To the Members of Patspin India Ltd.
Report on the Audit of the Standalone Financial Statements Opinion
1. We have audited the accompanying financial statements of Patspin India
Limited (the "Company"), which comprise the Balance Sheet as at 31
March, 2023, the Statement of Profit and Loss (including Other Comprehensive Income),
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 the significant accounting
policies and other explanatory information. (Hereinafter referred to as "Standalone
financial statements").
2. In our opinion and to the best of our information and according to the
explanations given to us the aforesaid Standalone financial statements for the year ended
31 March, 2023 give the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles generally accepted in
India, of the state of affairs of the company as at 31 March, 2023, and loss and other
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs)
specified under section 143(10) of the Companies Act, 2013. Our responsibilities under
those Standards are further described in the Auditors Responsibilities for the Audit of
the Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion on the Financial
Statements.
Emphasis of Matter
4. As stated in Note No 8 of the Audited Financial Statements, the Company has not
recognised deferred Tax assets. But as required under Ind AS-12 Income Taxes the carrying
amount of a deferred tax asset shall be reviewed at the end of each reporting period. An
entity shall reduce the carrying amount of a deferred tax asset to the extent that it is
no longer probable that sufficient taxable profit will be available to allow the benefit
of part or all of that deferred tax asset to be utilised. As per the information and
explanation given by the management, post restructuring of its debts, management is
hopeful that there would be sufficient taxable profits in the ensuing years against which
the unused tax losses and unused tax credits can be utilized / to allow the benefit of
part or all of that deferred tax asset to be utilized. In view of this, the recognised
amount Deferred Tax Assets of Rs.3,869 lakhs is continued to be carried in the Books.
In view of such positivity, our opinion is not modified in respect of this matter.
Key Audit Matters
5. 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 informing our opinion thereon, and we do not provide a separate opinion on these
matters. We have determined that there is no matter to be communicated as a key audit
matter in our report.
Information Other than the Standalone Financial Statements and Auditors Report Thereon
6. The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexures to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the standalone financial statements and our auditors report thereon. Our opinion
on the standalone financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon. In connection with our audit of the
standalone financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the
standalone financial statements or our knowledge obtained during the course of our 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.
Responsibilities of the Management and Those charged with Governance for the Financial
Statements:
7. The Companys Board of Directors is responsible for the matters stated in
Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the
preparation of these financial statements that give a true and fair view of the financial
position, financial performance, changes in equity and cash flows in accordance with the
accounting principles generally accepted in India, including the Indian Accounting
Standards (Standalone) specified under section 133 of the Act read with Companies (Indian
Accounting Standards) Rules, 2015, as amended. 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
judgements 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 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.
8. 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.
9. The Board of Directors are also responsible for overseeing the Companys
financial reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements:
10. 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.
11. As part of an audit in accordance with SAs, we exercise professional judgment
and maintain professional scepticism throughout the audit. We also: (i) 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.
(ii) 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.
(iii) Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
(iv) 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.
(v) 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.
12. 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. 13. We communicate with those
charged with governance regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
14. We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence, and to communicate
with them all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, related safeguards.
15. From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the standalone financial
statements of the current period and are therefore the key audit matters. We describe
these matters in our auditors report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements:
16. As required by the Companies (Auditors Report) Order, 2020 ("the
Order"), issued by the Central Government of India in terms of sub section (11)
of section 143 of the Companies Act, 2013, we give in "Annexure - A" a
statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent
applicable. 17. 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
Statement of Cash Flow dealt with by this Report are in agreement with the books of
account. d) In our opinion, the aforesaid Standalone Financial Statements comply with the
Indian Accounting Standards specified under Section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended. e) On the basis of written
representations received from the directors as on 31 March 2023 taken on record by the
board of directors, none of the directors are disqualified as on 31 March, 2023 from being
appointed as directors 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, according to the information and explanations given to us and
based on our examination of the records of the company, the remuneration paid by the
Company to its directors during the year is in accordance with the provisions of the
section 197 of the Act read with Schedule V to the Act. h) With respect to the other
matters to be included in the Auditors Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, 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
the impact of pending litigations on its financial position in its Standalone financial
statements. ii. The Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses. iii. There were no amounts
which were required to be transferred to the Investor Education and Protection Fund by the
Company. iv. (a) The Management has represented that, to the best of its knowledge and
belief, no funds (which are material either individually or in the aggregate) have been
advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person or entity, including
foreign entity ("Intermediaries"), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries. (b) The Management has represented, that, to
the best of its knowledge and belief, no funds (which are material either individually or
in the aggregate) have been received by the Company from any person or entity, including
foreign entity ("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;
(c) Based on the audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement. v. The Company did not declare or paid any
dividend during the year.
