TO THE MEMBERS OF TPI INDIA LIMITED
Report on the Audit of the Financial Statements
Qualified Opinion
We have audited the accompanying financial statements of TPI INDIA Limited(the
"Company"), which comprise the Balance Sheet as of March 31, 2023, the Statement
of Profit and Loss (including other Comprehensive Income), and the statement of Cash Flows
ended on that date, and a summary of 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 afore said financial statements give the information
required by the Companies Act, 2013 (the "Act") in the manner so required and
give a true and fair view in conformity with the Indian Accounting Standard prescribed
under section 133 of the Act, and other accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31, 2023, its profit and its cash flows
for the year ended on that date, except for the basis mentioned in the "Basis for
Qualified Opinion" paragraph below.
Basis for Qualified Opinion:
We draw your attention that the company: -
(1) has taken interest free unsecured loans from the Directors and Other parties. The
loan agreements & terms were not available for verification. In the absence of
sufficient and appropriate audit evidence about the terms and condition of the loan taken,
we are unable to comment on the same. Further, resolutions validating such transaction as
required U/s 180 (1) (c) of Companies Act 2013 are not produced before us, till the date
of signing this audit report.
(2) has send proposal to settle the long outstanding creditors of Rs 540.18 Lakhs as on
31stMarch 2023 with mutual agreement, however agreement pertaining to that is under
process and balance confirmations evidencing their outstanding balances was also not
available hence we are unable to comment on the balance stated as on 31stMarch 2023 in the
financial statement in absence of Final Agreement.
(3) has not deposited Rs 3.17 Lakhs "Unpaid Dividend" amount pertains to FY
1995-96, 1996-97 and 1997-98 to "Investor Education and Protection Fund".
(4) has provided the gratuity liability under "Provision for Gratuity" as per
managements working which required to be evaluated by Registered Actuaries.
(5) has not maintained MSME creditors data for the year as required under MSME Act and
therefore we are unable to comment on the payables pertaining to MSME creditors.
(6) Is yet to comply with Regulation 38 of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing
Regulations") which mandates a listed entity to comply with the Minimum Public
Shareholding("MPS") requirements specified in rules 19(2) and 19A of the
Securities Contracts (Regulation) Rules, 1957 due to pledged with secured landersand other
listing compliances.
(7) has not appointed Internal Auditor as required under section 138 of the Companies
Act, 2013.
We conducted our audit of the financial statements in accordance with the Standards on
Auditing ("SA" s) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditor1 sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.Weareindependent
of the Company in accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India
(11ICAl1) 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 ICAl1 s Code of Ethics. We believe
that the audit evidence obtained by us is sufficient and appropriate to provide a basis
for our audit opinion on the financial statements.
Material Uncertainty Related to Going Concern
We draw your attention to Note No. 9 & 10 of the Ind AS Financial Statements which
indicates that the company has accumulated losses and its net worth has been completely
eroded & become negative. These events or conditions indicate that material
uncertainty exists that may cast significant doubt on the companys ability to continue as
a going concern. However, the IND AS Financial Statements of the Company have been
prepared on a going concern basis as the management is confident of improvement in its
financial position in the near foreseeable future1
Emphasis of Matter
1. We draw your attention to Note No. 13 of the Ind AS Financial Statements, SICOM
Limited, a holding company of SICOM investment and finance Limited (SIFL), has accepted
the Companys proposal for One Time Settlement (OTS) of outstanding loan amounts. As per
the approval letter, the Company is required to make payment of Rs 7,00,00,000/-in two
instalments. The Company has complied with the terms of OTS during the stipulated period
and received "No dues certificate" Dated 25th January 2023. As per the No dues
certificate the outstanding loan of Rs. 20,60,00,000/- (including Loan amount transferred
to 9% Redeemable preference share and proposed allotment of equity share) was settled at
Rs. 7,00,00,000/-and Balance Loan amount of Rs. 13,60,00,000/- transferred to Profit &
Loss account.
2. We draw your attention to Note No. 16 of the Ind AS Financial Statements, During the
year the MVAT department introduced the amnesty scheme for old Sales tax dues, wherein the
company had total sales tax dues including interest to the tune of Rs. 3,41,53,586/-. The
company took the opportunity and settled the dues as per the scheme as per the agreed
amount and balance of Rs. 2,66,25,916/-transferred to extraordinary income in profit and
loss account.
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 of the current period. These matters
were addressed in the context of our audit of the financial statements, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
| Key Audit Matters |
How our audit addressed the key audit matter |
| Appropriateness of Going Concern: |
|
| The management is in firm opinion to continue the going concern assumption &
accordingly the financial statements for the year ended 31st March 2023 are prepared on
going concern basis despite companys "Negative Net worth". |
We have discussed the matter with management and evaluated their measures to improve
the position of the company. |
|
Considered the reduction in accumulated losses arising due to the success of the
management in "One Time Settlement" proposal with SICOM(Refer Point 1. of
Emphasis of Matters Para) Considered the impact of Settlement of Long Outstanding Deferred
Sales Tax Dues, which are settled under the amnesty scheme introduced by the Government of
Maharashtra. |
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 financial position, financial performance including
other comprehensive income, 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 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 effectivelyfor ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the standalone financial statements that give a true and fair view and are
free from material misstatement, whether due to fraud or error. In preparing the
standalone financial statements, management is responsible for assessing the Companys
ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless management either
intends to liquidate the Company or to cease operations, or has no realistic alternative
but to do so. The Board of Directors is responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the 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 standalonefinancial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the standalonefinancial 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 effectof
any identified misstatements in the standalone financial statements. We communicate with
those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit. We also provide those charged with
governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related
safeguards. From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the standalone financial
statements of the current period and are therefore the key audit matters. We describe
these matters in our auditors report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in
"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the
Order:
2. As required by Section 143(3) of the Act, based on our audit we report that: a) We
have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books. c) The standalone
financial statement dealt with by this report is in agreement with the relevant books of
account. d) In our opinion, the aforesaid standalone financial statements comply with the
Indian Accounting Standards specified under section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014;
e) On the basis of the written representations received from the directors as on March
31,2022 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2022 from being appointed as a director in terms of Section 164(2) of the
Act. f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure B". Our report expresses an unmodified opinion on
the adequacy and operating effectivenessof the Companys internal financial controls over
financial reporting. g) With respect to the other matters to be included in the Auditors
Report in accordance with 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 no pending litigations which would impact its financial position
which are not disclosed in the standalone financial statements; except for those mentioned
in Annexure A below ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable losses; and iii.
