To the Members of M/s. BHARATIYA GLOBAL INFOMEDIA LIMITED
Report on Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of M/s. BHARATIYA
GLOBAL INFOMEDIA LIMITED which comprises the Balance Sheet as at March 31, 2023 and
the standalone Statement of Profit and Loss (including comprehensive income), standalone
statement of change in equity and standalone statement of cash flow for the year 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 standalone financial statements give the information required
by the Act in the manner so required by the Companies Act, 2013 and give an adverse view
in conformity with the accounting standards prescribed under section 133 of the Act read
with Companies (Accounts) Rules, 2014 as amended and other accounting principles generally
accepted in India, of the state of affairs of the Company as at March 31, 2023, and
Profit/Loss and its Cash flow for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditor’s Responsibilities for the Audit of
the Standalone Financial Statements section of our report. We are independent of the
Company in accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India together with the ethical requirements that are relevant to our audit
of the Standalone financial statements under the provisions of the Companies Act, 2013 and
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.
Basis for Adverse Opinion
According to the information and explanations given to us and based on our audit, the
following observations have been identified as at March 31, 2023:
1 that there has been a survey by the GST department on 7th July 2021 and all data of
the Company has been taken by them hence Account Balances of Trade Payable, Trade
Receivables, Loans and Advances, Borrowings, Fixed Assets & Inventories are subject to
confirmation and the consequential effects of the same on the profits/losses, assets and
liabilities of the company are not quantifiable. Further other GST case with GST
Intelligence, R K Puram, New Delhi and GST Anti Division, IP Estate ITO, Delhi has not
been concluded yet. We have checked the figures from the available copies of invoices and
purchases/services along with GSTR return submitted. Expenses has been checked from
supporting documents.
2 non-provision of amount recoverable from inter-corporate deposits amounting to
principal amounts of Rs 5.40 Crores along with accrued interest, thereby, increasing the
profit by the same amount as further detailed in note no. 35 of notes to accounts,
non-provision of penalty imposed by SEBI of Rs 6 Crores as further detailed in the note no
31 and confirmation and reconciliation of same of accounts as further detailed in note no.
32.
3 Chief financial officer of the Company has resigned from the company w.e.f. 30th
May 2018. The company has not filed the required information till date as required under
section 203 the act read with Rule 8 and Rule 8A of the companies (appointments &
remuneration of Managerial Personnel) Rules, 2014. And also, not informed to the Ministry
of Corporate Affairs for appointment of new Chief Financial officer w.e.f 14th
August 2018. Further Annual Return of the Companies Act, 2013 has not been submitted for
the Financial Year 2018-19, 2019-2020,2020-2021 and 2021-2022 yet.
4 We have enquired about latest list of cases and status of all pending cases in
all applicable acts but the same has not been provided by the company, hence we are unable
to comment on that except as reported above as per our knowledge and belief and earlier
informed by the company.
Emphasis of Matter
I The Company is not regular in payment of statutory dues such as TDS and Income Tax.
II The Company has not filed TDS Returns for the Financial Year 2020-2021 and 2021-2022
and 2022-2023 yet.
III Debtors, Creditors, and other balances of the Assets and Liabilities of the company
are subject to confirmation and reconciliation. Hence may require adjustment, if any, of
balances and corresponding impact on Net Profit/Loss, if any.
IV We draw your attention to Note No 31 to the Standalone financial statements, which
explain about the imposition of penalties if decided accordingly.
V That the GST case with GST Intelligence, R K Puram New Delhi and GST Anti Division,
IP Estate ITO, Delhi has not been concluded yet.
VI That Annual Return of GST ie GTSR9 and GTSR9C has not been submitted for the
Financial Year 2019-2020 and 2020-2021 and 2021-2022 yet.
