To the Members of
Sundaram-Clayton Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of
Sundaram-Clayton Limited("the Company"), having its registered office at
"Chaitanya", No.12, Khader Nawaz Khan Road, Nungambakkam, Chennai - 600 006,
Tamil Nadu which comprise the Balance Sheet as at 31st March 2023, the
Statement of Profit and Loss, the Cash Flow Statement and the Statement of Changes in
Equity for the year then ended, and a summary of the significant accounting policies and
other explanatory information.
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 (Act) in the manner so required and give
a true and fair view in conformity with the accounting principles generally accepted in
India including Indian Accounting Standards (Ind AS) specified under Section 133 of the
Act, of the state of affairs of the Company as at 31st March 2023, and its
profit, total comprehensive income , its cash flows and the changes in equity 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 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 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 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 standalone financial statements
of the current period. These matters were addressed in the context of our audit of the
standalone financial statements, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
| Key Audit Matter |
Auditors Response |
Overseas Equity Investments |
Principal Audit Procedures |
| Equity Investments in overseas
subsidiaries, account for a significant percentage of the Companys total equity
investments. To assess annually, whether there are indications of impairment requires
significant management judgment in determining the recoverable amount of these equity
investments. |
Management has obtained a valuation of the
equity investment in the overseas subsidiary from a valuer, that is based on Discounted
Cash Flow Method of the Overseas subsidiary. We gained an understanding of the key
assumptions used to forecast the cash flows and the discount rates applied (Weighted
Average Cost of Capital) in arriving at the fair value. |
|
We consider that the management
conclusions concerning the absence of impairment in the equity investment are adequately
supported and consistent with the information currently available. |
Information Other than the Standalone 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 Annual Report to
the Shareholders but does not include the standalone financial statements and our
auditors report thereon. The Annual Report to the Shareholders is expected to be made
available to us after the date of this Auditors Report.
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 identified above when it becomes
available and, in doing so, consider whether the other information is materially
inconsistent with the standalone financial statements or our knowledge obtained in the
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 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 state of affairs (financial position),
profit or loss (financial performance)changes in equity and cash flows of the Company in
accordance with the accounting principles generally accepted in India, including the Ind
AS specified under Section 133 of the Act. 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 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 are also responsible for overseeing the
Companys financial reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial
Statements
Our objectives are to obtain reasonable assurance about whether the
Standalone financial statements as a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditors report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Standards on Auditing 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 Standards on Auditing, we
exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement of the
standalone financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal financial controls relevant
to the audit in order to design audit procedures that are appropriate in the
circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing
our opinion on whether the Company has adequate internal financial controls system in
place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going
concern basis of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the
Companys ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors report to the
related disclosures in the standalone financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditors report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the
standalone financial statements, including the disclosures, and whether the standalone
financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
We communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance, 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, 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 purpose 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 Ind AS specified under Section 133 of the Act;
(e) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 from being appointed as a director in terms
of Section 164(2) of the Act;
(f) With respect to the adequacy of the internal financial controls
over financial reporting of the Company and the operating effectiveness of such controls,
refer to our separate Report in "Annexure B".
(g) With respect to the other matters to be included in the Auditors
Report in accordance with 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) The Company has disclosed the impact of pending litigations on the
financial position in its standalone financial statements-Refer Note 36 (i) to the
Standalone financial statements;
(ii) The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable losses as at 31 March
2023;
(iii) There has been no delay in transferring amounts, required to be
transferred, 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) As stated in Note No. 35(b) to the standalone financial statements
dividend paid and declared during the year by the company is in compliance with section
123 of the Companies Act, 2013.
(vi) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for
maintaining books of account using accounting software which has a feature of recording
audit trail (edit log) facility is applicable to the Company with effect from April 1,
2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules,
2014 is not applicable for the financial year ended March 31, 2023.
