To
The Members of Kothari Products Limited
REPORTON THE AUDITOF THE STANDALONE FINANCIAL STATEMENTS
Opinion
We have audited the accompanying Standalone Financial Statements of Kothari Products
Limited ("the Company"), which comprise the Standalone Balance Sheet as at
March 31,2023, the Standalone Statement of Profit and Loss (including Other Comprehensive
Income), the Standalone Statement of Changes in Equity and the Standalone Statement of
Cash Flows for the year then ended, and notes to Standalone Financial Statements including
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 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("lnd AS")
prescribed under section 1 33 of the Act read with the Companies (Indian Accounting
Standards) Rules, 201 5, as amended and other accounting principles generally accepted in
India, of the state of affairs of the Company as at March 31,2023 and its profit
(including other comprehensive income), the changes in equity and its cash flows for the
year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial Statement 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 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 Financial Statements
under the provisions of the Act and the Rules framed there under, and we have fulfil led
our other ethical responsibilities in accordance with these requirements and the 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 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 informing our opinion thereon, and we do not provide a separate
opinion on these matters.
We have determined that there are no key audit matters to communicate in our report.
Information Other than the Standalone Financial Statements and Auditors Report thereon
The Companys Management and Board of Directors are responsible for the preparation of
the other information. The other information comprises the information included in Annual
Report, but does not include the Standalone Financial Statements, Consolidated Financial
Statements and our Auditors report thereon. The Annual Report is expected to be made
available to us after the date of this report.
Our opinion on the Standalone Financial Statements does not coverthe other information
and we do not express any form of assurance conclusion there on.
In connection with our audit of the Standalone Financial Statements, our responsibility
is to read the other information identified above 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.
When we read the Annual Report, if we conclude that there is a material misstatement
therein, we are required to communicate the matter to Those Charged With Governance and
take necessary actions as applicable under the relevant laws and regulations.
Managements and Those Charged with Governance Responsibilities for the Standalone
Financial Statements
The Companys Management and Board of Directors are responsible for the matters stated
in section 1 34(5) of the Act with respect to the preparation of the Standalone Financial
Statements that give a true and fair view of the financial position, financial performance
including other comprehensive income, changes in equity, cash flows of the Company in
accordance with the accounting principles gene rally accepted in India, including Ind AS
and relevant provisions of the Act.
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
Financial Statements that give a true and fair view and a re free from material
misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, the Companys Management and 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 management either intends to liquidate the Company or
to cease operations, or has no realistic alternative but to do so, The 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 a
rise 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 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
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
adequate internaI financial controls system 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 Management.
• Conclude on the appropriateness of Management and Board of Directors 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. Flowever, 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.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the Standalone 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 section 1 43(11) of the Act, we give
in the "Annexure A", a statement on the matters specified in the paragraph 3 and
4 of the said 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 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 (Including
Other Comprehensive Income), the Standalone Statement of Changes in Equity and the
Standalone Statement of Cash Flows 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, read with relevant rules
issued thereunder and relevant provisions 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 1 64(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 B", Our report expresses an
unmodified opinion on the adequacy and operating effectiveness of the Companys internal
financial controls with reference to Standalone Financial Statements;
g) With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 1 97(1 6) 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 1 97 of the Act; and
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 details of pending litigations, however, it does not have
adverse impact on its financial position. Refer note 44 to Standalone Financial
Statements;
ii. The Company does not have any long term contracts including derivative contracts
requiring a provision for material foreseable 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. (a) The Management has represented that 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 guara ntee,security orthe like on
behalf of the Ultimate Beneficiaries;
(b) The Management has represented that no funds have been received by the Company from
any person(s) or entity(ies), including foreign entities ("Funding Parties"),
with the understanding, whether recorded in writing or otherwise, that the Company shall,
whether, directly or indirectly, lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee,securityorthe like on behalf of the Ultimate
Beneficiaries; and
(c) Based on the audit procedures performed that have been considered reasonable and
appropriate in the circumstances, nothing hascometo our noticethat has caused usto believe
that the representations undersubclause (i) and (ii) of rule 1 1 (e),as provided under (a)
and (b) above, contain any material misstatement.
v. The Company has neither declared nor paid any dividend during the year.
vi. Proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of accounts 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.
