To,
The Members of
Nath Bio-genes (I) Limited
Aurangabad
Report on the Audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying standalone financial statements of Nath Bio-genes
(I) Limited having CIN: L01110MH1993PLC072842 ("the Company"), which comprise
the Standalone Balance Sheet as at 31st March 2023, the Standalone Statement of Profit and
Loss (including other comprehensive income), Standalone Statement of Cash Flows and
Standalone Statement of Changes in Equity for the year then ended, and notes to the
Standalone financial statements, including a summary of significant accounting policies
and other explanatory information.
2. 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 Indian Accounting Standards prescribed under section 133 of
the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended
("Ind AS") and the other accounting principles generally accepted in India, of
the state of affairs of the Company as at 31st March 2022 and its loss (financial
performance including other comprehensive income), the changes in equity and its cash
flows for the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with 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 there under, 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 qualified opinion.
Key Audit Matters
4. 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 year.
These matters were addressed in the context of our audit of the standalone financial
statements, 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 Matters |
Audit Procedures |
Agricultural Activities |
|
The company is engaged in the production and processing of commercial
and vegetable seeds at various pieces of lands taken on lease from various growers/farmers
spread over throughout India. |
We have performed the following principal audit procedures in relation
to Agricultural Activities: - |
The company enters into seed production agreements with these farmers
/ growers. The company is compensating the farmers/growers for various cultivation
expenses based upon the rate agreement entered into. Thus, the company is engaged in the
growing of various kinds of seeds based on the programs chalked out by the management
depending on the area, climatic conditions, soil conditions, water resources, education of
farmers, processing facilities etc. |
- Evaluation and understanding of Seed production agreements. |
|
- Verification and evaluation of the documents for existence of
farmers/growers on sample basis of the seeds. |
|
- Verification and evaluation of documents on sample basis for the
existence of leasehold land. |
|
- Evaluation of the control / supervision over the crop. |
|
- Evaluating the appropriateness of the adequate disclosures in
accordance with the applicable accounting standards. |
Adoption of Ind AS 116 Leases |
|
As described in Note 2(AA) to the standalone financial statements, the
Company has adopted Ind |
Our audit procedures on adoption of Ind AS 116 include: |
AS 116 Leases (Ind AS 116) in the current year. The Company has
leasing arrangements for operating leases for lands and premises (Agricultural lands,
office, stores, go-down etc.), which are cancelable and renewable by mutual consent. The
aggregate lease rentals are charged as rent in the Statement of Profit and Loss. |
- Assessed and tested new processes and controls in respect of the
lease accounting standard (Ind AS 116). |
|
- Assessed the companys evaluation on identification of leases based
on the contractual agreements and our knowledge of the business. |
|
- Assessed the key terms and conditions of each lease with the
underlying lease contracts and evaluation of the lease liability. |
|
- Assessed and tested the presentation and disclosures relating to Ind
AS 116. |
Information other than the Standalone Financial Statements and Auditors Report thereon
5. The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the annual report but does not include
the financial statements and our auditors report thereon.
6. Our opinion on the financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
7. In connection with our audit of the financial statements, our responsibility is to
read the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements, or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is material misstatement of this other information; we
are required to report that fact. We have nothing to report in this regard.
Managements Responsibility for the Standalone Financial Statements
8. The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, 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 Ind AS specified
under section 133 of the Act. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the
assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the financial statement that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
9. 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.
10. The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
11. Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance but is not a guarantee that an audit conducted in accordance with
Standards on Auditing will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.
12. As part of an audit in accordance with Standard on Auditing, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
a. 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.
b. Obtain an understanding of internal financial controls relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company and its subsidiary companies which are companies incorporated in India, has
adequate internal financial controls system in place and the operating effectiveness of
such controls.
c. Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
d. 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 ability of
the Company 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.
e. 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.
13. 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.
14. 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.
15. 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
16. 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, 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, and the Statement of Cash Flow
dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Ind
AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.
(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) In our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
(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, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial
position in its standalone financial statements - Refer Note 32 to the 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 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 (which are material either individually or in the aggregate) 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 or entity, including foreign
entity ("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, no
funds (which are material either individually or in the aggregate) have been received by
the company from any person or entity, 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; and.
(c) Based on audit procedures 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 (i) and (ii) of Rule 11(e), as provided under (a) and (b)
above, contain any material mis-statement.
v. In respect of dividend: -
a. The final dividend proposed in the previous year, declared and paid by the Company
during the year, is in accordance with Section 123 of the Act, as applicable.
b. No interim dividend is declared by the Company during the year.
c. The Board of Directors of the Company has proposed final dividend for the year which
is subject to the approval of the members at the ensuing Annual General Meeting. The
amount of dividend proposed is in accordance with section 123 of the Act, as applicable.
