To the Board of Directors of NEUEON TOWERS LIMITED
Report on the Audit of the StandaloneInd AS Financial Statements
Qualified Opinion
We have audited the standaloneInd AS financial statements of NEUEON TOWERS LIMITED ("the
Company"), which comprise the balance sheet as at 31st March 2021, and the statement
of Profit and Loss (including other comprehensive income), statement of changes in equity
and 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 (herein after referred to as " Ind AS financial statements").
In our opinion and to the best of our information and according to the explanation
given to us, except for the effects of the matters described in the basis for qualified
opinion paragraph below, the aforesaid standalone Ind AS financial statements 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, 2021 of its profit/loss changes in
equity and the cash flows for the year the ended.
Basis for Qualified Opinion
a. The Company has not provided interest on Working Capital and Term Loans as the
Company is under Corporate Insolvency Process
(CIRP) under IB Code.
b. The company has made a provision of NIL lakhs during the current year, the
realisability of trade receivables amounting to Rs.16,315.61 Lakhs is in doubt and
the company has not made any provision for bad and doubtful debts in respect of these
receivables.
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
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 together with the ethical requirements that are relevant to our audit of the
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 Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Material uncertainty Related to Going Concern
The Company has accumulated losses and its net worth has been fully eroded due to
continuous losses and the Companys current liabilities exceeded its current assets as at
March 31, 2021. These conditions indicate the existence of a material uncertainty that may
cast significant doubt on the Companys ability to continue as a going concern. However,
the financial statements of the Company have been prepared on a going concern basis for
the reasons stated in the Note No. 17(i)(1.23)
Our opinion is not modified in respect of this matter
Emphasis of matter
We draw attention to Note No. 17(i)(1.24) of the standalone Financial Statements
regarding impact of COVID-19 pandemic. The situation
continues to be uncertain and the Company is evaluating the situation on an ongoing
basis with respect to the challenges faced.
Our opinion is not modified in respect of this matter.
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 for the financial year
ended March 31, 2021. 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.
In addition to the matters described in the Basis for Qualified Opinion section
referred in above para and Material Uncertainty Related to Going Concern section in above
para, We have determined the matters described in below to be the key audit matters to be
communicated in our report.
| Key Audit Matters |
Auditors response |
| Accuracy of recognition, measurement, presentation and disclosures of revenues and
other related balances in view of adoption of Ind AS 115 "Revenue from Contracts with
Customers" (new revenue accounting standard) Principal Audit Procedures We assessed
the Companys process to identify the impact of adoption of the new revenue accounting
standard. Our audit approach consisted testing of the design and operating effectiveness
of the internal controls and substantive testing as follows: |
Principal Audit Procedures: We assessed the Companys process to identify the impact
of adoption of the new revenue accounting standard. Our audit approach consisted testing
of the design and operating effectiveness of the internal controls and substantive testing
as follows: The application of the new revenue accounting standard involves certain key
judgments relating to identification of distinct performance obligations, determination of
transaction price of the identified performance obligations, the appropriateness of the
basis used to measure revenue recognised over a period. |
| The application of the new revenue accounting standard involves certain key judgments
relating to identification of distinct performance obligations, determination of
transaction price of the identified performance obligations, the appropriateness of the
basis used to measure revenue recognised over a period. Additionally, new revenue
accounting standard contains disclosures which involves collation of information in
respect of disaggregated revenue and periods over which the remaining performance
obligations will be satisfied subsequent to the balance sheet date |
Additionally, Evaluated the design of internal controls relating to implementation of
the new revenue accounting standard. |
|
Selected a sample of continuing and new contracts, and tested the operating
effectiveness of the internal control, relating to identification of the distinct
performance obligations and determination of transaction price. Performed analytical
procedures for reasonableness of revenues disclosed by type and service offerings. We
reviewed the collation of information and the logic of the report generated from the
budgeting system used to prepare the disclosure relating to the periods over which the
remaining performance obligations will be satisfied subsequent to the balance sheet date. |
Other information
The Companys management and Board of Directors are responsible for the other
information. The other information comprises the information included in Management
Discussion and Analysis, Boards Report including Annexures to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the financial statements and our auditors report thereon.
