Mysore Petro Chemicals Ltd Auditor Reports

171.95
(3.71%)
Jul 24, 2024|03:43:00 PM

Mysore Petro Chemicals Ltd Share Price Auditors Report

<dhhead> INDEPENDENT AUDITOR’S REPORT</dhhead>

To the Members of

Mysore Petro Chemicals Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying Standalone Financial Statements of Mysore Petro Chemicals Limited (“the Company”), which comprise the Standalone Balance Sheet as at 31st March, 2023, Standalone Statement of Profit Loss (including Other Comprehensive Income), Standalone Statement of change in Equity and Standalone Statement of Cash Flow for the year then ended and Notes to Standalone Financial Statements and other explanatory information. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 (‘the Act’) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standard under Section 133 of the Act read with Companies (Indian Accounting Standards) rules, 2015 as amended and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2023; and its profit (including other comprehensive income), its Standalone cash flows and the Standalone statement of changes in equity for the year ended on that date.

Basis for Opinion

We have conducted the audit in accordance with the Standards specified under Section Auditing(SAs) 143(10) of the

Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of the report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Standalone Financial statements of the current year. 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

Auditor’s Response

Valuation of Investment

Principal Audit Procedures

Refer Note: 1B (v), 4 and 7

Our audit approach consisted of the following audit procedures:

The Company has an investment (current and non-current) balance of 7,302.80 Lakhs out of total assets of 10,344.93 lakhs as at 31st March, 2023. The Company has invested surplus funds available in equity instruments, preference shares, debt and mutual funds/ alternate investment funds.

 Tested the design and operating effectiveness of the key controls over the accuracy of the key inputs and assumptions considered by the Company with respect to the valuation of Investments.

 The units in mutual funds/alternate investment funds are valued based on Net asset value per unit of the respective fund. The Fair value of unquoted equity, preference shares and debentures are determined using a valuation approach/ methodology. The valuation approach/methodology adopted by the management involves significant as regards the methods and inputs used.

    Inquiry from management and obtained an understanding of the investee business and the market in which it operates.

 Given the value of transactions executed by the Company for its treasury operations throughout the year and considering factors for fair valuation, we determined the valuation of investments as a key audit matter of our aud it.

Compared the number of units and names of equity instruments, preference shares, debt and mutual funds to the statements and confirmations provided judgement by the experts and traced the NAV/market value from a statement issued by the experts.

 

Obtained and reviewed valuation report by the valuation expert, and assessed the expert’s competence, capability and objectivity. Reviewed the disclosures made by the Company in the standalone financial statements.

Information Other than the Standalone Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the other information. The other information comprises the Management Discussion and Analysis, Director’s Report including Annexures to Directors Report and Report on Corporate Governanace, but does not include the Standalone Financial Statements and our auditor’s report thereon which is expected to be made available to us after the date of this auditor’s 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 other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance under SA 720 ‘The Auditor’s responsibilities Relating to Other Information’.

Responsibility of Management for Standalone Financial Statements

The Company’s 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 financial position, true and fair view of the financial performance (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 Indian Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015 as amended applicable there to. 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 judgements 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 Company’s 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 Company’s financial reporting process.

Auditor’s 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 auditor’s 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 influencethe economic decisions of users taken on the basis of these Standalone Financial Statements.

Further, as part of an audit in accordance with standards on auditing, the auditor exercises professional judgement and maintains 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 Companies Act, 2013, 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 control.

• 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’s 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 Company’s ability to continue as exists, we are required to draw attention in our auditor’s 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 auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We consider quantitative our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we 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 auditor’s 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.

Other Matter

The Standalone Financial Statements for the year ended 31st March, 2022 were audited and reported upon by another firm of Chartered Accountants vide their report issued on 26th May 2022, who expressed an unmodified opinion on those Standalone Financial Statements. We have relied upon these Standalone Financial Statements for the purpose of opening balances as at 1st April, 2022 which are regrouped or restated wherever necessary.

Our opinion is not modified in respect of the above matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2020 (‘the Order’) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure A” statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of the 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, Standalone Statement of Profit and Loss (including Other Comprehensive income), Standalone Statement of Change in Equity and Standalone Cash Flow statement 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 Companies (Indian Accounting Standards) Rules, 2015 as amended applicable there to.

