To the Members of
BENARA BEARINGS & PISTONS LIMITED
Report on Standalone Financial statements Qualified
Opinion
We have audited the financial statements of BENARA BEARINGS & PISTONS LIMITED ("the
Company"), which comprise the balance sheet as at 31st March 2023, and the statement
of Profit and Loss and statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies and other
explanatory information.
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 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 31st
March, 2023, its profit/loss and its cash flows for the year ended on that date, subject
to audit qualifications.
a) In the case of the balance sheet, of the state of affairs of the company as at March
31, 2023.
b) In the case of the Profit and Loss Account, of the Loss for the period ended on that
date and
c) In the case of cash flow statement, for the cash flows for the year ended on that
date.
Basis of Qualified Opinion
We conducted our audit in accordance with the Standards on Auditing ("SAs")
specified under section 143(10) of the Companies Act. 2013 ("the Act"). Our
responsibilities under those SAs 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 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 financial results.
(1) There is delay in payment of interest and instalments to some of the lenders. In
cases where there are disputes with the lenders, the management has decided not to provide
interest, as the same shall be provided post settlement of dues with lenders. Interest
amount of Rs.93.73lacs on such borrowing, where management anticipates settlement, has not
been provided. Accordingly, the loss for the year and loan liability to has been
understated to such extent.
(2) The company has not provided Provision for bad and doubtful debt on Sundry
Debtors (Shown under noncurrent assets) amounting to Rs.1472.18 lacs considered by us as
doubtful. Accordingly, the loss for the year is understated and Debtors has been
overstated to the extent.
(3) Due to non-availability of confirmations and other relevant documents for
certain loans and advances given by the company of Rs 1142.48 lac, considered by us as
doubtful. No provisions has been made on such advances by the company. Accordingly, the
loss for the year is understated and Loans and Advances has been overstated to the
extents.
Material uncertainty related to Going concern
Attention on the standalone financial results, which indicated that the company
continue to incur losses during the years ended Rs 1,023.44 lacs in 2022-23 and Rs
1,930.44 Lacs 2021-22 and sales are decreased. Company in the process of Certain existing
borrowings on the balance sheet date have been settled and refinanced/restructure. The
company discussed with Axis Bank limited and Bandhan Bank NPA loan account against the
outstanding balance of Rs. 5138.00 Lacs, company has entered into a one- time settlement
(OTS) in Rs. 3000.00 lacs against the said outstanding amount as per the terms and
conditions of the said Banks. These event or conditions indicate that a material
uncertainty exists that may be a case significant doubt in the companys ability to
continue as a going concern. However, the standalone financial results of the company have
been prepared on a going concern basis for as reason stated on the said note.
Our opinion is not modified in respect on this matter.
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 Boards
Report including Annexures to Boards Report but does not include the financial statements
and our auditors report thereon.
Our opinion on the 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 financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the 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.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these financial statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting Standards (AS) specified
under section 133 of the Act. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the
assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an 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 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 financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Companies Act, 2013, we are also responsible for expressing our opinion on whether
the company has adequate internal financial controls 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 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.
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 standalone financial statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our
audit work and in evaluating the results of our work; and (ii) to evaluate the effect of
any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order"),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Companies Act, 2013, we give in the ‘Annexure A, a statement on the
matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards (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 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 from being appointed as a director in terms of Section
164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to
financial statements of the Company and the operating effectiveness of such controls,
refer to our separate Report in ‘Annexure B.
g) With respect to the matter to be included in the Auditors Report under section
197(16), 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) which are
required to be commented upon by us.
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, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial
position.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
iv. (a) The management has represented that, to the best of its knowledge and belief,
no funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the company to or in any other 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;
(b) The management has represented, that, to the best of its knowledge and belief, 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; and
(c) Based on such audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material mis-statement.
v. No dividend has been declared or paid during the year by the company.
For Agrawal Jain and Gupta
Chartered Accountants
Firm Reg. No. 013538C
CA Sarwan Kumar Prajapati
Partner
Membership No. 199969
UDIN: 23199969BGTBTA2902
Place: Mumbai
Dated: 30th May 2023
Annexure ‘A
The Annexure referred to in paragraph 1 of Our Report on "Other Legal and
Regulatory
Requirements".
We report that:
(i) (a) (A) As per information and explanations given by the management The company
is maintaining proper records showing full particulars, including quantitative details and
situation of Property, Plant and Equipment;
(B) The company is maintaining proper records showing full particulars of intangible
assets;
(b) As explained to us, Property, Plant and Equipment have been physically verified by
the management at reasonable intervals; no material discrepancies were noticed on such
verification;
(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 the
lessee) disclosed in the financial statements are held in the name of the company.
(d) The company has not revalued its Property, Plant and Equipment (including Right
of Use assets) or intangible assets or both during the year.
