To the Members of SVC Industries Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying Financial Statements of SVC Industries Limited
("the Company"), which comprise the Balance Sheet as at 31st March, 2023
the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow
Statement and the Statement of Changes in Equity for the year then ended, and notes to the
Financial Statements, including a summary of the significant accounting policies and other
explanatory information ("the financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013, as amended ("the Act") in the manner so required and give a
true and fair view in conformity with the with the Indian Accounting Standards prescribed
under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules,
2015, as amended ("Ind AS") and other accounting principles generally accepted
in India, of the state of affairs of the Company as at 31st March, 2023, its loss, its
cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the Financial Statements in accordance with the Standards on
Auditing (Sas), as specified under section 143(10) of the Act. Our responsibilities under
those Standards are further described in the Auditors Responsibility for the Audit of the
Financial Statements section of our report. We are independent of the Company in
accordance with the ‘Code of Ethics issued by the Institute of Chartered Accountants
of India (ICAI) together with the ethical requirements that are relevant to our audit of
the financial statements under the provisions of the Act and the Rules made thereunder,
and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion on the
Financial Statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the Financial Statements for the financial year ended 31st
March, 2023. 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. For each matter below, our description of how our audit
addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be
communicated in our report along with our description of how our audit addressed the
matters.
| Key audit matters |
How our audit addressed the key audit matter |
| A.Evaluation of uncertain financial liabilities |
| As described in Note No. 15.1 to 15.6, Note No. 25 and Note No. 29, the
Company has out- standing financial liabilities having book value of Rs. 5,588.99 lakhs as
on 31.03.2023 towards Non- convertible debentures and loan from state financial
institutions. |
Our audit procedure on eval- uation of uncertain financial liabilities
included |
| Obtained understanding of key uncertain financial liabilit- ies and
their status before va- rious judicial authorities; |
Read and analysed key corr- espondences between lenders
and the Company regarding the uncertain financial liabilities; |
| Recovery petition filed by the lenders are pending before the Debt Recovery Tribunal
(DRT). |
| The amount claimed in these petitions are much higher than the book value
of the liabilities. The Management has appro- ached these lenders for one- time settlement
of these fina- ncial liabilities and is hopeful to close the matter by mutual agreement in
due course. |
| Discussed with appropriate senior management and val- uated managements
underl- ying key assumptions in esti- mating the uncertain financial liabilities; and |
| Meanwhile as the Company is in the process of negotiation by way of
one-time settlement with the lenders, a reliable estimate cannot be made of the amount
likely to be paid in satisfaction of these financial liabilities. |
Assessed managements es- timate of the possible outcome of the
negotiation by way of one-time settlement with lenders. |
| Our audit procedures inclu- ded and was not limited to the following: |
| Litigation matters |
Assessing managements position through discussions with
the in-house legal/tax team and external legal opin- ions obtained by the Company (where
considered necessary) on both, the probability of su- ccess in the aforesaid cases, and
the magnitude of any potential loss. |
| The provisions and contingent liabilities relate to ongoing liti- gations and claims
with various authorities and third parties. These relate to direct tax, in- direct tax,
claims, general legal proceedings and other even- tualities arising in the regular course
of business. |
| As at the year ended 31 March, 2023, the amounts involved are significant.
The computation of a provision or contingent liabi- lity requires significant judgem- ent
by the Company because of the inherent complexity in estimating future costs. The amount
recognized as a provi- sion is the best estimate of the expenditure. The provisions and
contingent liabilities are subject to changes in the out- comes of litigations and claims
and the positions taken by the company. It involves significant judgement and estimation
to determine the likelihood and timing of the cash outflows and interpretations of the
legal as- pects, tax legislations and jud- gements previously made by authorities. |
Discussion with the manage- ment on the development in these litigations
during the year ended 31st March, 2023. |
| Roll out of enquiry letters to the Companys legal counsel
(internal/external) and study the responses received from them. Also verified that accou-
nting/disclosure made by the Company are in accordance with the assessment of legal
counsel. |
| Review of the disclosures made by the Company in the financial
statements in this regard. |
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Management and 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.
