To
The Members of Lancer Container Lines Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of Lancer Container Lines Limited
("the Company"), which comprise the Balance Sheet as at 31st March 2023, and the
statement of Profit and Loss (including Other Comprehensive Income), the Statement of
Changes in Equity and the Statement of Cash Flows for the year then ended and notes to the
financial statements, including a summary of significant accounting policies and other
explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Act in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of affairs of the Company
as at March 31, 2023, and its profit and other comprehensive loss, 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 Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the Audit of the
Standalone Financial Statements section of our report. We are independent of the Company
in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India (ICAI) together with the ethical requirements that are relevant to our audit of the
standalone financial statements under the provisions of the Companies Act, 2013 and the
Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the 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 in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be
communicated in our report.
KEY AUDIT MATTER |
RESPONSE TO KEY AUDIT MATTER |
| 1. Accuracy of Revenues |
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| , Expenses & related Trade Receivables and Payables with Overseas
Agents: The main line of business of the company is Ocean transport services of intermodal
containers by container ships (NVOCC - Non Vessel Operating Common Carrier). While in
India the services are rendered and revenue collected through the head office and branch
network, the delivery of shipping services at overseas destinations is achieved through
agency arrangements with Overseas Agents, who are selected based on the assessment of
their track record & market feedback. Under the agency agreement, these agents are
required to ensure handling of containers arriving at their respective locations and
collect revenue due at their destination and effect any local payments due for handling of
the containers. The collections and payments are accounted for at a movement level in a
Statement of Account and payments in foreign currency are made or received by the company. |
Audit Procedure adopted: We assessed the process
followed by the company to track and record such transactions with Overseas agents. Our
evaluation was done on the following lines: |
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• Evaluated the process followed by the company for recording the
revenues and expenses against the container movement and the checks and balances thereon. |
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• Examined the Agency agreements entered into by the company. |
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• Selected sample transactions with overseas agents based on
materiality. |
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• Examined the details of Revenue, Expenditure recorded in
comparison with the Agency agreements and the accuracy thereon. |
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Conclusion The company follows a practice of exchanging
the Statement of Accounts with each overseas agent and obtaining sign-off. Booking of
revenue is done after obtaining confirmation from the Overseas agent which is normally
received. Given the diverse regulations, procedures and documentation applicable at each
agents location, time zone differences, the confirmations of certain locations and or
agents are received with a lag. Materially outstanding balances, if any, with overseas
agents are reviewed on regular basis. Our procedures did not identify any material
exceptions in this process. We validated the appropriateness of the related disclosures in
note no of 36 of the financial statements. |
Other Information
The Companys Management and Board of Directors are responsible for the other
information. The other information comprises the information included in the Companys
annual report, but does not include the financial statements and our auditors report
thereon. The Companys 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 will 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 identified above when it becomes available 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 Companys 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 Responsibility For the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("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 financial statement that give
a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
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.
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 financial control relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the 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 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 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
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 Companies Act, 2013, we give in the "Annexure A", a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
As required by Section 143(3) of the Act, based on our audit 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 Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity, and the Cash Flow Statement dealt with by this
Report are in agreement with the relevant books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with Ind AS
specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 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 over financial
reporting 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, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial
position.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
iv. a) 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.
b) 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, 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.
c) Based on the audit procedures performed that have been considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub-clause (iv) (a) and (iv) (b) contain any
material mis-statement.
v. The dividend declared or paid during the year by the Company is in compliance with
section 123 of the Act.
(h) With respect to the matter to be included in the Auditors Report under Section
197(16) of the Act:
In our opinion and according to the information and explanations given to us, the
remuneration paid by the Company to its directors during the current year is in accordance
with the provisions of Section 197 of the Act. The remuneration paid to any director is
not in excess of the limit laid down under Section 197 of the Act. The Ministry of
Corporate Affairs has not prescribed other details under Section 197(16) of the Act which
are required to be commented upon by us.
