To
The Members of PANCHMAHAL STEEL LIMITED
Report on the Audit of the Financial Statements Opinion
We have audited the accompanying financial statements of PANCHMAHAL STEEL LIMITED
("the Company"), which comprises 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 the 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 "the financial
statements").
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 (the "Act") 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
and other accounting principles generally accepted in India, of the state of affairs of
the Company as at 31st March 2023, the profit and total comprehensive income, changes in
equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements 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 independence requirements that are
relevant to our audit of the financial statements under the provisions of the Companies
Act, 2013 and the Rules there under, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion on the financial statements.
Key Audit Matters
| Sr. No. Key Audit Matter |
How the matter was addressed in our audit: |
| 1. Evaluation of uncertain tax positions and litigations |
In assessing the potential exposure of the on-going litigation, we have
performed the following procedures: |
| The company has on-going legal matters relating to direct tax, Indirect
tax and other matters which requires significant management judgement to determine the
likely outcome. |
• Obtaining from the management details of all completed / pending
tax assessments and other litigations upto 31st March 2023; |
|
• Understanding the status of pending tax demands and potential
liability for the other pending litigations; |
| Refer Note 30 (i) (a) and (b) to the Financial Statements. |
• Involved our internal tax teams and discussing with the companys
legal advisors to confirm the managements underlying assumptions and judgement for
determining the potential liability and provisions and the possible outcome of the
litigation. |
Information other than the Financial Statement and Auditors Report thereon
The Companys Board of Directors is responsible preparation the other information. The
other information comprises the information included in the Management discussion and
analysis, boards report including Annexure to Boards Report, Corporate Governance and
Shareholders information, but does not include the financial statements and our auditors
report thereon. The Boards Report including Annexure to Boards Report,
Corporate Governance and Shareholders Information are expected to be made available to
us after the date of this auditors report. Any Material misstatement thereon pertaining
to it, will be reported thereon.
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 and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is 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 Ind AS and other 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; makingjudgments 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, 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.
The Board of Directors are also responsible for overseeing the companys financial
reporting process.
Auditors Responsibilities for the Audit of 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:
• 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;
Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we 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 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
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, 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.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive
income, statement of changes in equity and the Cash Flow Statement dealt with by this
Report are in agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 st March, 2023 from being appointed as a director in terms of
Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure B".
(g) 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, the remuneration paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act; and
(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,amended, 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 financial statements - Refer 30 (i)(a) and (b)to the financial statements.
ii. The Company did not have any long-term contracts including derivatives contracts
for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company during the year ended 31st March
2023.
iv. i. The Management has represented that , to the best of its knowledge and belief,
as disclosed in note no. 40(c)(v) 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(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;
ii. The Management has represented that , to the best of its knowledge and belief, as
disclosed in note no. 40(c)(vi) to the accounts, that 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, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries; and
iii. Based on such 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-statement.
v. The dividend proposed in the previous year, declared and paid by the Company during
the year is in accordance with Section 123 of the Act, as applicable.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company with effect from April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March 31, 2023.
For CNK & Associates, LLP
Chartered Accountants, Firm Registration No. 101961W/W-100036
Place : Vadodara |
(Pareen Shah) |
Date : 20th May, 2023 |
Partner |
|
Membership No. 125011 |
|
UDIN: 23125011BGTMIR6021 |
Annexure-A to the Independent Auditors Report
(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements
section of our report to the Members of the company of even date)
To the best of our information and according to the explanations provided to us by the
Company and the books of account and records examined by us in the normal course of audit,
we state that:
(i) (a) (A) The Company has maintained proper records showing full particulars
including quantitative
details and situation of the property, plant and equipments;
(B) The Company does not hold any intangible assets and accordingly, the requirements
under paragraph 3 (i) (a) (b) of the Companies (Auditiors Report) Order, 2020 ("the
order") is not applicable to the Company.
