To the Members of Brooks Laboratories Limited
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying Standalone financial statements of
Brooks Laboratories Limited ("the Company"), which comprise the balance
sheet as at 31st March 2024, and the statement of Profit and Loss (Including Other
Comprehensive Income), statement of cash flows and statement of changes in equity for the
year then ended, and notes to the financial statements, including a summary of material
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 Companies Act,2013 ("the Act") in the manner so
required and give a true and fair view in conformity with the Indian Accounting Statements
prescribed under section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015,as amended,("Ind AS"),and other accounting principles
generally accepted in India, of the state of affairs of the Company as at March 31, 2024,
and its profit (Financial performance including other comprehensive income), its cash
flows and changes in equity 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 Auditors Responsibilities for the
Audit of the Standalone Financial Statements section of our report. We are independent of
the Company in accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India 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 ICAIs Code of Ethics. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the standalone financial statements.
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.
- We have determined that there are no key audit matters to be communicated in our report.
Information Other than the Financial Statements and Auditors
Report Thereon
The Companys Management and Board of Directors are
responsible for the other information. The other information comprises the information
included in the Management Discussion and Analysis, Boards Report including Annexure
to Boards Report, Business Responsibility Report and Report on Corporate governance
and Shareholders Information but does not include the consolidated financial
statement, standalone 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 standalone financial statements,
our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the standalone financial statements, or
our knowledge obtained during the course of our audit or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude that there is a
material misstatement of this other information, we are required to report that fact. We
have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for
the Standalone 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 standalone financial statements that give a true and
fair view of the financial position, financial performance including other comprehensive
income, cash flows and changes in equity of the Company in accordance with the Ind AS and
other accounting principles generally accepted in India. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding 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 standalone financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the 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 Standalone
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.
- 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
auditors report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
- As required by the Companies (Auditors Report) Order, 2016 ("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.
- As required by Section 143(3) of the Act, we report that:
- 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.
- 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.
- The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flows dealt with by this
report are in agreement with the books of account.
- In our opinion, the aforesaid standalone financial statements comply with the Ind AS
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.
- On the basis of the written representations received from the directors as on 31st March
2024 taken on record by the Board of Directors, none of the directors is disqualified as
on 31st March 2024 from being appointed as a director in terms of Section 164 (2) of the
Act.
- With respect to the adequacy of the internal financial controls over financial reporting
of the Company and the operating effectiveness of such controls, refer to our separate
Report in "Annexure B", our Report expresses an unmodified opinion on the
adequacy and operating effectiveness of the companys internal financial controls
over financial reporting.
- 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:
- The Company has disclosed the impact of pending litigations on its financial position in
its standalone financial statements Refer Note 37 to the standalone financial
statements.
- The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
- There were no amounts which were required to be transferred to the Investor Education
and Protection Fund by the Company.
- (a) The Management has represented that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) 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 or entity, including foreign
entity ("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;
- The Management has represented, that, to the best of its knowledge and belief, no funds
(which are material either individually or in the aggregate) have been received by the
Company from any person or entity, including foreign entity ("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;
- Based on the 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 misstatement.
- Based on our examination, which include test checks, the company has used accounting
software for maintaining its books of accounts for the financial year ended March 31, 2024
which have the feature of recording audit trail (edit log) facility and the same has
operated throughout the year for all relevant transaction recorded in software. Further
during our audit, we did not come across any instances of the audit trail feature being
tampered with.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is
applicable from April 1, 2023, reporting under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for
record retention is not applicable for the financial year ended March 31, 2024
- Since The Company has not declared / paid any dividend during the year, Section 123 of
the Act is not applicable.
- With respect to the matter to be included in the Auditors Report under Section
197(16) of the act: In our opinion and according to the information and explanations given
to us, the remuneration paid by the Company to its directors during the current year is in
accordance with the provisions of Section 197 of the Act. The remuneration paid to any
director is not in excess of the limit laid down under Section 197 of the Act. The
Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of
the Act which are required to be commented upon by us.
For S G C O & Co. LLP
Chartered Accountants
FRN. 112081W/W100184
Suresh Murarka
Partner
Mem. No. 044739
UDIN: 24044739BKARKX7267
Place: Mumbai Date: 18th May 2024
Annexure "A" to Independent Auditors Report
Annexure referred to in Paragraph 1 of "Report on Other Legal and
Regulatory Requirements" of our Report of even date on the
accounts of Brooks Laboratories Limited for the year ended 31st March 2024.
As required by the Companies (Auditors Report) Order, 2020 and according to the
information and explanations given to us during the course of the audit and on the basis
of such checks of the books and records as were considered appropriate we report that:
- (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment and relevant details
of right-of-use assets.
- As explained to us, the fixed assets have been physically verified by the management in
accordance with a phased programme of verification, which in our opinion is reasonable,
considering the size of the Company and the nature of its assets. In accordance with this
program certain fixed assets were verified during the year. The frequency of verification
is reasonable, and no discrepancies have been noticed on such physical verification.
