To
The Members of Oil Country Tubular Limited
1. We, C K S ASSOCIATES, Chartered Accountants, the Statutory Auditors of Oil Country
Tubular Limited ("the Company"), have examined the compliance of conditions of
Corporate Governance by the Company, for the year ended on 31st March 2023, as
stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C
and D of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 as amended ("SEBI Listing Regulations").
Managements Responsibility
2 The compliance of conditions of Corporate Governance is the responsibility of the
Management. This responsibility includes the design, implementation and maintenance of
internal control and procedures to ensure the compliance with the conditions of the
Corporate Governance stipulated in the SEBI Listing Regulations.
Auditors Responsibility
3. Our responsibility is limited to examining the procedures and implementation
thereof, adopted by the Company for ensuring compliance with the conditions of the
Corporate Governance. It is neither an audit nor an expression of opinion on the financial
statements of the Company.
4. We have examined the books of account and other relevant records and documents
maintained by the Company for the purposes of providing reasonable assurance on the
compliance with Corporate Governance requirements by the Company.
5 We have carried out an examination of the relevant records of the Company in
accordance with the
Guidance Note on Certification of Corporate Governance issued by the Institute of the
Chartered Accountants of India (the ICAI), the Standards on Auditing specified under
Section 143(10) of the Companies Act, 2013, in so far as applicable for the purpose of
this certificate and as per the Guidance Note on Reports or Certificates for Special
Purposes issued by the ICAI which requires that we comply with the ethical requirements of
the Code of Ethics issued by the ICAI.
6. We have complied with the relevant applicable requirements of the Standard on
Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and Reviews of
Historical Financial Information, and Other Assurance and Related Services Engagements.
Opinion
7. Based on our examination of the relevant records and according to the information
and explanations provided to us and the representation provided by the Management, we
certify that the Company has complied with the conditions of Corporate Governance as
stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C
and D of Schedule V of the SEBI Listing Regulations during the year ended March 31, 2023
subject to approval of shareholders at their meeting for the appointment of Directors.
8. We state that such compliance is neither an assurance as to the future viability of
the Company nor the efficiency or effectiveness with which the Management has conducted
the affairs of the Company.
|
For C K S ASSOCIATES |
|
Chartered Accountants (F.R.No. 007390S) |
HYDERABAD |
P. GANAPATI RAO |
Partner May 24, 2023 |
M.No. 24113 |
|
UDIN: 23024113BGSJOP2521 |
INDEPENDENT AUDITORS REPORT
To the Members of OIL COUNTRY TUBULAR LIMITED Report on the Audit of the Financial
Statements Opinion
We have audited the accompanying financial statements of OIL COUNTRY TUBULAR LIMITED
("the Company"), which comprise the Balance Sheet as at 31st March 2023, the
Statement of
Profit and Loss (including Other Comprehensive Income), the 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.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013 in the manner so required and give a true and fair view in conformity
with the Indian Accounting Standards prescribed under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and
other accounting principles generally accepted in India, of the state of affairs of the
Company as at March 31, 2023, and its Profit and other comprehensive income, changes in
equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the Audit of the
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 audit opinion on the
financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters. We
have determined that there are no key audit matters to communicate in our report except as
stated below:
Key Audit Matter |
Auditors Response |
Impairment of assets: |
on As per the information and explanation given is by the
Company, we are of the opinion that the Impairment is Temporary in nature and no provision
in respect of impairment of assets is required due to the following reasons: |
| As per Indian Accounting Standard 36 impairment of Assets, the Company
required to determine impairment in respect of property, plant and equipment as per the
meth- odology prescribed under the said Standard. The matter pending before NCLT in
respect of CIRP process has been resolved vide NCLT order dated 27th September,
2022 and all the dues to lenders have been paid as per One time Settlement (OTS), and
Board has taken over the management of the Company. |
- The Companys facility has been inspected by American Petroleum
Institute (API) and got certified that the Plant is capable of manufacturing its products
as per the standard norms. |
The company has got certification from API the. confirming the
plant is capable of producing the material as per the standards |
- The Company is in the process of getting the work orders to generate
revenue by utilizing assets of the Company |
The Company is also expecting orders from various customers
during the current year. In view of the above the Company is currently not considering
provision for Impairment of Assets during the year as it is temporary in nature. |
- During the year, the Plant and Equipment is revalued, and life
of the asset is reassessed. |
Other Information
The Companys Board of Directors is responsible for the preparation of the other
information. The other information obtained at the date of this auditors report comprises
the information included in the Management Discussion and Analysis, Boards Report
including Annexures to Boards Report and Shareholders Information but does not include
the financial statements and our auditors report thereon.
