To,
The Members
CIAN Agro Industries & Infrastructure Limited
Report on the Audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying financial statements of CIAN Agro
Industries & Infrastructure Limited ("the Company") which comprise of the
Balance Sheet as at 31st March 2023, the Statement of Profit and Loss (including other
comprehensive income), the Cash Flow Statement, Statement of Changes in Equity for the
year then ended and notes to financial statement, including a summary of the Significant
Accounting Policies and other explanatory information (hereinafter referred to as
"Financial Statements").
2. 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, including Ind AS, of the state
of affairs of the Company as at 31stMarch 2023, and its profit &loss, other
comprehensive income, changes in equity and cash flows for the year ended on that date.
Basis for Opinion
3. 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 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
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.
Emphasis of Matter
4. We draw attention to
a. Note No 6 ‘Investment where the Company has invested in
Optionally Convertible Debentures of Manas Power Ventures Pvt. Ltd.
b. Note No. 23 Current- other financial liabilities regarding the
performance security received from Khare and Tarkunde Infrastructure Pvt. Ltd. (KTIPL)
amounting to Rs. 2,850.00 Lakhs during the year.
c. Note No. 34 ‘Other expenses wherein ‘Other Indirect
Expenses amounting to Rs.359.20 Lakhs include balance written off pertaining to M/s B.Y.
Agro& Infra Ltd., which is under liquidation.
Our opinion is not modified in respect of the above.
Key Audit Matters
5. Key audit matters (‘KAM) 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.
Key Audit Matters (KAM)
| Sr. No. Description of Key Audit Matter |
Why the matter was considered to be one
of most significance in the audit |
How the matter was addressed in the
audit |
| A. Other current assets |
The company has paid an amount of Rs.542.50 Lakhs and
Rs.1,945 Lakhs to Varron Aluminium Private Limited on 29th April,2022 and 27th March, 2023
respectively. The company had paid Rs.250 Lakhs during previous financial year. The said
amount is paid towards Resolution Plan (RP) in Corporate Insolvency Resolution Process
(CIRP). |
Varron Aluminium Private Limited (VAPL) was under insolvency
proceedings under IBC 2016. The auditee company had submitted a Resolution Plan (RP). The
Hon. NCLT had accepted the RP of the auditee company and in its order delivered on
19thJanuary 2022. The shares were not transferred in the name of auditee company since the
status of VAPL was inactive. However, Hon. NCLT delivered order on 23rd March 2023
directing ROC to change the status to ACTIVE. As of 31st March 2023, further process to
acquire the equity is going on. |
|
|
We have verified the correctness of the events, documents,
and amounts effected during the period. We have also ensured the compliance with the
recognition and disclosure requirements of the standard. |
Other Information
6. The Companys management and Board of Directors are responsible for
the other information. The other information comprises the information included in the
Companys annual 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.
7. 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 in the audit or otherwise appears to be materially misstated. If, based
on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this
regard.
Managements Responsibility for the Financial Statements
8. The Companys Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 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 specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
implementation & maintenance 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 and Board of
Directors are 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. Board of Directors is
also responsible for overseeing the Companys financial reporting process.
Auditors Responsibility
9. 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:
a. 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.
b. 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 CompaniesAct, 2013, we are also responsible for expressing our opinion on
whether the company has adequate internal financial controls with reference to financial
statements in place and the operating effectiveness of such controls.
c. 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.
d. 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.
e. 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
10. 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.
Other Matter
11. a) There is a GST demand currently under dispute with the Appellate
Authority, where the company believes it will receive a favorable decision. The table
below provides details and the status of the demand in dispute:
| Sr. No. Particulars |
Amount Rs. (Lakhs) |
Status |
| 1. Excess availment of ITC |
130.21 |
In dispute at Appellate Tribunal |
b) Fair Market Value of Fly Ash Blocks, included in Inventory of
Finished Goods could not be ascertained for comparison with the cost. The Valuation is
taken on the basis of cost to the Company.
Our opinion is not modified in respect of the same.
Report on Other Legal and Regulatory Requirements
12. As required by the Companies (Auditors Report) Order, 2020, as
amended, issued by the Central Government of India in terms of sub-section (11) of section
143 of the Act, we give in the "Annexure A" a statement on the matters specified
in paragraphs 3 and 4 of the Order to the extent applicable.
13. 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 purpose 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 standalone 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 written representations received from the directors
as on 31stMarch, 2023taken on record by the Board of Directors, none of the directors is
disqualified as on 31stMarch, 2023 from being appointed as a director in terms of Section
164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over
financial reporting of the Company and the operating effectiveness of such controls, refer
to our separate Report in "Annexure B".
g. 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
on its financial position other than as mentioned in para 11(a) related to GST.
