To,
The Members of Permanent Magnets Limited
Report on the Audit of the Standalone Financial Statements
OPINION
We have audited the accompanying standalone Ind AS financial statements of Permanent
Magnets Limited ("the Company"), which comprise the balance sheet as at March
31, 2023, the statement of profit and loss, including Other Comprehensive Income, the Cash
Flow Statement and the Statement of changes in equity 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 standalone Ind AS financial statements give the information
required by the Companies Act, 2013 ("the Act")in the manner so required and
give a true and fair view in conformity with the accounting principles generally accepted
in India including the Ind AS, of the financial position of the Company as at March 31,
2023, and its profit (financial performance including other comprehensive income), its
cash flows and the changes in equity for the year ended on that date.
BASIS FOR OPINION
We conducted our audit of the standalone Ind AS financial statements in accordance with
the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Standalone Ind AS Financial Statements section of
our report. We are independent of the Company in accordance with the Code of Ethics issued
by the Institute of Chartered Accountants of India together with the ethical requirements
that are relevant to our audit of the financial statements under the provisions of the Act
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.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the Ind AS financial statements for the financial year ended
March 31,2023. These matters were addressed in the context of our audit of the Ind AS
financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. There are no significant key audit matters observed
by us except the matters reported in the notes to accounts.
EMPHASIS OF MATTERS
We draw attention to the following matters in the Notes to the Financial Statements:
a. We draw attention to Note no. 3 of notes to accounts of the financial statement,
which states that Honorable Bombay High Court has given interim stay order against the
winding up order passed against the Company dated April 15, 2015.
Honorable High Court of Bombay had passed winding up order dated April 15, 2015 for
Winding up of the company on petition filed by M/s. Savino Del Bene Freight Forwarders (I)
Pvt. Ltd., and court had issued direction for appointment of official liquidator in
winding up order.
On the appeal against this order made by the company before Honorable Bombay High
Court, Honorable Bombay High Court has given interim stay order against the winding up
order passed (against the Company) dated April 15, 2015. Company has deposited Rs. 19.05
Lakhs with interest as per direction of honorable Bombay High Court. Matter is pending
before Bombay High Court and next hearing in this matter shall come up as per listing of
the court.
The financial statements of the company have been prepared on Going Concern Basis on
reasons mentioned in the note no. 3 of notes of accounts.
b. We draw attention to Note no. 4 of notes to accounts of the financial statement
regarding non receipts of confirmation in respect of balances due under Trade receivables
and Trade payables, Loans and advances receivable though company has issued email to the
Trade receivables and Trade Payables to that effect, adjustments, if any, required upon
such confirmation is not ascertainable. In response to above, only few confirmations have
been received.
c. We draw attention to Note No. 5 of notes to accounts of the financial statements,
which states that Interest on outstanding balances of MSME creditors are not provided in
the books as contractual terms with the parties are more than 60/90 days and parties are
also agreed upon the terms of payment.
Our opinion is not modified in respect of these matters.
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORS REPORT THEREON
The Companys Board of Directors is responsible for the other information. The other
information comprises information included in the Annual Report 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 standalone financial
statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the standalone financial
statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information; we are required to report that fact. We have
nothing to report in this regard.
RESPONSIBILITY OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE STANDALONE
FINANCIAL STATEMENTS
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Act with respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial performance (including
other comprehensive income), cash flows and changes in equity of the Company in accordance
with the accounting principles generally accepted in India, including the Indian
Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015
(as amended) 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 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 standalone financial statements that give a true and
fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Board of Directors is responsible
for assessing the Companys ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of
accounting unless the Board of Directors either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
AUDITORS RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the standalone
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 standalone 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 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 becausethe 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 in terms of Section 143(11) of the Act, applicable from
April 01, 2021, we give in "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, were port 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 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 Cash Flow Statement and Statement of Changes in Equity 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 prescribed 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, none of the directors are 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 B".
g. With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules,2014, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at March 31, 2023 on
its financial position in its standalone financial statements - Refer Note No. 2 of Notes
to Accounts to the standalone 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 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,
other than as disclosed in the notes to accounts, no funds have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the Company to or in any other persons or entities, 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 ("Ultimate Beneficiaries") by or on behalf of the Company
or
• provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.
b. The management has represented, that, to the best of its knowledge and belief no
funds have been received by the Company from any persons or entities, 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 ("Ultimate Beneficiaries") by or on behalf of the
Funding Party or
• provide any guarantee, security or the like from or on behalf of the Ultimate
Beneficiaries.
c. Based on such audit procedures as 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 (iv)(a) and (iv)(b) contain any material mis-statement.
v. The Company has declared and paid dividend during the year in compliance with
Section 123 of the Act.
