To the Members of Gradiente Infotainment Limited
Report on the Audit of the Standalone Financial Statements
Qualified Opinion
We have audited the standalone Ind AS financial statements of Gradiente Infotainment
Limited ("the Company") which comprises the Balance Sheet as at March 31, 2022,
the statement of Profit and Loss (including Other Comprehensive Income),statement of
Changes in Equity and statement of Cash Flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies and other
explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, except for the matters described in the qualified opinion paragraph, the
aforesaid standalone Ind AS financial statements give the information required by the
Companies Act, 2013 in the manner so required and give a true and fair view in conformity
with the Ind AS and accounting principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2022, and of its profit, total comprehensive
income, changes in equity and its cash flows for the year ended on that date.
Basis for Qualified 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
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 Ind AS 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
qualified audit opinion on the financial statements for the reason of:
i. No provision has been made in the accounts for non-moving trade receivables
amounting to Rs. 662.14 Lakhs which are outstanding for a period exceeding six months. The
ageing of trade receivables disclosed in the notes to financial statements could not be
verified by us as the management could not satisfactorily provide ageing information of
trade receivables. The Company has not mentioned the facts in its notes to accounts. Due
to this the provisioning amount could not be ascertained. Due to this the profit and trade
receivables are overstated.
ii. The balances of trade receivables, other current assets, Bank Balances, Trade
payables and other current liabilities have not been confirmed. Consequential impact/
confirmation/ reconciliation/ adjustment of such balances is not ascertainable.
iii. Identification of Sundry Creditors registered under MSME Act 2006, is not
performed by the Company, therefore, it could not be verified due to non-availability of
related information. Refer note no. 16.
iv. As described in note 4.5 in the financial statements, the company is unable provide
sufficient information and explanations to assess whether any impairme in value should be
recognised regarding intangible assets under development/ wt in progress which valued at
Rs. 19,90,12,820/- as at March 31, 2022 on which w are unable to adopt any other
satisfactory procedures to determine whether a impairment in the value should be made in
the financial statements in respect them.
v. Rs. 7,60,41,257/- has been due as advances to parties /suppliers given many yea
back. No confirmation of parties is available and parties are also said to untraceable
which is also doubtful for recover.
vi. The Company has neither maintained fixed assets register nor carried any physu
verification of fixed assets. Impact on profitability could not be ascertained.
vii. The balances of suppliers whether debit or in credit are subject to confirmatii
reconciliation and adjustment, if any, in the books of accounts. Impact on Profit any
could not be ascertained.
viii. The management of the Company could not provide satisfactory explanation
transferring of Rs. 16,00,000/- from suspense account to a supplier account payment.
ix. The Company has made purchases of Rs. 25,14,713/- from a supplier M/s. M, Khodiyar
Agencies during the first quarter of the year for which invoices could r be produced. Due
to this the purchases are overstated by this amount.
x. There are balances of Rs. 17.10 Lakhs and Rs. 52,429/- in the books of the Compa as
suspense,which could not be reconciled and explained satisfactorily to us.
xi. There is an amount of Rs. 1,10,00,000/- as Trade Receivables under Tra Receivables
for which the management could not reconcile such balance.
xii. The Company has made purchases of Rs. 18,71,140/- from a supplier M/s. S Traders
during April 2021 for which invoices could not be produced. Due to this t purchases are
overstated by this amount.
xiii. An amount of Rs. 8,78,34,938/- of credit balance is included in Trade Payables
books of accounts as CACL name carried forward from previous years without a payments or
adjustment. The details of the liabilities / parties is not available a amounts are
subject to confirmation, reconciliation and adjustment. Consequent impact on Profit and
liabilities of the Company due to adjustment is unascertainab
xiv. Included in current liabilities an amount of Rs. 6,15,640/- as TDS payable bei
carried forward without payment. As informed that the amount is in process reconciliation.
xv. An amount of Rs. 14.95 Lakhs is provided as depreciation in books of accounts.
amount is understated by Rs. 44.71 Lakhs due to which profit and fixed assets a
overstated.
