To the Members of Kiran Vyapar Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of
KIRAN VYAPAR LIMITED (‘the Company), which comprise the Balance Sheet as at 31
March 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the
Cash Flow Statement and the Statement of Changes in Equity for the year then ended and a
summary of the 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 financial statements give the information required
by the Companies Act, 2013 (‘the Act) in the manner so required and give a true
and fair view in conformity with the accounting principles generally accepted in India
including Indian Accounting Standards (‘Ind AS) prescribed under section 133 of
the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended,
(“Ind AS”), of the state of affairs of the Company as at 31 March 2023, its
profit including other comprehensive income, its cash flows and the statement of changes
in equity for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Our responsibilities under those standards are
further described in the Auditors Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with the
Code of Ethics issued by the Institute of Chartered Accountants of India
(‘ICAI) together with the ethical requirements that are relevant to our audit
of the financial statements under the provisions of the Act and the rules thereunder, and
we have fulfilled our 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 audit opinion on the 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 financial statements of the current period.
These matters were addressed in the context of our audit of the financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
| Sl. No. Key Audit Matters |
Auditors Response |
| 1 Fair value of unquoted investment |
Our audit procedures, included, but were not limited to, the
following: |
| As at 31 March 2023, the Company has unquoted investments
amounting to Rs.729.01crore which includes investments in equity instruments, preference
instruments and venture capital funds, Mutual Funds. These investments represent 82.85% of
the total assets of the Company as at 31 March 2023. |
Obtained a detailed understanding of the managements
process and controls for determining the fair valuation of unquoted investment. The
understanding was obtained by performance of walkthroughs which included inspection of
documents produced by the Company and discussion with those involved in the process of
valuation; |
| The aforesaid investment is not traded in the active market.
These investments are fair valued using Level 3 inputs. The fair valuation of these
investments is determined by a management-appointed independent valuation specialist based
on discounted cash flow method for equity and preference instruments. Investments in
venture capital funds are valued based on the net asset value declared by the respective
funds. The process of computation of fair valuation of investments includes use of
unobservable inputs, management judgements and estimates which are complex. |
Evaluated the design and the operational effectiveness of
relevant key controls over the valuation process, including the Companys review and
approval of the estimates and assumptions used for the valuation including key
authorization and data input controls, independent price verification performed by the
management expert and model governance and valuation |
| The key assumptions underpinning managements assessment
of fair value of these investments include application of liquidity discounts; calculation
of discounting rates and the estimation of projections of revenues, projections of future
cash flows and growth rates. |
Assessed the appropriateness of the valuation methodology
used for the unquoted investment in accordance with the Companys policy and tested
the mathematical accuracy of the managements model adopted; |
| The valuation of these investments was considered to be one
of the areas which required significant auditor attention and was one of the matters of
most significance in the standalone financial statements due to the materiality of total
value of investments to the standalone financial statements and the complexity involved in
the valuation of these investments. |
Obtained the valuation report from managements expert
and assessed the experts competence, objectivity and independence in performing the
valuation of these investments; |
|
Assessed the appropriateness of the valuation model used by
the management and the assumptions used relating to projected cash flows and the
discounting factor. |
|
Ensured the appropriateness of the carrying value of these
investments in the financial statements and the gain or loss recognised in the financial
statements as a result of such fair valuation; and |
|
Ensured the appropriateness and adequacy of disclosures in
accordance with the applicable accounting standards. |
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 Annual
Report, but does not include the financial statements and our auditors report
thereon. The Annual Report is expected to be made available to us after the date of this
auditors report.
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 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 for the Standalone Financial Statements
The accompanying standalone financial statements have been approved by
the Companys Board of Directors. The Companys Board of Directors is
responsible for the matters stated in section 134(5) of the Act with respect to the
preparation of these standalone financial statements that give a true and fair view of the
state of affairs, profit including other comprehensive income, changes in equity and cash
flows of the Company in accordance with the accounting principles generally accepted in
India, including the Ind AS 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
statements 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, management is
responsible for assessing the Companys ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the
Companys financial reporting process.
Auditors Responsibilities for the Audit of the 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 Standards on Auditing 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.
As part of an audit in accordance with Standards on Auditing, we
exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
Identify and assess the risks of material misstatement of the
standalone 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 controls relevant to the
audit in order to design audit procedures that are appropriate in the circumstances. Under
section 143(3)(i) of the Act, we are also responsible for expressing our opinion on
whether the Company has adequate internal financial controls system in place and the
operating effectiveness of such controls.