- According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the title deeds of immovable properties (other
than properties where the company is the lessee and the lease agreements are duly executed
in favour of the lessee) as disclosed in the financial statements are held in the name of
the Company.
- According to the information and explanations given to us, the Company has not revalued
its property, plant and Equipment (including Right of Use assets) and its intangible
assets. Accordingly, the requirements under paragraph 3(i)(d) of the Order are not
applicable to the Company.
- According to the information and explanations given to us, no proceeding has been
initiated or pending against the Company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 and rules made thereunder.
Accordingly, the provisions stated in paragraph 3(i) (e) of the Order are not
applicable to the Company
- (a) 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.
(b) The Company has been sanctioned working capital limits in excess of
Rs. 5 crores in aggregate from Banks/financial institutions on the basis of security of
current assets. Quarterly returns / statements are filed with such Banks/ financial
institutions are in agreement with the books of account except for the difference
mentioned in Note No.21 of the Standalone Financial Statements.
- (a) During the year the Company has granted guarantee, however, has not provided any
loan or provided advances in the nature of loans, or provided security to Companies,
firms, Limited Liability Partnerships or any other parties.
- The details of such guarantees to subsidiaries, jointly controlled entity and Associates
are as follows:
(Rs. In lakhs)
Particulars |
Guarantees |
Aggregate amount provided during the year: |
|
- On behalf of Jointly controlled entity |
6,500.00 |
Balance outstanding as at balance sheet date
in respect of above: |
|
- On behalf of Jointly controlled entity |
6,500.00 |
- According to the information explanation provided to us, the Company has not provided
loans or advances in the nature of loans, not given guarantee, not provided any security
to parties other than subsidiary, joint ventures and associates.
- According to the information explanation provided to us, during the year the Company has
not made any investments, not given any securities. The guarantees provided during the
year are, prima facie, not prejudicial to the interest of the Company.
- According to the information explanation provided to us, the Company has not any granted
loans and / or advances in the nature of loans. Hence, the requirements under paragraph
3(iii)(c), (d),(e) and (f) of the Order are not applicable to the Company.
- According to the information and explanations given to us and on the basis of our
examination of records of the Company, in respect of investments, loans, guarantees and
securities made by the Company, in our opinion the provisions of Section 185 and 186 of
the Companies Act, 2013 ("the Act") have been complied with.
- According to the information and explanations given to us, the Company has not accepted
any deposits or amounts which are deemed to be deposits from the public during the year.
In respect of unclaimed deposits, the Company has complied with the provisions of section
73 to 76 of the Act and the rules framed thereunder.
- The Central Government has prescribed the maintenance of cost record under Section
148(1) of the Act. We have not reviewed the cost records maintained by the Company but
based on the information submitted by the Company we are of the view that such accounts
and records have been made and duly maintained.
- (a) According to the records of the Company, amount deducted/accrued in the books of
accounts in respect of the undisputed statutory dues including Provident fund,
Employees State Insurance, Income tax, Goods and Services tax, Duty of Customs, Cess
and other Statutory Dues to the extent applicable to the Company, have been regularly
deposited with the appropriate authorities. except provident fund amounting to
Rs.0.70 lakhs which has not been deposited due to procedural KYC updation issues. According
to the information and explanations given to us, there are no undisputed amount payable in
respect of such statutory dues which have remained outstanding as at 31st March, 2024 for
a period more than six months from the date they became payable.
(b) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, statutory dues relating to
Goods and Service Tax, Provident Fund, Employees State Insurance, Income-Tax, Duty of
Customs or Cess or other statutory dues which have not been deposited on account of any
dispute are as follows:
(Rs. in Lakhs)
Nature of Liability |
Demand Amount |
Stay Amount paid |
Period to which matter pertains |
Forum at which dispute is pending |
Income Tax |
17.37 |
- |
A.Y 2012-13 |
Commissioner of Income Tax Appeal |
Income Tax |
339.50 |
101.00 |
A.Y 2013-14 |
Commissioner of Income Tax Appeal |
Income Tax |
0.68 |
- |
A.Y 2015-16 |
Commissioner of Income Tax Appeals |
- According to the information and explanations given to us, there are no transactions
which are not accounted in the books of account which have been surrendered or disclosed
as income during the year in Tax Assessment of the Company. Also, there are no previously
unrecorded income which has been now recorded in the books of account. Hence, the
provision stated in paragraph 3(viii) of the Order is not applicable to the Company.
- (a) In our opinion and according to the information and explanations given to us, the
Company has not defaulted in repayment of loans or borrowings or in payment of interest
thereon to any lender.
- According to the information and explanations given to us and on the basis of our audit
procedures, we report that the company has not been declared wilful defaulter by any bank
or financial institution or government or any government authority.
- In our opinion and according to the information explanation provided to us, no money was
raised by way of term loans. Accordingly, the provision stated in paragraph 3(ix)(c) of
the Order is not applicable to the Company.
- According to the information and explanations given to us, and the procedures performed
by us, and on an overall examination of the standalone financial statements of the
company, we report that no funds raised on short-term basis have been used for long-term
purposes by the company.
