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Sahara Housing Fina Corporation Ltd Auditor Reports

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Sahara Housing Fina Corporation Ltd Share Price Auditors Report

TO THE MEMBERS OF

SAHARA HOUSINGFINA CORPORATION LIMITED

Report on Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Sahara Housingfina Corporation Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2024 the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows 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 (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, the aforesaid financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024 and its profit, total comprehensive income, cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibility 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 (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 ICAIs Code of Ethics. We believe that the audit evidence obtained by us 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 financial statements for the year ended March 31, 2024. 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 matter described below to be the key audit matter to be communicated in our report.

Key audit matter

How the matter was addressed in our audit

Impairment of loans (Expected Credit Loss)
Ind AS 109, Financial Instruments (Ind AS 109) requires the Company to provide for impairment of its financial assets using the expected credit loss (‘ECL) approach involving an estimation of probability of loss on such financial assets, considering reasonable and supportable information about past events, current conditions and forecasts of future economic conditions which could impact the credit quality of the Companys financial assets. Our audit focused on assessing the appropriateness of managements judgment and estimates used in the expected credit losses through the following procedures, but were not limited to, the following procedures:
Expected credit loss cannot be measured precisely but can only be estimated through use of statistics. - Examined the Board Policy approving methodologies for computation of ECL that addresses policies and procedures for assessing and measuring credit risk on the lending exposures of the Company in accordance with the requirements of Ind AS 109.
The estimation of impairment loss allowance on financial instruments involves significant judgement and estimates and applying appropriate measurement principles. - The parameters and assumptions used and their rationale have been documented. Also, obtained the policy on moratorium and restructuring of loans approved by the Board of Directors pursuant to the RBI circulars/guidelines and ensured such policy is in compliant with the requirements of the RBI circulars/guidelines.
The expected credit loss is calculated using the estimated percentage of each of the stages of loan portfolio as per management judgments and assumptions after approved in the board. - Evaluated the design and operating effectiveness of controls across the processes relevant to ECL, including the judgements and estimates. These controls, among others, included controls over the allocation of assets into stages including managements monitoring of stage effectiveness, model monitoring including the need for post model adjustments, and completeness of the underlying data used in the models, credit monitoring, passing of journal entries and preparing disclosures.
Significant management judgment and assumptions involved in measuring ECL is required with respect to: - Tested the completeness of loans and advances included in the Expected Credit Loss calculations as of March 31, 2024 by reconciling it with the balances as per loan balance register.
• determining the criteria for a significant increase in credit risk - Obtained an understanding of the modelling techniques adopted by the Company including the key inputs and assumptions.
• factoring in future economic assumptions
• past experience and forecast data on customer behaviour on repayments
• techniques used to determine probability of default, loss given default and exposure at default.
Considering the significance of the above matter to the financial statements and since the matter required our significant attention to test the calculation of expected credit losses, we have identified this as a key audit matter for current year audit. Assessed the appropriateness and adequacy of the related presentation and disclosures in the accompanying financial statements in accordance with the applicable accounting standards and related RBI circulars and Resolution Framework.

Non-Integrated Information Systems with Branches

The company have limited loan portfolio which has been maintain by Branches and reporting to Head office on Monthly Basis. Our Audit observation on the key audit matter relating to non- integration of IT systems with the branches is as follows:
a) In our audit procedure we are directly communicate with the respective branch manager and confirm the information provided by them are recorded correctly.
Each Branch kept its records on its own record maintenance systems which is not integrated with the Head office. Each collections received from customer has properly maintain in there systems and reported periodically to the Head office. b) We ensure that there should be regular periodical reporting from the branches has been taken by respective head office by responsible officer and query raised by head office has been resolved on time basis.
The company have Information technology (IT) systems at its head office to keep Customer wise loan portfolio but it doesnt integrate Branches, all the inputs from the branches are received by reporting systems and are maintain in Head office. c) We Ensure that the data maintain in the information system by head office has been updated as per the information provided by branches and verified it by following audit procedure.
There is chances of data communication transit differences in the branches with head office and create delayed/error in transferring information. We also evaluated the design and tested the operating effectiveness of key automated controls within various operating processes. Where deficiencies were identified, tested compensating controls or performed alternative procedures.

Information Other than the Financial Statements and Auditors Report thereon

The Companys Board of Directors are responsible for preparation of the other information. The other information comprises the information included in the Boards Report and its annexures, but does not include the financial statements and our auditors report thereon. The other information is expected to be made available to us after the date of this Auditors Report.

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 during the course of our audit, or otherwise appears to be materially misstated.

When we read the other information, if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with governance as required under SA 720 ‘The Auditors Responsibilities Relating to Other Information.We have nothing to report in this regard at this moment.

