To the Members of Shiva Mills Limited
Report on the Audit of Ind AS Financial Statements Opinion
We have audited the accompanying Ind AS financial statements of Shiva
Mills Limited (“the Company”), which comprise the Balance Sheet as at March 31,
2023, the Statement of Pro t and Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and
Notes to the Ind AS financial statements including a summary of significant accounting
policies and other explanatory information (hereinafter referred to as “Ind AS
Financial Statements”).
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid IND AS financial statements give the information
required by the Companies Act, 2013 (“the Act”) in the manner so required and
give a true and fair view in conformity with the accounting principles generally accepted
in India including the Indian Accounting Standards (“Ind AS”), of the state of
affairs of the Company as at March 31, 2023, its loss, including other comprehensive
income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with Standards on Auditing (SAs)
specified under section 143(10) of the Act. Our responsibilities under those Standards are
further described in the “Auditors Responsibilities for the Audit of the Ind AS
financial statements” section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India (“ICAI”) together with the ethical requirements that are relevant to our
audit of the Ind AS financial statements under the provisions of the Act and Rules
thereunder and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the Ind AS financial statements of
the current period. We have determined that there are no key audit matters to communicate
in our report.
Information Other than the Ind AS financial statements and
Auditors Report Thereon
The Companys Management and Board of Directors are responsible
for the preparation of the other information. The other information comprises the
information included in the Annual Report for example, Directors report and
Management analysis including annexures thereon, but does not include the Ind AS financial
statements and our Auditors report thereon. Our opinion on the Ind AS 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 Ind AS financial statements, our
responsibility is to read the other information identified above when it becomes available
and, in doing so, consider whether the other information is materially inconsistent with
the Ind AS financial statements, or our knowledge obtained during the audit or otherwise
appears to be materially misstated. When we read the other information, as stated above,
which is expected to be received after the date of our audit report, if we conclude that
there is a material misstatement therein, we are required to communicate the matter to
those charged with governance and take necessary actions, as applicable under applicable
laws and regulations.
Managements and Board of Directors Responsibilities for the Ind
AS Financial Statements
The Companys Management and Board of Directors are responsible
for the matters stated in section 134(5) of the Act with respect to the preparation and
presentation of these Ind AS 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, including the Indian Accounting Standards( Ind AS)
specified under section 133 of the act, read with relevant rules issued thereunder. 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 frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or
error. In preparing the Ind AS financial statements, Board of directors are 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 Board of Directors either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Management and the Board of Directors are also responsible for
overseeing the Companys financial reporting process.
Auditors Responsibilities for the Audit of the Ind AS Financial
Statements
Our objectives are to obtain reasonable assurance about whether the Ind
AS 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 this Ind AS 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 Ind AS
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
Obtain an understanding of internal control relevant to the audit, in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls with reference to Ind AS 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 management and the
Board of Directors.
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 Ind AS financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained upto 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 Ind AS
financial statements, including the disclosures, and whether the Ind AS financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the Ind AS financial
statements that, individually or in aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the Ind AS financial statements may be in
uenced. 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 Ind AS financial statements. We
communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit ndings, 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 Ind AS
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 Section
143(11) of the Act, we give in “Annexure 1”, a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable. (2) (A) As
required by section 143(3) of the Act, 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 Pro t and Loss including the
statement of Other Comprehensive Income, the Statement of Changes in Equity and the
Statement of Cash Flows dealt with by this report are in agreement with the books of
accounts.
d. In our opinion, the aforesaid Ind AS financial statements comply
with the Indian Accounting Standards specified under section 133 of the Act read with
relevant rules issued thereunder.
e. On the basis of the written representations received from the
directors as on March 31, 2023, and 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 with
reference to Ind AS financial statements of the Company and the operating effectiveness of
such controls, we give our separate report in “Annexure 2”. (B) 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, 2021 in our opinion and to the best of our
information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations as on
March 31,2023 on its financial position in its Ind AS financial statements Refer Note 34
on Contingent Liabilities to the Ind AS financial statements;
(ii) The Company did not have any long-term contracts including
derivative contracts. Hence, the question of any material foreseeable losses does not
arise.
(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, as disclosed in note No.53 to the Ind AS financial statement, 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 persons or entities, including foreign
entities (“Intermediaries”), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall:
directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever (“Ultimate Bene ciaries”) by or on behalf of
the Company provide any guarantee, security or the like on behalf of the Ultimate Bene
ciaries.
b. The Management has represented, that, to the best of its knowledge
and belief, as disclosed in note no.53 to the Ind AS financial statement, no funds 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: directly or indirectly, lend or invest in other persons
or entities identified in any manner whatsoever (“Ultimate Bene ciaries”) by or
on behalf of the Funding Party provide any guarantee, security or the like on behalf of
the Ultimate Bene ciaries.
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 iv (a) and (b) contain any material
mis-statement.