The overall impact on of above qualifications could not be ascertained on Profit a Loss
and Balance Sheet.
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgement, were of r
significance in our audit of the standalone Ind AS financial statements of the current pe
These matters were addressed in the context of our audit of the Standalone Ind AS final
statements as a whole, and informing our opinion thereon, and we do not provide a seps
opinion on these matters.
Information Other than the Standalone Ind AS Financial Statements and Auditors Re
Thereon
The Companys Board of Directors is responsible for the other information. The o
information comprises the information included in the Management Discussion and Anal
Boards Report including Annexures to Boards Report, Business Responsibility Rep
Corporate Governance and Shareholders Information, but does not include the standa
financial statements and our auditors report thereon.
Our opinion on the standalone financial statements does not cover the other information
we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility
read the other information and, in doing so, consider whether the other informatic
materially inconsistent with the standalone financial statements or our knowledge obta in
the audit or otherwise appears to be materially misstated. If, based on the work we I
performed, we conclude that there is a material misstatement of this other information are
required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standa Ind AS
Financial Statements
The Companys Board of Directors is responsible for the matters stated in section 134(
the Companies Act, 2013 ("the Act") with respect to the preparation of these
standalone AS financial statements that give a true and fair view of the financial
position, fina performance, changes in equity and cash flows of the Company in accordance
with accour principles generally accepted in India, including Indian Accounting Standards
(Ind specified under section 133 of the Act read with the Companies (Indian Accounting
Standa Rules, 2015, as amended. This responsibility also includes maintenance of adeq
accounting records in accordance with the provisions of the Act for safeguarding of the a:
of the Company and for preventing and detecting frauds and other irregularities; selec and
application of appropriate accounting policies; making judgments and estimates tha
reasonable and prudent; and design, implementation and maintenance of adequate inte
financial controls, that were operating effectively for ensuring the accuracy and complete
of the accounting records, relevant to the preparation and presentation of the standalone
AS financial statement that give a true and fair view and are free from material misstatem
whether due to fraud or error.
In preparing the Ind AS financial statements, the Board of Directors is responsible for
asses the Companys ability to continue as a going concern, disclosing, as applicable,
matters rel to going concern and using the going concern basis of accounting unless Board
of Direc either intends to liquidate the Company or to cease operations, or has no
realistic altern; but to do so.
The Board of Directors are also responsible for overseeing the companys financial
repoi process.
Auditors Responsibilities for the Audit of Standalone Ind AS Financial Statement
Our objectives are to obtain reasonable assurance about whether the Standalone Ind AS
financ statements as a whole are free from material misstatement, whether due to fraud or
error, a to issue an auditors report that includes our opinion. Reasonable assurance is a
high level assurance, but is not a guarantee that an audit conducted in accordance with
SAs will alw; detect a material misstatement when it exists. Misstatements can arise from
fraud or error a are considered material if, individually or in the aggregate, they could
reasonably be expected influence the economic decisions of users taken on the basis of
these standalone Ind AS financ statements.
A further description of the auditors responsibilities for the audit of the standalone
Ind financial statements is included in Annexure A. This description forms part of our
auditors repo
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order"),
issued by 1 Central Government of India in terms of sub-section (11) of section 143 of the
Companies A 2013, we give in the Annexure B a statement on the matters specified in
paragraphs 3 and 4 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 c 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 far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, the Statement of Changes in
Equity a the Cash Flow Statement dealt with by this Report are in agreement with the books
of accoun
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the
Ind Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the
Compan
(Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st
March, 2C taken on record by the Board of Directors, none of the directors is disqualified
as on 31st Mar 2022 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 Control with reference to
Finan< Statements of the Company and the operating effectiveness of such controls,
refer to o separate Report in "Annexure C".
g) In our opinion and to the best of our information and according to the explanations
given us, the remuneration paid by the Company to its directors during the year is in
accordance w the provisions of section 197(16) of the Act.
h) With respect to the other matters to be included in the Auditors Report in
accordance w Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and
to the best of o information and according to the explanations given to us:
I) The Company has disclosed the impact of pending litigations on its financial
position in its standalone Ind AS financial statements.