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For Praneti Yadav &Co. |
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Chartered Accountants |
|
ICAI Firm Registration No. 137534W |
|
Praneti Yadav |
|
Proprietor |
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Membership No. 156403 |
Mumbai |
UDIN: 23156403BGUAYJ5242 |
May 25,2023 |
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Annexure "A” to the Auditors Report
Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements
section of our report the members of Lancer Container Lines Limited of even date
(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) As explained to us, the Property, Plant and Equipment have been physically verified
by the management at reasonable intervals during the year, which in our opinion is
reasonable having regard to the size of the Company and nature of its assets. No material
discrepancies were noticed on such verification;
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the title deeds of all the immovable properties
(other than properties where the company is the lessee and the lease agreements are duly
executed in favour of the lessee) disclosed in the financial statements are held in the
name of the company;
(d) According to the information and explanations given to us and on the basis of our
examination of the records of
(e) the Company, the company has not revalued its Property, Plant and
Equipment (including Right of Use assets) or intangible assets or both during the year;
According to the information and explanations given to us and on the basis of our
examination of the records of the Company, 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 thereunder;
(ii) (a) As explained to us, physical verification of inventory has been conducted at
reasonable intervals by the management
(b) and, in our opinion, the coverage and procedure of such verification by the
management is appropriate; no discrepancies of 10% or more in the aggregate for each class
of inventory were noticed;
According to the information and explanations given to us and on the basis of our
examination of the records of the Company, during any point of time of the year, the
company has been sanctioned working capital limits in excess of five crore rupees, in
aggregate, from banks on the basis of security of current assets. However since the said
facility is against fixed deposits with banks, quarterly returns or statements are not
required to be filed by the company with such banks and hence the question of its
agreement with the books of accounts of the company does not arise.
(iii) The Company has granted unsecured loans to its subsidiaries details of the loan
is stated in sub-clause (a) below.;
(a) Loans granted to subsidiary Companies:
(A) Based on the audit procedures carried on by us and as per the information and
explanations given to us, the Company has granted loans to subsidiaries
Particulars |
Rs in lakhs |
The aggregate amount during the year |
25,034.53 |
Balance outstanding at the balance sheet date |
25,263.16 |
(B) The company has not granted any loans or advances and guarantees or security to
parties other than subsidiaries, joint ventures and associates.
(b) According to the information and explanations given to us and based on the audit
procedures conducted by us, we are of the opinion that the terms and conditions of the
loans given are, prima facie, not prejudicial to the interest of the Company.
(c) According to the information and explanations given to us and based on the audit
procedures conducted by us, as the loans are repayable on demand and interest free, the
question of schedule of repayment of principal and payment of interest thereon does not
arise;
(d) As the interest free loans are repayable on demand there is no amount overdue and
the company is not required to take any steps for recovery of the principal;
(e) As the loans are repayable on demand the question of renewing or extending fresh
loans to settle the overdues of existing loans does not arise;
(f) The company has granted loans or advances in the nature of loans which are
repayable on demand and without specifying any period of repayment, the aggregate amount,
percentage thereof to the total loans granted are as under:
Loans granted to subsidiary Companies:
Particulars |
Rs in lakhs |
percentage thereof to the total loans granted |
The aggregate amount during the year |
25,034.53 |
100% |
Balance outstanding at the balance sheet date |
25,263.16 |
100% |
(iv) According to the information and explanations given to us and based on the audit
procedures conducted by us, as the wholly owned subsidiaries to whom loans have been given
have utilised the said amount for their principal business activities, the company is not
required to comply with the provisions of section 185 of the Companies Act 2013 and the
Company has complied with the provisions of Section 186 of the Companies Act, 2013 in
relation to loans given and investments made.
(v) The Company has not accepted any deposits and hence the directives issued by the
Reserve Bank of India and the provisions of the sections 73 to 76 or any other relevant
provisions of the Act and the rules framed there under are not required to be complied
with by the Company. 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 sub-section 1 of the section 148 of the Act for any of the services by the Company.
Accordingly, paragraph 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 service tax, provident
fund, employees state insurance, income tax, sales tax, service tax, duty of customs, duty
of excise, value added tax, cess and any other statutory dues have generally been
regularly deposited during the year by the Company with the appropriate authorities and no
undisputed amounts payable were in arrears as at 31 March 2023 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 dues
outstanding of goods and service
(viii) tax, provident fund, employees state insurance, income tax, sales tax, service
tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues
on account of dispute which have not been deposited with the concerned authorities except
those mentioned in the table below;
Nature of the statute |
Nature of dues * |
Amount |
Amount Paid Under Protest |
Period to which amount relates |
Forum where dispute is pending |
Finance Act, 1994 |
Service Tax |
10,19,95,542 |
73,97,613 |
01.04.2015 to 30.06.2017 |
Commissioner, CGST & Central Excise, Belapur Commissionerate Navi
Mumbai |
According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there are no transactions that are not recorded
in the books of accounts in respect of surrendered or disclosed as income during the year
in the tax assessments under the Income Tax Act, 1961 (43 of 1961);
(ix) (a) In our opinion and according to the information and explanation given to us,
the Company has not defaulted payment of loans or other borrowings or in the payment of
interest thereon to a bank and financial institution;
(b) The company is not a declared wilful defaulter by any bank or financial institution
or other lender;
(c) The term loans were applied for the purpose for which the loans were obtained;
(d) The funds raised on short term basis have not been utilised for long term purposes;
(e) 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) The company has not raised loans during the year on the pledge of securities held
in its subsidiaries, joint ventures or associate companies;
(x) (a) According to the information and explanations given to us, and based on our
examination of the records of the
Company, the company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) during the year; Accordingly, paragraph 3(x)(a)
of the order is not applicable.
