To,
To the Members of
Kabra Extrusion technik Limited
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the standalone financial statements of Kabra Extrusiontechnik Limited
("the Company"), which comprise the Standalone Balance Sheet as at March 31,
2023, and the Standalone Statement of Profit and Loss (including Other Comprehensive
Income), Standalone Statement of Changes in Equity and Standalone Statement of Cash Flows
for the year then ended, and Notes to the standalone Ind AS 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, the aforesaid standalone financial statements give the information required
by the Companies Act, 2013 ("the Act) in the manner so required and give a true and
fair view in conformity with the Indian Accounting Standards prescribed under Section 133
of the Act read with 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, and profit (including other
comprehensive income), 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 standalone Ind AS
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 the ethical requirements that are relevant to our audit of the
Standalone Ind AS financial statements under the provisions of the Act and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters (‘KAM) 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 an opinion thereon, and we do not provide
a separate opinion on these matters.
Key audit matters |
How our audit addressed the key audit matter |
Segment Reporting |
|
| As per Ind AS 108 "Operating Segments" An Operating Segment is
a component of an entity: |
Our audit procedures on adoption of Ind AS 108 include: |
That engages in business activities from which it may earn
revenues and incur expenses, |
Reviewed and assessed the disclosures with respect to Segment Reporting
(Ind AS 108). |
Whose operating results are regularly reviewed by the entitys
chief operating decision maker to make decisions about resources to be allocated to the
segment and assess its performance, and |
Understood and reviewed Revenue Recognition policy in relation to Battery
Manufacturing Segment |
For which discrete financial information is available |
Reviewed and assessed capital expenditure incurred during the year and
accounting for the same. |
| The Company has commenced Battery Manufacturing Plant which is a separate
segment and the results of the same is regularly reviewed by the chief operating decision
makers. |
Reviewed various projections and the future plans of new segment
commenced during the year. |
| Further Company shall disclose information to enable users of financial
statements to evaluate the nature and financial effects of the business activities in
which it engages and the economic environments in which it operates. |
|
Information Other than the Standalone Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Integrated Report, Boards Report
along with its Annexures and Financial Highlights included in the Companys Annual Report
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 financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the standalone Ind AS financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based
on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this
regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Ind
AS Financial Statements
The Companys Board of Directors are responsible for the matters stated in Section
134(5) of the Act with respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial performance, changes
in equity and cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards specified under Section
133 of the Act. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of
the standalone financial statement that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Board of Directors are
responsible for assessing the Companys ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors either intends to liquidate the Company
or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these standalone financial statements.
We give in "Annexure A" a detailed description of Auditors responsibilities
for Audit of the Standalone Financial Statements.
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 "Annexure B" 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 Standalone Balance Sheet, the Standalone Statement of Profit and Loss, the
Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flow dealt
with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards specified under Section 133 of the Act.
(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
Act.
(f) With respect to the adequacy of the internal financial controls with reference to
standalone financial statements of the Company and the operating effectiveness of such
controls, refer to our separate Report in "Annexure C".
(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 of pending litigations on its financial position in its
standalone 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 has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company iv. 1) The Management has
represented that, to the best of its knowledge and belief, no funds have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person(s) or entity(ies), including
foreign entities ("Intermediaries"), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, 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.
2) The Management has represented, that, to the best of its knowledge and belief, no
funds have been received by the Company from any person(s) or entity(ies), including
foreign entities (Funding Parties), with the understanding, whether recorded in writing or
otherwise, as on the date of this audit report, that the Company shall, 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.
3) Based on the audit procedures performed that have been considered reasonable and
appropriate in the circumstances, and according to the information and explanations
provided to us by the Management in this regard nothing has come to our notice that has
caused us to believe that the representations under sub-clause (iv) as provided under (1)
and (2) above, contain any material mis-statement. v. The Board of Directors of the
Company have proposed final dividend for the year which is subject to the approval of the
members at the ensuing Annual General Meeting. The dividend declared is in accordance with
section 123 of the Act to the extent it applies to declaration of dividend.