Our opinion on the 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 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 on the other information obtained prior to the
date of this auditors report, 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, total 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 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 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 the
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 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 takenon the
basis of these 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 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 financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the 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 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 issued by the Central
Government of India in terms of sub-section (11) of Section 143 of the Act (hereinafter
referred to the "Order"), and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to the information and
explanations given to us, we give in the Annexure-1 a statement on the matters specified
in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, based on our audit we report that: a) We
have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit.
b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive
income), the statement of cash flows and the statement of changes in equity dealt with by
this Report are in agreement with the books of account.
d) In our opinion, the aforesaid said 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 written representations received from the Directors as on March 31,
2023, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 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 -2".
g) 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, we report that
the remuneration paid by the Company to its directors during the year, in our opinion and
to the best of our information and according to the explanations given to us, 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), 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 Ind AS financial statements.
ii. In our opinion and as per the information and explanations provides to us, the
Company has not entered into any long-term contracts including derivative contracts,
requiring provision under applicable laws or accounting standards, for material
foreseeable losses, and iii. There has been no delay in transferring the amounts, required
to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its knowledge and belief,
as disclosed in the note.47 to the accounts, no funds have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the Company to or in any other person or entity, including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Company
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
(b The Management has represented, that, to the best of its knowledge and belief, as
disclosed in the note.47 to the accounts, no funds 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, directly
or indirectly, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed that have been considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub-clause (i) and (ii) of Rule 11(e) contain any
material mis-tatement. v. The Company has neither declared or nor paid dividend during the
year. vi. The Companys accounting software does not have the feature of recording audit
trial facility during the year under review. However, the requirement of maintenance of
books of accounts in such software which has the feature of recording audit trial is
applicable from April 01, 2023.
|
For C K S ASSOCIATES |
|
Chartered Accountants |
|
(F.R.No. 007390S) |
HYDERABAD |
P. GANAPATI RAO |
Partner May 24, 2023 |
M.No. 24113 |
|
UDIN: 23024113BGSJOP2521 |
TO THE INDEPENDENT AUDITORS REPORT:
(Referred to in Paragraph 1 under section ‘Report on Other Legal and Regulatory
Requirements of our report of even date) 1.1.1. According to the information and
explanations given to us, the Company is maintaining proper records showing full
particulars including quantitative details and situation of Property, Plant and Equipment.
1.1.2. According to the information and explanations given to us, the company is
maintaining proper records showing full particulars of intangible assets.
1.2. According to the information and explanations given to us, all the Property, Plant
and
Equipment have not been physically verified by the management at reasonable intervals
and as such we are unable to comment on the discrepancies if any.
1.3.
The title deeds of all the immovable properties disclosed in the financial statements
are held in the name of the Company. 1.4. According to the information and
explanations given to us, the Company has revalued itsLand, Building and Plant and
the revaluation is based on the valuation by the Registered Valuer during the year. The
changes in the carrying value of the respective assets as detailed below:
Sl No |
Name of the Asset |
Carrying value as on 31-03-2023 (Rs in Lakhs) |
Carrying value as on 31-03-2022 (Rs in Lakhs) |
| 1. |
Land |
7,480.37 |
3,525.88 |
| 2. |
Building |
5,437.26 |
3,571.63 |
| 3. |
Plant and Machinery |
32,259.60 |
9,457.89 |
1.5. According to the information and explanations given to us, no proceedings have
been initiated or are pending against the company for holding any benami property under
the Benami Transactions (Prohibition) Act,1988(45 of 1988) and rules made thereunder.