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, 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”; and

g) In our opinion and according to information & explanations given to us, the remuneration paid by the Company to its Directors is within the limits laid prescribed under Section 197 of the Act and the rules thereunder.:

h) With respect to the other matters to be included in the Auditor’s 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 pending litigations that affect its financial position in its Standalone Financial Statements except for the matter described in note 27 and 32 of Standalone Financial statements;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

iv. a. The management has represented that to the best of its knowledge and belief, as disclosed in note 41(v) of standalone Financial Statements, 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 persons or entities including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in 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, as disclosed in the note 41(vi) to the standalone Financial Statements, no funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in 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 such audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused them to believe that the representations under sub-clause (a) and (b) contain any material mis-statement.

v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with Section 123 of the Companies Act, 2013 to the extent it applies to payment of dividend.

 The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend. (Refer note 27 of the standalone Financial Statements).

vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from 1st April, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended 31st March, 2023.

For RMJ & Associates LLP

Chartered Accountants

Firm Registration No: W100281

Nirav Gosalia

Partner

Membership No.: 133110

UDIN 23133110BGVHGD3441

Mumbai

26th May, 2023

ANNEXURE A TO THE INDEPENDENT AUDITORS’ REPORT

The Annexure referred to in paragraph 1 of the Report on Other Legal and Regulatory Requirements of even date to the members of Mysore Petro Chemicals Limited (‘the Company’) for the year ended on 31st March, 2023. We report that:

(i) (a) (A) The Company has maintained proper records showing full particulars including quantitative details and the situation of Property, Plant and Equipment.

 (B) The Company has maintained proper records showing full particulars of Intangible assets.

(b) The Property, plant and equipment have been physically verified by the management at year end and no material discrepancies were identified on such verification.In our opinion, the frequency of verification is reasonable considering the size of the Company and the nature of the business.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties as disclosed in the Standalone Financial Statements are held in the name of the Company.

(d) According to the information and explanations given to us, during the year, the Company has not revalued any of its Property, Plant and Equipment (Including Rights to Use assets) and intangible assets. Accordingly, the provision of clause 3(i)(d) of the order are not applicable to the Company.

(e) According to the information and explanation provided to us, no proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition Act), 1988 (45 of 1988) and rules made thereunder. Accordingly, the provision of clause 3(i)(e) of the order is not applicable to the Company.

(ii) (a) According to the information and explanation given to us, the Company does not have any inventories as at the year ended 31st March, 2023 and accordingly, the provision of clause 3(ii)(a) is not applicable to the Company.

(b) According to the information and explanation given to us, based on our examination of the records of the Company, the Company has been sanctioned working capital limits in excess of 5 Crore, in aggregate from banks on the basis of security which includes the current assets of the Company. Further, the Company has not been sanctioned working capital limits from financial institutions. The Company has not utilized the sanctioned working capital limits in the current year and hence, there is no requirement of filling monthly statements the bank.

(iii) In our opinion and according to the information and explanations given to us, the Company has not made any investment in or provided any guarantee or security to companies, firms,Limited Liability Partnership or other parties during the year. However, in the current year, the Company has given an unsecured loan to a Company and other than this the Company has not granted any loans or advances in the nature of loans, secured or unsecured to companies, firms, Limited Liability Partnership or any other parties.

(a) The details of aggregate amount of unsecured loan given to other party which is a Company is given below (Also refer Note No. 11 of the Standalone Financial Statements):

Particulars

Unsecured loan given during the year

Balance outstanding at Standalone Balance Sheet Date

Other party (Company)

 150 lakhs

 150 lakhs

(b) According to the information and explanation given to us, terms and conditions of loan given to Company is prima facie not prejudicial to the interest of the Company.

(c) According to information and explanation given to us and based on our verification, the schedule of repayment of loan and payment of interest has been stipulated. The Company is regular in receipt of interest on loan. Repayment of loan is not due during the year as the same has been extended by the Company which is mentioned in point(e) below and hence, question of our comment on regularization of repayment of loan does not arises.

(d) As per information and explanation given to us and considering our reporting in point (c) above, there are no overdue amounts pertaining to loan and interest thereon.