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 April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March 31, 2023.
|
For Gautam N Associates |
|
Chartered Accountants |
|
FRN: 103117W |
|
Gautam Nandawat |
|
Partner |
|
M No:032742 |
|
UDIN: 23032742BGSSKN8086 |
Place: Chhatrapati Sambhajinagar |
|
Dated: 22nd April 2023 |
|
ANNEXURE "A" TO THE INDEPENDENT AUDITORS1 REPORT
The Annexure referred to in Independent Auditors Report to the members of the Nath
Bio-genes (I) Limited on the Ind AS standalone financial statements for the year ended
31st March 2023, we report that:
1. (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment. The Company has
maintained proper records showing full particulars of intangible assets.
(b) The company has a regular program of physical verification of its Property, Plant
and Equipment by which Property, Plant and Equipment are verified in a phased manner over
a period of three years. In accordance with this program, certain Property, Plant and
Equipment were verified during the year and no material discrepancies were noticed on such
verification. In our opinion, this periodicity of physical verification is reasonable
having regard to the size of the company and nature of its business.
(c) According to the information and explanations given to us, and on the basis of our
examination of the record of the company, the title deeds of the immovable properties are
held in the name of the company except in the following cases:
Description of Properties |
Gross Carrying Value Rs in Lakh |
Held in the name of |
Whether promoter, director or their relative or employee |
Period held - indicate range, where appropriate |
Reason for not being held in name of company |
at Village Dhangaon and Shahapur- Wahegaon, Tq. Paithan, Dist.
Aurangabad admeasuring 35.97 hectares. |
Rs. 2,100.00 |
Agri-Tech (India) Ltd |
Group Company |
15th March 2016 |
Pending approval for stamp duty exemption from State Government |
at Wahegaon Tq Paithan Dist Aurangabad admeasuring 16.08 hectare |
Rs. 1,350.00 |
Agri-Tech (India) Ltd |
Group Company |
15th March 2017 |
Pending approval for stamp duty exemption from State Government |
at Village Isarwadi Tq Paithan Dist Aurangabad admeasuring 5.72
hectares. |
|
|
|
|
|
at Gut No 130/4, Village Dhangaon Tq Paithan Dist Aurangabad
admeasuring 2.02 hectares |
Rs. 2,021.00 |
Agri-Tech (India) Ltd |
Group Company |
28th December 2018 |
Pending approval for stamp duty exemption from State Government |
at Gut No 53/1, and 53/5, Village Isarwadi Tq Paithan Dist Aurangabad
admeasuring 3.95 hectares |
|
|
|
|
|
at Gut No 45, 53/3, 53/4 and 56 Village |
|
|
|
|
|
Wahegoan Tq Paithan Dist Aurangabad admeasuring 12.02 hectare |
|
|
|
|
|
at Plot No 1 admeasuring 6007.16 Sq Meter and Plot No 2 admeasuring
5183.18 Sq meter at Paithan Mega Food Park Pvt Ltd, Gut No 125, Village Dhangaon, Taluka
Paithan, Dist Aurangabad. |
Rs. 190.24 |
Paithan Mega Food Park Pvt Ltd |
Group Company |
10th March 2020 |
Pending approval for stamp duty exemption from State Government |
(d) According to the information and explanations given to us, and on the basis of our
examination of the record of the company, the company has not revalued any Property, Plant
& Equipment (including Right of Use assets) or intangible assets during the year.
(e) According to the information and explanations given to us, and on the basis of our
examination of the record 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 and Rules made thereunder.
2. (a) The inventory has been physically verified during the year by the management. In
our opinion, the coverage and procedure of such verification by the management is
appropriate. There is no discrepancy of 10% or more noticed during verification between
the physical stocks and book records. The discrepancies were not material, which have been
properly dealt with in the books of account. The year-end inventory has been physically
verified by the management and the same is incorporated as per inventory records and books
of account maintained by the company.
(b)During the year, the Company has been sanctioned working capital limits in excess of
Rs. 5 crores, in aggregate, from banks on the basis of security of current assets; the
quarterly statements filed by the Company in respect of current assets held by it and
offered as security with such banks or financial institutions are largely in agreement
with the unaudited books of account of the Company of respective quarters and
discrepancies observed have been explained in Note no 57 of the Financial Statements.
3. (a) As per the information and explanations given to us, the Company has granted
loans including advances in the nature of loan to seven companies/ firms. The aggregate
amount of loan granted is Rs. 3,406.26 Lakhs and the balance outstanding at the year-end
is Rs. 2,675.88 Lakhs. The company has provided corporate guarantee to the tune of Rs.
4,360.00. Further, the company has made investments of Rs. 1.52 Lakhs in joint venture
abroad. The company has not given any security to any party during the year.
(b) The terms and conditions for such above mentioned loan and corporate guarantee are
not prejudicial to the interest of the Company except non-levy of interest on loans &
non - charging of commission on corporate guarantee.