3. As required by The Companies (Amendment) Act, 2017, in our opinion, according to
information, explanations given to us, the remuneration paid by the Company to its
directors is within the limits prescribed under Section 197 of the Act and the rules
thereunder.
|
For A.G.Ogale & Company |
|
Chartered accountants |
|
ICAI Firm Registration No.: 114115W |
|
Pramod Gugale |
|
Partner |
| Place: Pune |
Membership No.: 113775 |
| Date: May 10, 2023 |
UDIN: 23113775BGURCH7936 |
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT ON EVEN DATE ON THE STANDALONE FINANCIAL
STATEMENTS OF KABRA EXTRUSIONTECHNIK LIMITED
Auditors Responsibilities for the Audit of the Standalone 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 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
internal financial controls with reference to standalone 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 the 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 standalone 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 financial
statements, including the disclosures, and whether the standalone financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
|
For A.G.Ogale & Company |
|
Chartered accountants |
|
ICAI Firm Registration No.: 114115W |
|
Pramod Gugale |
|
Partner |
| Place: Pune |
Membership No.: 113775 |
| Date: May 10, 2023 |
UDIN: 23113775BGURCH7936 |
ANNEXURE B TO INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL
STATEMENTS OF KABRA EXTRUSIONTECHNIK LIMITED FOR THE YEAR ENDED MARCH 31, 2023
[Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory
Requirements in the Independent Auditors Report] i. (a) (A) The Company has maintained
proper records showing full particulars including quantitative details and situation of
Property, Plant and Equipment.
(B) The Company has maintained proper records showing full particulars of intangible
assets.
(b) Property, Plant and Equipment have been physically verified by the Management at
reasonable intervals during the year and no material discrepancies were identified 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) According to the information and explanations given to us, the Company has not
revalued its Property, Plant and Equipment and its intangible assets both. Accordingly,
the requirements under paragraph 3(i)(d) of the Order are not applicable to the Company.
(e) According to the information and explanations given to us, no proceeding has been
initiated or pending against the Company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 and rules made thereunder. Accordingly, the
provisions stated in paragraph 3(i) (e) of the Order are not applicable to the Company.
ii. (a) The inventory has been physically verified during the year by the Management. In
our opinion, the frequency of verification, coverage & procedure is of such
verification reasonable and appropriate. No discrepancies were noticed on verification
between the physical stocks and the book records that were more than 10% in the aggregate
of each class of inventory.
(b) The Company has been sanctioned working capital limits in excess of Rs. 5 crores in
aggregate from Banks/financial institutions on the basis of security of current assets.
Quarterly returns / statements filed with such Banks/ financial institutions are in
agreement with the books of account except difference as disclosed in standalone financial
statement. iii. The Company has not granted any loans, secured or unsecured to Companies,
Firms, Limited Liability Partnerships (LLP) or other parties covered in the register
maintained under Section 189 of the Companies Act, 2013 (‘‘the Act).
Accordingly, the provisions stated in paragraph 3 (iii) of the Order are not applicable to
the Company. 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 Act, in
respect of loans, investments, guarantees and securities made. v. In our opinion and
according to the information and explanations given to us, there are no amounts
outstanding which are in the nature of deposits within the meaning of Sections 73, 74, 75
and 76 of the Act and the rules framed thereunder as on March 31, 2023 and the Company has
not accepted any deposits during the year. vi. We have broadly reviewed the books of
account relating to materials, labour and other items of cost maintained by the Company
pursuant as specified by the Central Government for the maintenance of cost records under
sub-section (1) of section 148 of the Act and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have not, however, made
a detailed examination of the records with a view to determine whether they are accurate
or complete. vii. (a) According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, undisputed statutory dues including
provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of
custom, duty of excise, value added tax, goods and service tax, cess and other statutory
dues have generally been regularly deposited with the appropriate authorities.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, employees state insurance, income-tax, service tax,
sales-tax, duty of custom, duty of excise, value added tax, goods and service tax, cess
and other statutory dues were outstanding, at the year end, for a period of more than six
months from the date they became payable.