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;
(c) Based on audit procedures which we 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) contain any material
mis-statement.
v. The company has not declared or paid any dividend during the year,
hence no there is no contravention of the provisions of section 123 of the Companies Act,
2013.
h. With respect to the other matters to be included in the Auditors
Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the
explanations given to us, the remuneration paid by the Company to its directors during the
year is in accordance with the provisions of section 197 of the Act.
|
For P. G. Joshi & Co., |
|
Chartered Accountants |
|
FRN : 104416W |
| Place : Nagpur |
CA Ashutosh Joshi |
| Date : 29-05-2023 |
Partner |
| UDIN : 23038193BGPXKX1544 |
M. No.: 038193 |
Annexure A" to the Independent Auditors Report
Referred to in paragraph 12 under the heading ‘Report on Other
Legal & Regulatory Requirement of our report of even date to the financial
statements of the Company for the year ended 31stMarch, 2023:
Opinion
I. In respect of the Companys property, plant and equipment,
right-of-use assets and intangible assets:
a) (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.
(B)The Company has maintained proper records showing full particulars
of intangible assets.
b) The Fixed Assets have been physically verified by the management in
a phased manner, designed to cover all the items over a period of one year, which in our
opinion, is reasonable having regard to the size of the company and nature of its
business. Pursuant to the program, the fixed asset has been physically verified by the
management during the year and no material discrepancies between the records and the
physical fixed assets have been noticed, as confirmed by the management.
c) The title deeds of immovable properties are held in the name of the
company.
d) The Company has not revalued any of its property, plant and
equipment (including rightof-use assets) and intangible assets during the year.
e) There are no proceedings that 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. In respect of Inventory :
a) Physical verification of inventory is the responsibility of the
management. The stocks have been physically verified during the year by the management at
reasonable intervals. In our opinion, the frequency of verification is reasonable. The
procedures of physical verification of inventory followed by the management are reasonable
and adequate in relation to the size of the company and nature of its business.
b) On the basis of our examination of the inventory records of the
company, we are of the opinion that, the company is maintaining proper records of its
inventory. As informed to us, there were no material discrepancies of 10% or more in the
aggregate for each class of inventory were noticed on physical verification between the
physical stock and the book records. Minor discrepancies were appropriately adjusted in
the books.
c) The Company has been sanctioned working capital limits in excess of
? 5 crore, in aggregate, during the year, from banks or financial institutions on the
basis of security of current assets. The statements submitted to the Bank or financial
institutions are in agreement with the books maintained by the company.
III. The Company has during the year, not made 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 any other parties.
Accordingly, the provisions of clauses 3(iii) of the Order are not applicable.
IV. The Company has complied with provisions of sections 185 and 186 of
the Companies in respect of loans, investments, guarantees, and security.
V. The Company has not accepted any deposits from the public and hence
the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76
or any other relevant provisions of the Act and the Companies (Acceptance of Deposit)
Rules, 2015 with regard to the deposits accepted from the public are not applicable.
VI. The Company has maintained cost accounts & records as notified
by the Central Government under subsection (1) of Section 148 of the Act, in respect of
the activities carried on by the company.
VII. (a) According to information and explanations given to us and on
the basis of our examination of the books of account, and records, the Company is in the
practice of depositing undisputed statutory dues including Provident Fund, &
Income-tax after the end of the respective financial year and dues related to Goods &
Services Tax at the end of every month with the appropriate authorities. According to the
information and explanations available to us, undisputed amounts of statutory dues, in
arrears as at 31stMarch, 2023 for a period of more than six months, are given as follows:
| Statutory Dues Payable |
Amount (Rs. In Lakhs) |
| Provident Fund |
39.58 |
| Professional Tax |
1.54 |
| TCS |
0.39 |
| TDS |
69.77 |
| Total |
111.28 |
b) According to the information and explanation given to us, there are
no dues of income tax, sales tax, service tax, goods &service tax outstanding on
account of any dispute except for those mentioned below
| Nature of the statute |
Nature of dues |
Forum where Dispute is Pending |
Period to which the Amount Relates |
Amount Lakhs |
| Goods and Service Tax Act, 2017 |
Goods and Service Tax |
Appellate Tribunal |
FY 17-18, 18-19,19-20 |
130.21 |
VIII. There were no transactions relating to previously unrecorded
income that have been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961 (43 of 1961).
IX. (a) In our opinion, the company has not defaulted in repayment of
loans or other borrowings or in the payment of interest thereon to any lender during the
year.
(b) Based upon the audit procedures performed and the information and
explanations given by the management, the company has not been declared wilful defaulter
by any bank or financial institution or other lender.
(c) Based upon the audit procedures performed and the information and
explanations given by the management, the term loans have been applied for the purpose for
which they were obtained.