(v) The nal dividend proposed with respect to previous year, declared
and paid by the company during the year is in compliance with section 123 of the Companies
Act 2013 as applicable. The Board of Directors of the company have not proposed any nal
dividend for the year. (C) With respect to the other matter 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. The Remuneration paid
to any director is not in excess of the limit laid down under section 197 of the Companies
Act.
|
For VKS Aiyer & Co |
|
Chartered Accountants |
|
ICAI Firm Registration No.000066S |
|
V S Srinivasan |
|
Partner |
| Place : Coimbatore |
Membership No.013729 |
| Date : 25th May, 2023 |
UDIN: 23013729BGXOKL8107 |
ANNEXURE 1 TO INDEPENDENT AUDITORS REPORT
[Referred to in paragraph 1 under ‘Report on Other Legal and
Regulatory Requirements in the Independent Auditors Report of even date to the
members of Shiva Mills Limited on the Ind AS financial statements for the year ended March
31, 2023]
In our opinion and to the best of knowledge and belief, the books of
accounts and records examined by us and according to the information and explanations
given to us, we report that:
i. (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 regular program of veri cation of property, plant
and equipment, by which all the property, plant and equipment are veri ed in a phased
manner over a period of three years. In accordance with the programme certain property,
plant and equipment were veri ed during the year. This periodicity of physical veri cation
is reasonable having regard to the size of the Company andthe nature of its assets. No
material discrepancies were noticed on such veri cation.
(c) Based on our examination of the title deeds provided to us, we
report that, the title deeds of all the immovable properties, disclosed in the Ind As
financial statements are held in the name of the Company as at the balance sheet date
except the following:
| Description of Property |
Gross Block and Net block as on March
31, 2023 |
Held in the Name of |
Whether promotor, director or their
relative or employee |
Period held (Indicate Range wherever
appropriate) |
Reason for not being held in company
name |
| Land at Velvarkottai & Varapatti, Vadavalli &
Dhanakkarkulam (Occupied by Spinning Division and windmill) |
Rs. 167.98 lakhs |
Shiva Texyarn Limited |
No |
From 01-04-2015 |
The title deeds are in the name of Shiva Texyarn Limited
from which the business undertaking was demerged under Section 230 to 232 of the Companies
Act, 2013 vide NCLT order dt. 23.08.2017. |
| Undivided share of land and Building at Coimbatore and |
Gross Block : Rs. 118.70 lakhs |
Shiva Texyarn Limited |
No |
From 01-04-2015 |
The title deeds are in the name of Shiva Texyarn Limited
from which the business undertaking was demerged under Section 230 to 232 of the Companies
Act, 2013 vide order dt. 23.08.2017. |
| Land at Varapatti Classi ed under Investment in Property |
Net Block : Rs. 102.70 lakhs |
|
|
|
|
(d) The Company has not revalued any of its Property, Plant and
Equipment and Intangible Assets during the year.
(e) There were no proceedings initiated or pending against the Company
as at March 31, 2023, for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
ii. (a) The Inventories were physically veri ed during the year by the
Management at reasonable intervals. In our opinion and according to the information and
explanations given to us, the coverage and procedure of such veri cation by the Management
is appropriate having regard to the size of the Company and the nature of its operations.
No discrepancies of 10% or more in the aggregate for each class of inventories were
noticed on such physical veri cation of inventories.
(b) The company has been sanctioned working capital limits in excess of
Rs. 5 crores, in aggregate, from banks or financial institutions on the basis of security
of current assets. The quarterly returns or statements led by the Company with such banks
or financial institutions are in agreement with the books of account of the Company of the
respective quarters, except for the following:
|
|
Details of discrepancies |
|
|
|
|
|
Amount (Rs. In Lakhs) |
|
| For the quarter ended |
Nature of current asset / liability |
Nature of discrepancy |
As per quarterly returns and statements |
As per unaudited books of account |
Difference |
Remarks (including subsequent recti
cation, if any) |
| September 2022 |
Inventories |
Method of Valuation |
2,839.10 |
2,682.89 |
156 . 21 |
The Difference was on account of adoption of Net
Realisable Value in the Published quarterly results. |
iii. (a) The Company has not provided any loans or advances in the
nature of loans or stood guarantee, or provided security to any other entity during the
year, and hence reporting under clause 3(iii)(a) of the Order are not applicable.
(b) The Investments made during the year are prima facie, not
prejudicial to the Companys interest.
