To the Members of SHESHADRI INDUSTRIES LIMITED. Report on the Audit of the Financial
Statements Qualified Opinion
We have audited the accompanying financial statements of SHESHADRI INDUSTRIES 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 the significant accounting policies and other explanatory information (herein
after 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/
possible effects of our observations stated in "Qualified Opinion" section
below, the accompanying 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 Standard) 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, its profits including total
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Qualified Opinion i. The company has not made any interest provision on
outstanding unpaid statutory dues.38.44 Lakhs ii. The company has not made any interest
provision for Loans and advances from Directors, Related parties and others Rs.1263.03
Lakhs iii. The company has not made any provision for long term Employee benefits i.e,
Gratuity and Leave encashment. Consequent to the above, profit for the year ended is
overstated and Liabilities as on 31st March 2023 was understated and Shareholders funds
are overstated to this extent.
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
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
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.
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 financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters. We have not identified any key audit matters to be communicated in our
report except matters specified in basis for qualified opinion.
Other information
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Annual Report but does not include
the financial statements and our auditors report thereon. Our opinion on the financial
statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the 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. 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.
Responsibilities of Management and those charged with Governance for the Financial
Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these financial statements that give a true and fair view of the financial position,
financial performance including other comprehensive income, cash flows and changes in
equity of the Company in accordance with the Indian Accounting Standards (Ind AS)
prescribed under Section 133 of the Act read with relevant rules issued there under 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 of the assets of the company and for preventing and detecting the 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 financial statements 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 is responsible for assessing the companys
ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the Board of
Directors either intends to liquidate the company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors are 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 standalone 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 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 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 financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit. We also
provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report 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 sub-section (11) of section 143 of
the Act, we give in the Annexure A, a statement on the matters specified in the paragraph
3 and 4 of the Order, to the extent applicable.
2) As required by Section 143(3) of the Act we report that: a) We have sought and
except for the matters described in the Basis for qualified opinion paragraph, obtained
all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit, b) Except for the effects of the matters
described in the Basis for qualified opinion paragraph above, 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 cash flow
statement dealt with by this Report are in agreement with the books of account, d) Except
for the effects of the matters described in the basis for qualified opinion paragraph, in
our opinion, the aforesaid financial statements comply with the Indian Accounting
Standards (Ind AS) prescribed under Section 133 of the Act. e) On the basis of 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 internal financial controls with reference to financial statements of the
company and the operating effectiveness of such controls, refer to our separate report in
"Annexure B". g) with respect to the other matters to be included in the
Auditors Report in accordance with the requirements of Section197(16) of the Act, as
amended; In our opinion and to the best of our information and explanations given to us,
the remunerations paid / provided by the Company to its directors during the reporting
period is in accordance with the provision of Section197of the Act. The remuneration paid
to any directors is not in excess of the limit laid down undersection 197 of the Act. The
Ministry of Corporate Affairs ("MCA") has not prescribed other details under
section 197(16) of the Act which are required to be commented upon by us. 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, 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 financial statements.
Refer Note no 35 of financial statements ii. The Company did not have any long-term
contracts including derivative contracts for which there were any material foreseeable
losses. iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company. iv. a. The Management has represented that,
to the best of its knowledge and belief, no funds (which are material either individually
or in the aggregate) have been advanced or loaned or invested (either from borrowed funds
or share premium or any other sources or kind of funds) by the Company to or in any other
person or entity, including foreign entity ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; b.
The Management has represented, that, to the best of its knowledge and belief, no funds
(which are material either individually or in the aggregate) have been received by the
Company from any person or entity, including foreign entity ("Funding Parties"),
with the understanding, whether recorded in writing or otherwise, that the Company shall,
whether, directly or indirectly, lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries; c. Based on the audit procedures that have been considered
reasonable and appropriate in the circumstances, nothing has come to our notice that has
caused us to believe that the representations under sub-clause under (a) and (b) above,
contain any material misstatement. v. During the year the company has not declared any
dividend. for K.S.RAO & CO.