Our opinion on the standalone financial statements does not cover the other information
and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated. If, based on the
work we have performed, we conclude that there is a material misstatement of this other
information; we are required to report that fact. We have nothing to report in this
regard.
Responsibilities of Management and Those Charged with Governance for the 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 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 statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors 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
the Board of Directors either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
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 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 financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional scepticism throughout the audit.
We also:
l 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.
l Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under Section 143(3)(I) of the
Act, we are also responsible for expressing our opinion on whether the
company has adequate internal financial controls with reference to standalone financial
statements in place and the operating
effectiveness of such controls.
l Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
l 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.
l Evaluate the overall presentation, structure and content of the standalone financial
statements, including the disclosures, and whether the standalone financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters. We describe these matters
in our auditors report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2016 ("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, except for the
matter described in the Basis for Qualified Opinion paragraph above, which to the best of
our knowledge and belief were necessary for the purposes of our audit;
b) except for the effects/possible effects of the matters described in the Basis for
Qualified Opinion paragraph above, 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) except for the effects/possible effects of the matters described in the Basis
for Qualified Opinion paragraph above, The Balance Sheet, the Statement of Profit and Loss
(Including Other Comprehensive Income), the Statement of Changes in Equity and the
Statement of Cash Flows dealt with by this Report are in agreement with the books of
account;
d) In our opinion, except for the effects/possible effects of the matters described in
the Basis for Qualified Opinion paragraph above, the aforesaid standalone financial
statements comply with the Indian Accounting Standards prescribed under section 133 of the
Act and the rules prescribed there under;
e) On the basis of the written representations received from the directors as on March
31, 2021 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2021 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, the managerial remuneration for the year ended March 31, 2021 has
not been provided by the Company to its directors in accordance with the provisions of
section 197 read with Schedule V to the Act as the company under the Corporate Insolvency
Process (CIRP).
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 pending litigations of the company that might impact the financial position of
the company are disclosed in the standalone financial statements– Refer note no.16 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, required to be transferred to the investor Education and
protection fund by the company.
|
FOR VENUGOPAL & CHENOY |
|
CHARTERED ACCOUNTANTS |
|
FRN: 004671S |
|
(P.V.SRI HARI) |
|
Partner |
|
Membership No.021961 |
|
UDIN: 21021961AAAAFS8937 |
| Place : Hyderabad |
|
| Date : 29.06.2021 |
|
Annexure - A to the Auditors Report
The Annexure A referred to in our Independent Auditors Report to the members of the
Company on the Standalone financial statements for the year ended 31 March 2021, we report
that:
I In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by
which fixed assets are verified during the year. In accordance with this programme, fixed
assets were verified during the year and no material discrepancies were notice on such
verification. In our opinion, this periodicity of physical verification is reasonable
having regard to the size of the Company and the nature of its assets. (c) According to
the information and explanations given to us and on the basis of our examination of the
records of the Company there were no immovable properties are held in the name of the
Company at the Regional office the Company. ii. In respect of Inventories:
(a) The inventories have been physically verified by the management during the year. In
our opinion, the frequency of such verification is reasonable.
(b) The procedures of physical verification of inventories followed by the management
are reasonable and adequate in relation to the size of the Company and the nature of its
business.
(c) The Company has maintained proper records of the said stocks. As explained to us,
there were no material discrepancies noticed on physical verification of inventory as
compared to the book records. iii. During the year, the Company has not granted any loans
secured or unsecured to parties covered in the register maintained under section 189 of
the Act. Hence paragraph 3 (iii) of the Order is not applicable iv. In our opinion and
according to the information and explanations given to us, the Company has complied with
the provisions of section 185 and 186 of the Act, with respect to the loans, investments,
guarantees and securities. v. Company has not accepted any deposits, within the meaning of
provisions of sections 73 to 76 or any other relevant provisions of the Companies Act,
2013 and the rules framed there under. vi. We have broadly reviewed the books of account
relating to materials, labour and other items of cost maintained by the Company pursuant
to the Rules made by the Central Government for the maintenance of cost records under
sub–section (1) of Section 148 of the Act in respect of the activities carried on by
the Company, wherever applicable and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we have not made a detailed
examination of the records.