(c) According to the information and explanations given to us and the records of the
Company examined by us, there are no dues of income tax, goods and service tax, customs
duty, cess and any other statutory dues which have not been deposited on account of any
dispute, except as below:
| statute |
|
INR |
the amount relates |
pending |
| GST |
CENVAT on Sales |
2,40,249 |
2014-15 |
Asst. commissioner |
|
Commission paid |
|
|
|
| GST |
CENVAT on Sales |
7,44,870 |
2015-16 |
Asst. commissioner |
|
Commission paid |
|
|
|
| GST |
CENVAT on ocean |
2,25,473 |
2017-18 |
Original Adjudicating Auth. |
|
fright |
|
|
|
| GST |
e-way bill discrepancies |
9,23,855 |
2018-19 |
Commissioner, Daman |
| Name of the statute |
Nature of dues |
Amount INR |
Financial year to which the amount relates |
Forum where dispute is pending |
| Custom/ Excise |
Appeal against Order- |
1,43,057 |
2018-19 |
Commissioner of Customs |
|
in-Original |
|
|
|
| IT Act |
35(2AB) of IT Act |
1,25,84,600* |
2012-13 |
CIT Appeal |
| IT Act |
14A of IT Act |
11,48,420 |
2019-20 |
CIT Appeal |
* Rs 25.17 Lakhs paid with Appeal. viii. According to the information and explanations
given to us, there are no transactions which are not accounted in the books of account
which have been surrendered or disclosed as income during the year in Tax Assessment of
the Company. Also, there are no previously unrecorded income which has been now recorded
in the books of account. Hence, the provision stated in paragraph 3(viii) of the Order is
not applicable to the Company. ix. (a) In our opinion and according to the information and
explanations given to us, the Company has not defaulted in repayment of loans or
borrowings or in payment of interest thereon to any lender.
(b) According to the information and explanations given to us and on the basis of our
audit procedures, we report that the company has not been declared wilful defaulter by any
bank or financial institution or government or any government authority (c) In our opinion
and according to the information explanation provided to us, money raised by way of term
loans during the year have been applied for the purpose for which they were raised.
(d) According to the information and explanations given to us, and the procedures
performed by us, and on an overall examination of the standalone financial statements of
the company, we report that no funds raised on short-term basis have been used for
long-term purposes by the company.
(e) According to the information explanation given to us and on an overall examination
of the standalone financial statements of the Company, we report that the company has not
taken any funds from an any entity or person on account of or to meet the obligations of
its subsidiaries, associates or joint ventures.
(f) According to the information and explanations given to us and procedures performed
by us, we report that the Company has not raised loans during the year on the pledge of
securities held in its securities, joint ventures or associate companies. x. (a) The
Company did not raise any money by way of initial public offer or further public offer
(including debt instruments) during the year. Accordingly, the provisions stated in
paragraph 3 (ix) of the Order are not applicable to the Company.
(b) In our opinion and according to the information and explanations given to us and
based on our examination of the records of the Company, the Company has made preferential
allotment of shares during the year and the requirements of Section 42 and section 62 of
the Act have been complied with. The amount raised has been used for the purposes for
which they were raised. xi. (a) During the course of our audit, examination of the books
and records of the Company, carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations given to us, we have
neither come across any instance of material fraud by the Company nor on the Company by
its officers or employees.
(b) According to the information and explanations given to us, no report under
sub-section (12) of Section 143 of the Act has been filed by the auditors in Form ADT-4 as
prescribed under Rule 13 of the Companies (Audit and Auditors) Rules, 2014 with the
Central Government.
(c) As represented to us by the management, there are no whistle-blower complaints
received by the Company during the year. Accordingly, the provisions stated in paragraph
(xi)(c) of the Order is not applicable to company. xii. In our opinion and according to
the information and explanations given to us, the Company is not a Nidhi Company.
Accordingly, the provisions stated in paragraph 3 (xii) (a) to (c) of the Order are not
applicable to the Company. 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 Sections 177 and 188 of the Act where applicable and
details of such transactions have been disclosed in the financial statements as required
by the applicable Indian accounting standards. xiv. (a) In our opinion and based on our
examination, the Company has an internal audit system commensurate with the size and
nature of its business.