For RAGHAVAN, CHAUDHURI & NARAYANAN
Chartered Accountants Firm Regn. No. 007761S
|
|
V. SATHYANARAYANAN |
|
|
Partner |
| Place |
: Bengaluru |
Membership No. 027716 |
| Date |
: 05th May 2023 |
UDIN : 23027716BGYLRX3467 |
Annexure A to Independent Auditors Report - 31st March
2023 (Referred to in our report of even date)
(Referred to in paragraph 1 under Report on Other Legal and Regulatory
Requirements section of our report to the Members of Sundaram-Clayton 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,
right-of-use assets and Intangible Assets:
(a) (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 Property, Plant and Equipment and right-of-use assets have been
physically verified by the management during the year and no material discrepancies were
noticed on such verification. In our opinion, the frequency of verification of the fixed
assets is reasonable having regard to the size of the Company and the nature of its
assets.
(c) Based on our examination of the property tax receipts and lease
agreement for land on which building is constructed, registered sale deed / transfer deed
/ conveyance deed provided to us, we report that, the title in respect of self-constructed
buildings and title deeds of all other 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 standalone financial statements included under Property, Plant
and Equipment are held in the name of the Company as at the balance sheet date.
(d) The Company has not revalued any of its Property, Plant and
Equipment (including right-of-use assets) and intangible assets during the year.
(e) No proceedings have been initiated during the year or are 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 management has conducted physical verification of inventory
at reasonable intervals during the year. In our opinion the coverage and the procedure of
such verification by the management is appropriate. Discrepancies noticed on such physical
verification, were less than 10% in aggregate for each class of inventory and have been
properly dealt with in the books of account;
In respect of inventories with third parties, which have not been
physically verified, there is a process of obtaining confirmation from such parties.
(b) The Company has been sanctioned working capital limits in excess of
$ 5 crore during the year, from banks on the basis of security of current assets and in
our opinion, the quarterly returns or statements filed by the Company are in agreement
with the books of accounts.
iii. The Company has made investments in companies during the year in
respect of which:
(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 is not applicable;
(b) In our opinion, the investments made and guarantee given during the
year are, prima facie, not prejudicial to the Companys interest.
(c) The Company has not granted any loans or advances in the nature of
loans hence reporting under Clause 3(iii)(c) of the Order is not applicable.
(d) The company has not granted any loan or advances in the nature of
loans hence reporting under Clause 3(iii)(d) of the Order is not applicable.
(e) No loan granted by the Company which has fallen due during the
year, has been renewed or extended or fresh loans granted to settle the overdue of
existing loans given to the same parties.
(f) The Company has not granted any loans or advances in the nature of
loans either repayable on demand or without specifying any terms or period of repayment
during the year.
Hence, reporting under Clause 3(iii)(f) is not applicable.
The Company has not made investments in Firms and Limited Liability
Partnerships during the year. Further the Company has not provided any security, gaurantee
or granted any advances in the nature of loans, secured or unsecured, to Companies, Firms,
Limited Liability Partnerships or any other parties.
iv. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section 185 and 186 of the
Act in respect of investments made.
The company has not granted loans or provided any security or
guarantee.
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 in respect of the products
manufactured by the Company.