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
financial statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we
have complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the financial
statements of the current period and are therefore the key audit matters. We describe
these matters in our auditors report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
With respect to the other matters to be included in the Auditors
Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the
explanations given to us, the remuneration paid by the Company to its directors during the
year is in accordance with the provisions of section 197 of the Act.
As required by the Companies (Auditors Report) Order, 2020
(‘the Order) issued by the Central Government of India in terms of section
143(11) of the Act, we give in the Annexure A, a statement on the matters specified in
paragraphs 3 and 4 of the Order.
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
of the accompanying standalone financial statements;
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 financial statements 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 the Act read with
relevant rule issued there under;
e. on the basis of the written representations received from the
directors as on 31st March, 2023 and taken on record by the Board of Directors, none of
the directors are disqualified as on 31st March, 2023from being appointed as a director in
terms of Section 164(2) of the Act;
f. with respect to the adequacy of the internal financial controls over
financial reporting (IFCoFR) of the Company and the operating effectiveness of such
controls refer to our separate report in Annexure ‘B.
g. with respect to the other matters to be included in the
Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014 (as amended), in our opinion and to the best of our information and according
to the explanations given to us:
i. the Company, as detailed in note 29 to the standalone financial
statements, has disclosed the impact of pending litigation(s) on its financial position as
at 31 March 2023;
ii. the Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable losses as at 31 March
2023;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the Company during the year
ended 31 March 2023.
iv. 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 securities premium or any other sources or kind of funds) by the Company to or in any
person(s) or entity(ies), including foreign entities (‘the intermediaries),
with the understanding, whether recorded in writing or otherwise, that the intermediary
shall, whether, directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Company (‘the Ultimate
Beneficiaries) or provide any guarantee, security or the like on behalf the Ultimate
Beneficiaries;
v. 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 (‘the Funding Parties), with the understanding,
whether recorded in writing or otherwise, that the Company shall, whether directly or
indirectly, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (‘Ultimate Beneficiaries) or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
vi. Based on such audit procedures performed as considered reasonable
and appropriate in the circumstances, nothing has come to our attention that causes us to
believe that the management representations under sub-clauses (a) and (b) above contain
any material misstatement.
vii. The dividend declared or paid during the year ended 31 March 2023
by the Company is in compliance with section 123 of the Act.
ANNEXURE A TO THE AUDITORS REPORT
The Annexure referred to in Independent Auditors Report of even
date to the members of KIRAN VYAPAR LIMITED, on the financial statements for the year
ended 31st March, 2023.
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and taking into
consideration the information and explanations 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) The Company has maintained proper records showing full
particulars, including quantitative details and situation of property, plant and
equipment.
(b) The property, plant and equipment have been physically verified by
the management during the year and no material discrepancies were noticed on such
verification. In our opinion, the frequency of physical verification program adopted by
the Company, is reasonable having regard to the size of the Company and the nature of its
assets.
(c) The company does not hold any immovable properties. Accordingly,
reporting under clause 3(i)(c) of the Order is not applicable to the Company.
(d) The Company has not revalued its Property, Plant and Equipment
during the year.
(e) No proceedings have been initiated or are pending against the
Company for holding any benami property under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and rules made there under. Accordingly, reporting under clause 3(i)(e)
of the Order is not applicable to the Company.
(ii) (a) The Company does not hold any inventory/tangible inventory.
Accordingly, reporting under clause 3(ii)(a) and (b) of the Order is not applicable to the
Company.
(iii) (a) The Company is a Non-Banking Finance Company or Housing
Finance Company and its principal business is to give loans. Accordingly, reporting under
clause 3(iii)(a) of the Order is not applicable to the Company.
(b) The investments made, guarantees provided, security given and terms
and conditions of the grant of all loans and advances in the nature of loans and
guarantees provided are not, prima facie, prejudicial to the Companys
interest.
(c) In respect of loans and advances in the nature of loans granted by
the Company, the schedule of repayment of principal and payment of interest has been
stipulated and the repayments/receipts of principal and interest are regular.
(d) The total amount which is overdue for more than 90 days as at 31
March 2023 in respect of loans or advances in the nature of loans granted to such
companies, firms, LLPs or other parties is as follows:
| Particulars |
Amount (Rs) |
No. of Cases |
Remarks, if any |
| Principal |
68.24 |
1 |
- |
| Interest |
- |
- |
- |
| Total |
68.24 |
1 |
- |
Reasonable steps have been taken by the Company for recovery of such
principal amounts and interest.
