To
The members of
DELTA INDUSTRIAL RESOURCES LIMITED Report on the Audit of Financial Statements Opinion
We have audited the accompanying financial statements of DELTA INDUSTRIAL RESOURCES
LIMITED ("the Company"), which comprise the balance sheet as at 31st
March 2023, the statement of profit and loss and the statement of cash flows for the year
then ended, and notes to the financial statements, including a summary of significant
accounting policies and other explanatory information.
In our opinion and to the best of our information and explanations given to us, the
aforesaid financial statements give the information required by the Companies Act, 2013
("the Act") in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India of the state of
affairs of the Company as at 31st March, 2023, and the net profit (including
other comprehensive income), statement of changes in equity and its cash flows 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 Act. 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 (ICAI)
together with ethical requirements that are relevant to our audit of the financial
statements under the provisions of the Act and the rules thereunder, and we have fulfilled
our ethical responsibilities in accordance with these requirements and the Code of Ethics.
We believe that the audit evidences we have obtained are sufficient and appropriate to
provide a basis for our opinion.
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 the matters described hereunder to be key audit matters to be communicated
in our report.
| S. No. Key audit matters |
Auditors response |
| (i) Loans and advances: - |
Our audit procedure inter- alia includes the following: |
| Loans are to be disclosed at Amortised Cost using Effective Interest Method prescribed
under Ind AS 109 on Financial Instruments. |
• We evaluated the control environment including authorization, sanctioning and
disbursement of significant loans advanced during the year. |
| We focused on the conditions of disbursement and appropriateness of sanctioning
process of the loan granted by the Company. |
• We evaluated the control environment of levying the processing fees on
significant loans advanced by the company and its treatment in books of accounts in
accordance with Ind AS 109. |
| (i) Determination of transaction price for measurement of revenue according to Ind AS
115. |
• We have obtained external confirmations from third parties in respect of
transactions and closing balance for significant loans advanced by the company. |
|
• We tested all material entries recorded in connection with the loan advance and
interest thereon to determine whether the accounting was appropriate. |
|
• We performed year end cut off procedures to determine whether revenues are
recorded in the correct period. |
|
• We used assessment of overall control environment relevant for measurement of
revenue. |
|
• We performed testing of journals, with particular focus on manual adjustment to
revenue account, to mitigate the risk of manipulation of revenue and profit figures. |
Information other than the Financial Statements and Auditors Report thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexure to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the financial statements and the auditors report thereon.
Our opinion on the financial statement does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained during the
course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information; we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these financial statements that give
a true and fair view of the financial position, financial performance, changes in equity
and cash flows of the Company in accordance with the AS and the 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 are operating effectively for
insuring 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 misstatements, whether due to fraud or error.
In 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.
The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain a reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue our 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 due to fraud
or error and are considered material if, individually or in 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 the SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
(i) 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 one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations or the override of internal control.
(ii) Obtain an understanding of the internal controls relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the company has
adequate internal financial controls system in place and the operating effectiveness of
such controls.
(iii) Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
(iv) 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.
(v) 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 controls 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 reasonable be thought to bear on our
independence, and where applicable, relevant 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, 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 (Auditors Report) Order, 2020 (‘the Order), 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.
2. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books; c. the Balance Sheet,
the Statement of Profit and Loss, Statement of Changes in Equity and the Cash Flow
Statement dealt with by this report are in agreement with the books of accounts;
d. In our opinion, the aforesaid financial statements comply with the accounting
standards specified under Section 133 of the Act;
e. On the basis of the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 from being appointed as a director in terms
of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls 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.
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 has disclosed the impact, if any of pending litigations on its financial
position, in its financial statements (Refer note no. 24 of the financial statements).