Chartered Accountants Firms Regn No.003109S
|
(M.NAGA PRASADU) |
|
Partner |
| Place : Hyderabad |
Membership No.231388 |
| Date : 25.05.2023 |
UDIN: 23231388BGYLDG9730 |
Annexure - A to the Auditors Report:
The Annexure referred to in Para 1 under the heading of "Report on Other Legal and
Regulatory Requirements" of our report of even date, to the members SHESHADRI
INDUSTRIES LIMITED, for the year ended March 31, 2023. 1. a. In respect of the Companys
Property, Plant and Equipment and Intangible Assets: (A) The Company has maintained proper
records showing full particulars, including quantitative details and situation of
Property, Plant and Equipment and relevant details of right-of-use assets. (B) The Company
has maintained proper records showing full particulars of intangible assets. b. The
Company has a regular program of physical verification of its property, plant and
equipment, and right of use assets under which the assets are physically verified in a
phased manner over a period of three years, which, in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets. In accordance with this
program, certain property, plant and equipment were verified during the year and no
material discrepancies were noticed on such verification. c According to the information
and explanation given to us and on the basis of our examination of the records of the
Company, the immovable properties have been transferred to SHESHADRI INDUSTRIES LIMITED
(resulting company 2) as per the scheme of demerger approved by Honble High Court at
Hyderabad. d The company did not revalue its Property, Plant and Equipment (including
right of use assets) or intangible assets during the year. Accordingly, paragraph 3 (i)(d)
of the Order is not applicable. e There are no proceedings initiated or are pending
against the Company for holding any benami property under the Prohibition of Benami
Property Transactions Act, 1988 and rules made thereunder.
2. a The management has conducted physical verification of inventory at reasonable
intervals during the year. In our opinion, the coverage and procedure of such verification
by the management is appropriate and no discrepancies of 10% or more in the aggregate for
each class of inventory were noticed. b. The Company has not availed any working capital
limits on the security of current assets. Hence Para 3(ii) (b) of said order is not
applicable regarding the submission of quarterly returns.
3 According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not provided any security or
granted any advances in the nature of loans, secured or unsecured to companies, limited
liability partnership, and other parties during the year.
4 a) Based on the audit procedures carried on by us and as per the information and
explanations given to us, the company has not provided loans but stood guarantee to body
corporate (Related Party) as below:
| s Particular |
Guarantees |
| Aggregate amount during the year |
800 lakhs |
| Balance outstanding as at balance sheet date |
700 Lakhs |
The Company has not provided advances in the nature of loans or security to any other
entity during the year b) The investments made, guarantees provided and the terms and
conditions of the grant of all the above-mentioned loans and guarantees provided during
the year are, in our opinion, prima facie, not prejudicial to the Companys interest. c)
The Company does not have any outstanding loans and advances in the nature of loans at the
beginning of the current year nor has granted any loans or advances in the nature of loans
during the year. Accordingly, reporting under clauses 3(iii)(c), 3(iii)(d), 3(iii)(e) and
3(iii)(f) of the Order is not applicable to the Company.
During the year the Company has not granted loans or provided any guarantees or
securities to parties covered under section 185 of the Act except as stated in clause 3(a)
above. The Company has complied with the provisions of section 186 of the Companies Act,
2013 in respect of loans granted, investments made and guarantees and securities provided,
as applicable.
5. As explained to us 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.
6. We have broadly reviewed the cost records maintained by the Company pursuant to
sub-section (1) of section 148 of the Companies Act, 2013 and are of the opinion that
prime facie the prescribed accounts and records have been made and maintained. We have
however not made a detailed examination of the cost records with a view to determine
whether they are accurate or Complete.
7. a. According to the records, the company is not regular in depositing undisputed
statutory dues including Goods and Services Tax, provident fund, employees ‘state
insurance, Income-tax, Sales-tax, Service tax, Duty of customs, Duty of excise, Value
added tax, Cess and all other material statutory dues with the appropriate authorities.
