To the Members of
Newlight Apparels Limited
Report on the Audit of the Standalone Ind AS Financial Statements
Opinion
We have audited the standalone Ind AS financial statements of Newlight Apparels
Limited("the Company") which comprise the balance sheet as at 31st March 2023,
and the statement of Profit and Loss (Including Other Comprehensive Income), Statement of
Cash Flow and the Statement of Changes in Equity for the year ended, and notes to Ind AS
financial statements, including a summary of significant accounting policies and other
explanatory information (hereinafter referred to as "financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Ind AS 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 accounting principles generally accepted in India
including Indian Accounting Standards (Ind AS) specified under Section 133 of the Act,
of the statement of affairs of the Company as at March 31, 2023, and its loss (Including
other comprehensive income), its cash flows and changes in Equity for the year ended on
that date.
Basis for Opinion
We draw attention on following matters
1 The Companys trade receivable of Rs 708.18 (Rs in Lacs) out of Rs 351.23 (Rs in
Lacs) which pending for collection from long time and no provision for bad debts has been
provided till reporting date against these balances. Further during the period no steps
has been taken for recovery and no reconciliation/Confirmation is available in record.
2 The Company has received advance from customer for Rs 27.94 (Rs in Lacs) which are
pending for adjustment/repayment from significantly further no confirmation for these
balances are made available to us.
3 The Company has given advances to suppliers for Rs 143.27 (Rs in Lacs) which are
pending for adjustments/recovery from significantly, no confirmation for these balances
are made available to us.
4 The Companys trade payable of Rs 429.13 (Rs in Lacs) out of Rs 246.67 (Rs in Lacs)
is pending for payment from long time and no reconciliation/confirmation are produced
before us to verify correctness of these balances.
The nature of matter stated above are such that effect to the same over financial
statement cannot be stated.
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
standalone Ind AS 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 standalone Ind AS 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.
Emphasis of Matter/Key Audit Matters
We draw attention to other notes to the financial results wherein the following issue
have been mentioned
A) Non-deposit/Non payment of undisputed statutory dues like Tax Deduction at Sources
(TDS ), Income tax, Delhi Sales Tax Assessment and Non-filing of statutory returns due to
financial crunch.
B) One time Bank Settlement of 216.43 Lacs from banks and financial institutes has been
done during the financial year due to financial crunch.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the companys annual report, but does
not include the standalone Ind AS financial statements and our auditors report thereon.
The aforesaid report is expected to be made available to us after the date of this
auditors report.
Our opinion on the 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 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 Ind AS
financial statements or our knowledge obtained in the audit, or otherwise appears to be
materially misstated.
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 Ind AS 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 Indian Accounting Standards (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 Ind AS 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, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Standalone Ind AS Financial Statements
.
Our objectives are to obtain reasonable assurance about whether the Ind AS 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 Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Ind AS 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 controls.
•Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the Ind AS financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the Ind AS financial
statements, including the disclosures, and whether the Ind AS financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period. We describe these matters in our auditors report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order"),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Companies Act, (hereinafter referred to as the Order), we give in the "Annexure
A", a statement on the matters specified in paragraphs 3 and 4 of the Order, to
the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and except for matter described in the "Basis for Qualified
Opinion" paragraph above, obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our audit;
(b) Excepts for possible effects of the matter 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) The Balance Sheet, the Statement of Profit and loss, Statement of changes in equity
and statement of cash Flow dealt with by this Report are in agreement with the books of
account;
(d) Excepts for possible effects of the matter described in the "Basis for
Qualified Opinion" paragraph above, In our opinion, the aforesaid financial
statements comply with the Indian Accounting Standards (Ind AS) specified under Section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
( e) The matters described in the "basis for Qualified Opinion" paragraph
above, in our opinion, may have on adverse effect on the functioning of the Company.
(f) 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.
(g) With respect to the adequacy of the internal financial controls with respect to
financial statements of the Company and the operating effectiveness of such controls,
refer to our separate Report in "Annexure B".
(h) In our opinion the managerial remuneration for the year ended 31st March
2023 has been paid/provided by the company to its directors in accordance with the
provisions of section 197 read with Schedule V of the act.