The reports are expected to be made available to us after the date of this auditors
report.
Our opinion on the Financial Statements does not cover the other information and we do
not and will 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 identified above when it becomes available and, in doing so,
consider whether such 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 at this moment.
Managements Responsibility for the 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 financial statements that give
a true and fair view of the financial position, financial performance including other
comprehensive income, cash flows and changes in equity of the Company in accordance with
the Ind AS and other accounting principles generally accepted in India. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statement that give
a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, 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 Companys Board of Directors is also responsible for overseeing the Companys
financial reporting process.
Auditors Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism 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 control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls system in place and the operating effectiveness of
such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (I) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, 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 in terms of Section 143(11) of the Act, we give in "Annexure
A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit, we report that:
a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, the Statement of Cash Flows and Statement of Changes in Equity dealt with by this
Report are in agreement with the relevant books of account. d) In our opinion, the
aforesaid financial statements comply with the Ind AS specified under Section 133 of the
Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
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 with reference to
financial statements of the Company and the operating effectiveness of such controls,
refer to our separate Report in "Annexure B". Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of the Companys internal financial
with reference to financial statements.
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, no remuneration has been paid by the Company to its directors during the
year.
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 its financial
position in its financial statements Refer Note 15.1 to 15.6, 25, 29 and 31 to the
financial statements; ii. There are no foreseeable losses on any long-term contract
including derivative contract as required under applicable law or accounting standards;
iii. According to records of the company, there are no amounts that are due to be
transferred to the Investor Education and Protection Fund in accordance with the relevant
provisions of the Act and rules made there under. iv. Based on such audit procedures that
we have considered reasonable and appropriate in the circumstances and also as represented
by the management, nothing has come to our notice that has caused us to believe that Any
funds have been advanced or loaned or invested by the company in any
"Intermediaries", with the understanding, that the Intermediary shall, lend or
invest on behalf of the company or provide any guarantee or security on its behalf. Also
no funds have been received by the company from any entities ("Funding
Parties"), with the understanding that the company shall lend or invest in other
entities on behalf of the Funding Party. v. The company has not declared or paid any
dividend during the year.
For B.M. CHATURVEDI & Co.
Chartered Accountants ICAI FRN: 114317W
Kartik Agrawal
Partner
ICAI MN. 463529
UDIN: 23463529BGZGUR7376 Date: 26th May, 2023 Place: Mumbai
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
As required under Companies (Auditors Report) Order, 2020 (CARO 2020) and
Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements of our
report to the members of SVC Industries Limited ("the Company") for the year
ended 31st March, 2023.
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 report that:
i) In respect of property, plant and equipment including investment property:-
(a) A) The company has maintained proper records showing full particulars, including
quantitative details and situation of property, plant and equipment including investment
property.
B) The Company not have any intangible assets hence reporting under is not applicable
to the company.
(b) The Company has a regular program of physical verification of assets covered under
property, plant and equipment in a phased manner, which in our opinion, this periodicity
of physical verification is reasonable having regard to the size of the Company and the
nature of its assets. No material discrepancies were noticed on such verification.
(c) The title deeds of all the immovable properties disclosed under the head of
Property, Plant and Equipment and investment property in the financial statements are held
in the name of the Company except following property which is pending for registration on
account of government procedures:
| Description of Property |
Gross Carrying Value |
Held in Name of |
Whether promoter, director or their relative or employee |
Period held |
Reason for not being held in name of company |
| Land at Vil. Bhadawal Khasra No.211 |
1,336.68 Lakhs |
Mr. H Krishnamurthy |
Ex - Director |
29 Years |
Originally, agricultural land admeasuring 26.08 acres was purchased in
the name of Mr. Suresh Chaturvedi, Mr. Mahesh Chaturvedi and Mr. |
| Land at Vil. Bhadawal Khasra No.218&225 |
1136.76 Lakhs |
Mr. Suresh V Chaturvedi |
Promoter Director |
29 Years |
H. Krishnamurthy, to comply with the then existing law of land, to start
the business. |
| Land at Vil. Bhadawal Khasra No.224 |
1332.30 Lakhs |
Mr. Mahesh V Chaturvedi |
Relative of Promoter Director |
29 Years |
The Company have applied at appropriate authority to change the land
possession in the name of the Company, which is under procedure. |
(d) The Company has not revalued any of its Property, Plant and Equipment including its
investment property during the year.
