To the Members of
SAVEN TECHNOLOGIES LIMITED
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of
SAVEN TECHNOLOGIES LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2023, the Statement of Profit and Loss (including Other Comprehensive
Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year
ended on that date and a summary of significant accounting policies and other explanatory
information (hereinafter referred to as the "standalone financial statements").
In our opinion and to the best of our information and according to the
explanations given to us, 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
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, 2023
and its profit, total comprehensive income, changes in equity and its cash flows for the
year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in
accordance with the Standards on Auditing ("SA"s) 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 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 standalone
financial statements under the provisions of the Act and the Rules made there under, 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 audit opinion on the standalone
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 standalone financial statements of the
current period. These matters were addressed in the context of our audit of the standalone
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.
Key Audit Matter
Revenue recognition - Fixed price contracts using the percentage of
completion method
The company recognized the revenues from software related services on
the basis of services rendered as per the terms of the contracts entered into with the
customers, where the performance obligations are satisfied over time is recognized using
the percentage of-completion method.
Use of the percentage-of-completion method requires the Company to
determine the actual efforts or costs expended to date as a proportion of the estimated
total efforts or costs to be incurred. The estimation of total efforts or costs involves
significant judgment and is assessed throughout the period of the contract to reflect any
changes based on the latest available information. Provisions for estimated losses, if
any, on uncompleted contracts are recorded in the period in which such losses become
probable based on the estimated efforts or costs to complete the contract.
We identified the estimate of total efforts or costs to complete fixed
price contracts measured using the percentage of completion method as a key audit matter
as the estimation of total efforts or costs involves significant judgment and is assessed
throughout the period of the contract to reflect any changes based on the latest available
information. This estimate requires consideration of progress of the contract, efforts or
costs incurred to-date and estimates of efforts or costs required to complete the
remaining contract performance obligations over the term of the contracts.
This required a high degree of auditor judgment in evaluating the audit
evidence and a higher extent of audit effort to evaluate the reasonableness of the total
estimated amount of revenue recognized on fixed-price contracts.
Refer Notes 2.8 to the standalone financial statements.
Auditors Response
Principal Audit Procedures Performed
Our audit procedures related to estimates of total expected costs or
efforts to complete for fixed-price contracts included the following, among others:
• We tested the effectiveness of controls relating to (1)
recording of costs incurred and estimation of costs required to complete the remaining
contract performance obligations and (2) access and application controls pertaining to
time recording, allocation and budgeting systems which prevents unauthorized changes to
recording of efforts incurred.
• We selected a sample of fixed price contracts with customers
measured using the percentage-of-completion method and performed the following:
- Evaluated managements ability to reasonably estimate the progress
towards satisfying the performance obligation by comparing actual costs incurred to prior
year estimates of costs budgeted for performance obligations that have been fulfilled.
- Compared costs incurred with Companys estimate of costs incurred to
date to identify significant variations and evaluate whether those variations have been
considered appropriately in estimating the remaining costs to complete the contract.
- Tested the estimate for consistency with the status of delivery of
milestones and customer acceptances and sign off from customers to identify possible
delays in achieving milestones, which require changes in estimated costs or efforts to
complete the remaining performance obligations.
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 the information included in the Management
Discussion and Analysis, Boards Report including Annexures to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the consolidated financial statements, standalone financial statements and our
auditors report thereon.
Our opinion on the standalone financial statements does not cover the
other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements,
our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the standalone financial statements or
our knowledge obtained during the course of our audit or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude that there is a
material misstatement of this other information we are required to report that fact. We
have nothing to report in this regard.
Managements Responsibilities 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, changes in equity and cash flows of the
Company in accordance with the Ind AS and other 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 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, management is
responsible for assessing the Companys ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Board of Directors 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
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 control 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 the 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
Materiality is the magnitude of misstatements in the standalone
financial statements that, individually or in aggregate, makes it probable that the
economic decisions of a reasonably knowledgeable user of the standalone 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 standalone financial
statements.
We communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we
have complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the standalone
financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditors report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
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, we give in "Annexure A" a statement on the matters specified in paragraphs
3 and 4 of the Order.
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, Statement of Changes in Equity and the Statement of Cash Flows 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 Ind AS specified under Section 133 of the Act.
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". Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of the Companys internal financial
controls over financial reporting.
g) With respect to the other matters to be included in the Auditors
Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the
explanations given to us, the remuneration paid by the Company to its directors during the
year is in accordance with the provisions of section 197 of the Act.
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. There are no Pending Litigation which would impact Financial
Position of the company in its 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 including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its
knowledge and belief, no funds (which are material either individually or in the
aggregate) have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other person or
entity, including foreign entity ("Intermediaries"), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall, whether, directly
or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge
and belief, no funds (which are material either individually or in the aggregate) have
been received by the Company from any person or entity, including foreign entity
("Funding Parties"), with the understanding, whether recorded in writing or
otherwise, that the Company shall, whether, directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable
and appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided
under (a) and (b) above, contain any material misstatement.
v. The dividend declared or paid during the year by the Company is
incompliance with Section 123 of the Act.
For Suryanarayana & Suresh., Chartered Accountants Firm Reg. No:
006631S
V Nagendra Rao Place: Hyderabad Partner Date : May 23, 2023 Membership
No.227679 UDIN : 23227679BGSGVB9785
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 SAVEN TECHNOLOGIES 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.
