To The Members of HIM TEKNOFORGE LIMITED
Report on the audit of the Standalone Financial Statements Opinion
We have audited the accompanying Standalone Ind AS financial statements
of HIM TEKNOFORGE LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31,2023, the Statement of Profit and Loss (including other comprehensive income),
the Cash Flow Statement, the Statement of Changes in Equity for the year ended on that
date and a summary of significant accounting policies and other explanatory information
(hereinafter referred to as the "standalone financial statements")
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone Ind AS financial statements give the
information required by the Companies Act, 2013 ("the Act") in the manner so
required and give a true and fair view in conformity with the Indian Accounting Standards
prescribed under section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015 as amended, ("Ind AS") and other accounting principles
generally accepted in India, of the state of affairs of the Company as at March 31, 2023,
its profit and total comprehensive income, changes in equity and its cash flow for the
year ended on that date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial statements in
accordance with the Standards on Auditing (SAs) specified under section 143(10) of the
Companies Act, 2013. Our responsibilities under those standards are further described in
the Auditors Responsibilities for the audit of the standalone financial statements
section of our report. We are independent of the Company in accordance with the Code of
Ethics issued by the Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the standalone Ind AS financial statements
under the provisions of the Companies Act, 2013 and the Rules made thereunder, and we have
fulfilled our other ethical responsibilities in accordance with these requirements and
ICAIs Code of Ethics. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the standalone Ind AS
financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the standalone financial statements of the
current period. These matters were addressed in the context of our audit of the standalone
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 below to be
the key audit matters to be communicated in our report.
| Revenue recognition: |
|
| Accuracy of recognition, measurement, presentation and
disclosures of revenues and other related balances in view of adoption of IndAS 115
"Revenue from Contracts with Customers" |
Our audit procedures include: |
|
Obtained an understanding of the process of identification
and recording of the revenue transactions from the sale of finished components; |
|
Evaluated the design, implementation and tested the
effectiveness of key controls over revenue recognition including quantity sold, pricing
and accounting of revenue transactions; |
|
Performed substantive analytical procedure on revenue which
included ratio analysis; |
|
On sample basis evaluated the terms and conditions of the
contract with the customers to ensure that revenue recognition policy adopted by the
Management is in accordance with IndAS 115; |
|
On sample basis tested revenue transactions recorded during
the year and revenue transaction recorded in the period before and after year end, with
supporting documents such as invoices, agreement with customers and proof of deliveries; |
|
Evaluated disclosure made in the financial statement for
revenue recognition from sale of goods in accordance with IndAS |
|
We conclude that revenue has been recognized in accordance
with the revenue recognition policy and accounting standards. |
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 comprise the information included in the
Management Discussion and Analysis, Boards Report including Annexures to the Boards
Report, Business Responsibility Report, Corporate Governance and Shareholders
information, but does not include the standalone financial statements and our auditors
report thereon.
Our opinion on the standalone financial statements does not cover the
other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone Ind AS financial
statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with standalone Ind AS 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 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 Standalone Ind AS Financial
Statements
The Companys Board of Directors is responsible for the matters stated
in Section 134(5) of Companies Act, 2013 ("the Act") with respect to the
preparation of these financial statements that give a true and fair view of the financial
position, financial performance, total comprehensive income, cash flows and changes in
equity of the Company in accordance with Ind AS and other accounting principles generally
accepted in India.
This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of
the standalone Ind AS financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors is responsible for overseeing the Companys
reporting process.