(e) According to the information and explanation given to us, the Company has extended the repayment of loan of 150 lakhs which is due for repayment in the current year. Aggregate amount of repayment of loan extended to total loan given during the year is 100%.

(f) The Company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying the any terms or period of repayment and hence, the provision of clause 3(iii)(f) is not applicable to the Company.

(iv) There are no transactions during the year for which compliance with section 185 of the Act is required and therefore, question of commenting on compliance of section 185 of the Act does not arise. In our opinion and according to the information and explanations given to us, the Company has complied with section 186 of the Act in respect of loan given and investments made in the current year. Further, the Company has not given any guarantee and security for which compliance with section 186 of Act is required.

(v) In our opinion and according to the explanations given to us, the Company has not accepted any deposits. Therefore, question of reporting compliance with directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and rules framed thereunder does not arise. We are informed that no order relating to the Company has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

(vi) As informed to us, the Central Government of India has not prescribed the maintenance of cost records under subsection (1) of Section 148 of the Companies Act for any of the products of the Company.

(vii)(a) According to the information and explanations given to us and the records of the Company examined by us, amounts deducted / accrued in the books of account, the Company is generally regular in respect of undisputed statutory dues including Provident fund, Employees state insurance, Sales tax, Service tax, Duty of customs, Duty of excise, Value added tax, cess and any other statutory dues with the appropriate authorities. There were no undisputed statutory dues outstanding as at the last day of the financialyear concerned for a period of more than six months from the date they became payable.

 (b) According to the information and explanations given to us and the records of the Company examined by us, there are no statutory dues as referred in sub-clause (a) above have not been deposited on account of any dispute except as disclosed below:

Name of Statute

Nature of Dues

Amount ( in lakhs)

Period to which the amount relates

Forum where dispute is pending

Karnataka Special Entry Tax Act, 2004

Sales Tax

23.98

2008-09

Karnataka High Court

(viii) According to information and explanation given to us, there were no transaction relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961. Accordingly, the provision of clause 3 (viii) of the order is not applicable to the Company.

(ix) (a) According to the information and explanation given to us and the records of the Company examined by us, the Company has not obtained any loans or other borrowings from any lender and accordingly the provision of clause 3(ix)(a) of the order is not applicable to the Company.

(b) According to the information and explanations given to us and on the basis of audit procedures, we report that the Company has not been declared willful defaulter by any bank or financial Accordingly, the provisions of clause 3(ix)(b) of the order is not applicable to the Company.

(c) According to the information and explanations given to us and the records of the Company examined by us, the Company has not obtained the term loans during the year. Accordingly, the provisions of clause 3(ix)(c) of the order is not applicable to the Company.

(d) According to the information and explanations given to us, the audit procedures performed by us and on an overall examination of the Standalone Financial Statements of the company, we report that no funds raised on short term basis have been used for long term purpose by the Company.

(e) According to the information and explanations given to us and on overall examination of the Standalone 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 associate company. Hence, provisions of clause 3(ix)(e) of the order are not applicable to the Company.

(f) On overall examination of the Standalone Financial Statements of the Company, it has not raised any loans during the year on the pledge of securities held in its associate company. Accordingly, the provisions of clause 3(ix)(f) of the order is not applicable to the Company.

(x) (a) In our opinion and according to the information and explanations given to us, the Company has not raised money by way of initial public offer or further public offer (including debt instruments) during the year. Accordingly, the provisions of clause 3(x)(a) of the Order is not applicable to the Company.

(b) During the year, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully or partly or optionally) and hence reporting under clause 3(x)(b) of the order is not applicable.

(xi) (a) Based on our audit procedures performed for the purpose of reporting the true and fair view of Standalone Financial Statements of the Company and according to information and explanation given to us, we report that no frauds by the Company or no material fraud on the Company has been noticed or reported during the year.

(b) We have not come across of any instance of material fraud by the Company or on the Company during the course of audit of the Standalone Financial Statement for the year ended 31st March 2023, accordingly the provisions stated in paragraph (xi)(b) of the order is not applicable to the Company.