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. The Company is not required to transfer any amount to the Investor Education and
Protection Fund.
a. The management has represented that, to the best of its knowledge and belief, other
than as disclosed in the notes to the accounts, no funds have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the company to or in any other person(s) or entity(i.es), 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 person(s) or entity(ies), including foreign entities ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the
company shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries; and c. Based on such audit procedures, we have
obtained reasonable and appropriate evidence, nothing has come to our notice that has
caused us to believe that the representations under sub-clause (i) and (ii) contain any
material misstatement.
v. No dividend has been declared or paid during the year by the company, hence Section
123 of the Companies Act, 2013 is not applicable to the company.
vi. As proviso to Rule 3(1) of the companies (Accounts) rules, 2014 is applicable for
the company only w.e.f. April 1, 2023, reporting under this Rule 11(g) of Companies (Audit
and Auditors) Rules, 2014 is not applicable.
h. In our opinion and according to the information and explanation given to us, no
remuneration has been paid by the company to its directors during the current financial
year which is subject to ceiling under Section 197 of the Act read with schedule V.
|
FOR V.N. PUROHIT & CO. |
|
Chartered Accountants |
|
Firm Regn. No. 304040E |
|
Sd/- |
|
O.P. Pareek |
|
Partner |
|
Membership No. 014238 |
|
UDIN: |
| New Delhi, the 30th day of May, 2023 |
|
ANNEXURE -A TO THE AUDITORS REPORT
The Annexure referred to in Paragraph 1 under the heading of "Report on other
Legal and Regulatory Requirements" of our report of even date to the members of DELTA
INDUSTRIAL RESOURCES LIMITED for the year ended on 31st March 2023.
(i) (a) (A). As per information and explanation given to us, the company is maintaining
proper records showing full particulars, including quantitative details and situation of
Property plant and equipment;
(B). As per information and explanation given to us, the company does not have any
Intangible asset hence the provisions of sub clause (i)(a)(B) of para 3 are not
applicable;
(b) As per information and explanation given to us, physical verification of property,
plant and equipment has been conducted at regular interval in a year by the management and
no material discrepancies were noticed during the course of verification;
(c) According to information and explanation given to us, the company does not hold any
immovable property during the year dealt with by this report. Accordingly the provisions
of sub clause (i)(c) of para 3 are not applicable;
(d) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not revalued its property,
plant and equipment or intangible assets or both during the year. Accordingly the
provisions of sub clause (i)(d) of para 3 are not applicable;
(e) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there are no proceedings initiated or pending
against the Company for holding any benami property under the Prohibition of Benami
Property Transactions Act, 1988 and rules made thereunder. Accordingly the provisions of
sub clause (i)(e) of para 3 are not applicable;
(ii) (a) As per information and explanation given to us, the company does not have
inventory hence physical verification of inventory is not applicable;
(b) As per information and explanation given to us, the company has not taken any
working capital loan therefore there is no requirement to furnish quarterly returns or
statements with such banks. Accordingly the provisions of clause (ii)(b) of para 3 are not
applicable to the company;
(iii) (a) A. Based on the audit procedures carried on by us and as per the information
and explanations given to us, the Company has not granted any loans to subsidiaries, joint
ventures and associates;
B. Based on the audit procedures carried on by us and as per the information and
explanations given to us, the Company has granted loans to parties other than
subsidiaries, joint ventures and associates, the details are given as follows:
|
Guarantee |
Security |
Loans |
Advances in nature of loans |
| Aggregate amount granted/ provided during the year |
|
|
|
|
| - Related parties |
Nil |
Nil |
5,000.00 |
Nil |
| - Promoter |
Nil |
Nil |
Nil |
Nil |
| - Others |
Nil |
Nil |
5,000.00 |
Nil |
| Balance outstanding as at balance sheet date |
|
|
|
|
| - Related parties |
Nil |
Nil |
Nil |
Nil |
| - Promoter |
Nil |
Nil |
Nil |
Nil |
| - Others |
Nil |
Nil |
25,573.10 |
Nil |
(b) According to the information and explanations given to us and based on the audit
procedures conducted by us, we are of the opinion that the terms and conditions of the
loans given are, prima facie, not prejudicial to the interest of the Company.