(e) As explained to us, no proceedings have been initiated or are pending against
the company for holding any benami property under the Benami Transactions (Prohibition)
Act, 1988 (45 of 1988) and 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 and no discrepancies of 10% or more in the
aggregate for each class of inventory were noticed.
(b) The company has been sanctioned working capital limits in excess of five crore
rupees, in aggregate, from banks or financial institutions on the basis of security of
current assets during any point of time of the year. The quarterly returns or
statements was not filed by the company. In the said conditions we are not able to give
any opinion on the same. Loan account become NPA in previous year.
(iii) (a) During the year the company has not made investments in, nor provided any
guarantee or security or granted any loans or advances in the nature of loans, secured or
unsecured, to companies, firms, Limited Liability Partnerships or any other parties.
(b) According to the information and explanations given to us, the investments made,
guarantees provided, security given and the terms and conditions of the grant of all loans
and advances in the nature of loans and guarantees provided are not prima facie
prejudicial to the companys interest;
(c) There is no stipulation of schedule of repayment of principal and payment of
interest and therefore we are unable to comment on the regularity of repayment of
principal & payment of interest.
(d) Since the term of arrangement do not stipulate any repayment schedule, various
loans EMI become overdue due & Loan account become NPA in Previous Year.
(e) No loan or advance in the nature of loan granted which has fallen due during the
year, has been renewed or extended or fresh loans granted to settle the over dues of
existing loans given to the same parties.
(f) The company has not granted any loans or advances in the nature of loans either
repayable on demand or without specifying any terms or period of repayment.
(iv) In respect of loans, investments, guarantees, and security, provisions of section
185 and 186 of the Companies Act, 2013 have been complied with except non-charging of
interest on the loan.
(v) The company has not accepted any deposits or amounts which are deemed to be
deposits covered under sections 73 to 76 of the Companies Act, 2013.
(vi) As per information & explanation given by the management, maintenance of cost
records has been specified by the Central Government under sub-section (1) of section 148
of the Companies Act.
(vii) (a) According to the records made available to us, company is regular in
depositing undisputed statutory dues including Goods and Services Tax, provident fund,
employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of
excise, value added tax, cess and any other statutory dues to the appropriate authorities.
According to the information and explanation given to us there were no outstanding
statutory dues as on 31st of 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 is no statutory
dues referred to in sub-clause (a) that have not been deposited on account of any dispute
except following:
| Name of the Statute |
Period to which amount relates |
Amount of Dues (Rs.) |
Forum where dispute is pending |
| Income Tax Act, 1961 |
A Y 2010-11 |
1,93,210/- |
Deputy Commissioner CIT- 1(A) |
|
A Y 2014-15 |
32,04,340/- |
Deputy Commissioner CIT- 1(A) |
|
A Y. 2017-18 |
24,34,730/- |
Deputy Commissioner CIT- 1(A). |
|
A Y. 2018-19 |
6,06,930/- |
CPC |
| Tax deduction at |
F.Y 2019-20 |
8,31,194 |
Income Tax Officer -TDS-1 |
| source |
F.Y. 17-18 |
3,689/- |
Income Tax Officer -TDS-1 |
|
F.Y.2016-17 |
58,316/- |
Income Tax Officer -TDS-1 |
|
F.Y.2015-16 |
1,970/- |
Income Tax Officer -TDS-1 |
|
Prior to F.Y. 2012-13 |
9,80,336/- |
Income Tax Officer -TDS-1 |
|
From FY 2021- to 2023 |
21,34,836 |
|
| Sales tax Demand |
|
31,15,899/- |
Pending before Appeal |
| Central excise Act, 1944 |
|
30,36,098/- |
Pending before Appeal |
| PF |
|
83,67,668 |
|
| ESIC |
|
18,66,199 |
|
(viii) According to the information and explanations given by the management, no
transactions not recorded in the books of account have been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961.
(ix) (a) In our opinion and according to the information and explanations given by
the management, we are of the opinion that the company has defaulted in repayment of
loans or other borrowings or in the payment of interest thereon to any lender as per
Annexure-1.
(b) According to the information and explanations given by the management, the company
is not declared willful defaulter by any bank or financial institution or other lender;
(c) In our opinion and according to the information and explanations given by the
management, the Company has not obtained money by way of term loans during the year.
(d) In our opinion and according to the information and explanations given by the
management, funds raised on short term basis have not been utilized for long term
purposes.
(e) In our opinion and according to the information and explanations given by the
management, the company has not taken any funds from any entity or person on account of or
to meet the obligations of its subsidiaries, associates or joint ventures,
(f) In our opinion and according to the information and explanations given by the
management, the company has not raised loans during the year on the pledge of securities
held in its subsidiaries, joint ventures or associate companies.
(x) (a) The company has not raised any money by way of initial public offer or further
public offer (including debt instruments) during the year.
(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.