vii. In respect of statutory dues:
a) According to the information and explanations given to us and on the basis of
examination of the records of the Company, amounts deducted/ accrued in the books of
account in respect of undisputed statutory dues including provident fund, employees state
insurance, income-tax, sales-tax, Goods and service tax, duty of customs, duty of excise,
cess and other material statutory dues have been regularly deposited during the year by
the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts are
payable in respect of income tax, sales tax, Goods and services tax, duty of customs, duty
of excise, value added tax or cess and other material statutory dues were in arrears as at
31 March 2021 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 material
dues of duty of customs, income tax, service tax which have not been deposited with the
appropriate authorities on account of any dispute. However, according to information and
explanations given to us, the dues of Value added tax have not been deposited by the
Company on account of disputes pending are as under:
| Name of the statute |
Name of the dues |
Amount disputed (In Rs. In lakhs) |
Period |
Forum where dispute is pending |
| Income Tax dues |
Income Tax |
50.04 |
AY 2007-08 |
CPC |
| Income Tax dues |
Income Tax |
865.01 |
AY 2008-09 |
AO |
| Income Tax dues |
Income Tax |
29.23 |
AY 2009-10 |
AO |
| Income Tax dues |
Income Tax |
87.49 |
AY 2010-11 |
AO |
| Income Tax dues |
Income Tax |
853.00 |
AY 2011 -12 |
ITBA |
| Income Tax dues |
Income Tax |
100.96 |
AY 2012-13 |
ITBA |
| Income Tax dues |
Income Tax |
413.39 |
AY 2013-14 |
AO |
| Income Tax dues |
Income Tax |
379.38 |
AY 2014-15 |
AO |
| Income Tax dues |
Income Tax |
0.01 |
AY 2015-16 |
CPC |
| Income Tax dues |
Income Tax |
90.59 |
AY 2017-18 |
CPC |
| Income Tax dues |
Income Tax |
26.57 |
AY 2018-19 |
CPC |
| TDS Penalties |
ITO(TDS) |
1.14 |
FY 2009-10 |
CPC |
| TDS Penalties |
ITO(TDS) |
3.17 |
FY 2010-11 |
CPC |
| TDS Penalties |
ITO(TDS) |
1.94 |
FY 2011-12 |
CPC |
| TDS Penalties |
ITO(TDS) |
5.28 |
FY 2012-13 |
CPC |
| TDS Penalties |
ITO(TDS) |
2.77 |
FY 2013-14 |
CPC |
| TDS Penalties |
ITO(TDS) |
1.77 |
FY 2014-15 |
CPC |
| TDS Penalties |
ITO(TDS) |
0.93 |
FY 2015-16 |
CPC |
| TDS Penalties |
ITO(TDS) |
0.07 |
FY 2016-17 |
CPC |
| TDS Penalties |
ITO(TDS) |
5.93 |
FY 2017-18 |
CPC |
| TDS Penalties |
ITO(TDS) |
2.43 |
FY 2018-19 |
CPC |
| TDS Penalties |
ITO(TDS) |
1.60 |
FY 2019-20 |
CPC |
| TDS Penalties |
ITO(TDS) |
0.22 |
FY 2020-21 |
CPC |
| "C" forms Pending |
Sales Tax |
43.21 |
FY 2010-11 |
STAT, Hyd |
| "C" forms Pending |
Sales Tax |
34.01 |
FY 2011-12 |
STAT, HYD |
| "C" forms Pending |
Sales Tax |
8.26 |
FY 2012-13 |
ADC,PunjaguttaDiv, Hyd |
| "C" forms Pending |
Sales Tax |
81.02 |
FY 2013-14 |
ADC,PunjaguttaDiv, Hyd |
| "C" forms Pending |
Sales Tax |
7.01 |
FY 2014-15 |
ADC,PunjaguttaDiv, Hyd |
| "C" forms Pending |
Sales Tax |
40.38 |
FY 2015-16 |
CTO,Punjagutta Circle, Hyd |
| "C" forms Pending |
Sales Tax |
21.08 |
FY 2016-17 |
CTO,Punjagutta Circle, Hyd |
| VAT Tax |
Sales Tax |
1.00 |
FY 2013-14 |
CTO,Punjagutta Circle, Hyd |
|
|
|
TO 2015-16 |
|
| VAT Tax |
Sales Tax |
4484.80 |
FY 2010-11 |
AC(CT), Chennai, TN State |
|
|
|
TO 2012-13 |
|
| Penalties |
Provident |
|
|
Regional Provident Fund |
|
|
|
FY 2014-15 |
|
|
Fund |
26.48 |
|
Commissioner, |
|
|
|
TO 2019-20 |
|
|
|
|
|
RO,Patancheru. |
| Penalties |
|
|
FY 2014-15 |
|
|
ESI |
0.84 |
|
Director, ESI, Hyderabad |
|
|
|
TO 2019-20 |
|
| Contribution |