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.
| for G R A N D M A R K & Associates |
|
| Chartered Accountants |
|
| Firms Registration No. 011317N |
|
| CA Vasanth Kumar K B M |
|
| Partner |
|
| Membership: 215929 |
Hyderabad |
| UDIN: 22215929AUKVFO1975 |
September 5, 2022 |
Annexure A
Responsibilities for Audit of Standalone Ind AS Financial Statement
As part of an audit in accordance with SAs, we exercise professional judgment and mai
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone Ind AS
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 internal financial controls with reference to Financial Statements
in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
ol 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 tc 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 standalone Ind AS 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 standalone Ind AS financial statements, including the disclosures, and
whether the standalone Ind AS financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the 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 financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies ir 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 standalone Ind AS 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.
Annexure B to the Independent Auditors Report of even date to the members of Gradiente
Infotainment Limited, on the financial statements for the year ended 31st March 2022
Based on the audit procedures performed for the purpose of reporting a true and fair
view on financial statements of the Company and taking into consideration the information
and explanation given to us and the books of account and other records examined by us in
the normal course of audit, we report that:
(i) (a) (A) The Company has not maintained proper records showing full particulars,
including quantitative details and situation of Property, Plant and Equipment.
(B) The Company has not maintained proper records showing full particulars of
Intangible Assets.
(b) The major Property, Plant and Equipment of the company have not been physically
verified by the management at reasonable intervals during the year.
(c) According to the information and explanation given to us, the title deeds of the
immovable properties (other than properties where the company is the lessee and the lease
agreements are duly executed in favour of the lessee) are held in the name of the company.
(d) The Company has not revalued its Property, Plant and Equipment or intangible assets
or both during the year.
(e) According to the information and explanation given to us, no proceedings have been
initiated
or are pending against the company for holding any benami property under the Benam
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder during the
year.
(ii) (a) The Company does not have any inventory and no working capital limits in
excess of five crore rupees (at any point of time during the year), in aggregate, from
banks or financial institutions on the basis of security of current assets. Accordingly,
the provisions of clause 3(ii) of the Ordei are not applicable.
(iii) During the year the company has made investments in, provided any guarantee or
security oi granted any loans or advances in the nature of loans, secured or unsecured, to
companies, firms, Limited Liability Partnerships or any other parties:
(a) During the year the company has made investment in a subsidiary
(b) During the year, the Company has not provided loans or provided advances in the
nature oi loans, or stood guarantee, or provided security to any other entity.
(b) The Company has not provided any loans or advances in the nature of loans to any
other entity during the year. Accordingly, the provisions of clause 3(ii) (b), (c), (d),
(e) and (f) of the Order are not applicable.
(iv) According to the information and explanation given to us, the company has no
loans, guarantees or security where provisions of section 185 and 186 of the Companies
Act, 2013 are to be complied with.
(v) The Company has not accepted any deposit or amounts which are deemed to be
deposits. Hence, reporting under clause (v) of the Order is not applicable.
(vi) To the best of our knowledge and belief, the Central Government has not sp
maintenance of cost records under sub-section (1) of Section 148 of the Act, in res
Companys products/ services. Accordingly, the provisions of clause 3(vi) of the Order
applicable.
(vii) (a) The Company is not regular in depositing undisputed statutory dues, including
Incoi Goods and Service Tax and other material statutory dues applicable to it to the appr
authorities.