However, the extent of arrears of outstanding statutory dues as at March 31, 2023 for a
period more than six months from the date they became payable are as below.
| Name of Statute |
Nature of the dues |
Amount (In Lakhs) |
Period to which the amount relates ( Financial Year) |
Due Since |
Date of Payment |
| Employees provident Fund Act |
Provident Fund Contribution |
29.42 |
2016-17& 2017-2018, 2018- 2019 2019-20 and 2020-21 |
June,2016 |
Not Yet Paid |
| Employees State Insurance Act |
Employees State Insurance |
1.70 |
2016-17&2018-2019 and 2019-20 |
Jan ,2017 |
Not Yet Paid |
| Professional Tax |
Professional Tax |
4.50 |
2016-17, 2017-18,& 2018-19, 2019-20, 2020-21,2021-22 |
July,2016 |
Not yet Paid |
| Income tax Act, 1961 |
TDS |
55.52 |
2016-17,2017-18 & 2018-19 2019-20& 2020-21 |
March,2017 |
Not Yet Paid |
| Finance Act |
Service Tax |
2.52 |
2016-17, 2017-18 & 2018-19 |
March, 2017 |
Not Yet Paid |
| Central Sales Tax Act |
CST |
11.33 |
2017-18 & 2018-19 & 2020-21 |
March,2017 |
Not Yet Paid |
b. According to the records of the Company and the information and explanations given
to us, the dues of Sales tax, Income tax, Custom Duty, Wealth Tax, Service Tax, Excise
Duty, Cess, which have not been deposited on account of dispute are as follows:
| Name of Statute |
Nature of the dues |
Amount (In Lakhs) |
Period to which the amount relates (Financial Year) |
Forum where dispute is pending |
| M.P. Sales Tax |
SalesTax dues |
7.64 |
2012-13 &2013-14 |
Deputy Commissioner (Appeal), Sales Tax, Bhopal, MP |
| M.P. Sales Tax |
Sales Tax (Entry tax) dues |
22.48 |
2012-2013 |
Additional Commissioner (Appeal), Sales Tax, Jabalpur, MP |
| M.P. Sales Tax |
Sales Tax (Entry tax) dues |
1.96 |
2013-2014 |
Additional Commissioner (Appeal), Sales Tax, Jabalpur, MP |
8. According to the information and explanations given to us, no transactions were
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of 1961) which have not been recorded in the books of accounts.
9 a) In our opinion and according to the information and explanation given to us by the
Company, during the year the Company has not defaulted in repayment of any loans or other
borrowings or in the payment of interest there onto any lender. b) According to the
information and explanations given to us including representation received from the
management of the Company, and on the basis of our audit procedures, we report that the
Company has not been declared a wilful defaulter by any bank or financial institution or
other lender.
c) The Company has taken term loan during the reporting period the same were utilized
and applied for the purpose which the loans were obtained except the funds deployed
temporarily elsewhere. d) On an overall examination of the financial statements of the
Company, the funds raised on short-term basis have, prima facie, not been used during the
reporting period for long-term purposes by the Company e) The Company the does not have
subsidiaries, associates, or joint ventures. Hence Para 3{ix) (e) the above-mentioned
Order is not applicable; 10. a) The Company did not raise any money by way of initial
public offer or further public offer (including debt instruments) during the year.
Accordingly, para 3 (x)(a) of the Order is not applicable b) The Company has not made any
preferential allotment or private placement of shares or convertible debentures (fully,
partially or optionally convertible) during the year. Hence, reporting under para 3(x)(b)
of the order doesnt arise.
11 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 section 143(12) of the Act has been filed
with the Central Government for the period covered by our audit. c) According to the
information and explanations given to us including the representation made to us by the
management of the Company, there are no whistle-blower complaints received by the Company
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, para 3(xii) of the Order is not
applicable 13. According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act where applicable and details of such
transactions have been disclosed in the financial statements as required by the applicable
accounting standards.
14. a) In our opinion, the company has an adequate internal audit system commensurate
with the size and nature of its business. b) We have considered the reports of the
Internal Auditors for the period under audit.; 15. According to the information and
explanations given to us and based on our examination of the records of the Company, the
Company has not entered into any non-cash transactions with its directors or persons
connected with them. Therefore, the provision of clause 3{xv) of the Order is not
applicable; 16. a) The Company is not required to be registered under section 45-IA of the
Reserve Bank of India Act 1934. b) The Company is not engaged in any Non-Banking Financial
or Housing Finance activities. Accordingly, para 3 (xvi)(b) of the Order is not
applicable. c) The company is not a Core Investment Company (CIC) as defined in the
regulations made by the Reserve Bank of India. Hence Para 3(xvi) (c) of the said Order is
not applicable. d) The Company is not part of any group (as per the provisions of the Core
Investment Companies (Reserve Bank) Directions, 2016 as amended). Accordingly, para 3(xvi)
(d) is not applicable.
