To
The Members,
SAB Events and Governance Now Media Limited
Report on the Audit of the Standalone Financial Statements
Qualified Opinion
We have audited the accompanying standalone financial statements of SAB Events and
Governance Now Media Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2023, the Statement of Profit and Loss, statement of changes in
Equity and the Statement of Cash Flows for the year ended on that date, and notes to the
financial statements, including a summary of the significant accounting policies and other
explanatory information (hereinafter referred to as "the financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, except for the effects of the matter described in Basis for Qualified Opinion
section of our report, the aforesaid standalone 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 and other
accounting principles generally accepted in India, of the state of affairs of the Company
as at March 31, 2023, the loss, changes in equity and its cash flows for the year ended on
that date.
Basis for Qualified Opinion
1. The Company had acquired its publication and MICE business in Financial Year 2015-16
as per the scheme of arrangement and during such acquisition the company has recognised
goodwill amounting to 788.69 Lakhs as Goodwill on demerger. The carrying value of
Goodwill as on 31st March, 2023 is 220.19 Lakhs. However, the Company has not
been able to generate sufficient income from its publication and MICE business since last
five years and has incurred losses of 145.00 Lakhs during the year ended on 31st
March, 2023 and during the preceding financial year of 113.75 Lakhs. Also the Company
has discontinued the publication of its magazine Governance Now since FY 2019-20. Further
the Company is not able to service its debt obligation. In our opinion, these facts
indicate that there is impairment in the value of Goodwill. However the Company has not
carried out impairment testing on goodwill and instead amortising the Goodwill over a
period of 10 years which is not in consonance with the Ind AS 36 Impairment of Assets. In
the absence of working for impairment we are unable to quantify the amount of impairment
provision required and its possible effects on the financial statements.
2. During the quarter ended March 2023, management has represented to us that they have
initiated settlement process with the lender for waiver of interest from October 2022 and
extension for principal repayment. Accordingly, no interest has been provided for the
period October 2022 to March 2023. The effect of the settlement in the books of accounts
is not in line with Ind AS 109. However, management is unable to produce any evidence
regarding the settlement terms agreed. In our opinion since settlement terms are not
finalised with the lender interest should be accounted in terms of the existing
arrangement. Had the company provided the interest as per the existing arrangement, loss
for the year and quarter ended 31st March 2023 would have been higher by 48.28
Lakhs and current financial liabilities would have been higher by 48.28 Lakhs as at
Balance Sheet date.
3. The Company has not accounted the lease transactions as per requirements of Ind AS
116 Leases. Had the said standard been followed, the liabilities would have been higher by
35.51 Lakhs and assets would have been higher by 33.51 Lakhs and loss would have been
higher by 0.92 Lakhs for the year ended 31st March, 2023 and by 0.07 Lakhs
for the quarter ended 31st March, 2023.
We conducted our audit of the financial statements in accordance with the Standards on
Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under
those Standards are further described in the Auditors
Responsibilities for the Audit of the Standalone 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 (ICAI) together with the ethical
requirements that are relevant to our audit of the financial statements under the
provisions of the Act and the Rules made 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 qualified opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters. We
have determined the matters described below to be the key audit matters to be communicated
in our report.
Except for the matter described in the Basis for Qualified Opinion paragraph, we have
determined that there are no other key audit matters to communicate in our report.
Material Uncertainty related to Going Concern
We draw attention to Note 31 to the financial statements wherein it is stated that
during the year under consideration the company has gradually undertaken the ground event,
however, companys current liability are 1.31 times of its current assets, current
liabilities exceeds by 218.57 Lakhs and the Company is not able to service its debt
obligations. Above facts indicate there is material uncertainty regarding companys
ability to continue as going concern. However, management estimates that adequate cash
flows will be generated from the operation and by way of fund raising to meet its
obligations in the near future. In the event management plan does not achieved the desired
cash flows and is unable to raise sufficient long term funds there exists a condition that
may cast significant doubt on the companys ability to continue as a going concern. Our
opinion is not modified in respect of this matter.
Other Information
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Directors 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 financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated.
The Directors Report is not made available to us at the date of this auditors report.
Hence we have nothing to report in this regard.
Responsibilities of Management 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 financial statements that give
a true and fair view of the financial position, financial performance, changes in equity
and cash flows of the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under Section 133 of The
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. 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 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, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the companys financial
reporting process.
Auditors Responsibilities for the Audit of the Standalone 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 standalone
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 financial controls relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, 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 standalone 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 standalone
financial statements, including the disclosures, and whether the standalone 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 de_ciencies 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
As required by the Companies (Auditors Report) Order, 2020, issued by the Central
Government of India in terms of sub section (11) of the 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.