VIII That Annual Return of Companies Act 2013 has not been submitted for the Financial
Year 2018-2019, 2019-2020, and 2020-2021 and 2021-2022 yet.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Reporting of key audit matters as per SA 701, Key Audit Matters are applicable to the
Company.
| Key Audit Matters |
Addressed the same in our Audit Report |
| Revenue Recognition |
Our audit procedures on revenue recognition included the following: |
| Recognition of revenue at a point in time based on satisfaction of performance
obligation requires estimates and judgments regarding timing of satisfaction of cost
incurred to segment/unit and the estimated cost for completion of some final pending
works. |
. We verified performance obligations satisfied by the Company. |
| Due to judgment and estimates involved, revenue recognition is considered as key audit
matter |
. We tested sale proceeds received from customers to test transfer of controls. |
|
. We verified calculation of revenue to be recognized and matching of related cost; |
Responsibility of Management for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these Standalone financial statements that give a true and fair view of the financial
position and financial performance of the Company in accordance with the accounting
principles generally accepted in India, including the accounting Standards specified under
section 133 of the Act. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the
assets of the Company and for preventing and detecting frauds and other irregularities
selection and application of appropriate implementation and maintenance of 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
statement that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the Standalone Standalone financial statements, management is responsible
for assessing the Company’s 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 company’s financial
reporting process
Auditor’s Responsibility 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 auditor’s 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.
Our responsibility is to express an opinion on these financial statements based on our
audit. We have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We conducted our audit in accordance
with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material
misstatement.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the
Act, we are also responsible for expressing our opinion on whether the company has
internal financial controls with reference to standalone financial statements in
place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s 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
Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s 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 auditor’s 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.
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 financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s 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 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, Profit and Loss and 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 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 other matters to be included in the Auditor’s 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,
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 persons or entities, 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, other
than as disclosed in the notes to the accounts, 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,
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 we have 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 iv(a) and iv(b) contain any material misstatement.
v) The company has not declared or paid dividend during the year.
3. With respect to the other matters to be included in the Auditor’s 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.
| For S AM P R K & ASSOCIATES |
|
| Chartered Accountants |
|
| Firm Regn.No. 013022N |
|
| Sd/- |
|
| CA. Pankaj Sharma |
|
| Partner |
|
| M. No.093446 |
Place: New Delhi |
| UDIN: - 23093446BGSGWZ6471 |
Date: 30.05.2023 |
The Annexure to the Auditors’ Report to the members of M/s. BHARATIYA GLOBAL
INFOMEDIA LIMITED on the financial statements for the year ended 31st March 2023 referred
to in paragraph 3 of our report.
(i) (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment.
(b) According to the information and explanations given to us, the Property, Plant and
Equipment were physically verified during the year by the management in accordance with
the programme of verification, which in our opinion is reasonable having regard to the
size of the company and the nature of its assets. To the best of our knowledge, no
material discrepancies were noticed on verification conducted during the year as compared
with the book records
(c) Based upon the audit procedures performed the title deeds if any, of the immovable
properties are held in the name of the company.
d) According to the information and explanations given to us, the company has not
revalued it’s Property, Plant and Equipment (including Right of Use Assets) or
Intangible Assets or both during the year.
e) According to the information and explanations given to us, 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) The inventory has been physically verified during the year by the management. In
our opinion, the frequency of verification, coverage & procedure of such verification
is reasonable and appropriate. No material discrepancies were noticed on such
verification.
(iii) As informed, the Company has not made any investments in, 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 other parties. Accordingly, all the
subclauses under this clause are not applicable.
iv) In our opinion and according to the information and explanations given to us, the
company has given any loan, made any investment, given any guarantee, and provided any
security which is covered by Section 185 and 186 of the Companies Act 2013. Accordingly,
the provisions of clause 3(iv) of the Companies (Auditor’s Report) Order, 2020 are
applicable to the Company.
(v) The Company has not accepted any deposits within the meaning of
Section 73 to 76 of the Companies Act 2013 and Rules thereunder are not applicable to the
Company.
(vi) To the best of our knowledge and as explained, the Central Government has not
prescribed maintenance of cost records under clause (d) of sub-section (1) of section 148
of the Companies Act, 2013 for the service rendered by of the Company.