(e) The Company has granted loan(s) or advance(s) in the nature of
loan(s) which had fallen due during the year and was/were repaid on or before the due
date. Further, no fresh loans were granted to any party to settle the overdue
loans/advances in nature of loan.
(f) The Company has granted loan(s) or advance(s) in the nature of
loans which are repayable on demand or without specifying any terms or period of
repayment, as per details below:
| Particulars |
All Parties |
Promoters |
Related Parties |
| Aggregate of loans/advances innature of loan |
19,867.69 |
|
|
| - Repayable on demand (A) |
- |
- |
7,178.00 |
| - Agreement does not specify any terms or period of repayment
(B) |
- |
- |
- |
| Total (A+B) |
19,867.69 |
- |
7,178.00 |
| Percentage of loans/advances innature of loan to the total
loans |
- |
- |
36.13% |
(iv) In our opinion, and according to the information and explanations
given to us, the Company has complied with the provisions of sections 185 and 186 of the
Act in respect of loans, investments, guarantees and security, as applicable.
(v) The Company has not accepted any deposits within the meaning of
Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as
amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) The Central Government has not specified maintenance of cost
records under sub-section (1) of section 148 of the Act, in respect of Companys
products/business activity. Accordingly, reporting under clause 3(vi) of the Order is not
applicable.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts deducted accrued in
the books of account in respect of undisputed statutory dues including goods and services
tax, provident fund, employees state insurance, income-tax, sales-tax, service tax,
duty of customs, duty of excise, value added tax, Good and Service Tax, cess and other
material statutory dues, as applicable, have generally been regularly deposited to the
appropriate authorities. Further, no undisputed amounts payable in respect thereof were
outstanding on the year-end for a period of more than six months from the date they became
payable.
(b) According to the information and explanations given to us, there
are no statutory dues referred in sub-clause (a) which have not been deposited with the
appropriate authorities on account of any dispute except for the following:
| Name of the statute |
Nature of dues |
Amount (Rs lakhs) |
Amount Paid Under Protest (Rs lakhs) |
Period to which the amount relates
(A.Y.) |
Forum where dispute is pending |
| The Income-Tax Act, 1961 |
Income Tax |
685.00 |
Nil |
AY 2011-12 |
Commissioner of Income Tax (Appeals) |
| The Income-Tax Act, 1961 |
Income Tax |
15.40 |
2.31 |
AY 2013-14 |
Commissioner of Income Tax (Appeals) |
| The Income-Tax Act, 1961 |
Income Tax |
1054.34 |
158.15 |
AY 2014-15 |
Commissioner of Income Tax (Appeals) |
| The Income-Tax Act, 1961 |
Income Tax |
71.04 |
Nil |
AY 2015-16 |
Commissioner of Income Tax (Appeals) |
| The Income-Tax Act, 1961 |
Income Tax |
364.94 |
Nil |
AY 2018-19 |
Commissioner of Income Tax (Appeals) |
(viii) According to the information and explanations given to us, no
transactions were surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961 (43 of 1961) which have not been recorded in
the books of accounts.
(ix) (a) According to the information and explanations given to us,
pursuant to receiving the approvals for rescheduling its loan(s) from the lender(s), the
Company has not defaulted in repayment of its loans or borrowings or in the payment of
interest thereon to any lender.
(b) According to the information and explanations given to us including
confirmations received from banks/ financial institution and/or other lenders and
representation received from the management of the Company, and on the basis of our audit
procedures, we report that the Company has not been declared a willful defaulter by any
bank or financial institution or other lender.
(c) In our opinion and according to the information and explanations
given to us, money raised by way of term loans were applied for the purposes for which
these were obtained.
(d) In our opinion and according to the information and explanations
given to us, and on an overall examination of the financial statements of the Company,
funds raised by the Company on short term basis have not been utilised for long term
purposes.
(e) According to the information and explanations given to us and on an
overall examination of the financial statements of the Company, the Company has not taken
any funds from any entity or person on account of or to meet the obligations of its
subsidiaries, associates or joint ventures.
(f) According to the information and explanations given to us, the
Company has not raised any loans during the year on the pledge of securities held in its
subsidiaries, 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 instrument) during the year. Accordingly,
reporting under clause 3(x)(a) of the Order is not applicable to the Company.