Auditors Responsibilities for the audit of the Standalone Ind AS
Financial Statements
Our objectives are to obtain reasonable assurance about whether the
Standalone Ind AS 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 high level of assurance, but is not a guarantee that an audit
conducted in accordance with the 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 aggregate, they could reasonably be expected to influence the economic
decision of users taken on the basis of these standalone Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
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 financial control relevant
to the audit in order to design audit procedures that are appropriate in the
circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing
our opinion on whether the Company has adequate internal financial controls system in
place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going
concern basis of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the
Companys ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors report to the
related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditors report. However, future events or conditions may cause the Company
to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the
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 economic
decision of a reasonably knowledge user of the standalone financial statement may be
influenced. We consider quantitative materiality and qualitative factors in (1) planning
the scope of our audit work and in evaluating the results of our works and (ii) to
evaluate the effect of any identified misstatements in the standalone 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 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 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.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020
("the Order") 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.
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 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 (including other
comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity
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 Indian Accounting Standards specified under Section 133 of Companies Act, 2013
read with Companies (Indian Accounting Standard) Rules, 2015 as amended.
e) On the basis of the written representations received from the
directors, as on March 31, 2023 taken on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2023 from being appointed as a director in terms
of Section 164(2) of the Companies Act, 2013.
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 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 read with schedule V of the Act.
h) 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 as
amended, 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 of pending litigations on its
financial position in its financial statements - Refer Note No.37 to the standalone
financial statements;
ii. The Company did not have any material foreseeable losses on long
term contracts including derivatives contracts;
iii. There has been no delay in transferring 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, as disclosed in the Note 55 to the standalone financial statements,
no funds (which are material either individually or in the aggregate) have been advanced
or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other persons or entities, including foreign
entities ("intermediaries"), with the understanding, whether recorded in writing
or otherwise, that the intermediary shall whether directly or indirectly lend or invest in
any other persons or entities identified in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiary") 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, as disclosed in Note 55 to the financial statements, no funds (which are
material either individually or in the aggregate) have been received by the Company from
any persons or entities, including foreign entities ("Funding Parties") with the
understanding, whether recorded in writing or otherwise, that the Company shall whether
directly or indirectly lend or invest in any other persons or entities identified in any
manner whatsoever by or on behalf of the funding party ("Ultimate Beneficiary")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures that have been considered reasonable
and appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub-clause (i) and (ii) of Rule 11(e) as provided
under
(a) and(b) above contain any material misstatement
v. The final dividend proposed in the previous year, declared and paid
by the Company during the year is in accordance with section 123 of the Act, as
applicable.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules 2014 for
maintaining Books of account using accounting software which has a feature of recording
audit trail (edit log) facility is applicable to the Company with effect from April 1,
2023 and accordingly reporting under Rule 11(g) of the Companies (Audit and Auditors)
Rules 2014 is not applicable for the financial year ended March 31,2023.
ANNEXURE ATO THE INDEPENDENT AUDITORS REPORT
Referred to in paragraph 1 of Report on other Legal and Regulatory
Requirements in our Report of even date on the accounts of HIM
TEKNOFORGE LIMITED for the year ended March 31, 2023
i. (a) (A) The Company is generally maintaining 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 Property Plant and Equipment and right-of-use assets have been
physically verified by the Management in accordance with a phased programme designed to
cover all the items over a period of three years which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets. According to the
information and explanations given to us, pursuant to the programme, a portion of the
Property Plant and Equipment has been physically verified by the Management during the
year and no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, the title deeds of immovable
properties are held in the name of the Company.
(d) The Company has not revalued any of its Property, Plant and
Equipment (including right-of-use assets) and intangible assets during the year.
(e) No proceedings have been initiated during the year or are pending
against the company as at March 31, 2023 for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 as amended in 2016 and rules made thereunder.
ii. (a) As explained to us, physical verification of inventories has
been conducted by the management at reasonable intervals In our opinion, the frequency of
verification is reasonable. The discrepancies noticed on physical verification of
inventories as compared to the book records were not material and have been properly dealt
with in the books of accounts.