For L. U. Krishnan & Co.
Chartered Accountants Firms Registration No: 001527S
P. K. Manoj
Place: Chennai Partner
Date: 29 May 2023
Membership No. 207550
UDIN: 23207550BGWMID8468
Annexure - A to the Independent Auditors Report
(Referred to in paragraph 16 under ‘Report on Other Legal and Regulatory
Requirements section of our report)
The Annexure referred to in Independent Auditors Report to the members of the Company
namely Patspin India Ltd on the Standalone financial statements for the year ended 31
March, 2023 we report that:
(i) In respect of the Companys Property, Plant and Equipment and Intangible Assets:
(a) A. The Company has maintained proper records showing full particulars including
quantitative details and situation of Property Plant and Equipment.
B. The Company has maintained proper records showing full particulars of Intangible
Assets.
(b) The Property, Plant & Equipment have been physically verified by the Management
at reasonable intervals in accordance with regular programme of verification. According to
the information and explanations given to us, no material discrepancies were found on such
verification.
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the title deeds of immovable properties (other
than immovable properties where the Company is the lessee and the lease agreements are
duly executed in favour of the lessee) are held in the name of the Company. (d) The
Company has not revalued any of its Property, Plant and Equipment (including Right of Use
asset) and intangible assets 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. The company is not holding any benami property.
(ii) a) During the year, Inventories have been physically verified by the
Management at reasonable intervals of time and there were no discrepancies found during
such verification. b) Company does not have any working capital facilities from Banks or
Financial institutions. During the year companys bankers have approved and implemented
debt restructuring / resolution proposal. As there is no working capital facilities the
quarterly returns or statements were not required to be filed.
(iii) In respect of investments in, or provided any guarantee or security or
granted any loans or advances in the nature of loans, secured or unsecured to any company,
firm, LLP, or other parties, the Company has not made investments in, or provided any
guarantee or security or granted any loans or advances in the nature of loans, secured or
unsecured to any company, firm, LLP, or other parties during the year, and hence reporting
under clause 3(iii)(a) to (f) of the Order is not applicable. (iv) In our opinion
and according to the information and explanations given to us, the Company has complied
with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of loans
granted, investments made and guarantees and securities provided, as applicable.
(v) According to the information and explanations given to us, the Company has not
accepted deposits and does not have any unclaimed deposits within the meaning of Section
73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended).
Accordingly, the provisions of the clause 3 (v) of the Order are not applicable. (vi)
We have broadly reviewed the books of accounts maintained by the company pursuant to rules
prescribed by the Government of India for maintenance of cost records under sub-section
(1) of section 148 of the Act and are of the opinion that prima facie, the prescribed
amounts and records have been made and maintained. However, we have not made any detailed
examination of the records. .
(vii) (a) According to the information and explanations given to us and according
to the records as produced and examined by us, in our opinion, the Company is regular in
depositing with appropriate authorities the undisputed statutory dues including income
tax, sales tax, service tax, value added tax, goods and service tax, customs duty, excise
duty, cess and other material statutory dues applicable to it and there are no arrears of
outstanding statutory dues as at 31 March, 2023 for a period of more than six months form
date they become payable.