For G. M. Kapadia & Co.
Chartered Accountants Firm Registration No.104767W
|
AtulShah |
|
Partner |
| Place; Mumbai |
Membership No.039569 |
| Date: 23rd May, 2023 |
UDIN: 23039569BGURJN8126 |
Annexure A - referred to in paragraph 1 under "Report on Other Legal and
Regulatory Requirements" of our Independent Auditors Report of even date, to the
members of the Kothari Products Limited on the Standalone Financial Statements for the
year ended March 31,2023
In terms of the information and explanations sought by us and given by the Company and
the books of account and records examined by us in the normal course of audit and to the
best of our knowledge and belief, we state that:
(i) (a) (A) The Company has maintained proper records showing full particulars
including quantitative details and situation of its Property, plant and equipment.
(B) The Company has maintained proper records showing full particulars of its
Intangible assets.
(b) The Company has a regular programme of physical verification of its Property, plant
and equipment by which all Property, plant and equipment of the Company are being verified
in a phased manner over a period of three years, which in our opinion, is reasonable
having regard to the size of the Company and nature of its business. Pursuant to the
program, a portion of Property, plant and equipment has been physically verified by the
Management during the year and no material discrepancies were noticed on such verification
as compared with the book records,
(c) Based on test check examination of the records and sale deeds / transfer deeds /
lease deeds / conveyance deeds / property tax receipts and such other documents provided
to us, the title deeds of immovable properties (other than immovable properties where the
Company is the lessee and the lease agreements are duly executed in favour of the lessee)
are held inthe name of the Company.
(d) The Company has not revalued its Property, plant and equipment (including
Right-of-use assets) or Intangible assets or both during the year ended March 31,2023.
(e) There are no proceedings initiated during the year or pending against the Company
as at March 31,2023 for holding any benami property under the Benami Transactions
(Prohibition) Act, 1 988 and rules made thereunder.
(ii) (a) The inventory (excluding stocks with third parties) has been physically
verified by the Management during the year. In our opinion, the frequency of such
verification is reasonable. Procedures and coverage, as followed by the Management were
appropriate. No discrepancies were noticed on verification between the physical stocks and
the book records that were 1 0% or more inthe aggregate for each class of inventory.
(b) According to the information and explanations given to us, at any point of time of
the year, the Company has not been sanctioned any working capital facility from banks
orfinancial institutions and hence reporting underparagraph (ii)(b) of the Order is not
applicable.
(iii) During the year, the Company has made investments in, provided guarantee and
granted loans, secured or unsecured to companies, firms, limited liability partnership or
any other parties. The Company has not provided security or advances inthe nature of loans
to companies, firms, limited liability partnership or any other parties during the year.
In respect of such investments, loans and guarantees:
(a) During the year, the Company has provided loans to and has stood guarantee to for
other entities.
Amount in Rs. Lacs
| Particulars |
Loans (including interest accrued) |
Guarantee |
| Aggregate amount during the year |
|
|
| -Subsidiary |
18,216 |
- |
| -Others |
15 |
- |
| Balance outstanding as at balance sheet date in respect of above cases |
|
|
| -Subsidiary |
9,682 |
- |
| -Others |
168 |
- |
(b) The terms and conditions of the investments made and loans granted during the year
are, prima facie, not prejudicial to the interest of the Company.
(c) The Company has granted loans to the companies that are repayable on demand and
schedule of repayment of principal and payment of interest have not been stipulated. The
loan and interest demanded during the year have been repaid and received.
(d) As explained in pa rag raph 3(iii)(c) above, there is no overdue amount.
(e) As explained in paragraph 3(iii)(d) above, no loan is overdue. Accordingly, the
requirement to report on paragraph 3(iii)(e) of the Order is not applicable to the
Company.