(b) The company has a phased programme of physical verification of its Property, plant
and equipments so as to cover all assets once in three years. In our opinion, this
periodicity of physical verification is reasonable having regard to the size of the
company and the nature of its assets. In accordance with this programme, certain Property,
plant and equipments were verified by the management during the year. According to the
information and explanations given to us, no material discrepancies were noticed on such
verification;
(c) Based on our verification of the documents provided to us and according to the
information and
explanations given by the Management, the title deeds of all the immovable properties
(other than properties where the Company is the lessee and the lease agreements are duly
executed in favour of the lessee) as disclosed in the financial statements, are held in
the name of the Company as at the Balance Sheet date except following: (Rs. in lakhs)
| SN Description of item of property |
Gross carrying value as on 31.03.23 |
Title deeds held in the name of |
Title deed holder |
Property held since which date |
Reason for not being held in the name of the company** |
| 1 Land at Plot No-42 - Charotar CHSL |
1.68 |
Late. Mr. Ramlubhaya Malhotra |
Promoter |
20/01/1984 |
As per by laws of the society, Corporate cannot become member so
properties are in the name of promoter/relative of promoter. |
| 2 Land at Plot No-43 - Charotar CHSL |
1.71 |
Mr. Ashok R. Malhotra |
Promoter |
20/01/1984 |
|
| 3 Land at Plot No-44 - Charotar CHSL |
3.00 |
Mr. Ravi R. Malhotra |
Relative of Promoter |
23/10/1986 |
|
| 4 Land at Plot Nos. C-1/B-102 |
2.21 |
M/S. Precision Engineering Company |
|
11/04/2007 |
Company has executed MOU and agreement to sale with the seller. Company
has paid total consideration and taken possession from seller. Sale deed could not be
executed. |
(d) The Company has not revalued its Property, Plant and Equipment (including Right of
Use assets) or intangible assets or both during the year;
(e) 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;
(ii) (a) As per the information and explanations given to us, the inventories held by
the Company have been physically verified by the management. In our opinion, having regard
to the nature and location of stocks, the frequency of the physical verification is
reasonable and no discrepancies of 10% or more in aggregate for each class of inventory
were noticed on physical verification;
(b) Based on our examination of the records provided by the management, the Company has
been sanctioned working capital limits in excess of five crore rupees, in aggregate, from
banks on the basis of security of current assets and the quarterly returns and statements
filed by the company with such banks are in agreement with the books of account of the
company;
(iii) The Company has not made any 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
requirements of paragraph 3(iii) of the Companies (Auditors Report) Order, 2020
("the Order") are not applicable to the Company;
(iv) Based on our verification of the documents provided to us and according to the
information and explanations given by the Management, in respect of loans, investments,
guarantees, and security, the Company has complied with the provisions of section 185 and
186 of the Companies Act, 2013;
(v) The Company has not accepted any deposits or amounts which are deemed to be
deposits within the meaning of sections 73 to 76 of the Act and other relevant provisions
of the Act and rules made thereunder;
(vi) We have broadly reviewed the cost records maintained by the Company as prescribed
by the Central Government under sub section (1) of Section 148 of the Companies Act, 2013
and are of the opinion that prima facie the prescribed cost records have been made and
maintained by the company. We have, however, not made a detailed examination of the cost
records with a view to determine whether they are accurate or complete;
(vii) (a) In our opinion, the Company is generally regular in depositing undisputed
statutory dues including
Goods and Service tax , provident fund, employee state insurance, income-tax, sales
tax, service tax, duty of custom, duty of excise, value added tax, cess and other
statutory dues as applicable to the appropriate authorities. There were no undisputed
amounts payable with respect to above statutory dues in arrears as at March 31, 2023 for a
period of six months from the date they became payable; (b) According to the information
and explanations given to us and the records examined by us, the particulars of statutory
dues as at March 31, 2023 which have not been deposited on account of a dispute are as
follows:
Name of the Statute |
Nature of dues |
Amount (Rs. in Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Custom Act, 1962 |
Custom Duty (including penalty) |
40.74 |
2014 to 2015 |
CESTAT, Mumbai |
Central Excise Act, 1944 |
Excise Duty (including penalty) |
1566.63 |
2005 to 2015 |
CESTAT, Ahmedabad |
Income Tax Act, 1961 |
Income Tax (including penalty) |
1.64 |
2009-10 |
High Court of Gujarat/ |
Income Tax Act, 1961 |
Income Tax (including penalty) |
1217.94 |
2010-11 } |
CIT(Appeals) Faceless New Delhi / ITAT Ahmedabad |
Goods & Service Tax Act, 2017 |
Goods & Service Tax |
1.71 |
2017-18 |
CESTAT, Ahmedabad |
Note: - Amounts paid under protest and not charged to profit and loss
statement have not been included above.