Managements Responsibility for the Financial Statements

The Companys Board of Directors are 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 including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and the accounting principles generally accepted in India. 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 statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors are responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable to the Company, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

• 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 with reference to the financial statements 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 the Board of Directors.

• Conclude on the appropriateness of Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable to the Company, 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 for the financial year ended March 31, 2024 and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act, we give in Annexure "A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable to the Company.

2. As required by Section 143(3) of the Act, based on our audit, we report that:

a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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, the Statement of Cash Flows 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 financial statements comply with the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, as applicable to the Company;

e) on the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024 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 with reference to these financial statements and the operating effectiveness of such controls, refer to our separate Report in Annexure "B" to this report;

g) with respect to the other matters to be included in the Auditors Report under Section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the Managerial Remuneration paid by the Company during the year is in accordance with the provisions of Section 197 read with Schedule V of the Act.

h) with respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) 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 the pending litigations on its financial position in the financial statements –Refer Note 36.1 to the financial statements.

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses if any, on long term contracts. The Company did not have any derivative contracts.

iii. There was no amount outstanding as at March 31,2024 which was required to be transferred to the Investor Education and Protection Fund by the Company.

iv. Based on such audit procedures that we have considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that any funds have been advanced or loaned or invested by the company in any "Intermediaries", with the understanding, that the Intermediary shall, lend or invest on behalf of the company or provide any guarantee or security on its behalf. Also no funds have been received by the company from any entities ("Funding Parties"), with the understanding that the company shall lend or invest in other entities on behalf of the funding party.

v. The Company has not declared or paid any dividend for/during the year.

vi. The company is in the process of installing Audit Trail feature in the new software, Consequently, we are unable to comment on above compliances during the year.

For B.M. CHATURVEDI & Co. Chartered Accountants ICAI FRN: 114317W

(Anmol Sonawane)

Partner

Place : Mumbai

ICAI MN. 603614
Date : May 29, 2024 UDIN :24603614BKGTVN1465

Annexure ‘‘A to the Independent Auditors Report

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements Section of our report of even date to the members of Sahara Housingfina Corporation Limited on the Financial Statements for the year ended March 31, 2024)

According to the information and explanations given to us and on the basis of our examination of the records of the company,

(i) 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. The Company has maintained proper records showing full particulars of intangible assets.

b) The Property, plant and equipment (including Right of Use assets) have been physically verified by the management during the year and no material discrepancies were noticed on such verification

c) The Company, the title deeds of immovable properties (other than the properties where the Company is the lessee and the lease agreement is duly executed in favour of the Company) 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 assets) or intangible assets or both during the year.

e) The Company, 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 thereunder

(ii) (a) The Company does not have any inventory. Accordingly, the clause 3(ii)(a) of the Order is not applicable to the Company.

(b) The Company has not been sanctioned working capital limit from banks or financial institutions during the period on the basis of security of current assets. Accordingly, the clause 3(ii)(b) of the Order is not applicable to the Company.

iii) The Company being a Non-Banking Finance Company (‘NBFC) and having principal business of Housing Finance,

a) the clause 3(iii)(a) of the Order is not applicable to the Company

b) The investments made and the terms and conditions of the grant of loans and advances in the nature of loans, prima facie, are not prejudicial to the Companys interest. There are no guarantees provided or security given by the Company during the year.

(c) In respect of the loans and advances in the nature of loans, the schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts have been regular as per stipulations except in case of 207 loan accounts having outstanding balances aggregating to 1,440.51 lakhs as at March 31, 2024 (includes overdue & NPA cases) wherein the repayments of principal and payments of interest are not regular as informed by the management. Having regard to the nature of the Companys business and the volume of information involved, it is not practicable to provide an itemised list of the irregular cases.

(d) In respect of the loans and advances in the nature of loans granted by the Company, the amount overdue for more than 90 days outstanding as at March 31, 2024 aggregate to 583.06 lakhs.

In our opinion and according to the information and explanations given to us, reasonable steps have been taken by the Company for recovery of the overdue principal and interest amount.

(e) The clause 3(iii)(e) of the Order is not applicable to the Company.

(f) The Company has not granted during the year any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment.

(iv) The Company has complied with the provisions of Section 185 and 186 of the Act with respect to loans, investments, guarantees and security, as applicable.

(v) During the year the Company has not accepted any deposits or amounts which are deemed to be deposits from the public on which the directives issued by the Reserve Bank of India or the provisions of Section 73 to 76 or any other relevant provisions of the Act and the rules made there under are applicable.

(vi) The maintenance of cost records has not been specified by the Central Government under Section 148(1) of the Act for the business activities carried out by the Company.