(b) Details of statutory dues referred to in sub-clause (a) above which have not been
de: as on March 31, 2022 on account of disputes are given below:
| Name of the statute |
Nature of dues |
Amount Rs. |
Period to which the amount relates |
Forum where dispi pending |
| Income Tax Act, 1961 |
Certain disallowance |
1,34,61,831/- |
AY 2009-10 |
Commissioner of Incc Tax - Appeals, Hy |
| Income Tax Act, 1961 |
Certain disallowance |
89,74,702/- |
AY 2010-11 |
Commissioner of Inco Tax - Appeals, Hy |
| Income Tax Act, 1961 |
Certain disallowance |
14,54,85,538/- |
AY 2011-12 |
Commissioner of Inco Tax - Appeals, Hy |
| Income Tax Act, 1961 |
Certain disallowance |
3,33,77,324/- |
AY 2012-13 |
Commissioner of Inco Tax - Appeals, Hy |
| Income Tax Act, 1961 |
Certain disallowance |
32,90,345/- |
AY 2013-14 |
Commissioner of Inco Tax - Appeals, Hy |
| Income Tax Act, 1961 |
Certain disallowance |
2,68,272/- |
AY 2015-16 |
Vivad Ve Viswas Sche |
| Income Tax Act, 1961 |
Certain disallowance |
4,53,396/- |
AY 2016-17 |
Vivad Ve Viswas Sche |
| Income Tax Act, 1961 |
Certain disallowance |
55,880/- |
AY 2018-19 |
Vivad Ve Viswas Sche |
| Income Tax Act, 1961 |
Certain disallowance |
20,81,603/- |
AY 2017-18 |
Income Tax Office |
| Income Tax Act, 1961 |
Certain disallowance |
15,71,010/- |
AY 2020-21 |
Income Tax Office |
| Service Tax |
- |
37.17 Crores |
FY 2009-10 |
CESTAT |
(viii) According to the information and explanation given to us, company has no
transactions, not recorded in the books of account have been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961);
(ix) (a) In our opinion and according to the information and explanations given by the
management of the Company, the company has defaulted in repayment of loans or other
borrowings or in the payment of interest thereon to banks. The particulars which are
disclosed in paragraph 13 of the Notes to the accounts of the Company.
(b) Company is not declared wilful defaulter by any bank or financial institution or
other lender;
(c) According to the information and explanation given to us, the Company has not
obtained term
l Mir-:
(d) According to the information and explanation given to us, funds raised on short
term basis have not been utilised for long term purposes;
(e) According to the information and explanation given to us, the company has not taken
any funds from any entity or person on account of or to meet t he obligations of its
subsidiaries, associates or joint venture:.:
(f) According to the information and explanation given to us, the company has not
raised loans during the year on the pledge of securities held it i n 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;
(b) According to the information and explanation given to us, the Company has not made
any preferential allotment or private placement of shaes or convertible debentures (fully,
partially or optionally convertible) during the year
(xi) (a) According to the information and explanation given to us, any fraud by the
company or any
fraud on the company has not been noticed or reported during the year;
(b) According to the information and explanation given to us, no report under
sub-section (12) of section 143 of the Companies Act has been filed by the auditors in
Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with
the Central Government;
(c) According to the information and explanation given to us, no whistle-blower
complaints, received during the year by the company;
(xii) Company is not a Nidhi company, accordingly provisions of the Clause 3(xii) of
the Order is not apple able to the , company:
(xiii) In our opinion, the Company is in compliance with Section 177 and 188 of the
Act, where applicable, for all transactions with the related parties undertaken during the
year and the details of such related party transactions have been disclosed in the
standalonfinancial statements as required by the applicable accounting standards.
(xiv) (a) According to the information and explanations given to us, the company has an
internal audit system 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) According to the information and explanations given to us, we are of the opinion
that the company has not entered into any non-cash transactions with directors or persons
connected with him and accordingly, the provisions of clause 3(xv) of the Order is not
applicable.