(f) As disclosed in note 5 and 14 to the Standalone Financial Statements, the Company
has granted loans or advances in the nature of loans, either repayable on demand or
without specifying any terms or period of repayment to companies. Of these, following are
the details of the aggregate amount of loans or advances in the nature of loans granted to
the related parties as defined in clause (76) of section 2 of the Companies Act, 2013:
Amount in Rs. Lacs
| Particulars |
Promoter |
Related Party |
All Parties |
| Aggregate amount of loans (including interest accrued) granted during the year, which
are repayable on demand |
|
|
|
| - Repayable on demand (A) |
Nil |
Nil |
Nil |
| - Agreement does not specify any terms or period of repayment (B) |
Nil |
18,216 |
18,231 |
| Total (A+B) |
Nil |
18,216 |
18,231 |
| Percentage of loans in nature of loa ns to the total loans |
Nil |
99.92% |
100% |
(iv) The Company has complied with the provisions of sections 1 85 and 1 86 of the Act,
as applicable.
(v) The Company has not accepted any deposits or amounts which are deemed to be
deposits from the public. In addition, no order has been passed by Company Law Board or
National Company LawT ribunal or Reserve Bank of India or any court or any other tribunal.
Accordingly, paragraph 3(v) of the Order is not applicable.
(vi) The maintenance of cost records has not been specified by the Central Government
under section 1 48(1) of the Act for the business activities carried out by the Company.
Hence, reporting under paragraph 3(vi) of the Orderis not applicable to the Company.
(vii) (a)The Company has been regular in depositing undisputed statutory dues including
provident fund, employees state insura nee, income tax, sales tax, service tax, duty of
customs, d uty of excise, value added tax, goods and services tax, cess and other
statutory dues with the appropriate authorities. No undisputed statutory dues payable were
in arrears as at March 31,2023 for a period of more than six months from the date they
became payable.
(b)The details of statutory dues referred to in sub paragraph (a) which have not been
deposited with the concerned authorities on account of dispute are given below:
| Name of statute |
Nature of dues |
Amount in Rs. Lacs |
Period to which the amount relates |
Forum where dispute is pending |
| Income-tax Act ,1961 |
Income tax |
206.72 |
Block Period |
High Court |
| Income-tax Act, 1961 |
Income tax |
69.53 |
AY 201 8-19 |
CIT(A) |
| Income-tax Act, 1961 |
Income tax |
117.93 |
AY 2001-02 |
High Court |
| Income-tax Act, 1961 |
Income tax |
135.99 |
AY 2020-21 |
AO |
| Income-tax Act, 1 961 |
Income tax |
28.78 |
AY2010-11 |
Income Tax Appellate Tribunal |
| Central Excise Act |
Prosecution of Excise Act |
Amount uncertainable |
- |
CJM Court |
| M.V.Act |
Claim Cases |
Amount Uncertainable |
- |
MACT |
(viii) During the year, there were no transactions relating to previously unrecorded
income that were surrendered or disclosed as income in the tax assessments under the
IncomeTaxAct, 1961.
(ix) (a) According to the information and explanations given to us and on the basis of
our examination of the books of accounts, the Company has not defaulted in repayment of
loans or other borrowings or in the payment of interest to any lender during the year.
(b) The Company has not been declared willful defaulter by any bank or financial
institution or other lender.
(c) The Company has not obtained any term loans during the year. Accordingly, paragraph
3(ix)(c) of the Order is not applicabletothe Company.
(d) On an overall examination of the Standalone Financial Statements of the Company,
funds are raised on shortterm basis have, prima facie, not been used during the year for
longterm purposes by the Company.
(e) The Company has not taken any funds from any entity or person on account of or to
meet the obligations of its subsidiaries and associates. The Company does not have any
joint venture.
(f) The Company has not raised loans during the year on the pledge of securities held
in its subsidiaries or associates. Accordingly, the requirement to report on paragraph
3(ix)(f) of the Order is not applicable to the Company.
(x) (a) The Company has not raised any moneys by way of Initial Public Offer or Further
Public Offer (including debt instrument). Accordingly, paragraph 3(x)(a) of the Order is
not applicable.
(b) During the year, the Company has not made preferential allotment or private
placement of shares or convertible debentures (fully or partly or optionally).
Accordingly, paragraph 3(x)(b)of the Order is not applicable.
(xi) (a) No fraud by the Company and no materia I fraud on the Company has been noticed
or reported during the year.