(b) According to the information and explanations given to us, the
Company has not made any preferential allotment or private placement of shares or (fully,
partially or optionally) convertible debentures during the year. Accordingly, reporting
under clause 3(x)(b) of the Order is not applicable to the Company.
(xi) (a) To the best of our knowledge and according to the information
and explanations given to us, no fraud by the Company or on the Company has been noticed
or reported during the period covered by our audit.
(b) No report under section 143(12) of the Act has been filed with the
Central Government for the period covered by our audit.
(c) According to the information and explanations given to us including
the representation made to us by the management of the Company, there are no
whistle-blower complaints received by the Company during the year.
(xii) The Company is not a Nidhi Company and the Nidhi Rules, 2014 are
not applicable to it. Accordingly, reporting under clause 3(xii) of the Order is not
applicable to the Company.
(xiii) In our opinion and according to the information and explanations
given to us, all transactions entered into by the Company with the related parties are in
compliance with sections 177 and 188 of the Act, where applicable.
Further, the details of such related party transactions have been
disclosed in the standalone financial statements, as required under Indian Accounting
Standard (Ind AS) 24, Related Party Disclosures specified in Companies (Indian Accounting
Standards) Rules 2015 as prescribed under section 133 of the Act.
(xiv) (a) In our opinion and according to the information and
explanations given to us, the Company has an 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 the reports issued by the Internal Auditors of
the Company till date for the period under audit.
(xv) According to the information and explanation given to us, the
Company has not entered into any non-cash transactions with its directors or persons
connected with them and accordingly, provisions of section 192 of the Act are not
applicable to the Company.
(xvi) The Company is required to be registered under section 45-IA of
the Reserve Bank of India Act, 1934 and such registration has been obtained by the
Company.
(xvii)The Company has not incurred any cash loss in the current as well
as the immediately preceding financial year.
(xviii)There has been no resignation of the statutory auditors during
the year and accordingly paragraph 3(xviii) of the Order is not applicable.
(xix) According to the information and explanations given to us and on
the basis of the financial ratios, ageing and expected dates of realisation of financial
assets and payment of financial liabilities, other information accompanying the standalone
financial statements, our knowledge of the plans of the Board of Directors and management,
we are of the opinion that no material uncertainty exists as on the date of the audit
report that Company is capable of meeting its liabilities existing at the date of balance
sheet as and when they fall due within a period of one year from the balance sheet date.
We, however, state that this is not an assurance as to 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 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) According to the information and explanations given to us, the
Company does not have any unspent amount in respect of any ongoing or other than ongoing
project as at the expiry of the financial year. Accordingly, reporting under clause 3(xx)
of the Order is not applicable to the Company.
(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 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”)
In conjunction with our audit of the financial statements of KIRAN
VYAPAR LIMITED (“the Company”) as of and for the year ended 31st March 2023, we
have audited the internal financial controls over financial reporting (IFCoFR) of the
company as of that date.
Managements 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 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
IFCoFR 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 Standards on Auditing, issued by the Institute of Chartered Accountants of
India (ICAI) and deemed to be prescribed under section 143(10) of the Companies Act, 2013,
to the extent applicable to an audit of IFCoFR, and the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the “Guidance Note”) issued by the
ICAI. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate IFCoFR 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 IFCoFR and their operating effectiveness. Our audit of IFCoFR included
obtaining an understanding of IFCoFR, assessing the risk that a material weakness exists,
and testing and evaluating the design and operating effectiveness of internal control
based on the assessed risk. The procedures selected depend on the auditors judgment,
including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error.
We believe that the audit evidences we have obtained are sufficient and
appropriate to provide a basis for our audit opinion on the Companys IFCoFR.
Meaning of Internal Financial Controls Over Financial Reporting
A companys IFCoFR 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 IFCoFR includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the companys assets that could have a material effect on the
financial statements.
Inherent Limitations of Internal Financial Controls Over Financial
Reporting
Because of the inherent limitations of IFCoFR, 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 IFCoFR to future periods are subject to the risk that IFCoFR 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, the Company has, in all material respects, adequate
internal financial controls over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31st March 2023, based 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 ICAI.
| B Chhawchharia & Co |
| Firm Regn. No. : 305123E |
| Chartered Accountants |
| Kshitiz Chhawchharia |
| Partner |
| Membership No. 061087 |
| UDIN : 23061087BGZAYY9659 |
| Place : Kolkata |
| Dated, the 17th day of May, 2023 |
+91-9892691696