1.6. Accordingtotheinformationandexplanationsgiventous,theinventorieshavebeenphysically
verified at reasonable intervals by the management and in our opinion, the coverage and
procedure of such verification by the management is appropriate. No discrepancies of 10%
or more in the aggregate for each class of inventory were noticed.
2.1 The Company has settled all its dues of working Capital, under One Time Settlement
(OTS), through NCLT and obtained no due certificates from all the lender Banks. Please
refer note:32.
3. According to the information and explanations given to us, company has not made
investments in, provided any guarantee or security or granted any loans or advances in the
nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships
or any other parties. Hence, the matters to be reported under the sub-clauses (a), (b),
(c), (d), (e ) and (f) are not applicable to the company.
4.
According to the information and explanations given to us, the Company has not grantedany
loans, has not made any investments, nor given any guarantee or security to parties
covered under the provisions of Section 185 and 186 of the Companies Act.
5.
According to the information and explanations given to us, the Company has not acceptedany
deposits or amounts which are deemed to be deposits, requiring compliance under the
directives issued by Reserve Bank of India and the provisions of Sections 73 to 76 or any
other relevant provisions of the Companies Act and the rules framed there under.
6.
As there is no manufacture and sales prescribed under sub-section(1) of Section 148 of
theCompanies Act, the maintenance of cost records is not applicable to the Company.
7.1 According to the information and explanations given to us, the company is
generally regularin depositing undisputed statutory dues including goods and service
tax, provident fund, employees state insurance, income tax, sales tax, service-tax duty
of customs, duty of excise, value added tax, cess and any other statutory dues to the
appropriate authorities. According to the information and explanations given to us, there
are no arrears of outstanding statutory dues except as mentioned below as at the last day
of the financial year under audit for a period of more than six months from the date they
became payable except TDS amount of 27.00 Lakhs and which has been subsequently paid.
7.2 According to the information and explanations given to us, there are no statutory
dues referred to in sub-clause (a) which have not been deposited on account of dispute
except the following:
Nature of the Statute & Nature of due |
Amount in Lakhs |
Period |
Forum where litigation is pending |
Central Excise – Demand raised by the Central Excise Department
in respect of process amounting to ‘manufacture and applicability of duty thereon in
respect of certain products against which an appeal has been made before CESTAT, Hyder-
abad. |
722.45 |
From 01.04.2007 to 31.03.2016 |
CESTAT, Hyderabad |
Income Tax – Demand raised by the DCIT-2, International Tax upon
the Withholding of Taxes with respect to International transactions for the period A Y
2011-12 to 2014-15 against which an appeal has been made before CIT – Ap- peal,
Hyderabad. |
202.12 |
A Y 2011-12 to A Y 2014-15 |
CIT – Appeal, Hyder- abad. |
8.
According to the information and explanations given to us, there are no transactions
that arenot recorded in the books of account, which have been surrendered or
disclosed as income during the year in the tax assessments under the income Tax Act,1961
(43 of 1961).
9.1
According to the information and explanations given to us, the Company has not
defaultedin repayment of loans or other borrowings or in the payment of interest
thereon to any lender.
9.2 According to the information and explanations given to us, the company is not
declared as a wilful defaulter by any bank or financial institution or other lender.
9.3
According to the information and explanations given to us, the term loans have not
obtainedby the company. 9.4 According to the information and explanations given
to us, the company has not raised anyfunds on short term basis.. 9.5 According
to the information and explanations given to us, the company has not taken anyfunds
from any entity or person on account of or to meet the obligations of its subsidiaries,
associates or joint ventures.