(xi) (a) According to the information and explanations given by the management, no
fraud by the company or any fraud on the company has been noticed or reported during the
year;
(b) No report under sub-section (12) of section 143 of the Companies 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) According to the information and explanations given to us by the management, no
whistle-blower complaints had been received by the company.
(xii) The company is not a Nidhi Company. Therefore, clause xii is not applicable on
the company.
(xiii) According to the information and explanations given to us, all transactions with
the related parties are in compliance with sections 177 and 188 of Companies Act, where
applicable and the details have been disclosed in the financial statements,
(xiv) (a) In our opinion and based on our examination, the company require to have an
internal audit system.
(xv) On the basis of the information and explanations given to us, in our opinion
during the year the company has not entered into any non-cash transactions with directors
or persons connected with him.
(xvi) (a) In our Opinion and based on our examination, the Company is not required to
be registered under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934).
(b) In our Opinion and based on our examination, the Company has not conducted any
Non-Banking Financial or Housing Finance activities without a valid Certificate of
Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act,
1934,
(c) In our Opinion and based on our examination, the Company is not a Core Investment
Company (CIC) as defined in the regulations made by the Reserve Bank of India.
(d) According to the information and explanations given by the management, the Group
does not have any CIC as part of the Group.
(xvii) Based on our examination, the company has incurred cash losses (1720.73 Lacs) in
the financial year and in the immediately preceding financial year(1662.44 lacs).
(xviii) There has been no resignation of the statutory auditors during the year and we
have taken into consideration the issues, objections or concerns raised by the outgoing
auditors.
(xix) On the information obtained from the management and audit procedures performed
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, the auditors knowledge of the Board of Directors and management
plans, we are of the opinion that material uncertainty exists as on the date of the audit
report that company is not capable of meeting its liabilities existing at the date of
balance sheet as and when they fall due within a period of one year from the balance sheet
date;
(xx) Based on our examination, the provision of section 135 is not applicable on the
company.
(xxi) The company is required to prepare Consolidate financial statement hence this
clause is applicable.
For Agrawal Jain and Gupta
Chartered Accountants
Firm Reg. No. 013538C
CA Sarwan Kumar Prajapati
Partner
Membership No. 199969
UDIN: 23199969BGTBTA2902
Place: Mumbai
Dated: 30th May 2023
Annexure-1
(Refer to Point no IX of CARO Report)
we are of the opinion that the company has defaulted in below repayment of loans or
other borrowings or in the payment of interest thereon to any lender.
(a) Secured loans from Banks and Financial institutions
| Sr. No. |
Name of Bank/ Institution |
Closing Balance |
| 1 |
HDFC BANK - JAGUAR NEW 110160 |
32.90 |
| 2 |
HDFC BANK - KIA SALTOS-19922 |
11.83 |
| 3 |
HDFC BANK - Nissan Terrano 24080 |
4.92 |
| 4 |
HDFC BANK - TEMPO - 9000 |
1.70 |
| 5 |
ICICI BANK - CAR INNOVA - 31170 |
13.12 |
| 6 |
ICICI (TOPUP CAR LOAN) 12519 |
5.49 |
| 7 |
ICICI (TOPUP CAR LOAN) 18731 |
12.13 |
| 8 |
ICICI (TOPUP CAR LOAN) 3328 |
1.26 |
| 9 |
ICICI (TOPUP CAR LOAN) 51051 |
21.40 |
| 10 |
MAHINDRA & MAHINDRA FIN. (M. BALENO) 11330 |
2.68 |
|
Total |
107.43 |
(b) Un-Secured loans from Banks and Financial institutions
| Sr. No. |
Name of Bank/ Institution |
Closing Balance |
| 1 |
Aaditya Birla Finance |
32.92 |
| 2 |
INDIA INFOLINE FINANCE LIMITED |
5.39 |
| 3 |
PINNACLE CAPITAL SOLUTIONS PVT LTD |
17.11 |
| 4 |
MITHICA Financial services |
5.00 |
|
Total |
60.42 |
Annexure "B"
to the Independent Auditors Report on the Standalone Financial Statements of Benara
Bearings & Pistons Limited
(Referred to in paragraph 1 (f) under ‘Report on Other Legal and Regulatory
Requirements of our report of even date)
REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (i) OF
SUBSECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 ("THE ACT")
We have audited the internal financial controls over financial reporting of Benara
Bearings & Pistons Limited ("the listed 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 Companys management is
responsible for establishing and maintaining internal financial controls based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting (the "Guidance Note")
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 Companys policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under
the Companies Act, 2013.
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note 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 Companys internal financial controls system
over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and payments
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.
In terms of our report of even date attached.
For Agrawal Jain and Gupta
Chartered Accountants Firm Reg. No. 013538C
CA Sarwan Kumar Prajapati
Partner
Membership No. 199969
UDIN: 23199969BGTBTA2902
Place: Mumbai
Dated: 30th May 2023
+91-9892691696