17. The company has not incurred any cash losses in the financial year and also in the
immediately preceding financial year 18. There is no resignation of statutory auditors of
the Company during the year. Accordingly, clause 3(xviii) of the Order is not applicable.
19. On the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, 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 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 According to the information and explanations given to us, the Company does not have
any unspent amount in respect of any ongoing or other than ongoing project as at the
expiry of the financial year. Accordingly, Para 3(xx)(a) and (b) of the Order is not
applicable for the year.
21 The Company does not have subsidiaries, associates or joint ventures. Hence para 3
{xxi} of the above said Order with regard to qualifications or adverse remarks in CARO
reports of the companies included in the consolidated financial statements, is not
applicable.
for K.S.RAO & CO. Chartered Accountants Firms Regn No.003109S
|
(M.NAGA PRASADU) |
|
Partner |
| Place : Hyderabad |
Membership No.231388 |
| Date : 25.05.2023 |
UDIN: 23231388BGYLDG9730 |
Annexure – B
to the 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 with reference to financial statements of SHESHADRI INDUSTRIES LIMITED,
SECUNDERABAD ("the Company") as of March 31,2023 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 over Financial Reporting
issued by the Institute of Chartered Accountants of India (‘ICAI). These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to companys policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls with reference to financial statements based on our audit. We conducted our audit
in accordance with the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting (the "Guidance Note") and the Standards on Auditing, 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 with reference to financial statements was
established and maintained and if such controls operated effectively in all material
aspects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system with reference to financial statements and their
operating effectiveness. Our audit of internal financial controls with reference to
financial statements included obtaining an understanding of internal financial controls
with reference to financial statements, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating effectiveness of internal
control based on the assessed risk. The procedures selected depend on the auditors
judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud and 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 control system with reference to financial statements.
Meaning of Internal Financial Controls with reference to financial statements
A companys internal financial control with reference to financial statements is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A companys internal financial controls
with reference to financial statements includes those policies and procedures that: 1.
pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company. 2. provide
reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditure 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
Statements
Because of the inherent limitations of internal financial controls with reference to
financial statements, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls with
reference to financial statements to future periods are subject to the risk that the
internal financial control with reference to financial statements may become inadequate
because of changes in conditions, or that the degree of compliance with policies or
procedures may deteriorate.
Qualified Opinion
According to the information and explanations given to us and based on our audit, the
following weaknesses has been identified as at March 31,2023. a) The Company did not
obtain comparative quotes for the prices paid/ received relating to the transactions with
related parties to ensures that those transactions were entered into at armlength prices.
b) As stated in Note no 41 Pending confirmations/ reconciliation of balances of trade
receivables, trade payables (including micro and small) and receivables/payables from/to
related parties. In this regard as stated in the note, internal control is being
strengthen. The management is confident that on confirmation/reconciliation there will not
be any material impact on the financial statements for the year ended March 31,2023.
In our opinion, except for the possible effects of the material weakness described
above on the achievement of the objectives of the control criteria, the Company has
maintained, in all material respects, an adequate internal financial controls with
reference to financial statements and such internal financial controls with reference to
financial statements 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 Institute of Chartered
Accountants of India".
We have considered the weaknesses identified and reported above in determining the
nature, timing and extent of audit tests applied in our audit of the financial statements
of the company, and these weaknesses do not affect our opinion on the financial statements
of the company.
for K.S.RAO & CO. Chartered Accountants Firms Regn No.003109S
|
(M.NAGA PRASADU) |
|
Partner |
| Place : Hyderabad |
Membership No.231388 |
| Date : 25.05.2023 |
UDIN: 23231388BGYLDG9730 |
+91-9892691696