(i) With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations
given to us,
i. The Company has disclosed pending litigation on its financial position in its
Financial statement. (Refer Note 23) to 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 to us that, to the best of its knowledge
and belief, as disclosed in the notes to accounts, no funds have been advanced or loaned
or invested (either from borrowed funds or share premium or any other sources or kind of
fund) by the Company to or in any other person(s) or entity(ies), including foreign
entities ("intermediaries"), with the understanding, whether recorded in writing
or otherwise, that the intermediary shall, 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 notes to accounts, no funds have been received by the Company from any
person(s) or entity(ies), including foreign entities ("Funding Parties"), with
the understanding, whether recorded in writing or otherwise, that the Company shall,
directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
(c) Based on the audit procedures that has 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 misstatement.
v) The Company has not declared or paid any dividend during the year and has not
proposed final dividend for the year.
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 with effect from 1st April 2023 to the Company 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.
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
Referred to in our report of even date to the members of Newlight Apparels Limited on
the financial statements for the year ended 31st March, 2023, we report that:
(i) In respect of the Companys Property, Plant and Equipment and Intangible Assets
(a) (A) In our opinion and according to the information and explanation given to us
during the course of audit, the company has maintained proper records showing full
particulars including quantitative details and situation of property, plant and equipment.
(B) The company does not have any intangible assets so clause 3 (i)(a)(B) of the Order
is not applicable to the company.
(b) In our opinion and according to the information and explanation given to us during
the course of audit, property, plant and equipment have been physically verified by the
management at reasonable interval having regard to the size of the company and the nature
of its assets and no material discrepancy was noticed on such verification as compared to
book records.
(c) According to the information and explanations given to us and on the basis of
records examined by us, the Company does not held any immovable properties in the name of
the company.
(d) According to the information and explanation given to us and on the basis of
records examined by us, the Company has not revalued its property, plant & equipment
(including right to use assets) or intangible assets or both during the year.
(e ) Accordingly to the information and explanation given to us, and to the basis of
our examination of the record of the Company, there are no pending proceeding initated or
are pending against the Company for holding any benami property under Benami Transaction
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(ii) In respect of inventory
(a) In our opinion and according to the information and explanations given to us,
inventories have been physically verified by the management at reasonable intervals having
regard to the size of the company and no material discrepancy was noticed on such
verification as compared to book records.
(b) According to the information and explanations given to us, the company has been
sanctioned working capital limits from bank or financial institutions on the basis of the
security of the current assets of the company. But as per explanation given to us, no
quarterly/monthly statement submitted with respective bank and financial institutions. So
we are enable to comments their upon.
(iii) In respect of investments made, provided any guarantee or security or granted
any loans or advances in the nature of loan:
(a) In our opinion and according to the information and explanation given to us during
the course of audit, the Company has not granted any loans, secured or unsecured to
companies, firms, Limited Liability Partnerships or other parties covered in the register
maintained under section 189 of the Companies Act, 2013. Therefore, sub clauses (a), (b)
& (c) of paragraph 3(iii) the Order are not applicable to the Company.
(iv) Compliance of section 185 and 186:
In our opinion and according to the information and explanation given to us during the
course of audit, the Company has complied with the provisions of section 185 and 186 of
the Act in respect of loans and investments of the company. Further, the company has not
given any guarantee or security; accordingly, to this extent paragraph 3(iv) of the Order
is not applicable.
(v) Public Deposits:
In terms of the books and records examined by us, we state that the Company has not
accepted any deposit from the public in terms of section 73 to 76 of the Act and the rules
framed thereunder. Accordingly, clause 3(v) of the order is not applicable to the company.
(vi) Cost Records:
In our opinion and according to the information and explanation given to us, the
Central Government has not prescribed maintenance of cost records under section 148 (1) of
the Act. Therefore, paragraph 3(vi) of the Order is not applicable.