(e) No proceedings have been initiated during the year or are pending against the
Company as at 31st March, 2023 under the Benami Transactions (Prohibition) Act, 1988, as
amended, and rules made thereunder.
ii) According to the information and explanations given to us and on the basis of our
examination of the records of the company:
(a) physical verification of inventory was conducted by the management and no material
discrepancies were noticed.
(b) there is no any requirement of filing of quarterly returns and statements with
banks and financial institutions therefore the clause(ii)(b) of the order is not
applicable.
iii) The company has made investments in, provided guarantee or security and granted
loans and advances in the nature of interest free/interest bound unsecured loans repayable
on demands with no schedule repayment date stipulated to companies, firms, related parties
and other parties out of its own free reserves and surpluses.
(a)
(A) The Company not have subsidiary or associate hence reporting under clause 3 (iii)
(a) (A) is not applicable.
(B) The Company has provided loans to related parties of aggregate amount of Rs. 34.71
Lakhs during the year and balance outstanding of Rs. 233.94 Lakhs at the balance sheet
date in respect to such loans.
(b) According to management of the company investments made, guarantees provided,
security given and interest free on demand loans granted to related and other parties are
prima facie not prejudicial to the company.
(c) Loans and advances, in nature of loans being repayable on demand or without
specifying any period or period of repayment, granted by the company to related and other
parties have no overdue amount outstanding as at the balance sheet date.
(d) There is no overdue amount in respect of loans granted to such parties.
(e) No loan, mentioned herein above, has been renewed or extended or fresh loans were
granted to settle the overdue of existing loans given earlier to the same parties.
(f) Interest free loans aggregating to Rs 233.94 Lakhs, equivalent to 99.91% of loans
and advances has been provided to related parties as defined in section 2(76) of the Act
being repayable on demand or without specifying any terms or period of repayment.
iv) The Company has complied with the provisions of Sections 185 and 186 of the Act in
respect of grant of loans and making investments, as applicable. The Company has not
provided any guarantees and securities.
v) The company has not accepted any deposit from public or amounts which are deemed to
be deposits within the meaning of provisions of sections 73 to 76 or any other relevant
provisions of the Act and the rules framed there under. Therefore, the clause (v) of the
Order is not applicable to the Company.
vi) Maintenance of cost records under Section 148(1) of the Act as prescribed by the
Central Government is not applicable to the Company as the Company is yet to start
commercial production.
vii) In respect of Statutory Dues:
(a) The amounts deducted/ accrued in the books of account in respect of undisputed
statutory dues including provident fund, employees state insurance, income-tax, Goods and
Service
34
Tax, duty of custom, service tax, cess and other material statutory dues have been
generally regularly deposited during the year by the Company with the appropriate
authorities.
There are no undisputed amounts payable in respect of aforesaid statutory dues which
were in arrears as at 31st March, 2023 for a period of more than six months from the date
they became payable
(b) According to the information and explanation given to us, part of the dues has not
been deposited by the company on account of disputes are as follow:
| Name of Statue |
Nature of dues/taxes |
Amount demanded (Rs in lakh) |
Amount paid/refund adjusted (Rs. In lakh) |
Financial year to which relate |
Forum where dispute is pending |
| Sales Tax Act |
UP VAT |
0.82 |
- |
2007-08 |
Appellate Tribunal, Agra |
| Sales Tax Act |
UP VAT |
1.81 |
- |
2008-09 |
Appellate Tribunal, Agra |
| EPF Act |
Demurrage |
20.08 |
- |
1995-96 2003-04 |
Allahabad High Court |
| Income Tax Act |
Demand u/s 143(1) |
32.41 |
- |
2019-20 |
Assessing Officer |
viii) The company has no transactions representing unrecorded income which have been
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961.
ix)
(a) Due to non-commencement of commercial operations for more than a decade causing
non-servicing of its debts, the Company has defaulted on the dues of State Bank of India
(NCD of Rs. 15.00 Crore), Canara Bank (NCD of Rs. 14.72 Crore) & PICUP (Loan of Rs.