(vii) (a) The Company has generally been regular in depositing undisputed statutory dues including Goods and service tax, Provident Fund, Employees State Insurance, Income-tax, Cess and other statutory dues applicable to the Company with the appropriate authorities. There were no undisputed amounts payable in respect of statutory dues outstanding as at March 31, 2024 for a period of more than six months from the date they became payable.

(b) There are no statutory dues referred to in sub-clause (a) above, which have not been deposited by the Company on account of any dispute except income tax demand of 38.78 lakhs for the assessment year 2010-11 under the Income Tax Act, 1961 pending before the Commissioner of Income Tax (Appeal). The Company had paid 7.76 lakhs under protest against this demand.

(viii) The Company does not have any transactions not recorded in the books of account but surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961.

(ix) (a) the Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender during the year.

(b) the Company has not been declared wilful defaulter by any bank or financial institution or other lender.

(c) the Company has not raised any money from the term loan during the year. Accordingly, the clause 3 (ix)(c) of the Order is not applicable to the Company.

(d) there are no transactions of funds raised by the Company on short term basis and utilized, prima facie, for long term purposes during the year.

(e) the Company does not have any subsidiary or associate or joint venture during the year. Accordingly, the clause 3(ix)(e) of the Order is not applicable to the Company.

(f) the Company does not have any subsidiary or joint venture or associate company during the year. Accordingly, the clause 3(ix)(f) of the Order is not applicable to the Company.

(x) (a) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. Accordingly, the 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 or convertible debentures (fully or partly or optionally convertible) during the year. Accordingly, the clause 3(x)(b) of the Order is not applicable to the Company.

(xi) (a) No fraud by the Company or on the Company has been noticed or reported during the year.

(b) No report under Section 143(12) of the Act has been filed in form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.

(c) No whistle blower complaint has been received by the Company during the year.

(xii) The Company is not a Nidhi Company. Accordingly, the clause 3(xii) of the Order is not applicable to the Company.

(xiii) All transactions with the related parties are in compliance with Section 177 and 188 of the Act, where applicable and the details have been disclosed in the financial statements as required by the applicable accounting standards.

(xiv) (a) The Company has an internal audit system commensurate with the size and nature of its business.

(b) During the course of our audit, we have considered the reports of the Internal Auditor issued for the period under audit.

(xv) The Company has not entered into any non-cash transactions with its directors or persons connected with them during the year.

(xvi) (a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act,1934. Accordingly, the clause 3(xvi) (a) of the Order is not applicable to the Company.

(b) The Company is a Housing Finance Company registered with the National Housing Bank under the provisions of the National Housing Bank Act, 1987 for conducting housing finance business and is not required to obtain a separate Certificate of Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act, 1934 to conduct the Non-Banking Financial activities.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India.

(d) There is no Core Investment Company within the Group.

(xvii) The Company has not incurred cash losses in the financial year under audit and in the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors of the Company during the year. Accordingly, the clause 3(xviii) of the Order is not applicable to the Company.

(xix) The 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 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 the period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.

(xx) The Company was not required to spend any amount on Corporate Social Responsibility (CSR) related activities during the year under review in terms of the provisions of Section 135 of the Act. Accordingly, the clause 3(xx) of the Order is not applicable to the Company.

For B.M. CHATURVEDI & Co. Chartered Accountants ICAI FRN: 114317W

(Anmol Sonawane)

Partner

Place : Mumbai

ICAI MN. 603614
Date : May 29, 2024
UDIN :24603614BKGTVN1465

Annexure ‘‘B to the Independent Auditors Report

(Referred to in paragraph 2(f) under ‘Report on Other Legal and Regulatory Requirements Section of our report of even date to the members of Sahara Housingfina Corporation Limited on the Financial Statements for the year ended March 31, 2024) Report on the Internal Financial Controls with reference to Financial Reporting 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 Reporting of Sahara Housingfina Corporation Limited ("the Company") as of 31stMarch, 2024 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls with reference to Financial Reporting (‘the Guidance Note) issued by the Institute of Chartered Accountants of India (‘the 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 Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys Internal Financial Controls with reference to financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note issued by the ICAI and the Standards on Auditing prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. 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 these 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 with reference to financial reporting and their operating effectiveness. Our audit of Internal Financial Controls with reference to financial reporting included obtaining an understanding of such internal financial controls, 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 with reference to 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 Controls with reference to Financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to Financial Reporting

Because of the inherent limitations of Internal Financial Controls with reference to 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 with reference to 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 or for other reasons.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such Internal Financial Controls with reference to Financial reporting were operating effectively as at March 31, 2024, 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 issued by the ICAI.

For B.M. CHATURVEDI & Co. Chartered Accountants ICAI FRN: 114317W

(Anmol Sonawane)

Partner
Place : Mumbai ICAI MN. 603614
Date : May 29, 2024 UDIN :24603614BKGTVN1465

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