(b) We have considered internal audit reports issued by internal auditors during our
audit. xv. According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered into non-cash
transactions with directors or persons connected with him. Accordingly, provisions stated
in paragraph 3 (xv) of the Order are not applicable to the Company. 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 and accordingly, the provisions stated in paragraph clause 3 (xvi)
(a) of the Order are not applicable to the Company.
(b) In our opinion, the Company has not conducted any Non-Banking Financial or Housing
Finance activities without any valid Certificate of Registration from Reserve Bank of
India. Hence, the reporting under paragraph clause 3 (xvi)(b) of the Order are not
applicable to the Company.
(c) The Company is not a Core investment Company (CIC) as defined in the regulations
made by Reserve Bank of India. Hence, the reporting under paragraph clause 3 (xvi)(c) of
the Order are not applicable to the Company.
(d) The Company does not have any CIC as a part of its group. Hence, the provisions
stated in paragraph clause 3 (xvi) (d) of the Order are not applicable to the Company.
xvii. Based on the overall review of standalone financial statements, the Company has not
incurred cash losses in the current financial year and in the immediately preceding
financial year. Hence, the provisions stated in paragraph clause 3 (xvii) of the Order are
not applicable to the Company. xviii. There has been no resignation of the statutory
auditors during the year. Hence, the provisions stated in paragraph clause 3 (xviii) of
the Order are not applicable to the Company. xix. According to the information and
explanations given to us and based on our examination of financial ratios, ageing and
expected date of realisation of financial assets and payment of liabilities, other
information accompanying the standalone financial statements, our knowledge of the Board
of Directors and management plans, we are of the opinion that no material uncertainty
exists as on the date of audit report and 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, the provisions of section 135 of the Act are applicable to the
Company. The Company has made the required contributions during the year and there are no
unspent amounts which are required to be transferred to the special account as on the date
of our audit report. Accordingly, the provisions of paragraph (xx)(a) to (b) of the Order
are not applicable to the Company.
|
For A.G.Ogale & Company |
|
Chartered accountants |
|
ICAI Firm Registration No.: 114115W |
|
Pramod Gugale |
|
Partner |
| Place: Pune |
Membership No.: 113775 |
| Date: May 10, 2023 |
UDIN: 23113775BGURCH7936 |
ANNEXURE C TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL
STATEMENTS OF KABRA EXTRUSIONTECHNIK LIMITED
[Referred to in paragraph 2(f) under ‘Report on Other Legal and Regulatory
Requirements in 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") Opinion
We have audited the internal financial controls with reference to standalone financial
statements of KABRA EXTRUSIONTECHNIK
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.
In our opinion, the Company has, in all material respects, adequate internal financial
controls with reference to standalone financial statements and such internal financial
controls were operating effectively as at 31st March 2023, based on the internal financial
controls 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(the "Guidance Note").
Managements Responsibility for Internal Financial Controls
The Companys Management is responsible for establishing and maintaining internal
financial controls 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 (ICAI) (the
"Guidance Note"). 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 Act.
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 and the Standards on Auditing,
issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent
applicable to an audit of internal financial controls. 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 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 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 judgement, including the assessment of the risks of material misstatement of the
standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls with
reference to standalone Ind AS financial statements.
Meaning of Internal Financial Controls 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 standalone 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 standalone 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 standalone financial statements.
Inherent Limitations of Internal Financial Controls With Reference to Standalone
Financial Statements
Because of the inherent limitations of internal financial controls with reference to
standalone financial statements, 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 with reference to standalone financial statements to future periods are subject
to the risk that the internal financial control with reference to standalone Ind AS
financial statements may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may deteriorate.
|
For A.G.Ogale & Company |
|
Chartered accountants |
|
ICAI Firm Registration No.: 114115W |
|
Pramod Gugale |
|
Partner |
| Place: Pune |
Membership No.: 113775 |
| Date: May 10, 2023 |
UDIN: 23113775BGURCH7936 |
+91-9892691696