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, loans given by the company are repayable on
demand and there is no stipulation of schedule of repayment of principal and payment of
interest and hence, we are unable to make any comment on regularity of repayment;
(d) According to the information and explanations provided to us and considering the
nature of loan given by the company there is no loan overdue amount for more than ninety
days in respect of loans given;
(e) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there is no loan given falling due during the
year, which has been renewed or extended or fresh loans given to settle the overdues of
existing loans given to the same party;
(f) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has given loans repayable on demand
or without specifying any terms or period of repayment including those to promoters,
related parties as defined in clause (76) of Section 2 of the Companies Act, 2013. The
relevant details are given as follows:
| Total loan granted repayable on demand to: |
Aggregate amount granted during the year |
% of Total loans |
| Promoter |
Nil |
Nil |
| Related party |
5,000.00 |
50.00% |
| Others |
5,000.00 |
50.00% |
| Total loan other than repayable on demand: |
Nil |
Nil |
| Total |
10,000.00 |
100.00% |
(iv) According to information and explanations given to us, the Company has complied
with the provisions of section 185 and section 186 of the Companies Act, 2013 to the
extent applicable in respect of loans, advances, guarantees and securities so given;
(v) The Company has not accepted any deposits or amounts which are deemed to be
deposits from the public. Accordingly, the provisions of sub clause (v) of para 3 of the
order are not applicable;
(vi) According to information and explanations given to us, the Company is not liable
to maintain cost records as prescribed under section 148(1) of the Companies Act, 2013;
(vii) (a) According to information and explanations given to us, the company is
generally regular in depositing undisputed statutory dues including income-tax and any
other applicable statutory dues to the appropriate authorities and there are no
outstanding statutory dues as on the last day of the financial year concerned for a period
of more than six months from the date they became payable;
(b) According to information and explanations given to us, there are no outstanding
statutory dues on part of the Company which is not deposited on account of any dispute;
(viii) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, the Company has not surrendered or
disclosed any transactions, previously unrecorded as income in the books of account, in
the tax assessments under the Income-tax Act, 1961 as income during the year;
(ix) (a) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, the Company has not defaulted in repayments
of loans or other borrowings or in the payment of interest thereon to any lender;
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not been declared a wilful
defaulter by any bank or financial institution or government or other lender;
(c) According to the information and explanations given to us by the management, the
Company has not obtained any term loans and thus there arise no question to divert such
loans;
(d) According to the information and explanations given to us and on an overall
examination of the financial statements of the Company, we report that no short-term funds
have been utilized for long term purpose by the company;
(e) According to the information and explanations given to us and on an overall
examination of the financial statements of the Company, we report that the Company does
not have any subsidiaries, associates or joint ventures. Accordingly, provisions of
sub-clause (ix)(e) of para 3 of the order are not applicable;
(f) According to the information and explanations given to us on an overall examination
of the financial statements of the Company, we report that the Company does not have any
subsidiaries, associates or joint ventures. Accordingly, provisions of sub-clause (ix)(f)
of para 3 of the order are not applicable;
(x) (a) The Company has not raised any moneys by way of initial public offer or further
public offer (including debt instruments). Accordingly, the provisions of sub-clause
(x)(a) of para 3 of the order are not applicable;
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year. Accordingly, the provisions of sub-clause (x)(b) of para 3 of the order are not
applicable;
(xi) (a) Based on examination of the books and records of the Company and according to
the information and explanations given to us, considering the principles of materiality
outlined in Standards on Auditing, we report that no fraud by the Company or on the
Company has been noticed or reported during the course of the audit;
(b) According to the information and explanations given to us, no report under
sub-section (12) of Section 143 of the Companies Act, 2013 has been filed by us in Form
ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the
Central Government;
(c) According to the Information and explanations given to us, there are no whistle
blower complaints received by the company during the year;
(xii) According to the information and explanations given to us, the Company is not a
Nidhi Company.
Accordingly, provisions of sub- clause (xii) of para 3 of the order are not applicable;
(xiii) In our opinion and according to the information and explanations given to us,
the transactions with related parties are in compliance with Sections 177 and 188 of the
Companies Act, 2013, where applicable, and the details of the related party transactions
have been disclosed in the financial statements as required by the applicable Indian
Accounting Standards;
(xiv) (a) Based on information and explanations provided to us and our audit
procedures, in our opinion, the Company has an internal audit system commensurate with the
size and nature of its business;
(b) We have considered the internal audit reports of the Company issued till date for
the period under audit;
(xv) In our opinion and according to the information and explanations given to us, the
Company has not entered into any non-cash transactions with its directors or persons
connected to its directors and hence, provisions of Section 192 of the Companies Act, 2013
are not applicable to the Company;
(xvi) (a) According to information and explanations given to us, the Company is not a
Non- Banking Financial Company and does not obtained such registration. However,
considering the ratio of financial assets and financial income to total assets and total
income respectively for the year covered by this report, it can be construed that the
Company is required to be registered under Section 45-IA of the Reserve Bank of India Act,
1934;
(b) According to 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) According to 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.