9.6
According to the information and explanations given to us, the company has not raised
loansduring the year on the pledge of securities held in its subsidiaries, joint
ventures or associate companies. 10.1 According to the information and explanations given
to us, the Company has not raised any money by way of initial public offer or further
public offer, during the year under audit.
10.2
According to the information and explanations given to us, the Company has not made anypreferential
allotment or private placement of shares or convertible debentures (fully, partially or
optionally) during the year under review. Hence, compliances of reporting requirement
under Section 42 and Section 62 of the Companies Act, 2013, whether the funds raised have
been used for the purposes for which they were so raised, is not applicable to the
Company.
11.1 According to the information and explanations given to us and based upon the audit
procedures performed by us, any fraud by the Company or any fraud on the Company has not
been notice for reported during the year. 11.2 According to the information and
explanations given to us and based upon the audit procedures performed by us, no report
under sub-section (12) of section 143 of the Companies
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. 11.3
According to the information and explanations given to us, the company has not receivedany
whistle-blower complaints during the year, and hence, considering the same by us does not
arise.
12.
As the Company is not a Nidhi Company under the provisions of the Companies Act, 2013read
with Nidhi Rules, 2014, the matters to be reported under sub-clauses (a), (b) and (c) of
clause (xii) are not applicable to the Company.
13.
According to the information and explanations given to us, all transactions with the
related parties are in compliance with the provisions of Section 177 and 188 of the
Companies Act wherever applicable. According to the information given to us, details of
such transactions have been disclosed in the financial statements as required by the
applicable accounting standards.
14.1
In our opinion, the company has an internal audit system commensurate with the size and
nature of its business. 14.2 We have considered the reports of Internal Auditors for the
period under audit.
15.
According to the information and explanations given to us, the Company has not enteredinto
any non-cash transactions with directors or persons connected with him and hence,
reporting requirement on compliance with the provisions of Section 192 of the Companies
Act is not applicable.
16.1
According to the information and explanations given to us and in our opinion, the
companyis not required to be registered under section 45-IA of the Reserve Bank of
India Act, 1934.
As the Company is not engaged in any non-banking financial or housing finance activity,
nor is a Core Investment Company nor having more than one Core Investment Company as part
of the Group, the matters to be reported under sub-clauses (b), (c) and (d) of clause
(xvi) are not applicable to the Company. 17. The Company incurred a cash loss 3,162.29
Lakhs in the immediately preceding financial year.
18. During the year, the Previous Statutory Auditors have been retired as their period
of appointment for 5 years has elapsed.
19.
According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dates of realisation of financial assets and
payment of financial liabilities, other information accompanying the financial statements,
our knowledge of the plans of the Board of Directors and the management and in our opinion
and based upon our examination of the evidence supporting the assumptions furnished to us,
no material uncertainty exists as on the date of audit report that the company is capable
of meeting its liabilities existing at the date of balance sheet date as and when they
fall due within a period of one year from the balance sheet date.
20.
According to the information and explanations given to us, the provisions of section
135 ofthe Companies Act, 2013 does not apply to the Company.
|
For C K S ASSOCIATES |
|
Chartered Accountants |
|
(F.R.No. 007390S) |
HYDERABAD |
P. GANAPATI RAO |
May 24, 2023 |
Partner |
|
M.No. 24113 |
|
UDIN: 23024113BGSJOP2521 |
TO THE INDEPENDENT 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 reportingof OIL
COUNTRY TUBULAR LIMITED ("the Company") as of March 31, 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
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. 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 operating effectively as at March 31, 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 Institute of Chartered
Accountants of India.
|
For C K S ASSOCIATES |
|
Chartered Accountants |
|
(F.R.No. 007390S) |
HYDERABAD |
P. GANAPATI RAO |
May 24, 2023 |
Partner |
|
M.No. 24113 |
|
UDIN: 23024113BGSJOP2521 |
+91-9892691696