(viii) There were no transactions which were not recorded in the books of account, have
been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 (43 of 1961);
(ix) (a) The Company has not defaulted in repayment of loans or other borrowings or in
the payment of
interest thereon to any lender;
(b) The Company is not declared as wilful defaulter by any bank or financial
institution or other lender;
(c) The Company has not defaulted in repayment of loans or other borrowings or in the
payment of interest thereon to any lender;
(d) On an overall examination of the financial statements of the Company, funds raised
on short-term basis have, prima facie, not been used during the year for long-term
purposes by the Company;
(e) According to the information and explanations given to us, and the records examined
by us, the company has no subsidiaries, associates or joint ventures. Accordingly,
reporting under the clause 3 (ix) (e) and (f) is not applicable;
(x) (a) The Company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) during the year and hence reporting under clause
3(x)(a) 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 3(x)(b) of the Order is not applicable;
(xi) (a) During the course of our examination of the books of account and records of
the Company, carried
out in accordance with the generally accepted auditing practices in India and according
to the information and explanations given to us, we have neither come across any incidence
of fraud on or by the company noticed or reported during the year, nor we have been
informed of any such case by the management;
(b) According to the information and explanations given to 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;
(c) According to the information and explanations given to us, and based on our
examination of the records, Company has not received any whistle blower complaints during
the year.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the
Order is not applicable;
(xiii) In our opinion, all the transactions with the related parties are in compliance
with section 177 and 188 of the Companies Act, 2013 where applicable and the details have
been disclosed in the Financial Statements Note no. 34 as required by the applicable
accounting standards;
(xiv) (a) In our opinion and the records examined by us, the company has an internal
audit system commensurate
with the size and nature of its business;
(b) We have considered, the internal audit reports for the year under audit, issued to
the Company during the year and till date, in determining the nature, timing and extent of
our audit procedures;
(xv) In our opinion and according to the information and explanations given to us, the
Company has not entered into any non-cash transactions with directors or persons connected
with him and the provisions of section 192 of the Companies Act, 2013 are not applicable;
(xvi) (a) In our opinion, the Company is not required to be registered under section
45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause 3(xvi)(a), (b)
and (c) of the Order is not applicable. (b) As informed to us , there is not more than one
core investment company within the Group (as defined in the Core Investment Companies
(Reserve Bank) Directions, 2016);
(xvii) The Company has not incurred any cash losses in the financial year and in the
immediately preceding financial year;
(xviii) There has been no resignation of the statutory auditors during the year;
(xix) Based on our examination of financial ratios, ageing and expected dates of
realisation of financial assets and payment of financial liabilities, other information
accompanying the financial statements, knowledge of the Board of Directors and management
plans, there is no material uncertainty exists as on the date of the audit report that
that Company is not capable of meeting its liabilities existing at the date of balance
sheet as and when they fall due within a period of one year from the balance sheet date.
We, however, state that this is not an assurance as to the future viability of the
Company. We further state that our reporting is based on the facts up to the date of the
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) (a) The Company is not required to transfer unspent amount to a fund specified in
Schedule VII to the Companies Act for other than ongoing projects. Accordingly, reporting
under clause 3(xx)(a) of the Order is not applicable for the year;
(b) The Company has not spent amount towards Corporate Social Responsibility (CSR) on
ongoing project. Accordingly, reporting under clause 3(xx)(b) of the Order is not
applicable for the year.
(xxi) According to the information and explanations provided by the management, the
Company has no subsidiary, associates or joint venture and the company is not required to
prepare Consolidated Financial Statements as per the section 129 of the Companies Act.
Accordingly reporting under clause 3(xxi) is not applicable to the Company.
For CNK & Associates, LLP
Chartered Accountants, Firm Registration No. 101961W/W-100036
| Place : Vadodara |
(Pareen Shah) |
| Date : 20th May, 2023 |
Partner |
|
Membership No. 125011 |
|
UDIN: 23125011BGTMIR6021 |
Annexure-B 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 reporting of PANCHMAHAL
STEEL LMITED ("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
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 internal financial controls with
reference to financial statements of the company 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 internal
financial controls with reference to financial statements of the company were established
and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the internal
financial controls with reference to financial statements of the company 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 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 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 internal financial
controls with reference to financial statements of the Company and such internal financial
controls over financial reporting were operating effectively as at 31st March 2023, based
on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India.
For CNK & Associates, LLP
Chartered Accountants, Firm Registration No. 101961W/W-100036
Place : Vadodara |
(Pareen Shah) |
Date : 20th May, 2023 |
Partner |
|
Membership No. 125011 |
|
UDIN: 23125011BGTMIR6021 |
+91-9892691696