(d) On an overall examination of the financial statements of the
Company, funds raised on short term basis have, prima facie, not been used during the year
for long-term purposes by the Company.
(e) On an overall examination of the financial statements of the
Company, the Company has not taken any funds from any entity or person on account of or to
meet the obligations of its subsidiaries.
(f) Based upon the audit procedures performed and 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 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) During the year, the Company has not made any preferential
allotment or private placement of shares or convertible debentures (fully or partly or
optionally) and hence reporting under clause 3(x)(b) of the Order is not applicable.
XI. (a) No fraud by the Company and no material 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 in Form ADT-4 as prescribed under rule 13 of Companies (Audit and
Auditors) Rules, 2014 with the Central Government, during the year and upto the date of
this report.
(c) There were no whistle blower complaints received by the Company
during the year (and upto the date of this report),and hence they were not considered.
XII. The company is not a Nidhi company and hence reporting under
clause (xii) of the order is not applicable.
XIII. In our opinion, all transactions with the related parties are in
compliance with section 177 and 188 of Companies Act, 2013 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 an internal audit system in
place but requires strengthening to make it commensurate with the size and 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.
XV. Based upon the audit procedures performed and the information and
explanations given by the management, the company has not entered into any non-cash
transactions with directors or persons connected with him. Accordingly, the provisions of
clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
XVI. (a) In our opinion, the Company is not required to be registered
under section 45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause
3(xvi)(a), (b) and (c) of the Order is not applicable.
(b) In our opinion, there is no core investment company within the
Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and
accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.
XVII. The Company has not incurred cash losses during the financial
year covered by our audit and the immediately preceding financial year.
XVIII. There has been no resignation of the statutory auditors of the
Company during the year.
XIX. On the basis of the financial ratios, ageing and expected dates of
realisation 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, in our opinion no material uncertainty exists as on the date of the
audit report that company is capable of meeting its liabilities existing at the date of
balance sheet as and when they fall due within a period of one year from the balance sheet
date;
XX. (a)In respect of sub-section(5) of section 135 of the Companies
Act, based upon the audit procedures performed and the information and explanations given
by the management, there is no such unspent amount to be transferred to Fund specified in
Schedule VII to the said act. Accordingly, the provisions of clause 3 (xx) of the Order
are not applicable to the Company and hence not commented upon.
(b). Based upon the audit procedures performed and the information and
explanations given by the management, there is no such amount remaining unspent under
sub-section (5) of section 135 of the Companies Act, pursuant to any ongoing project, that
has been transferred to special account in compliance with the provision of sub-section
(6) of section 135 of the said Act.
|
For P. G. Joshi & Co., |
|
Chartered Accountants |
|
FRN: 104416W |
| Place : Nagpur |
CA Ashutosh Joshi |
| Date : 29-05-2023 |
Partner |
| UDIN : 23038193BGPXKX1544 |
M. No.: 038193 |
"Annexure B" to the Independent Auditors Report
Referred to in paragraph 13(f)under the heading ‘Report on Other
Legal & Regulatory Requirement of our report of even date to the financial
statements of the Company for the year ended
31stMarch, 2023
1. We have audited the internal financial controls over financial
reporting of CIAN Agro Industries & Infrastructures Limited as of 31stMarch, 2023in
conjunction with our audit of the financial statements of the Company for the year ended
on that date.
Managements Responsibility for Internal Financial Controls
2. 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 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
3. 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 on Audit of Internal Financial Controls Over
Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued
by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, 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 Institute of Chartered
Accountants of India. 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.
4. 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 judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due
to fraud or error.
5. 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. However, properly documented
processes/ policies for recording of purchase, Sales, Manufacturing activity, inventory,
payroll statutory compliances etc., were not available for our verification.
Meaning of Internal Financial Controls over Financial Reporting
6. 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
7. 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
8. In our opinion, the Company has, in all material respects, an
adequate internal financial controls system over financial reporting except for the
following material weaknesses identified:
a. Attention is drawn to the non-availability of properly documented
processes/ policies for recording of purchase, Sales, Manufacturing activity, inventory
including its valuation, payroll statutory compliances etc.
b. Tracking of processes to confirm that these controls are in line
with the companys policy was not possible in the absence of such documentation.
c. Attention is also drawn to the respect of accounting software where
more control over access to the system and maintenance of log regarding the changes made
to the system is required.
However, our opinion in not qualified on the above matters.
Such internal financial controls over financial reporting were
operating effectively as at 31stMarch, 2023 which however, need further strengthening,
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 P. G. Joshi & Co., |
|
Chartered Accountants |
|
FRN: 104416W |
| Place : Nagpur |
CA Ashutosh Joshi |
| Date : 29-05-2023 |
Partner |
| UDIN : 23038193BGPXKX1544 |
M. No.: 038193 |
+91-9892691696
