unpaid |
Remarks if any |
Cash Credit including Working
Capital |
SICOM Limited |
4587.05 |
Principal No Interest |
Approx 3285 days |
The Company has filed
litigation against the lender. |
Facilities (Bill factoring) |
|
|
Liability has been accounted
in the books of accounts since last 9 years. |
(9 years) |
|
(b) The Company has not been declared wilful defaulter by any bank or
financial institution or government or any government authority.
(c)The Company did not obtain any money by way of term loans during the
year. Accordingly, reporting under clause (ix)(c) of paragraph 3 of the Order is not
applicable.
(d) On an overall examination of the Ind AS financial statements of the
Company, no funds raised on short-term basis have, been used for long-term purposes by the
Company.
(e) The Company does not have any subsidiary, associate or joint
venture as defined under the Act. Hence reporting under clause (ix)(e) and (f) of the
Order is not applicable.
(x)(a) The Company has not raised money by way of initial public
issue offer / further public offer (including debt instruments) during the year.
Therefore, reporting under clause (x)(a) of paragraph 3 of the Order is not applicable.
(b) The Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully, partially or optionally convertible)
during the year. Therefore, reporting under clause (x)(b) of paragraph 3 of the Order is
not applicable.
(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 accordingly to the information and explanations given to us, we
have neither come across any instance of fraud by the Company nor any fraud on the Company
has been noticed or reported during the year, nor have we been informed of any such
instance by the management.
(b) No report under section 143(12) of the Act has been filed with the
Central Government by the auditors of the Company in Form ADT-4 as prescribed under Rule
13 of Companies (Audit and Auditors) Rules, 2014, during the year or upto the date of this
report.
(c)There are no whistle blower complaints received by the Company
during the year and upto the date of this report.
(xii) In our opinion, the Company is not a Nidhi Company.
Therefore, reporting under clause(xii) of paragraph 3 of the Order is not applicable.
(xiii) All transactions entered into by the Company with the
related parties are in compliance with sections 177 and 188 of the Act, where applicable
and the details have been disclosed in the Ind AS financial statements as required by the
applicable accounting standards.
(xiv) (a) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(b) We have considered the Internal Audit Reports of the Company issued
till date, for the period under audit.
(xv) The Company has not entered into any non-cash transactions
with its directors or persons connected with them during the year and hence, provisions of
section 192 of the Act are not applicable to the Company.
(xvi) (a) The Company is not required to be registered under
section45-IA of the Reserve Bank of India Act, 1934.Therefore, reporting under clause
(xvi)(a) and (b) of paragraph 3 of the Order are not applicable.
(b) The Company has not conducted any Non-Banking Financial or Housing
Finance activities without having a valid Certificate of Registration (CoR) from the
Reserve Bank of India as per the Reserve Bank of India Act, 1934.
(c) The Company is not a Core Investment Company (CIC) as defined in
Core Investment
Companies (Reserve Bank) Directions, 2016 ("Directions") by
the Reserve Bank of India.
Accordingly, reporting under clause (xvi)(c) and (d) of paragraph 3 of
the Order are not applicable.
(xvii) The Company has incurred cash losses for the current
financial year amounting to Rs 333.32Lakhs. However, no cash losses were incurred in the
immediately preceding financial year.
(xviii) There has been resignation of the statutory auditors during
the year; however, no issues, objections or concerns were raised by the outgoing auditors.
(xix) 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 Ind AS financial statements and our knowledge of the Board of
Directors and management plans and based on our examination of the evidence supporting the
assumptions, we believe that material uncertainty as on the date of this audit report and
due to which the Company may not be 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 state that our reporting is based on the facts up to date of the
audit report. We further draw attention to paragraph ‘Material Uncertainty in
relation to Going Concern in our main audit report of even date regarding the
appropriateness of the going concern assumption.
(xx) The provisions of section 135 of the Act are not applicable to
the Company. Hence, reporting under clause (xx) of paragraph 3 of the Order is not
applicable.
(xxi) Since the Company is not required to prepare consolidated
financial statements, clause 3 (xxi) is not applicable.
|
For Haribhakti & Co.LLP |
|
Chartered Accountants |
|
(F.R.No.103523W/W100048) |
|
Purushottam Nyati |
|
Partner |
Place: Mumbai |
M No. 118970 |
Date: 30thMay, 2023 |
UDIN: 23118970BGWTMS4036 |
ANNEXURE ‘2 TO THE INDEPENDENT AUDITORS
REPORT
[Referred to in paragraph 2(i)under ‘Report on Other Legal and
Regulatory Requirements section in our Independent Auditors Report of even
date to the members of Baroda Extrusion Limited on the Ind AS financial statements for the
year ended 31st March, 2023]
Report on the Internal Financial Controls with reference to Financial
Statements under clause (i) of sub-section 3 of section 143 of the Companies Act, 2013
("the Act")
We were engaged to audit the internal financial controls with reference
to financial statements of Baroda Extrusion Limited ("the Company") as of March
31, 2023 in conjunction with our audit of the Ind AS 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 with reference to
financial statements criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting (the "Guidance Note") issued by the 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 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, to the
extent applicable to an audit of internal financial controls, both issued by the ICAI.
Because of the matter described in Disclaimer of Opinion paragraph
below, we were not able to obtain sufficient appropriate audit evidence to provide a basis
for an audit opinion on internal financial controls with reference to financial statements
of the Company.
Meaning of Internal Financial Controls with reference to Financial
Statements
A companys internal financial control 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 control with reference to financial statements includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the
company;(2)provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and (3)
provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the companys assets that could have a material effect
on the financial statements.
Opinion
According to the information and explanation given to us, the Company
has not established its internal financial controls with reference to financial statements
on criteria based on or considering the essential components of internal control stated in
the Guidance Note issued by ICAI.
Because of this reason, we are unable to obtain sufficient appropriate
audit evidence to provide a basis for our opinion whether the Company had adequate
internal financial controls with reference to financial statements and whether such
internal financial controls were operating effectively as at March 31, 2023.
We have considered the disclaimer reported above in determining the
nature, timing, and extent of audit tests applied in our audit of the Ind AS financial
statements of the Company, and the disclaimer does not affect our opinion on the Ind AS
financial statements of the Company.
|
For Haribhakti & Co.LLP |
|
Chartered Accountants |
|
(F.R.No.103523W/W100048) |
|
Purushottam Nyati |
|
Partner |
Place: Mumbai |
M No. 118970 |
Date: 30thMay, 2023 |
UDIN: 23118970BGWTMS4036 |
+91-9892691696