(c) In respect of loans and advances in the nature of loans the schedule of repayment
of principal and payment of interest has not been stipulated; hence we are unable to
comment whether the repayments or receipts are regular, overdue, renewed or extended or
fresh loan granted to settle the overdue of existing loans given to the same parties;
4. The company has not provided any security to any party covered under section 185 and
186 of the Act, except that of loan, corporate guarantee and investment as mentioned in
para 3 above after complying the provisions of section 186 except non-levy of interest and
noncharging of commission on corporate guarantee.
5. The Company has not accepted deposits within the meaning of sections 73 to 76, or
any other relevant provisions of the Act and the rules framed there under.
6. No maintenance cost records have been specified by the Central Government under
section 148(1) of the Act for the products of the company.
7. (a) The company is regular in depositing undisputed statutory dues including
provident fund, employees state insurance, income-tax, sales-tax, wealth tax, service
tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues
with the appropriate authorities.
b) There are no dues of Income tax, Sales tax, Service tax, Customs Duty, Excise Duty
and Value Added Tax which have not been deposited as on 31st March 2023 on account of
disputes.
8. According to the information and explanations given to us, there are no transactions
recorded in the books of account as have been surrendered or disclosed as income during
the year in the tax assessments under the Income Tax Act, 196.
9. In our opinion and according to the information and explanations given to us: -
(a) the Company has not defaulted in payment of dues to financial institution or bank
or debenture holders.
(b) The company is not declared willful defaulter by any bank or financial institution
or other lender.
(c) term loans were applied for the purpose for which the loans were obtained.
(d) No funds raised on short term basis have 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; hence clause (ix)
(e) of the Order is not applicable.
(f) The Company has not raised loans during the year on the pledge of securities held
in its subsidiaries, joint ventures or associate companies; hence the clause (ix) (f) of
the Order is not applicable.
10. The company has not raised any money by way of initial public offer, further public
offer (including debt instruments), preferential allotment or private placement of shares
during the year.
11. (a) According to the information and explanations given to us, no fraud by the
company or any fraud on the Company has been noticed or reported during the year.
(b) No report under sub-Section (12) of Section 143 of the Act has been filed by the
auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules
2014 with the Central Government.
(c) We have not considered whistle-blower complaints, since there is no compliant
received during the year by the Company.
12. The company is not a Nidhi Company as such provisions of the clause (xii) of the
Order are not applicable to the company.
13. All transactions with the related parties are in compliance with section 177 and
188 of the Act, where applicable, and the details have been disclosed in the Ind AS
standalone financial statements etc., as required by the applicable accounting standards.
14. (a) In our opinion, the internal audit system is commensurate with the size of the
company and nature of its business.
(b) In framing our Independent Audit Reports, we have considered Internal Auditors
Report for the period under audit.
15. The company has not entered into any non-cash transactions with directors or
persons connected with him.
16. (a) The company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934.
(b) In Our opinion, 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 not a Core Investment Company (CIC) as defined under the Regulations
by the Reserve Bank of India.
17. The Company has not incurred cash losses in the Financial Year and in the
immediately preceding financial year.
18. There has been no resignation of the statutory auditors during the year.
19. 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, we are of the opinion that no material uncertainty exists as on the
date of the audit report which infers 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.
20. The company does not have any unspent amount which are required to be transferred
to a fund specified in schedule VII to the Act. Further, the company does not have any
on-going project in hand, hence clause (xx) (b) of the Order is not applicable.
21. The company has a joint venture abroad with 90% share, report on consolidated
financial statement has been given separately.
|
For Gautam N Associates |
|
Chartered Accountants |
|
FRN: 103117W |
|
Gautam Nandawat |
|
Partner |
|
M No:032742 |
|
UDIN: 23032742BGSSKN8086 |
Place: Chhatrapati Sambhajinagar |
|
Dated: 22nd April 2023 |
|
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
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")
1. We have audited the internal financial controls over financial reporting of Nath
Bio-genes (I) Limited ("the Company") as of 31st March 2023 in conjunction with
our audit of the Ind AS standalone financial statements of the Company for the year ended
on that date.
Managements Responsibility for Internal Financial Controls
2. 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 the 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
3. 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 the ICAI and the Standards on Auditing
prescribed under Section 143(10) of the Act, to the extent applicable to an audit of
internal financial controls. Those Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in all material
respects.
4. 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 judgement, including the assessment of the risks of
material misstatement of the Ind AS financial statements, whether due to fraud or error.
5. 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 of the company.
Meaning of Internal Financial Controls Over Financial Reporting
6. 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 standalone 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 Ind AS 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 authorisations of management and directors of the
company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the companys assets that could have a
material effect on the Ind AS financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
7. Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls 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 procedures may deteriorate.
Opinion
8. 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 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 Gautam N Associates |
|
Chartered Accountants |
|
FRN: 103117W |
|
Gautam Nandawat |
|
Partner |
|
M No:032742 |
|
UDIN: 23032742BGSSKN8086 |
Place: Chhatrapati Sambhajinagar |
|
Dated: 22nd April 2023 |
|
+91-9892691696