(vii) Statutory Dues:
(a) According to the information and explanations given to us and the books and records
examined by us, we state that the company is generally regular in depositing undisputed
statutory dues including provident fund, employees state insurance, income-tax, sales
tax, service tax, duty of customs, duty of excise, value added tax,GST, cess and any other
statutory dues as applicable. There are no outstanding statutory dues for more than six
months from the date they became payable as on 31st March 2023, except.
| Name of Statute |
Nature of dues |
Amount (Rs in Lakhs) |
Period to which amount relates |
Date of Payment |
| Income Tax 1961 |
Income tax |
4.25 |
FY 2018-19 |
Not paid yet |
| Income Tax 1961 |
TDS |
8.84 |
FY 2018-19 |
Not Paid yet |
| Income Tax 1961 |
TDS |
0.80 |
FY 2019-20 |
Not Paid Yet |
| Income Tax 1961 |
Income Tax |
18.51 |
AY 2018-19 |
Reponse Filed |
| Income Tax 1961 |
Income Tax |
0.08 |
AY 2013-14 |
Not yet paid |
| Income Tax 1961 |
Income Tax |
0.73 |
AY 2010-11 |
Not yet paid |
| Income Tax 1961 |
Income Tax |
0.06 |
AY 2001-02 |
Not yet paid |
| Income Tax 1961 |
Income Tax |
16.46 |
AY 1998-99 |
Not yet paid |
| Income Tax 1961 |
Income Tax |
0.67 |
AY 2015-16 |
Not yet paid |
| Sales Tax,Delhi |
Sales Tax |
18.43 |
Various Years |
Appeal Filed |
| Value added tax, Delhi |
Dvat |
1.02 |
Various years |
Appeal filed |
(b) In terms of the information and explanations sought by us and given by the company
and the books and records examined by us in the normal course of audit and to the best of
our knowledge and belief, we state that there are no dues of income tax or sale tax or
service tax or duty of customs or duty of excise or value added tax or cess which have not
been deposited on account of any dispute except disclosed as under:
| Name of Statute |
Nature of dues |
Amount (in lakhs) |
Period to which amount relates |
Date of Payment |
| Income Tax 1961 |
Income tax |
4.25 |
FY 2018-19 |
Not paid yet |
| Income Tax 1961 |
TDS |
8.84 |
FY 2018-19 |
Not Paid yet |
| Income Tax 1961 |
TDS |
0.80 |
FY 2019-20 |
Not Paid Yet |
| Income Tax 1961 |
Income Tax |
18.51 |
AY 2018-19 |
Reponse Filed |
| Income Tax 1961 |
Income Tax |
0.08 |
AY 2013-14 |
Not yet paid |
| Income Tax 1961 |
Income Tax |
0.73 |
AY 2010-11 |
Not yet paid |
| Income Tax 1961 |
Income Tax |
0.06 |
AY 2001-02 |
Not yet paid |
| Income Tax 1961 |
Income Tax |
16.46 |
AY 1998-99 |
Not yet paid |
| Income Tax 1961 |
Income Tax |
0.67 |
AY 2015-16 |
Not yet paid |
| Sales Tax,Delhi |
Sales Tax |
18.43 |
Various Years |
Appeal Filed |
| Value added tax, Delhi |
Dvat |
1.02 |
Various years |
Appeal Filed |
(viii) Undisclosed Income:
According to the information and explanations given to us and the records of the
Company examined by us, there were no transactions relating to previously unrecorded
income that were surrendered or disclosed as income in the tax assessments under the
Income Tax Act, 1961 (43 of 1961) during the year.
(ix) Borrowings
In our opinion and according to the information and explanation given to us during the
course of audit, the company has defaulted in timely repayment of loans or borrowing to a
financial institution and bank. In some month company has delayed payment of EMI.
(x) Issue of securities
a) 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.
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 (x)(b) of the Order is not applicable to the Company.
(xi) Fraud:
(a) To the best of our knowledge, and information and explanations given by the
management, we report that, no fraud by the Company and no material fraud on the Company
has been noticed or reported during the year.
(b) To the best of our knowledge, no report under sub-section (12) of section 143 of
the Companies Act has been filed in Form ADT-4 (as prescribed) under rule 13 of Companies
(Audit and Auditors) Rules, 2014 with the Central Government, during the year and up to
the date of this report.