(b) During the year and up to the date of this report, no report under section 143(1 2)
of the Act has been filled by the auditors in Form ADT-4 as prescribed under rule 1 3 of
Companies (Audit and Auditors) Rules, 2014 with the Central Government.
(c) There were no whistle blower complaints received by the Company during the year.
(xii) The Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is
not applicable.
(xiii) Transactions with the related parties are in compliance with section 177 and 1
88 of the Act where applicable and details of such transactions have been disclosed in the
Standalone Financial Statements as required by the applicable accounting standards.
(xiv) (a) The Company has an internal audit system commensurate with the size and
nature of its business.
(b) We have considered the internal audit reports of the Company issued till date for
the period under audit.
(xv) The Company has not entered into any non-cash transactions with directors. We have
been informed that no such transactions have been entered into with person connected with
directors. Accordingly, reporting under paragraph 3(xv) of the Order is not applicable to
the Company.
(xvi) (a) The Company is not required to be registered under section 45-IA of the
Reserve Bank of India Act, 1 934 ("RBI Act"). Accordingly, reporting under
paragraph 3(xvi)(a)of the Order are not applicable to the Company.
(b) The Company has not conducted any Non-Banking Finance or Housing Finance activities
which would require the Company to hold valid Certificate of Registration from the Reserve
Bank of India ("RBI") as per the RBI Act.
(c) The Company is not a Core Investment Company("CIC") as defined in the
regulations made by the RBI. Accordingly, paragraph 3(xvi)(c) of the Order is not
applicable.
(d) There are no CICas a part of the Group, hence, the requirement to report on
paragraph 3(xvi)(d) of the Order is not applicable to the Company.
(xvii) The Company has not incurred cash losses in the current financial year or in the
immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year.
Accordingly, paragraph 3(xviii) of the Order is not applicable.
(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 the audit report indicating that Company is not 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 fa II due.
(xx) There is no amount remaining unspent by the Company under section 135 of the Act.
Accordingly, reporting under paragraph 3(xx)(a) and (xx)(b) of the Order is not applicable
to the Company.
For G. M. Kapadia & Co.
Chartered Accountants
Firm Registration No.104767W
|
AtulShah |
|
Partner |
| Place: Mumbai |
Membership No.039569 |
| Date: 23rd May, 2023 |
UDIN: 23039569BGURJN8126 |
Annexure B - referred to in paragraph 2(f) under "Report on Other Legal and
Regulatory Requirements" of our Independent Auditors Report of even date, to the
members of Kothari Products Limited on the Standalone Financial Statements for the year
ended March 31,2023
Report on the Internal Financial Controls with reference to Standalone Financial
Statements under section 143(3)(i)of the Act Opinion
We have audited the internal financial controls with reference to Standalone Financial
Statements of Kothari Products 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 aspects, 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 Guidance Note of Audit of Internal
Financial Controls over Financial Reporting ("Guidance Note") issued by the
Institute of Chartered Accountants of India ("ICAI").
Managements Responsibility For Internal Financial Controls with reference to
Standalone Financial Statement
The Companys Management and Board of Directors are 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. 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 for Internal Financial Controls with reference to Standalone
Financial Statement
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 the ICAI and deemed to be prescribed under section 1 43(1 0) of the Act, to the
extent applicable to an audit of internal financial controls, both applicable to an audit
of Internal Financial Controls and both issued by the ICAI. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether adequate internal financial controls
with reference to standalone financial statements were 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 control system 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
controls based on the assessed risk, both applicable to an audit of Internal Financial
Controls and, both issued by the ICAI.
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 evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys interna I financial controls system
with reference to Standalone 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 internaI financial controls with reference to
Standalone Financial Statements, including the possibility of collusion or improper
management override of controls, material misstatements due to error orfraud 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 financial statements
may become inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.
For G. M. Kapadia & Co.
Chartered Accountants
Firm Registration No.104767W
|
Atul Shah |
|
Partner |
| Place: Mumbai |
Membership No.039569 |
| Date: 23rd May, 2023 |
UDIN: 23039569BGURJN8126 |
+91-9892691696