For Jayesh Sanghrajka & Co LLP
Chartered Accountants
ICAI Firm Reg. No. 104184W/W100075
Hemant Kumar Agrawal
Designated Partner
M. No. 403143
UDIN: 23403143BGRVFQ4439 Place: Mumbai
Date: May 17, 2023
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 Permanent Magnets Limited 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. 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 and relevant details
of right-of-use assets.
(B) The Company has maintained proper records showing full particulars of intangible
assets.
(b) The Company has a regular program of physical verification of its fixed assets and
right-of-use assets so to cover all the assets once every two years which, in our opinion,
is reasonable having regard to the size of the Company and the nature of its assets.
Pursuant to the program, certain Property, Plant and Equipment were due for verification
during the year and were physically verified by the Management during the year. According
to the information and explanations given to us and as per report company has impaired its
plant and machinery and total impairment loss booked for year is Rs. 14.22 Lakhs Other
than this, there is no material discrepancies were noticed on such verification.
(c) Based on the examination of the registered sale deed/ transfer deed/conveyance deed
provided to us, we report that Company has title deed in the name of company for new land
purchased during year and company has 15% share in immovable property situated at Borivali
(east) Mumbai. In respect of immovable and movable properties that have been taken on
lease and disclosed in the financial statements as right-of use asset as at the balance
sheet date, the lease agreements are duly executed in favour of the Company.
(d) The Company has not revalued any of its Property, Plant and Equipment (including
right-of-use assets) and intangible assets during the year.
(e) No proceedings have been initiated during the year or are pending against the
Company as at March 31, 2023 for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
ii. (a) The inventories were physically verified "except goods in transit"
during the year by the Management at reasonable intervals. For goods in transit,
subsequent evidence of delivery has been verified. In our opinion and according to the
information and explanations given to us, the coverage and procedure of such verification
by the Management is appropriate having regard to the size of the Company and the nature
of its operations. No material discrepancies were noticed on such physical verification.
(b) During the year, the Company has been sanctioned working capital limits in excess
of ? five Crores in aggregate from banks during the year on the basis of security of
current assets of the Company. Based on the records examined by us in the normal course of
audit of the financial statements, the quarterly returns/statements filed by the Company
with such banks are in agreement with the books of account of the Company.
iii. According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not provided any guarantee or
security or granted any loans or advances in the nature of loans, secured or unsecured to
companies, firms, limited liability partnership or any other parties during the year. The
Company has not made any investments in firms, limited liability partnership or any other
parties. Accordingly, clause 3(iii)(a) to clause 3(iii)(f) of the Order are not applicable
to the Company.
iv. In our opinion and according to the information and explanations provided to us,
the Company has not granted any loans or provided any guarantees or security to the
parties covered under Section 185 of the Companies Act, 2013. The Company has complied
with the provisions of Section 186 of the Act in respect of investments made or loans or
guarantee or security provided to the parties covered under Section 186 of the Act.
v. The Company has not accepted any deposit or amounts which are deemed to be deposits.
Hence, reporting under clause 3(v) of the Order is not applicable.
vi. According to the information and explanations given to us, the maintenance of cost
records has not been specified by the Central Government under sub-section (1) of section
148 of the Companies Act, 2013 for the business activities carried out by the Company.
Hence, reporting under clause (vi) of the Order is not applicable to the Company.
vii. In respect of statutory dues:
(a) In our opinion and according to the information and explanations given to us and
based on audit procedures performed by us, the Company has generally been regular in
depositing undisputed statutory dues, including Goods and Services tax, Provident Fund,
Employees State Insurance, Income Tax, Sales Tax, Service Tax, duty of Custom, duty of
Excise, Value Added Tax, Cess and other material statutory dues applicable to it with the
appropriate authorities.
According to the information and explanations given to us and based on audit procedures
performed by us, there were no undisputed amounts payable in respect of Goods and Service
tax, Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax,duty
of Custom, duty of Excise, Value Added Tax, Cess and other material statutory dues in
arrears as at March 31,2023 for a period of more than six months from the date they became
payable.
(b) According to the information and explanations given to us and based on audit
procedures performed by us, Details of statutory dues referred to in sub-clause (a) above
which have not been deposited as on March 31, 2023 on account of disputes are given below:
Nature of the Statute |
Nature of dues |
Forum where the dispute is pending |
Period to which the amount relates |
Amount (Rs In Lakhs) |
| Central Excise Act, 1944 |
Excise Duty |
CESTAT - Mumbai |
FY 2003-04 |
63.18 |
viii. There were no transactions relating to previously unrecorded income that were
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of 1961).
ix. (a) In our opinion, in our opinion, the Company has not defaulted in the repayment
of loans or other borrowings or in the payment of interest thereon to any lender during
the year except as mentioned below.