(c) In our opinion and according to the information and explanations given to us, during the year, the Company has not received any whistle blower complaints and hence, provisions of clause 3(xi)(c) of the order are not applicable to the Company. (xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Hence, provision of clause 3(xii)(a) to (c) of the order is not applicable to the Company.

(xiii) According to the information and explanations given to us and the records of the Company examined by us, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 wherever applicable and the details have been disclosed in the Standalone Financial Statements as required by the applicable Indian accounting standards.

(xiv) (a) In our opinion and according to explanation given to us, the Company has an adequate internal audit commensurate with size and the nature of business.

 (b) We have considered, the internal audit reports issued to Company for the year under audit.

(xv) According to the information and explanations given to us and the records of the Company examined by us, the company has not entered into any non-cash transactions covered under section 192 of the Companies Act, 2013 with directors or persons connected with him and hence, clause 3(xv) of the order is not applicable to the Company.

(xvi) (a) In our opinion, the Company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions stated in paragraph clause 3 (xvi)(a) of the Order are not applicable to the Company.

(b) In our opinion and according to information and explanation given to us, the Company has not conducted any Non-Banking Financial or Housing Finance activities without any valid Certificate of Registration from Reserve Bank of India. Hence, the reporting under paragraph clause 3 (xvi)(b) of the Order are not applicable to theCompany.

(c) The Company is not a Core investment Company (CIC) as defined in the regulations made by Reserve Bank of India. Hence, the reporting under paragraph clause 3 (xvi)(c) of the Order are not applicable to the Company. (d) The Company does not have any CIC as part of its group. Hence, the provisions stated under clause 3(xvi)(d) are not applicable to the Company.

(xvii) In our opinion and based on the overall examination of Standalone Financial Statements, the Company has not incurred cash losses in the current year and in the immediately preceding previous financial year. Hence, the provisions stated in clause 3(xvii) are not applicable to the Company.

(xviii) There is no resignation of the statutory auditor during the year and hence, reporting under clause 3(xviii) of the order is not applicable.

(xix) According to information and explanation given to us and on the basis of the financial ratio, 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 Board of Director and management plans and based on our examination of the evidence supporting the assumption, nothing has come to our attention, which cause us to believe that any material uncertainty exists as on the date of audit report that the 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 independent auditor’s 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) (a) The Company does not have any unspent amount under sub-section (5) of Section 135 of the Companies Act, pursuant to other than ongoing project, that has to be transferred to a Fundspecifiedin Schedule VII of the Act and hence provisions of clause 3(xx)(b) are not applicable to the Company.

 (b) The Company does not have any unspent amount under sub-section (5) of Section 135 of the Companies Act, pursuant to any ongoing project, that has to be transferred to a special account in compliance with sub-section (6) of Section 135 of the Act and hence provisions of clause 3(xx)(b) are not applicable to the Company.

For RMJ & Associates LLP

Chartered Accountants

Firm Registration No: W100281

Nirav Gosalia

Partner

Membership No. 133110

UDIN 23133110BGVHGD3441

Mumbai

26th May, 2023

ANNEXURE B TO THE INDEPENDENT AUDITOR’S REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of Mysore Petro Chemicals Limited (‘the Company’) as of 31st March, 2023 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s 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 conduct of its business, including adherence to Company’s 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 Company’s internal financial controls over financial reporting on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to financial controls, both applicable to an audit of internal audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. 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 system over financial reporting and their reporting included obtaining an understanding of internal financial 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 auditor’s judgement, including the assessment of the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial reporting controls system over financial

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial control over financial reporting 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 Company’s 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 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 Company’s assets that could have a material effect on the Standalone 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 collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting 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 procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material aspects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2023, 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 ICAI.

For RMJ & Associates LLP

Chartered Accountants

Firm Registration No: W100281

Nirav Gosalia

Partner

Membership No. 133110

UDIN 23133110BGVHGD3441

Mumbai

26th May, 2023

 

Knowledge Centerplus
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Knowledge Centerplus

Follow us on

facebooktwitterrssyoutubeinstagramlinkedin

2024, IIFL Securities Ltd. All Rights Reserved

ATTENTION INVESTORS
  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

RISK DISCLOSURE ON DERIVATIVES
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

plus
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.