(b) The Company has been sanctioned working capital limits in excess of
Rs. 5 crores in aggregate from banks during the year on the basis of security of current
assets of the Company. Based on the records examined by us in the normal course of audit
of financial statements, the quarterly returns/statements filed by the Company with such
banks are in agreement with the books of accounts of the Company and no material
discrepancy noticed as per our professional judgement.
iii. During the year the Company has 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
except loans given to employees in the ordinary course of the business of the Company in
accordance with its employee policies. Accordingly reporting under clause (iii) of
paragraph 3 of the Order is not applicable.
iv. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of section 185 and 186 of the
Companies Act, 2013 in respect of loans, investments, guarantees and securities made by
the Company if any.
v. The Company has not accepted any deposits or amounts deemed to be
deposits. Hence, reporting under clause 3(v) of the Order is not applicable.
vi. The Central Government has prescribed maintenance of cost records
for the company under sub section (1) of section 148 of the Companies Act, 2013 and such
accounts have been made and maintained by the company. However, no detailed examinations
of such records and accounts have been carried out by us.
vii. (a) According to the information and explanations given to us and
the records of the Company examined by us, the Company is generally regular in depositing
undisputed statutory dues including Provident Fund, Employees State Insurance, Income
Tax, Customs Duty, Cess, Goods and Services Tax and other statutory dues applicable to it
with the appropriate authorities. According to information and explanation given to us, no
undisputed amount were in arrears as on March 31, 2023 for a period of more than six
months from the date they became payable.
(b) According to the information and explanation given to us and the
records of the Company examined by us, there are no dues of Service Tax, Cess and Customs
Duty which have not been deposited on account of any dispute. The disputed amounts that
have not been deposited in respect of Value Added Tax, Income Tax, Sales Tax as under:
| Sr. No. Name of the Statute |
Nature of Dispute |
Amount (Rs. in Lacs) |
Period to which dispute relates |
Forum where dispute is pending |
| 1 M. P. VAT Act, 2002 and Central Sales Tax Act, 1956 |
Sales tax demand |
152.80 |
29.03.2004 to 31.03.2007 |
Honorable Supreme Court of India. |
| 2 M. P. VAT Act, 2002 and Central Sales Tax Act, 1956 |
CST |
0.21 |
2015-16 |
Commissioner of Commercial Taxes (Appeals) |
| 3 Income Tax Act,1961 |
Income Tax |
28.54 |
2017-18 |
Commissioner of Income Tax (Appeals) |
viii. We have not come across any transaction(s) which were previously
not recorded in the books of accounts at the Company, have been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961.
ix. ((a)According to the records of the Company examined by us and
information and explanation given to us, the Company has not defaulted in repayment of
dues to financial institutions and banks during the year.
(b) The Company has not been declared willful defaulter by any bank or
financial institution or government or government authority.
(c) According to information and explanations given to us, term loans
have been applied for the purpose for which these were obtained. According to information
and explanations given to us, the Company has obtained Term Loans during the year and the
amount of unutilized funds raised have been kept in the cash credit account of the company
to be utilized in the next year.
(d) According to information and explanations given to us, funds raised
for short term purposes have not been applied for long- term purposes.
e) The Company does not have any subsidiaries, associates, jointly
controlled entities or joint operations as defined under the Act during the year under
review as well as at the year end. Accordingly reporting under (ix) (e) and (f) of the
Order is not applicable.
x. (a)The Company has not raised any money by way of public issue/
further offer (including debt instruments) during the year. hence, reporting under clause
3(x)(a) of the Order is not applicable.
(b) The Company has not made any preferential allotment or private
placement of shares or convertible debentures during the year. Hence reporting under
clause 3(x)(b) of the Order is not applicable.
xi. (a) During the course of our examination of the books and records
of the Company, carried out in accordance with the generally accepted auditing practices
in India and according to the information and explanation given to us, we have nether come
across any instances of fraud by the Company or on the Company has been noticed or
reported during the year, nor have we been informed of any such instance by the
Management.
(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 up to the date of this report.