As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the 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 the Statement of Cash
Flow dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting
standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014 except as described in the Basis for Qualified Opinion paragraph.
e) On the basis of the written representations received from the directors as on March
31, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure 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 on its financial
position in its standalone Ind AS financial statements. Refer Note …. to the
financial statements.
ii. According to the information given to us, the company has not entered into any
long-term contracts including derivative contracts.
iii. According to the information and explanation given to us, the Company is not
required to transfer any amount to Investor Education and Protection Fund.
iv. (a) The management has represented that, to the best of its knowledge and belief,
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; and
(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 misstatement.
v. According to information and explanation given to us, the Company has not declared
any dividend in terms of provision of section 123 of Companies Act, 2013.
vi. With respect to the matter to be included in the Auditors Report under Section 197
(16) of the Act:
In our opinion and according to the information and explanations given to us, the
company has not paid any managerial remuneration to the directors during the year.
vii. 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 A.R. Sodha & Co. Chartered Accountants FRN 031878
A.R. Sodha Partner M No.031878 Place: Mumbai Date: 29th May, 2023
UDIN: 23031878BGUARP4820
ANNEXURE A TO INDEPENDENT AUDITORS REPORT
On the basis of such checks as we considered appropriate and in terms of information
and explanations given to us, we state that:
1. a) (A) According to information and explanations given to us by the management and
records furnished before us, the Company has generally maintained proper records showing
full particulars, including quantitative details and situation of Property, Plant &
Equipment.
(B) The Company is maintaining proper records showing full particulars of Intangible
Assets. b) The Property, Plant and Equipment of the Company have been physically verified
by the Management at reasonable intervals. In our opinion, the frequency of verification
is reasonable with regard to the size of the company and nature of assets. According to
information and explanations given to us by the management, no material discrepancy was
noticed on such verification. c) According to the information and explanation given to us
and on the basis of records furnished before us, the company does not own any immovable
property. Therefore, reporting under clause 3(i)(c) of Companies (Auditors) Report Order,
2020 is not applicable to the Company. d) According to the information and explanation
given to us and on the basis of records furnished before us, the company has not revalued
property, plant & equipment or intangible assets. Therefore, reporting under clause
3(i)(d) of Companies (Auditors) Report Order, 2020 is not applicable. e) According to the
information and explanation given to us and on the basis of records furnished before us,
no proceedings have been initiated or are pending against the company for holding any
benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made
thereof. Therefore, reporting under clause 3(i)(e) Companies (Auditors) Report Order,
2020 is not applicable.
2. a) The Company is in the business of rendering services and, consequently, does not
hold any inventory. Therefore, reporting under clause 3(ii)(a) of the Companies
(Auditors) Report Order, 2020 are not applicable to the Company b) According to
information and explanation given to us by the management and on the basis of records
furnished before us, the Company has not been sanctioned working capital limits in excess
of five crore rupees from any banks or financial institutions on the basis of security of
current assets. Accordingly, reporting under clause 3(ii)(b) is not applicable.
3. According to the information and explanation given to us and on the basis of records
furnished before us, the company has not made investments or provided any guarantees or
security or granted any loans, secured or unsecured, to companies, firms, Limited
Liability partnerships or any other parties. Accordingly, reporting under clause 3(iii) of
Companies (Auditors) Report Order, 2020 is not applicable.
4. According to the information and explanation given to us and on the basis of records
furnished before us, the company has not given any loan or made any investment or given
any guarantee or security during the year for which compliance under section 185 and 186
is required. Accordingly Clause 3(iv) of Companies (Auditors Report) Order, 2020 is not
applicable.
5. The company has not accepted deposits form the public within the meaning of sections
73 to 76 or any other relevant provisions of the Companies Act and the rules framed there
under. Accordingly Clause 3(v) of Companies (Auditors Report) Order, 2020 is not
applicable.
6. According to the information and explanation given to us the Company is not required
to maintain cost records as specified under section 148 sub-section (1) of the Companies
Act, 2013. Therefore clause 3(vi) of Companies (Auditors Report) Order, 2020 is not
applicable to the Company.
7. a. The company is generally regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance. However the Company is generally
regular in payment of Income Tax, Goods and Service Tax and Cess except delay in deduction
and payment of TDS. No undisputed statutory dues as stated above is outstanding as at 31st
March, 2023 for more than six months from the date they become payable.
b. According to information and explanation given to us, there are no disputed
statutory dues including Sales Tax, Service Tax, Custom Duty, Duty of Excise, Value added
Tax, Cess and any other statutory dues which have not been deposited on account of dispute
except as stated below:
Name of statute |
Nature of dues |
Year(s) to which it pertains |
Amount Not Paid ( in Lakhs) |
Forum where dispute is pending |
| Service Tax |
Service Tax and penalty |
April 2015 to March 2017 |
40,50,144 |
Commissioner of Central GST and Central Excise (Appeals) Noida |
8. According to the information and explanation given to us and the records furnished
before us, the Company does not have any outstanding dues to be repaid to any bank,
financial institution or government. Accordingly, Clause 3(viii) of Companies (Auditors
Report) Order is not applicable.