(B) The Company has maintained proper records showing full particulars
of intangible assets.
(b) The Company has a program of physical verification of Property,
Plant and Equipment and right-of-use assets so to cover all the assets once every three
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, no material
discrepancies were noticed on such verification.
(c) The title deeds of all the immovable properties (other than
properties where the Company is the lessee and the lease agreements are duly executed in
favour of the lessee) disclosed in the financial statements are held in the name of the
Company.
(d) The Company has not revalued any of its Property, Plant and
Equipment and intangible assets during the year.
(e) According to information and explanations given to us and on the
basis of our examination of the records of the Company, there are no proceedings initiated
or pending against the Company for holding any benami property under the Prohibition of
Benami Property Transactions Act, 1988 and rules made there under.
ii. (a) The Company does not have any inventory and hence reporting
under clause 3(ii)(a) of the Order is not applicable.
(b) The Company has not been sanctioned working capital limits in
excess of 5 crore, in aggregate, at any points of time during the year, from banks or
financial institutions on the basis of security of current assets and hence reporting
under clause 3(ii)(b)of the Order is not applicable.
iii. During the year the company has not made investments in, provided
any guarantee or security or granted any loans or advances in the nature of loans, secured
or unsecured, to companies, firms, Limited Liability Partnerships or any other parties.
Hence, other sub clauses under this clause are not applicable.
iv. According to the information and explanations given to us and on
the basis of our examination of records of the Company, during the year, the Company has
neither made any investments nor has it given loans or provided guarantee or security and
therefore the relevant provisions of Sections 185 and 186 of the Act ("the Act")
are not applicable to the Company.
Accordingly, clause 3(iv) of the Order is not applicable.
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. The maintenance of cost records has not been specified by the
Central Government under subsection (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, 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. 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) There were no statutory dues which have not been deposited as on
March 31, 2023 on account of disputes.
viii. There were no transactions relating to previously unrecorded
income that have been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961 (43 of 1961).
ix. (a) The Company has not taken any loans or other borrowings from
any lender. Hence reporting under clause 3(ix)(a) of the Order is not applicable.
(b) The Company has not been declared willful defaulter by any bank or
financial institution or government or any government authority.
(c) The Company has not taken any term loan during the year and there
are no outstanding term loans at the beginning of the year and hence, reporting under
clause 3(ix)(c) of the Order is not applicable.
(d) On an overall examination of the financial statements of the
Company, funds raised on short-term basis have, prima facie, not been used during the year
for long-term purposes by the Company.
(e) 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.
(f) The Company has not raised any loans during the year and hence
reporting on clause 3(ix)(f) of the Order is not applicable.
x. (a) The Company has not raised moneys by way of initial public offer
or further public offer (including debt instruments) during the year and hence reporting
under clause 3(x)(a) of the Order is not applicable.
(b) During the year, the Company has not made any preferential
allotment or private placement of shares or convertible debentures (fully or partly or
optionally) and hence reporting under clause 3(x)(b) of the Order is not applicable.
xi. (a) No fraud by the Company and no material fraud on the Company
has been noticed or reported during the year.
(b) 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 up to the date of
this report.
(c) During the year the company has not received any whistle blower
complaints (and upto the date of this report), while determining the nature, timing and
extent of our audit procedures.
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, 2013 with respect to applicable transactions with the related
parties and the details of related party transactions have been disclosed in the
standalone financial statements 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) We have considered the internal audit reports for the year under
audit, issued to the Company during the year and till date, in determining the nature,
timing and extent of our audit procedures.
xv. In our opinion during the year 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) In our opinion, the Company is not required to be registered
under section 45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause
3(xvi)(a), (b) and (c) of the Order is not applicable.
(b) In our opinion, there is no core investment company within the
Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and
accordingly reporting under clause 3(xvi)(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. In our opinion and according to the information and explanations
given to us, there is no unspent amount under sub-section (5) of Section 135 of the
Companies Act, 2013 pursuant to any project. Accordingly, clauses
3(xx)(a) and 3(xx)(b) of the Order are not applicable.
xxi. The Company is not required to prepare the consolidated financial
statements. Hence, the reporting under clause 3(xxi) of the Order is not applicable to the
Company.
For Suryanarayana & Suresh., Chartered Accountants Firm Reg. No:
006631S
V Nagendra Rao Place: Hyderabad Partner Date : May 23, 2023 Membership
No.227679 UDIN : 23227679BGSGVB9785
Annexure "B" to the Independent Auditors Report
(Referred to in paragraph 1(f) under Report on Other Legal and
Regulatory Requirements section of our report to the Members of SAVEN TECHNOLOGIES
LIMITED of even date)
Report on the Internal Financial Controls Over 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 over financial
reporting of SAVEN TECHNOLOGIES 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 Management of the Company 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 (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 over financial reporting of the Company 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") issued by the ICAI and
the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, 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
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, 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
over financial reporting were operating effectively as at March 31, 2023, based on the
criteria for internal financial control over financial reporting 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 Suryanarayana & Suresh., Chartered Accountants Firm Reg. No:
006631S
V Nagendra Rao Place : Hyderabad Partner Date : May 23, 2023 Membership
No.227679 UDIN : 23227679BGSGVB9785
+91-9892691696