(c) We have taken into consideration the Whistle Blower Complaints
received by the Company during the year and up to the date of this report while
determining the nature, timing and extent of our audit procedures.
xii. The Company is not a Nidhi Company. Hence, reporting under clause
3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us, and
based on our examination of the records of the Company, transactions with the related
parties are in compliance with Sec 177 and 188 of Companies Act, 2013 where applicable and
details of such transactions have been disclosed in the financial statements as required
by the Indian Accounting Standards (Ind AS 24 "Related Party Disclosures")
specified under Section 133 of the Act.
xiv. (a)In our opinion, the Company has an adequate internal audit
system as required under section 138 of the Act which is commensurate with the size and
nature of its business.
(b) We have considered 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. In our opinion during the year, the Company has not entered any
non-cash transactions with its directors and persons connected with its directors.
Therefore clause 3(xv) of the Order is not applicable.
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 with in 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 in the immediately preceding financial year.
xviii. There has been no resignation of statutory auditors of the
Company during the year. Accordingly reporting under clause 3(xviii) of the Order is not
applicable to the Company.
xix. On the basis of the financial ratios, ageing and expected dates of
realization of financial assets and payment of financial liabilities, other information,
accompanying the financial statements and our knowledge of the Board of Directors and
Management Plans and based on our examination of the evidence supporting the assumptions,
nothing has come to our attention, which causes us to believe that any material
uncertainty exists as on the date of audit report indicating that the Company is not
capable of meeting its liabilities existing at the date of the Balance Sheet as and when
they fall due within a period of one year from the date of the balance sheet. We, however,
state that this is not an assurance as to the future viability of the Company. We further
state that our report is based on the facts up to the date of audit report and we neither
give any guarantee nor any assurance that all liabilities falling due within a period of
one year from the balance sheet date will get discharged by the Company as and when they
fall due.
xx. There are no unspent amount towards the Corporate Social
Responsibility (CSR) on other than ongoing projects requiring transfer to a fund specified
in schedule VII to the Companies Act, 2013 in compliance with second proviso to
sub-section 5 of section 135 of the Act. Accordingly reporting under clause 3(xx)(a) of
the order is not applicable for the year.
xxi. The reporting under clause 3(xxi) is not applicable in respect of
audit of standalone financial statements of the Company. Accordingly, no comment has been
included in respect of said clause under this report.
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-
section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls with reference to
HIM TEKNOFORGE LIMITED ("the Company") as of March 31, 2023
in conjunction with our audit of the Standalone financial statements of the Company for
the year ended on that date.
Management7 s Responsibility for Internal Financial Controls
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 (ICAI).
These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to Companys policies, the
safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal
financial controls with reference to standalone financial statements based on our audit.
We conducted our audit in accordance with the Guidance Note 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,
with reference to standalone financial statements. 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
standalone financial statements was established and maintained and if such controls
operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls with reference to standalone financial
statements and their operating effectiveness. Our audit of internal financial controls
with reference to standalone financial statements included obtaining an understanding of
internal financial controls with reference to standalone financial statements, assessing
the risk that a material weakness exists, and testing and evaluating the design and
operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the Standalone financial statements, whether due to fraud or
error.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Companys internal financial
controls system with reference to standalone financial statements.
Meaning of Internal Financial Controls over with reference to
standalone financial statements
A Companys internal financial control with reference to standalone
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 standalone 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 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 with reference to
standalone financial statements
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 with reference to standalone financial statements 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, in all material respects, an adequate internal
financial controls system with reference to standalone financial statements and such
internal financial controls with reference to standalone financial statements were
operating effectively as at March 31, 2023, based on the internal control with reference
to standalone financial statements criteria established by the Company considering the
essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls over Financial Reporting issued by the Institute of Chartered
Accountants of India.
| For PRA ASSOCIATES |
| Chartered Accountants |
| FRN: 2355N |
| Deepak Gupta Partner |
| Membership No. 89597 |
| Place: Mohali |
| Date: May 30,2023 |
+91-9892691696