(c ) As represented to us by the Management, there were no whistle blower complaints
received by the Company during the year.
(xii) Nidhi Company:
In our opinion and according to the information and explanation given to us during the
course of audit, the company is not a Nidhi company. Therefore, clause 3(xii) of the Order
are not applicable.
(xiii) Related Parties
In terms of the information and explanations sought by us and given by the company and
the books and records examined by us in the normal course of audit and to the best of our
knowledge and belief, we state that transactions with the related parties are in
compliance with sections 177 & 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) Internal Audit
(a) In our opinion the Company has an adequate internal audit system commensurate with
the size and the nature of its business.
(b) We have considered, the internal audit reports issued to the Company during the
year and covering the period upto March 2023.
(xv) Non- cash transactions
In our opinion during the year the Company has not entered into any non-cash
transactions with its directors or persons connected with its directors and hence
provisions of section 192 of the Companies Act, 2013 are not applicable to the company.
(xvi) Section 45-IA of the Reserve Bank of India Act,1934
In our opinion and according to the information and explanation given to us during the
course of audit, the Company is not required to be registered under section 45-IA of the
Reserve Bank of India Act 1934.
(xvii) Cash Losses
The Company has incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
(xviii) Resignation of Statutory Auditors
There has been no resignation of the statutory auditors of the Company during the year.
Accordingly reporting under clause (xviii) of the Order is not applicable.
(xix) Ability to pay liabilities
On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements and knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that the Company may 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 an
assurance as to the future viability of the Company. We further state that our reporting
is based on the facts up to the date of the audit report and we neither give any guarantee
nor any assurance that all liabilities falling due within a period of one year from the
balance sheet date, will get discharged by the Company as and when they fall due.
(xx) CSR Unspent Amount
Average Net profit for the three immediately preceding financial years, as per Section
198 of the Companies Act, 2013("Act") is nil. Accordingly, company was not
required to spend any amount on CSR activities as per Section 135 of the Act in the
current and previous year. Hence clause 3(xx) of the Order is not applicable to the
company.
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
Referred to in our report of even date to the members of Newlight Apparels Limited on
the financial statements for the year ended 31st March, 2023
Report on the Internal Financial Controls with reference to financial statements under
Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls with reference to financial statements
of Newlight Apparels Limited("the Company") as of 31st March, 2023 in
conjunction with our audit of the financial statements of the Company for the year ended
on that date.
Managements Responsibility for Internal Financial Controls with reference to financial
statements
The Companys management is responsible for establishing and maintaining internal
financial controls with reference to financial statements based on the internal control
with respect to financial statements 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 with reference to financial statements based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the "Guidance Note") issued by ICAI
and the Standards on Auditing prescribed under section 143(10) of the Companies Act, 2013,
to the extent applicable to an audit of internal financial controls with reference to
financial statements. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls with respect to financial statements 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 control system with respect to financial statements and their
operating effectiveness. Our audit of internal financial control with respect to financial
statements included obtaining an understanding of internal financial control with respect
to financial statements, 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 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
with respect to financial statements.
Meaning of Internal Financial Controls with respect to financial statements
A Companys internal financial control with respect to financial statements 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 with
respect to financial statements includes those policies and procedures that (1) pertain to
the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the Company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the Company are being made only in accordance with authorizations of
management and directors of the Company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
Companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with respect to financial
statements
Because of the inherent limitations of internal financial controls with respect to
financial statements, 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 with
respect to financial statements to future periods are subject to the risk that the
internal financial controls with respect to financial statements 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 with respect to financial statements and such internal financial
controls with respect to financial statements were operating effectively as at 31st March,
2023, based on the internal controls with respect to financial statements criteria
established by the Company considering the essential components of internal controls
stated in the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting issued by the ICAI.
For NGMKS & Associates
Chartered Accountants Firms Registration No. 024492N
Nitin Goyal
Partner
Membership No 517698 Place of Signature: New Delhi Date: 27.06.2023
UDIN: 23517698BGXVOC3410
+91-9892691696