(b) During the year under audit , the Company has made private placement of foreign
currency convertible bonds complying the Provisions of Section 42 and Section 62 of The
Companies Act 2013 and the funds so raised have been used for the purpose for which they
were raised.
(xi) (a) In our opinion and according to the information and explanations given to us,
no fraud by the Company or on the Company by its officers or employees has been noticed or
reported during the year. Accordingly, paragraph 3(xi) of the order is not applicable.
(b) According to the information and explanations given to us, no report under
sub-section (12) of Section 143 of the Companies Act, 2013 has been filed by the auditors
in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government
(c) No complaints have been received from a whistle blower during the year by the
company.
(xii) In our opinion and according to the information and explanations given to us, the
company is not a Nidhi company. Accordingly, paragraph 3(xii) of the order is not
applicable.
(xiii) In our opinion and according to the information and explanations given to us,
and based on our examination of the records of the Company, all transactions with the
related parties are in compliance with sections 177 and 188 of the Act, where applicable
and the details of the same have been disclosed in the 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) The reports of the Internal Auditors for the period under audit were considered by
us;
(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 any non-cash
transactions with directors or persons connected with them. Accordingly, paragraph 3(xv)
of the order is not applicable.
(xvi) (a) The Company is not required to be registered under section 45-1A of the
Reserve Bank of India, 1934 (2 of 1934).
Accordingly, paragraph 3(xvi) of the order is not applicable.
(b) The company has not conducted any Non-Banking Financial or Housing Finance
activities without a valid Certificate of Registration (CoR) from the Reserve Bank of
India as per the Reserve Bank of India Act, 1934;
(c) The company is a not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India;
(xvii) The company has not incurred cash losses in the financial year and in the
immediately preceding financial year.
(xviii) There has been a change of auditors in terms of Section 139 (2) of the
Companies Act 2013 during the year , as the
(xix) previous audit firm had completed five years term .
(xx) 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 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 the 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;
In our opinion and according to the information and explanations given to us, there is
no unspent amount under subsection (5) of Section 135 of the Companies Act, 2013 pursuant
to any project. Accordingly, clauses 3(xx)(a) and 3(xx) (b) of the Order are not
applicable.
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For Praneti Yadav &Co. |
|
Chartered Accountants |
|
ICAI Firm Registration No. 137534W |
|
Praneti Yadav |
|
Proprietor |
|
Membership No. 156403 |
|
UDIN: 23156403BGUAYJ5242 |
Mumbai |
|
May 25,2023 |
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Annexure "B" to the Independent Auditors Report
(Referred to in paragraph (f) under Report on Other Legal and Regulatory Requirements
section of our report of even date) Report on the Internal Financial Controls Over
Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
2013 ("The Act")
We have audited the internal financial controls over financial reporting of Lancer
Container Lines Limited ("the company") as at 31st March, 2023 in
conjunction with our audit of the standalone Ind AS financial statements of the company
for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the company considering the essential components of internal control stated
in the Guidance Note on Audit of internal financial controls over financial Reporting
issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Act.
Auditors Responsibility
Our responsibility is to express an opinion on the companys internal financial
controls over financial reporting 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") issued by ICAI and the Standards on Auditing prescribed
under section 143(10) of the Companies Act, 2013, 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 adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in all material
respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the standalone 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 system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorities 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 internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, materials misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedure may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given
to us, the company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at March 31,2023, based on the internal financial
control over financial reporting criteria established by the company considering the
essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
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For Praneti Yadav &Co. |
|
Chartered Accountants |
|
ICAI Firm Registration No. 137534W |
|
Praneti Yadav |
|
Proprietor |
|
Membership No. 38870 |
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UDIN: 23156403BGUAYJ5242 |
Mumbai |
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May 25,2023 |
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+91-9892691696