Bank |
Nature |
Amount (Rs In Lakhs) |
Due on |
Paid on |
| ICICI |
Interest on Central excise Loan |
175.85* |
Between October 2002 to November 2017 |
Not yet paid |
*it is simple interest @12% provided by the company till the last repayment of the
loan.
(b) The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.
(c) The Company has used term loan for the object for which it is obtained during the
year and there are no unutilised term loans at the beginning of the year.
(d) On an overall examination of the financial statements of the Company, funds raised
on short-term basis has, prima facie, not been used during the year for long-term purposes
by the Company.
(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, associates or joint ventures.
(f) The Company has not raised loans during the year on the pledge of securities held
in its subsidiaries, joint ventures or associate companies. Hence, the requirement to
report on clause 3(ix)(f) of the Order is not applicable to the Company.
x. (a) The Company has not raised any money during the year by way of initial public
offer/further public offer (including debt instruments) hence, the requirement to report
on clause 3(x)(a) of the Order is not applicable to the Company.
(b) The Company has not made any preferential allotment or private placement of
shares/fully or partially or optionally convertible debentures during the year under audit
and hence, the requirement to report on clause 3(x)(b) of the Order is not applicable to
the Company.
xi. (a) To the best of our knowledge, no fraud by the Company and no material fraud on
the Company has been noticed or reported during the year.
(b) To the best of our knowledge, no report under sub-section (12) of section 143 of
the Companies Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies
(Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto the
date of this report.
(c) As represented to us by the Management, there were no whistle blower complaints
received by the Company during the year and up to the date of this report.
xii. The Company is not a Nidhi Company and hence reporting under clause (xii) of the
Order is not applicable.
xiii. In our opinion, the Company is in compliance with Section 177 and 188 of the
Companies Act, where applicable, for all transactions with the related parties and the
details of related party transactions have been disclosed in the financial statements etc.
as required by the applicable accounting standards.
xiv. (a) In our opinion the Company has an adequate internal audit system commensurate
with the size and the nature of its business.
(b) The internal audit reports of the Company issued till the date of the audit report,
for the period under audit have been considered by us.
xv. According to the information and explanations given to us and based on our
examination of the records, the Company has not entered into any non-cash transactions
with its directors or persons connected with its directors and hence provisions of section
192 of the Companies Act, 2013 are not applicable to the Company.
xvi. (a) 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) and (b) of the
Order is not applicable.
(b) The Company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India. Accordingly, clause 3(xvi) (c) and (d) of the Order is
not applicable.
xvii. The Company has not incurred cash losses during the financial year covered by our
audit and the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors of the Company during
the year.
xix. On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that 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) In respect of other than ongoing projects, there are no unspent amounts that
are required to be transferred to a fund specified in Schedule VII of the Companies Act
(the Act), in compliance with second proviso to sub section 5 of section 135 of the Act.
This matter has been disclosed in note 18 to the notes to accounts of financial
statements.
(b) There are no unspent amounts in respect of ongoing projects, that are required to
be transferred to a special account in compliance of provision of sub section (6) of
section 135 of Companies Act. This matter has been disclosed in note 18 to the notes to
accounts of financial statements.
For Jayesh Sanghrajka & Co LLP
Chartered Accountants
ICAI Firm Reg. No. 104184W/W100075
Hemant Kumar Agrawal
Designated Partner
M. No.403143
UDIN: 23403143BGRVFQ4439
Place: Mumbai
Date: May 17, 2023
Annexure ‘B
TO THE INDEPENDENT AUDITORS REPORT
[Referred to in Para 2(f) Report on Other Legal and Regulatory Requirements in our
Independent Auditors Report of even date to the members of Permanent Magnets Limited on
the Ind AS financial statement for the year ended March 31,2023]
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 PERMANENT
MAGNETS LIMITED (The Company") as of March 31, 2023 in conjunction with our audit
of the standalone Ind AS financial statements of the Company for the year ended on that
date.
MANAGEMENTS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over financial reporting
issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls over financial reporting
(the "Guidance Note") and the Standards on Auditing, issued by the ICAI and
deemed to be prescribed under section 143(10) of the Act, 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 requirement and plan
and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting 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 the internal controls based on the assessed risk. The
procedures selected depend on the auditors judgment, including the assessment of the
risks of material misstatement of the Standalone 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 over
financial reportings.
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 LIMITATION OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitation of Internal financial controls over financial
reporting, including the possibility of collision 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 controls
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedure 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 controls over
financial reporting were effective as at March 31, 2023, based on the internal control
over financial reporting criteria established by the Company considering the essentials
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 Jayesh Sanghrajka & Co LLP
Chartered Accountants
ICAI Firm Reg. No. 104184W/W100075
Hemant Kumar Agrawal
Designated Partner
M. No.403143
UDIN: 23403143BGRVFQ4439
Place: Mumbai
Date: May 17, 2023
+91-9892691696