9. (a) According to the information and explanation given to us and records examined by
us, the Company has defaulted in repayment of dues to other corporate entities other than
banks, financial institutions and Government as at the Balance Sheet date. The period and
the amount of default is as follows:
Nature of borrowing, including debt securities |
Amount not paid on due date |
Whether principal or interest |
No of days Remarks, if any delay or unpaid |
| Intercorporate Deposits |
857.79 Lakhs |
Principal and |
Refer Para 2 to Basis for Qualified |
|
|
Interest |
Opinion paragraph |
(b) According to the information and explanations given to us and the records of the
Company, the Company has not been declared a wilful defaulter by any bank or financial
institution or government or government authority (c) According to the information and
explanations given to us and the records of the Company, the company has utilized the
money obtained by way of term loans during the year for the purposes for which they were
obtained.
(d) According to the information and explanations given to us and the records of the
Company, no funds raised on short term basis have been utilized for long-term purposes by
the company.
(e) According to the information and explanations given to us and the records of the
Company, the Company does not have any subsidiaries or associates or joint ventures.
Accordingly, reporting under clause 3(ix)(e) of Companies (Auditors) Report Order, 2020
is not applicable.
(f) According to the information and explanations given to us and the records of the
Company, the Company does not have any subsidiaries or associates or joint ventures.
Accordingly, reporting under clause 3(ix)(f) of Companies (Auditors) Report Order, 2020
is not applicable.
10. (a) According to information and explanation given to us by the management and
records furnished before us, the company has not raised money by way of initial public
offer or further public offer. Accordingly reporting under Clause 3(ix)(a) of Companies
(Auditors Report) Order, 2020 is not applicable to the Company.
(b) According to information and explanation given to us by the management and records
furnished before us, the Company has not made preferential allotment or private placement
of shares or convertible debentures during the year. Accordingly reporting under Clause
3(ix)(b) of Companies (Auditors Report) Order, 2020 is not applicable to the Company.
11. (a) According to the information and explanations given to us and based on the
examination of books and records of the Company, no fraud by the company or on the company
has been noticed or reported during the course of the audit.
(b) According to information and explanation given to us by the management and records
furnished before us, no report under section 143(12) of Companies Act, 2013 has been filed
by the auditors in form ADT-4 as prescribed under rule 13 of Companies(Audit and Auditors)
Rules, 2014 with central government.
(c) According to information and explanation given to us by the management and records
furnished before us, the Company has not received any whistle blower complaints during the
year.
12. In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi Company. Accordingly clause 3(xii) of Companies (Auditors Report)
Order 2020 is not applicable.
13. According to the information and explanation provided to us and based on our
examination of the records of the Company, the transactions with the related parties are
in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the
details of such transactions have been disclosed in financial statements as required by
the applicable accounting standards.
14. (a) In our opinion, the company has an internal audit system commensurate with its
size and nature of its business.
(b) We have considered, during the course of our audit, the reports of the Internal
Auditor(s) for the period under audit in accordance with the guidance provided in SA 610
"Using the work of Internal Auditors".
15. According to the information and explanation given to us, the company has not
entered into any non-cash transaction with directors or persons connected with them.
Therefore reporting under clause 3(xv) of the Companies (Auditors Report) Order, 2020 is
not applicable.
16. According to the books of accounts and records of the company examined by us, in
our opinion the company is not required to be registered under section 45-IA of the
Reserve Bank of India Act, 1934.
17. The Company has incurred cash losses of 0.64 crores in the current year financial
year.
18. There has been no resignation of the statutory auditors during the year.
Accordingly, clause 3(xviii) of the order is not applicable.
19. According to the information and explanation given to us and on the basis of
financial ratios, ageing and expected dates of realization of financial assets and payment
of financial liabilities, other information accompanying the financial statements, 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 audit report that the
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.
20. The Company does not fall under the ambit of Section 135 of Companies Act, 2013 and
hence reporting under clause 3(xx)(a) and (b) of Companies (Auditors) Report Order, 2020
is not applicable.
21. The reporting under clause 3(xxi) of the Order is not applicable in respect of
audit of Standalone Financial Statements. Accordingly, no comment in respect of the said
clause has been included in this report.
For A. R. SODHA & Co. Chartered Accountant FRN 110324W
A.R.Sodha Partner M. No 31878 Place: Mumbai Date: 29th May, 2023
UDIN: 23031878BGUARP4820
ANNEXURE B TO 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 SAB Events
and Governance Now Media Limited ("the Company") as of March 31, 2023 in
conjunction with our audit of the standalone 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 ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting.
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with 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 adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2023, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the ICAI.
For A. R. SODHA & Co. Chartered Accountant FRN 110324W
A.R.Sodha Partner M. No 31878 Place: Mumbai Date: 29th May, 2023
UDIN: 23031878BGUARP4820
+91-9892691696