(b) According to the information and explanations given to us, there were no dues in
respect of income tax, sales tax, service tax, value added tax, goods and service tax,
customs duty, excise duty, cess and other material statutory dues which have not been
deposited on account of dispute /litigation except for the below
Name of the Statute |
Nature of Dues |
Amount (Rs. in Lakhs) |
Amount Deposited against Litigation (Rs in Lakhs) |
Period for which the amount Relates |
Forum where Dispute is pending |
Central Excise Act,1944 |
Excise Duty |
72.99 |
7.31 |
August, 2014 to May, 2016 |
AC Central Excise, Pollachi. |
TANGEDCO |
Electricity tax on Maximum demand charges |
74.67 |
Nil |
January, 2016 to October, 2022 |
Honble Supreme Court |
TANGEDCO |
Deemed demand benefit available for use of self-generated Thermal
Power received through captive arrangement. |
308.42 |
Nil |
April, 2015 to October, 2022 |
Honble High Court Chennai |
Service Tax |
Service tax payable on reverse charge method on ocean freight. |
29.22 |
Nil |
April to June 2017 |
Asst Commissioner of GST & Cent Ex Audit, Coimbatore |
CGST Act 2017 and TNGST Act 2017 |
GST on canteen service |
6.44 |
0.64 |
April 2017 to March 2019 |
Additional Commissioner of GST & Cent Ex Audit, Coimbatore Audit
Circle II |
(viii) There were no transactions relating to previously unrecorded income that
have been surrendered or disclosed as income during the year in the tax assessments under
the Income Tax Act, 1961. Accordingly, paragraph 3 (viii) of the Order is not applicable.
(ix) (a) According to the information and explanations given by the management, we
are of the opinion that the Companys Revised Restructuring/ Resolution proposal submitted
to repay entire Term loan along with interest as at 31.3.2022 and convert outstanding
working capital in to Working capital Term Loan (WCTL) repayable over 6 years was approved
and implemented by the Lenders on 28.09.2022.Company has repaid outstanding Term Loans
along with interest fully and also serviced interest on WCTL and there were no overdue as
at 31.3.2023.: (b) The Company has not been declared a wilful defaulter by any bank or
financial institution or any other lender. (c) The Company has not taken any term loan
during the year. The existing working capital loan has been converted into working capital
term loan.
(d) On examination of the financial statements of the Company, Company has not raised
any funds on short term basis which has been used for long-term purposes hence reporting
under clause 3(ix)(d) of the order is not applicable. (e) On an overall examination of the
financial statements of the Company, the Company has not taken any funds from any entity
or person on account of or to meet the obligations of its subsidiaries or associates hence
reporting on clause 3(ix)(e) of the Order is not applicable. (f) The Company has not
raised any loans on the pledge of securities held in its subsidiaries, associate companies
during the year and hence reporting on clause 3(ix)(f) of the Order is not applicable.
(x) (a) The Company did not raise any money by way of initial public offer or
further public offer (including debt instruments) during the year. Accordingly, reporting
of the purpose for which amount raised under clause 3 (ix)(a) of the Order is not
applicable.
(b) The Company has complied with provisions of sections 42 and 62 of the Companies Act
2013 in respect of the preferential allotment of shares during the year. The Company has
issued 20,51,000, 0.50 % Non-Cumulative Compulsorily Convertible preference shares of Rs
100 each were issued to Lenders, Promoters and their associates pursuant to an approved
Resolution Plan as per RBI Prudential Framework for Resolution of Stressed Assets circular
dated 07.06.2019.
(xi) In respect of Fraud:
(a) According to the information and explanations given to us, during the year Company
has not noticed any fraud by the Company or on the Company. (b) No reportable fraud has
been committed by the Company hence Form ADT-4 has not been filed by the auditors as
prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central
Government. (c) During the year Company has not received any whistle-blower complaints to
be considered by the auditors. (xii) Company is not a Nidhi company. Accordingly,
paragraph 3(xii) of the Order is not applicable.
(xiii)All transactions entered by the Company with the related parties are in
compliance with sections 177 and 188 of the Act where applicable and details of such
transactions have been properly disclosed in the financial statements as required by the
applicable Indian Accounting Standards.