- According to the information explanation given to us and on an overall examination of
the standalone financial statements of the Company, we report that the company has not
taken any funds from an any entity or person on account of or to meet the obligations of
its subsidiaries, associates or joint ventures.
- According to the information and explanations given to us and procedures performed by
us, we report that the Company has not raised loans during the year on the pledge of
securities held in its securities, joint ventures or associate companies.
- (a) The Company has not raised moneys by way of initial public offer or further public
offer (including debt instruments) during the year and hence reporting under clause
3(x)(a) of the Order is not applicable
(b) According to the information and explanations given to us and based
on our examination of the records of the Company, the Company has not made any
preferential allotment or private placement of shares or fully, partly or optionally
convertible debentures during the year. Accordingly, the provisions stated in paragraph
3 (x)(b) of the Order are not applicable to the Company.
- (a) During the course of our audit, examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanations given to us, we have neither come across any
instance of material fraud by the Company or on the Company.
(b) (a) We have not come across of any instance of material fraud by
the Company or on the Company during the course of audit of the standalone financial
statement for the year ended March 31, 2024, accordingly the provisions stated in
paragraph (xi)(b) of the Order is not applicable to the Company.
(b) As represented to us by the management, there are no whistle-blower complaints
received by the Company during the course of audit. Accordingly, the provisions stated in
paragraph (xi)(c) of the Order is not applicable to company.
- In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi Company. Accordingly, paragraph 3 (xii) of the Order is not
applicable.
- According to the information and explanation given to us and based on our examination of
the records of the Company, transactions with related parties are in compliance with of
section 177 and 188 of the Act, where applicable, for all transactions with the related
parties and the details of related party transactions have been disclosed in the financial
statements etc. as required by the applicable accounting standards.
- (a) In our opinion the Company has an adequate internal audit system commensurate with
the size and the nature of its business.
(b) We have considered, the internal audit reports for the year under audit, issued to
the Company during the year and till date, in determining the nature, timing and extent of
our audit procedures.
- According to the information and explanation given to us and based on our examination of
the records of the Company, the Company has not entered into any non-cash transactions
with the directors or persons connected with him. Accordingly, paragraph 3 (xv) of the
Order is not applicable.
- (a) The Company is not required to be registered under Section 45-IA of the Reserve Bank
of India Act, 1934. Accordingly, clause 3(xvi)(a) of the Order is not applicable.
- The Company is not required to be registered under Section 45-IA of the Reserve Bank of
India Act, 1934. Accordingly, clause 3(xvi)(b) of the Order is not applicable.
- The Company is not a Core Investment Company (CIC) as defined in the regulations made by
the Reserve Bank of India. Accordingly, clause 3(xvi)(c) of the Order is not applicable.
- According to the information and explanations provided to us during the course of audit,
the Group does not have any CIC. Accordingly, the requirements of clause 3(xvi)(d) are not
applicable.
- The Company has not incurred cash losses in the current financial year, but the company
has incurred cash losses amounting to Rs. (517.62) lakhs during the immediately preceding
financial year.
- There has been no resignation of the statutory auditors of the Company during the year.
Hence, the provisions stated in paragraph clause 3 (xviii) of the Order are not applicable
to the Company.
- 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.
- According to the information and explanations given to us, the provisions of section 135
of the Act are not applicable to the Company. Hence, the provisions of paragraph (xx)(a)
to (b) of the Order are not applicable to the Company.
For S G C O & Co. LLP
Chartered Accountants
Firm Reg. No. 112081W/W100184
Suresh Murarka
Partner
Mem No: 44739
UDIN: 24044739BKARKX7267
Place: Mumbai
Date: 18th May 2024
Annexure "B" to the Independent Auditors Report of even
date on the Standalone financial statements of Brooks Laboratories Limited for the year
ended 31st March 2024.
Report on the Internal Financial Controls under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial
reporting of Brooks Laboratories Limited ("the Company") as of March 31, 2024,
in conjunction with our audit of the Standalone 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 controls over financial
reporting criteria established by the Company considering the essential components of
internal controls 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
Companies Act, 2013 ("the Act").
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, 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, both applicable to an audit of Internal Financial
Controls and, both issued by the ICAI. 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 controls based on the assessed risk.
The procedures selected depend on the auditors judgment, including the assessment of
the risks of material misstatement of the standalone Ind AS 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 control system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial controls 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 controls over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition, use, or
disposition of the companys assets that could have a material effect on the
financial statements.
Inherent Limitations of Internal Financial Controls Over Financial
Reporting
Because of the inherent limitations of internal financial controls
over financial reporting, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, 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,
2024, based on the internal control over financial reporting criteria established by the
Company considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India.
For S G C O & Co. LLP
Chartered Accountants
Firm Reg. No 112081W/W100184
Suresh Murarka
Partner
Mem. No. 44739
UDIN: 24044739BKARKX7267
Place: Mumbai
Date: 18th May 2024