(vii) (a) The Company is not regular in depositing with appropriate authorities
undisputed statutory dues including income-tax, GST, provident fund, wealth-tax, duty of
customs, duty of excise, employees’ state insurance as applicable to the Company.
According to the information and explanations given to us, the undisputed amounts payable
in respect of provident fund, employees’ state insurance, income tax, tds, sales tax,
value added tax, service tax, duty of excise, duty of customs, cess and other statutory
dues were in arrears as at 31st March 2023 for a period of more than six months from the
date they became payable, cannot be ascertained due to non-availability of the records
except the amount of VAT of Rs. 21,01,517/- and TDS of Rs. 1,02,09,620/-
(b) According to the information and explanation given to us, there are no dues of
income tax, GST, provident fund, investor education and protection fund, wealth tax, duty
of custom, duty of excise, employees’ state insurance are not applicable to the
Company as applicable. However, the following demand are pending against the company and
its status as on
Income Tax: -
| Name of the Statute |
Nature of dues |
Amount (In Rupees) |
Period to which the amount relates |
Remarks, if any |
| Income Tax Act, 1961 |
Demand u/s 115_WE |
1,73,056 |
2009-10 |
Application for Rectification u/s 154 has already been submitted |
| Income Tax Act, 1961 |
Demand u/s 154 |
2,26,69,480 |
2019-20 |
The management has informed us that there is a mistake in the intimation issued u/s
143(1)(a) the company will follow the matter and move application for rectification u/s
154 of the Income Tax Act 1961 and the actual demand will be reduced. |
| Income Tax Act, 1961 |
Demand u/s 144 |
2,41,85,316 |
2012-13 |
The management has informed us that there is a mistake in the intimation issued u/s
143(1)(a) the company will follow the matter and move application for rectification u/s
154 of the Income Tax Act 1961 and the actual demand will be nearly Rs 8 lakh instead of
Rs 193.68 lakh. |
| Income Tax Act, 1961 |
Demand u/s 143 (1)a |
1,93,67,632 |
2017-18 |
The management has informed us that there is a mistake in the intimation issued u/s
143(1)(a) the company will follow the matter and move application for rectification u/s
154 of the Income Tax Act 1961 and the actual demand will be nearly Rs 8 lakh instead of
Rs 193.68 lakh. |
| Income Tax Act, 1961 |
Demand u/s 234 E as per Traces Data available online portal of Income Tax |
40800 231199 26400 21400 348674 |
2019-20 2018-19 2017-18 2016-17 Upto 2015-16 |
Action not disclosed to us. |
(viii) In our opinion and according to the information and explanations given to us,
the company has not surrendered or disclosed as income during the year in tax assessments
under the Income Tax Act, 1961 (43 of 1961), any transactions not recorded in the books of
accounts. Also, there are no previously unrecorded income which has been now recorded in
books of accounts.
(ix) The Company has not taken any loan or borrowing from a financial institution, bank
and government. The company has not issued any debenture. Accordingly, the provisions of
clause 3(viii) of the Companies (Auditor’s Report) Order, 2020 are not applicable to
the Company.
(x) Based upon the audit procedures performed for the purpose of reporting the true and
fair view of the financial statements and as per the information and explanations given by
the management, we report that no fraud by the company or any fraud on the Company by its
officers or employees has been noticed or reported during the course of our audit.
(xi) The Company has not raised by way of initial public offer or further public offer
(including debt instruments) or preferential allotment or private placement of shares or
convertible debentures (fully, partially or optionally convertible) during the year,
Accordingly, the provisions of clause of the Companies (Auditor’s Report) Order, 2020
are not applicable to the Company.
(xii) In our opinion, the Company is not a Nidhi Company. Accordingly, the provisions
of clause 3(xii) of the Companies (Auditor’s Report) Order, 2020 are not applicable
to the Company.
(xiii) Based on information and explanations given to us by the management, all
transactions with the related parties are in compliance with section 177 and 188 of the
Companies Act,2013 where applicable and the details have been disclosed in the financial
Statements as required by the applicable accounting standards.