26.17 Crore) for aggregate amount of Rs. 55.89 Crore. Company is in negotiations for
settlement of their dues.
(b) The company has not been declared wilful defaulter by any bank or financial
institution or government or government authority.
(c) During the year the Company has not obtained any short term or long term loans from
bank and financial institutions. Accordingly, clause 3 (ix) (c) & 3 (ix) (d) of the
Order is not applicable.
(d) The company not have any subsidiary or associates; Accordingly, clause 3 (ix) (e)
& 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). Accordingly, clause 3 (x) (a) of the Order is not
applicable.
(b) The Company has not made any preferential allotment or private placement of shares
or fully or partly convertible debentures during the year. Accordingly, clause 3(x)(b) of
the Order is not applicable.
xi)
(a) No material fraud by the company or on the company has been noticed or reported
during the year.
(b) No report under sub-section (12) of section 143 of the Act has been filed in Form
ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the
Central Government.
(c) As represented to us by the management, the company has not received any
whistle-blower complaint during the year.
xii) The company is not a Nidhi company and hence reporting under clause (xii) of the
order is not applicable.
xiii) All the transactions with the related parties are in compliance with sections 177
and 188 of Act, where applicable, and the details have been disclosed in the Financial
Statements as required by the applicable accounting standards.
xiv)
(a) The company has adequate internal audit system com- mensurate with the size and
nature of its business.
(b) We have considered the internal audit reports of the year under audit, issued to
the company during the year till date.
xv) The company has not entered into any non-cash transactions with 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) 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), (c) and (d) of the
order is not applicable.
xvii)The company, has incurred cash losses of Rs. 56.51 Lakhs during the financial year
and Rs. 74.19 Lakhs in the immediately preceding financial year.
xviii) The statutory auditors of the company has not resigned during the year.
Accordingly, clause 3(xviii) of the Order is not applicable.
xix) Based on the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, nothing has come to our attention,
which caused us to believe 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 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 are no requirement to spent amount towards Corporate Social Responsibility
(CSR) u/s 135 of the companies Act, 2013. Accordingly, reporting under clause 3(xx)(a)
& 3(xx)(b) of the order are not applicable.
For B.M. CHATURVEDI & Co.
Chartered Accountants ICAI FRN: 114317W
Kartik Agrawal
Partner
ICAI MN. 463529
UDIN: 23463529BGZGUR7376
th
Date: 26 May, 2023 Place: Mumbai
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2(f) under ‘Report on Other Legal and Regulatory
Requirements section of our report to the members of SVC Industries Limited for the year
ended 31st March, 2023)
Report on the Internal Financial Controls with reference to Financial Statements 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 SVC Industries Limited (the "Company") as at 31st March,
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 with reference to financial statements 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"). These responsibilities include
the design, implementation and maintenance of adequate internal financial controls with
reference to financial statements 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.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls with reference to financial statements of the Company based on our audit. We
conducted our audit in accordance with the Guidance Note and the Standards on Auditing
prescribed under Section 143(10) of the Act, to the extent applicable to an audit of
internal financial controls with reference to financial statements. 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 respects.
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 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
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 the financial statements for external purposes in
accordance with generally accepted accounting principles. A companys internal financial
control 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 expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition, use, or
disposition of the companys assets that could have a material effect on the financial
statements.
Inherent Limitations of Internal Financial Controls with reference to Financial
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 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 with reference to financial statements and such internal financial controls with
reference to financial statements were operating effectively as at 31st March, 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 Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered accountants of India.
For B.M. CHATURVEDI & Co.
Chartered Accountants ICAI FRN: 114317W
Kartik Agrawal
Partner
ICAI MN. 463529
UDIN: 23463529BGZGUR7376
Date: 26th May, 2023 Place: Mumbai
+91-9892691696