We have broadly reviewed the books of account maintained by the Company
pursuant to the rules prescribed by the Central Government for maintenance of cost records
under section 148(1) of the Companies Act, 2013 in respect of manufacture of products and
are of the opinion that prima facie, the prescribed accounts and records have been made
and maintained. However, we have not made a detailed examination of the cost records with
a view to determine whether they are accurate or complete;
vii. In respect of statutory dues:
(a) The Company is regular in depositing undisputed statutory dues
including provident fund, employees state insurance, income-tax, Goods and service tax,
duty of customs, duty of excise, value added tax, cess and other material statutory dues,
as applicable, to the appropriate authorities. Further, no undisputed amounts payable in
respect thereof were outstanding at the year-end for a period of more than six months from
the date they become payable;
(b) There are no dues in respect of income-tax, sales-tax, Goods and
service tax, duty of customs, duty of excise and value added tax that have not been
deposited with the appropriate authorities on account of any dispute except the following:
Nature of Duty / Tax under
Dispute |
Nature of the Statute |
Period |
Forum where dispute is
pending |
Amount Involved $ In Crore |
Income Tax |
Income Tax Act, 1961 |
AY 2008-09 |
Commissioner (Appeals) |
6.12 |
Income Tax |
Income Tax Act, 1961 |
AY 2011-12 |
Commissioner (Appeals) |
1.82 |
Goods and Service Tax |
Goods and Service
Tax Act, 2017 |
FY 2021-22 |
Appellate Authority |
0.25 |
Goods and Service Tax |
Goods and Service Tax Act,
2017 |
FY 2017-18 |
These demands are disputed
and the |
0.26 |
Goods and Service Tax |
Goods and Service Tax Act,
2017 |
FY 2017-18 |
Company intends to file the
appeal within the due dates, as |
1.55 |
Goods and Service Tax |
Goods and Service Tax Act,
2017 |
FY 2019-20 |
applicable. |
57.86 |
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 (Section 43 of 1961);
ix. (a) The Company has not defaulted in repayment of loans or
borrowings to any lender during the year;
(b) The Company has not been declared wilful defaulter by any bank or
financial institution or government or any government authority;
(c) In our opinion and according to the information and explanations
given to us, the company has utilized the money obtained by way of term loans during the
year for the purposes for which they were obtained;
(d) On an over all examination of the standalone 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 standalone 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 and hence reporting on clause 3(ix)(e) of
the order is not applicable;
(f) The Company has not raised any loans during the year on the pledge
of securities held in its subsidiaries, joint ventures or associate companies 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 upto the date of
this report;
(c) As represented to us by the management, there are no whistle blower
complaints received by the Company during the year;
xii. The Company is not a Nidhi Company and hence reporting under
Clause (xii) of the Order is not applicable;
xiii. In our opinion, all transactions with the related parties are in
compliance with Section 188 of the Act, where applicable, and the requisite details have
been disclosed in the standalone financial statements, as required by the applicable Ind
AS;
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.
(b) Hence, reporting under Clause 3(xvi)(a), (b) and (c) of the Order
is not applicable;
(c) 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
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, 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. (a) According to the information and explanations given to us in
respect of other than ongoing projects, there are no unspent amounts that are required to
be transferred to a fund specified in Schedule VII of the Companies Act (the Act), in
compliance with second proviso to sub section 5 of Section 135 of the Act.
This matter has been disclosed in note no. 36(iv) to the Standalone
financial statements;
(b) According to the information and explanations given to us and based
on the records, there are no unspent amounts in respect of ongoing projects that are
required to be transferred to a special account in compliance of provision of sub section
(6) of Section 135 of Companies Act. This matter has been disclosed in note no. 36(iv) to
the Standalone financial statements.
For RAGHAVAN, CHAUDHURI & NARAYANAN
Chartered Accountants Firm Regn. No. 007761S
|
|
V. SATHYANARAYANAN |
|
|
Partner |
| Place |
: Bengaluru |
Membership No. 027716 |
| Date |
: 05th May 2023 |
UDIN : 23027716BGYLRX3467 |
Annexure B to the Independent Auditors Report for the year ended 31st
March 2023
(Referred to in paragraph 2(f) under Report on Other Legal and
Regulatory Requirements section of our report to the Members of Sundaram-Clayton Limited
of even date)
Report on the Internal Financial Controls Over Financial Reporting
under Clause (i) of subsection 3 of Section 143 of the Companies Act, 2013 (the
"Act")
We have audited the internal financial controls over financial
reporting of Sundaram-Clayton Limited (the "Company") as of March 31, 2023 in
conjunction with our audit of the Ind AS standalone 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 judgement, including the assessment of the
risks of material misstatement of the standalone 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 standalone 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 standalone 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 standalone 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 RAGHAVAN, CHAUDHURI & NARAYANAN
Chartered Accountants Firm Regn. No. 007761S
|
|
V. SATHYANARAYANAN |
|
|
Partner |
| Place |
: Bengaluru |
Membership No. 027716 |
| Date |
: 5th May 2023 |
UDIN : 23027716BGYLRX3467 |
+91-9892691696