(xiv) (a) In our opinion, the company has internal audit system. However, the internal
controls are commensurate with the size and nature of its business.
(b) Report of internal auditor for the period under audit was considered by us.
(xv) In our opinion and according to the information and explanations given to us, the
company has not entered into any non-cash transaction with directors or person connected
with him which is covered by Section 192 of the Companies Act 2013.
Accordingly, the provisions of this clause of the Companies (Auditor’s Report)
Order, 2020 are not applicable to the Company.
(xvi) (a) In our opinion and according to the information and explanations given to us,
the company is not required to be registered under section 45 IA of the Reserve Bank of
India Act, 1934 (2 of 1934). Accordingly, the provisions of clause 3(xvi) of the Companies
(Auditor’s Report) Order, 2016 are not applicable to the Company.
(b) In our opinion and according to the information and explanations given to us, 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 according to the information and explanations given to us, the
company is not a Core Investment Company (CIC) as defined in the regulations made by the
Reserve Bank of India.
(d) In our opinion and according to the information and explanations given to us, the
company is not part of a Group which has more than one CIC as part of the Group.
(xvii) In our opinion and according to the information and explanations given to us,
the company has not incurred any cash losses in the current financial year and in the
immediately preceding financial year.
(xviii) There has been no resignation of Statutory Auditors during the year.
(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
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that Company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date. We, however, state that this is not an assurance as to
the future viability of the Company. We further state that our reporting is based on the
facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the Company as and when they fall due.
(xx) The provisions of Section 135 of the Companies Act, 2013 are not applicable to the
Company during the current year.
(xxi) In our opinion and according to the information and explanations given to us, the
company had invested in subsidiary company. Therefore, there is a requirement of
consolidation of financial statements of the following subsidiary company. It is to report
that there is no qualifications/adverse remarks in the Audit Report of the subsidiary
company.
| S.No. Name of the Company |
CIN |
Holding/Subsidiary/ Associate/Joint Venture |
| 1. MERIT EXPORTS PRIVATE LIMITED |
U51311DL2000PTC107661 |
SUBSIDIARY COMPANY |
Annexure-B to the Independent Auditor’s Report,
Report on the Internal Financial Controls
We have audited the internal financial controls over financial reporting of BHARATIYA
GLOBAL INFOMEDIA LIMITED (CIN No. L74999DL1994PLC062967) ("the Company") as
of March 31, 2023, in conjunction with our audit of the standalone IND AS financial
statements of the Company for the year ended on that date.
Opinion
We have audited the internal financial controls with reference to standalone financial
statements of BHARATIYA GLOBAL INFOMEDIA LIMITED (CIN No. L74999DL1994PLC062967)
("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.
In our opinion, the Company has, in all material respects, internal financial controls
with reference to standalone1 financial statements and such internal financial
controls with reference to standalone financial statements were operating effectively as
at March 31, 2022, based on the internal control with reference to standalone1 financial
statements criteria established by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI) (the
"Guidance Note").
Management’s Responsibility for Internal Financial Controls
The Company’s 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 the Company’s 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 with reference to standalone financial statements based on our audit. We
conducted our audit in accordance with the Guidance Note and the Standards on Auditing,
issued by ICAI and deemed to be prescribed under section 143(10) of the Act, 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 internal financial controls with reference to
standalone financial statements 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 with reference to standalone financial statements and
their operating effectiveness. Our audit of internal financial controls with reference to
standalone financial statements included obtaining an understanding of internal financial
controls with reference to standalone financial statements, 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 auditor’s judgement, including the assessment of the risks of material
misstatement of the standalone 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 Company’s internal financial controls
with reference to standalone financial statements.
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 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.
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.
| For SAMPRK & ASSOCIATES |
|
| Chartered Accountants |
|
| Firm Regn.No. 013022N |
|
| CA. Pankaj Sharma |
|
| Partner |
Place: New Delhi |
| M. No.093446 |
Date: 30th May |
| 2023 |
|
| UDIN: 23093446BGSGWZ6471 |
|
+91-9892691696