Accordingly, provisions of sub-clause (xvi) (c) of para 3 of the order are not applicable;
(d) According to information and explanations given to us, the Group does not have any
CIC as part of the Group. Accordingly, provisions of sub-clause (xvi) (d) of para 3 of the
order are not applicable;
(xvii) The Company has not incurred any cash losses in the current year and however,
cash loss of amounting Rs.5,55,889 were incurred in the immediately previous financial
year;
(xviii)There has been no resignation of the statutory auditors during the year.
Accordingly, the provisions of sub-clause (xviii) of para 3 of the order are not
applicable;
(xix) According to the information and explanations given to us and 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, 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 that
the 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) According to the information and explanations given to us, provisions of section
135 of the Companies Act, 2013 are not applicable to the Company. Accordingly, the
provisions of sub-clause (xx) of para 3 of the order are not applicable;
(xxi) According to the information and explanations given to us, the Company does not
have any subsidiaries, associates and joint ventures. Accordingly, the provisions of
sub-clause (xxi) of para 3 of the order are not applicable.
|
FOR V.N. PUROHIT & CO. |
|
Chartered Accountants |
|
Firm Regn. No. 304040E |
|
Sd/- |
|
O.P. Pareek |
|
Partner |
|
Membership No. 014238 |
|
UDIN: |
| New Delhi, the 30th day of May, 2023 |
|
ANNEXURE -B TO THE AUDITORS REPORT
Report on the Internal Financial Controls under Clause (i) of Sub- section (3) of
Section 143 of the Companies Act, 2013
In conjunction with our audit of the financial statements of the Company as at and for
the year ended 31st March 2023, we have audited the internal financial controls with
reference to financial statements of DELTA INDUSTRIAL RESOURCES LIMITED
(hereinafter referred to as "Company") along with its subsidiaries, as of that
date.
Opinion
In our opinion, the Company has, in all material aspects, an adequate internal
financial controls system with reference to financial statements and such internal
financial controls with reference to financial statements were operating effectively as at
31st March 2023, based on "the internal financial controls with reference
to financial statements criteria 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".
Managements Responsibility for the Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control with reference to financial statements
criteria established by the Company considering the essential components of internal
controls stated in the Guidance Note on Audit of Internal Financial Control over Financial
Reporting 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 fraud and errors, the accuracy and
completeness of 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 financial statements 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 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 with
reference to financial statements was established and maintained and if such controls
operated effectively in all material aspects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial control system with reference to financial statements and their
operating effectiveness. Our audit of internal financial controls with reference to
financial statements included obtaining an understanding of internal financial controls
with reference to 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 auditors
judgment, including the assessment of risks of material misstatement of the financial
statements, whether due to fraud or error.
We believe that the audit evidences we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
with reference to financial statements.
Meaning of Internal Financial Controls with reference to financial statements
A Companys internal financial control with reference to financial statements is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A Companys internal financial control with
reference to financial statements includes those policies and procedures that: -
(1) Pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the Company;
(2) Provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and the receipt and expenditures of the Company are being only in accordance
with authorizations 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 with reference to financial
statements
Because of the inherent limitations of internal financial controls with reference to
financial statements, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and could not
be detected. Also, projections of any evaluation of the internal financial control with
reference to financial statements to future periods are subject to the risk that the
internal financial controls with reference to financial statements may became inadequate
because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
|
FOR V.N. PUROHIT & CO. |
|
Chartered Accountants |
|
Firm Regn. No. 304040E |
|
Sd/- |
|
O.P. Pareek |
|
Partner |
|
Membership No. 014238 |
|
UDIN: |
| New Delhi, the 30th day of May, 2023 |
|
+91-9892691696