(xiv)In respect of Internal Audit System
(a) Company has an internal audit system commensurate with the size and nature of its
business.
(b) We have considered the Internal Audit Reports of the Company issued by the Internal
auditors for the period under audit (xv) According to the information and
explanations given to us and based on our examination of the records of the Company, the
Company has not entered into non-cash transactions with directors or persons connected
with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi)Company is not required to be registered under section 45-IA of the Reserve
Bank of India Act 1934. Accordingly, paragraph 3(xvi) (a), & (b) of the Order is not
applicable and Company is not a Core Investment Company and there is no core investment
company within the group. Accordingly, paragraph 3(xvi) (c) & (d) of the Order is not
applicable. (xvii)The Company has incurred cash losses of Rs. 1,100 lakhs and Rs.
324.03 lakhs during the financial year and immediately preceding financial year
respectively covered by our audit.
(xviii) There has been no resignation of the statutory auditors of the Company
during the year. Accordingly, clause 3(xviii) of the order is not applicable. (xix)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 and our knowledge of the Board of Directors and Management plans and based on
our examination of the evidence supporting the assumptions, as reported in the
"Material Uncertainty on Going Concern" paragraph we report that the Company has
incurred a total comprehensive loss of Rs 1,851 lakhs and cash loss of Rs 1,100 lakhs
during the year ended 31 March, 2023 and net worth is eroded as on that date and Companys
accounts with Lenders were classified as sub-standard with effect from 31 March 2021 due
to irregularity in debt servicing and Companys future cash flows are uncertain. This
situation indicates that a material uncertainty exists that may cast significant doubt on
the Companys ability to continue as a going concern. However as per the information and
explanations provided by the Company in Note No 36 of Standalone Financial Statement for
the year ended 31 March 2023, all the Lender banks and Financial institutions have agreed
and implemented Revised restructuring/ resolution proposal in the meeting held on
28.09.2022 .Management expects with reduced level of debts and reduction expected in
Labour cost on account of VRS offered to certain high-cost permeant workers operations
from the remaining plant in Kanjikode, Kerala will be viable. (xx) The provisions
of section 135 of the Companies Act, 2013 which deals Corporate Social Responsibility
(CSR) is not applicable. Accordingly, reporting under Paragraph 3(xx)(a) & (b) of the
order is not applicable for the year.
(xxi)Company do not have any subsidiaries or associates ‘companies to prepare
Consolidated Financial Statement. Accordingly, reporting under Paragraph 3(xxi)of the
order is not applicable for the year.
For L. U. Krishnan & Co.
Chartered Accountants
Firms Registration No: 001527S
P. K. Manoj
Place: Chennai Partner
Date: 29 May 2023 Membership No.207550
UDIN: 23207550BGWMID8468
Annexure - B to the Independent Auditors Report
(Referred to in paragraph 16 under ‘Report on Other Legal and Regulatory
Requirements section of our 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 with reference to financial statements
of Patspin India Limited ("the Company") as at 31 March, 2023 in
conjunction with our audit of the financial statements of the Company for the year ended
and as at 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 with reference 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") 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 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 with reference 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 controls system with reference to financial statements and their
operating effectiveness. Our audit of internal financial controls with reference to
financial statements included obtaining an understanding of internal financial controls
with reference 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
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 with reference to financial statements.
Meaning of Internal Financial Controls with reference to financial statements.
A companys internal financial control with reference 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
reference 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 reference to financial
statements.
Because of the inherent limitations of internal financial controls with reference 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
reference to financial statements to future periods are subject to the risk that the
internal financial control with reference 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 reference to financial statements and such internal
financial controls with reference to financial statements were operating effectively as at
31 March 2023, based on the internal control with reference 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.
For L. U. Krishnan & Co.
Chartered Accountants Firms Registration No: 001527S
P. K. Manoj
Place: Chennai Partner
Date: 29 May 2023
Membership No. 207550
UDIN: 23207550BGWMID8468
+91-9892691696