ESI |
0.03 |
FY 2019-20 |
Director, ESI, Hyderabad |
viii. According to the information and explanations given to us and on the basis of
examination of the records, the company has defaulted in repayment of loans along with
interest to the Banks/financial institutions during the year. The details of overdue
principal of the companys borrowings are as follows, we were unable to arrive at the
overdue interest due to inadequate information.
| S.No Bank/Financial institution |
Principal (Amount in Crores) |
| 1. Exim Import Bank of India |
25.00 |
| 2. Punjab national Bank |
371.41 |
| 3. IDBI Bank |
649.60 |
| 4. Edelweiss Asset reconstruction |
77.20 |
| 5. Andhra Bank |
214.43 |
| 6. Central Bank |
389.35 |
| 7. UCO Bank |
173.67 |
| 8. L&T Infrastructure Finance Co.Ltd |
4.18 |
| 9. SREI Equipment finance |
23.00 |
| Total |
1927.84 |
ix. The Company did not raise any money by way of initial public offer or further
public offer (including debt instruments) and term loans during the year. Accordingly,
paragraph 3 (ix) of the Order is not applicable. x. According to the information and
explanations given to us, no material fraud by the company or on the Company by its
officers or employees has been noticed or reported during the course of our audit. xi.
According to the information and explanations given to us and based on our examination of
the records of the Company, the Company has not paid managerial remuneration to its
Director.
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. According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act where applicable and details of such
transactions have been disclosed in the financial statements as required by the applicable
accounting standards;
xiv. According to the information and explanations give to us and based on our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares and has complied with Section 42 of the Companies
Act, 2013, and hence reporting under clause 3(xiv) of the Order is not applicable to the
Company.
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 noncash
transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of
the Order is not applicable.
xvi. Requirement of registration if any under section 45-IA of
Reserve Bank of India Act, 1934 are dealt at Central Office.
|
FOR VENUGOPAL & CHENOY |
|
CHARTERED ACCOUNTANTS |
|
FRN: 004671S |
|
( P.V.SRI HARI ) |
|
Partner |
|
Membership No.021961 |
|
UDIN: 21021961AAAAFS8937 |
| Place : Hyderabad |
|
| Date : 29.06.2021 |
|
Annexure - B to the Auditors Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of M/s.NEUEON
TOWERS LIMITED ("the Company") as of 31 March 2021 in conjunction with our
audit of 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 Companies Act, 2013.
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") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the 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 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 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 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 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, 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
In our opinion, 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 31 March 2021, 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.
|
FOR VENUGOPAL & CHENOY |
|
CHARTERED ACCOUNTANTS |
|
FRN: 004671S |
|
( P.V.SRI HARI ) |
|
Partner |
|
Membership No.021961 |
|
UDIN: 21021961AAAAFS8937 |
| Place : Hyderabad |
|
| Date :29.06.2021 |
|
+91-9892691696