(xvi) According to the information and explanations given to us, we are of the opinion
that the company is not required to be registered under section 45-IA of the Reserve Bank
of India Act, 1934 and the company is not a Core Investment Company (CIC) as defined in
the regula tions made by the Reserve Bank of India, accordingly the provisions of clause
3(xvi) of the Order are not applicable;
(xvii) According to the information and explanation given to u s and based on the audit
procedures conducted we are of opinion that the company has n ot incurred any cash losses
in the financial year and the immediately preceding financial year;
(xviii) During the year, there is change of statutory a uditor of the Company due to
mandatory rotation requirements of the Companies Act, 2013. Accordingly, the provisions of
clause 3(xviii) of the Orde rs not applicable;
(xix) On the basis of the financial ratios, age in g and expected dates of realization
of financial assets and payment of financial liabilities, other information a ccompanying
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 co me to
our attention, which causes us to believe that any material uncertainty exists as on the
da te of the audit report indicating that company is incapable 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 asto
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 gaurantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the company as and when they fall due.
(xx) The provisions of Section 135 towards corporate ia ls responsibility are not
applicable on the company. Accordingly, the provisions of clause 3(x-) of the Order is not
applicable.
(xxi) The reporting under clause (xxi) is not applicabl e respect of audit of
standalone financial statements of the Company. Accordingly, no comment has been included
in respect of said clause under this report.
| for G R A N D M A R K & Associates |
|
| Chartered Accountants |
|
| Firms Registration No. 011317N |
|
| CA Vasanth Kumar K B M |
|
| Partner |
|
| Membership: 215929 |
Hyderabad |
| UDIN: 22215929AUKVFO1975 |
Se ptember 5, 2022 |
ANNEXURE "C" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1(f) under "Report on Other Legal and Regulatory
Requireme section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Subsection 3 of Section 143 of the Companies Act, 2013 (the "Act")
We have audited the internal financial controls over financial reporting of Gradii
Infotainment Limited (the "Company") as of March 31, 2022 in conjunction with
our audit of 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 final
controls based on the internal control over financial reporting criteria established by
Company considering the essential components of internal control stated in the Guidance N
on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute
Chartered Accountants of India ("ICAI"). These responsibilities include the de;
implementation and maintenance of adequate internal financial controls that were opera
effectively for ensuring the orderly and efficient conduct of its business, including
adherenc respective companys policies, the safeguarding of its assets, the prevention and
detectio frauds and errors, the accuracy and completeness of the accounting records, and
the tir 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 i financial reporting of the Company and its joint operations company
incorporated in India, b;
on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of Internal Fina!
Controls Over Financial Reporting (the "Guidance Note") issued by the ICAI and
the Stand on Auditing ("SA"s) prescribed under Section 143(10) of the Companies
Act, 2013 (the "Act" the extent applicable to an audit of internal financial
controls. Those Standards and the Guida Note require that we comply with ethical
requirements and plan and perform the audit to ob reasonable assurance about whether
adequate internal financial controls over finan reporting was established and maintained
and if such controls operated effectively in all mat respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
internal financial controls system over financial reporting and their operating
effectiveness. audit of internal financial controls over financial reporting included
obtaining an understan of internal financial controls over financial reporting, assessing
the risk that a material weak exists, and testing and evaluating the design and operating
effectiveness of internal cor based on the assessed risk. The procedures selected depend
on the auditors judgem including the assessment of the risks of material misstatement of
the financial stateme whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provi basis for our audit opinion on the Companys internal financial controls system over
final reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
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, to the best of our information and according to the explanations given
to us the Company has, not in all material respects, an adequate internal financial
controls system over financial reporting and such internal financial controls over
financial reporting were not operating effectively as at March 31, 2022, based on the
criteria for internal financial control over financial reporting established by the
respective 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 G R A N D M A R K & Associates |
|
| Chartered Accountants |
|
| Firms Registration No. 011317N |
|
| CA Vasanth Kumar K B M |
|
| Partner |
|
| Membership: 215929 |
Hyderabad |
| UDIN: 22215929AUKVFO1975 |
September 5, 2022 |
+91-9892691696