(c) The Company has not granted any Loans during the year and hence
reporting under clause 3(iii)(c), (d), (e) and (f) of the Order is not applicable. iv. The
Company has complied with the provisions of Sections 185 and 186 of the Companies Act,2013
in respect of loans granted, investments made and guarantees and securities provided, as
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 been specified by the Central
Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the
books of account maintained by the Company pursuant to the Companies (Cost Records and
Audit) Rules, 2014, as amended, prescribed by the Central Government for maintenance of
cost records under Section 148(1) of the Companies Act, 2013, and are of the opinion that,
prima facie, the prescribed cost records have been made and maintained by the Company. We
have, however, not made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
vii. a) In respect of statutory dues, the company has been regular in
depositing undisputed statutory dues, including Goods and Service tax, Provident Fund,
Employees State Insurance, Income-tax, Sales Tax, Service Tax, duty of Custom, duty
of Excise, 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, 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) Details of statutory dues referred to in sub-clause (a) above which
have not been deposited as on March 31,2023 on account of disputes are given below:
| Name of Statute |
Nature of dues |
Amount (Rs. in Lakhs) |
Period to which the amount relates |
Forum were dispute is pending |
Remarks, if any |
| The Employees Provident Funds & Miscellaneous
Provisions Act, 1952 (EPF & MP Act) |
Provident Fund |
6.36 |
February 2018 to September 2019 |
PF Commissioner II, Madurai. |
Net off amount paid- Rs.4.24 Lakhs |
| Finance Act, 1994 |
Service Tax |
1.10 |
July 2004 to June 2005 |
Assistant Commissioner of central GST and Central excise |
Net off amount paid- Rs.0.09 Lakhs |
viii. There were no transactions relating to previously unrecorded
income that were surrendered or disclosed as income in the tax assessments under the
Income Tax Act, 1961 (43 of 1961) during the year.
ix. (a) The Company has not defaulted in the repayment of loans or
other borrowings or in the payment of interest thereon to any lender during the year.
(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 loans during the year and there
are no unutilized term loans at the beginning of the year and hence, reporting under
clause (ix)(c) of the Order is not applicable.
(d) On an overall examination of the Ind AS 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) The Company did not have any investment in subsidiary or associate
or joint venture during the year and hence, reporting under clause 3(ix)(e) and (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 to the Company.
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 led by auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit
and Auditors) Rules, 2014 with the Central Government.
(c) There were no whistle blower complaints received by the Company
during the year.
xii. The Company is not a Nidhi Company and hence reporting under
clause 3(xii) of the Order is not applicable.
xiii. The Company is in compliance with Section 177 and 188 of the
Companies Act, where applicable, for all transactions with the related parties and the
details of related party transactions have been disclosed in the Ind AS financial
statements etc., as required by the applicable accounting standards.
xiv. (a) 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 issued till date for
the period under audit. xv. 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, reporting under clause
3(xv) is of the order is not applicable.
xvi. (a) The Company is not required to be registered under Section
45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause 3(xvi)(a), (b)
and (c) of the Order is not applicable.
(b) The Company is not a Core Investment Company (CIC) as defined in
the regulation made by RBI and hence reporting under clause 3(xvi)(d) of the Order is not
applicable.
xvii. The Company has incurred cash losses amounting to Rs.115.34 Lakhs
in the financial year covered by our audit, but had not incurred cash losses in
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, [Asset Liability
Maturity (ALM) pattern] other information accompanying the Ind AS
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. There is no unspent amount under section 135(5) of the Companies
Act,2013 pursuant to any project. Accordingly, Clause 3(xx)(a) & 3(xx)(b) of the Order
is not applicable.
|
For VKS Aiyer & Co |
|
Chartered Accountants |
|
ICAI Firm Registration No.000066S |
|
V S Srinivasan |
|
Partner |
| Place : Coimbatore |
Membership No.013729 |
| Date : 25th May 2023 |
UDIN: 23013729BGXOKL8107 |
ANNEXURE 2 TO INDEPENDENT AUDITORS REPORT
[Referred to in paragraph 2 under ‘Report on Other Legal and
Regulatory Requirements in the Independent Auditors Report of even date to the
members of Shiva Mills Limited on the Ind AS financial statements for the year ended March
31, 2023] 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 Shiva Mills Limited (“the Company”) as of March 31, 2023 in
conjunction with our audit of the Ind AS financial statements of the Company for the year
ended on that date.
Opinion
In our opinion, Company has, in all material respects, an adequate
internal financial controls system over financial reporting and such internal financial
controls over financial reporting were operating effectively as at March 31, 2023, based
on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India (the “Guidance Note”).
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. These responsibilities include the design,
implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business, including
adherence to Companys policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness of the accounting records,
and the timely preparation of reliable financial information, as required under the
Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal
financial controls over financial reporting based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) and the Standards on Auditing specified under
Section 143(10) of the Act to the extent applicable to an audit of internal financial
controls, both issued by the ICAI. 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 judgement, including the assessment of
the risks of material misstatement of the Ind AS 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 Ind AS 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 Ind AS
financial statements in accordance with generally accepted accounting principles, and
thatreceipts 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 Ind AS
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.
|
For VKS Aiyer & Co |
|
Chartered Accountants |
|
ICAI Firm Registration No.000066S |
|
V S Srinivasan |
|
Partner |
| Place : Coimbatore |
Membership No.013729 |
| Date : 25th May 2023 |
|
|
UDIN: 23013729BGXOKL8107 |
+91-9892691696