Company has not deposited Rs. 3.17 lakhs "Unpaid Dividend" amount pertains to
FY1995-96, 1996-97 and 1997-98 in" Investor Education and protection fund". iv.
a) The management has represented that, to the best of its knowledge and belief, other
than as disclosed in the notes to the accounts, no funds 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(s) or entity(ies), including foreign
entities ("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,
other than as disclosed in the notes to the accounts, no funds have been received by the
company from any person(s) or entity(ies), including foreign entities ("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; and
c) Based on audit procedures which we considered reasonable and appropriate in the
circumstances, nothing has come to their notice that has caused them to believe that the
representations under sub-clause (i) and (ii) contain any material mis-statement v. No
Dividends has been declared by the company during the financial year h) With respect to
the matter to be included in the Auditors Report under Section 197(16) of the Act, in our
opinion and according to the information and explanations given to us, the company has
paid managerial remuneration within the limit prescribed by section 197 for maximum
permissible managerial remuneration provided to the directors of the company.
| For Jain Jagawat & Kamdar & Co. |
| Chartered Accountants |
| Firm Registration No. 122530W |
| CA Chandrashekhar Jagawat |
| Partner |
| M No. 116078 |
| UDIN: 23116078BGQLEC1609 |
| Mumbai, May 30th, 2023 |
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
Report as required by the Companies (Auditors Report) Order, 2020 ("the
Order"), issued by the Central Government of India in terms of sub-section (11) of
section 143 of the Companies Act, 2013 (Refer to in paragraph 1 under Report on Other
Legal and Regulatory Requirements section of our report of even date). With reference to
the Annexure A referred to in the Independent Auditors Report to the members of the
Company on the standalone financial statements for the year ended March 31, 2023, we
report the following
1. (a) (A) The Company has proper records related to full particulars including
quantitative details and situation of Property, Plant and Equipment. (B) the company is
not having any intangible asset. Therefore, the provisions of Clause (i)(a)(B) of
paragraph 3 of the order are not applicable to the company.
(b) In our opinion Property, Plant and Equipment have been physically verified by the
management at reasonable intervals. No material discrepancies were noticed on such
verification during the year.
(c) The company does not hold any immovable property which is not held in the name of
the company.
(d) The company has not revalued its Property, Plant and Equipment during the year.
Therefore, the provisions of Clause (i)(d) of paragraph 3 of the order are not applicable
to the company. (e) No proceedings have been initiated or are pending against the company
for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45
of 1988) and rules made thereunder. Therefore, the provisions of Clause (i)(e) of
paragraph 3 of the order are not applicable to the company. ii. (a) In our opinion,
physical verification of inventory has been conducted at reasonable intervals by the
management and the coverage and procedure of such verification by the management is
appropriate. No material discrepancies were noticed on such verification.
(b) The company has sanctioned working capital limits in excess of five crore rupees,
the quarterly statement filed by the company with Bank wherever mandated are in agreement
with the books of accounts.
iii. During the year, the company has not made any investments in, provided any
guarantee or security or granted any loans or advances in the nature of loans, secured or
unsecured, to companies, firms, Limited Liability Partnerships or any other parties.
Therefore, the provisions of clause 3(iii) of the said Order are not applicable to the
company. iv. The company has not made any loans, investments, guarantees and security on
which provisions of section 185 and 186 of the Companies Act 2013 are applicable.
Therefore, the provisions of clause 3(iv) of the said Order are not applicable to the
company.
v. In our opinion and according to the information and explanations given to us, the
Company has not accepted any deposits from public during the year. Therefore, the
provisions of Clause (v) of paragraph 3 of the order are not applicable to the Company.
vi. As explained to us, the Central Government of India has not specified the
maintenance of cost records under sub-section (1) of Section 148 of the Act for any of the
products of the Company. Therefore, the provisions of Clause (vi) of paragraph 3 of the
order are not applicable to the Company.
vii. (a) The Company is generally regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Income tax, Sales Tax, Wealth tax,
Service tax, Duty of Customs, duty of Excise, Value Added Tax, GST, Cess, and other
statutory dues with the appropriate authorities to the extent applicable to it. There are
no undisputed amounts payable in respect of income tax, wealth tax, service tax, sales
tax, value added tax, duty of customs, duty of excise or cess which have remained
outstanding as of March 31, 2023, for a period of more than 6 months from the date they
became payable. (b) According to the information and explanations given to us, there are
not any statutory dues referred in sub-clause (a) which have not been deposited on account
of any dispute. Therefore, the provisions of Clause (vii)(b) of paragraph 3 of the order
are not applicable to the Company.
viii. In our opinion and according to the information and explanations given to us,
there are no transaction which are not recorded in the books of account& have been
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of 1961). ix. (a) In our opinion and according to the information and
explanations given to us, the Company has not defaulted in repayment of any loan or other
borrowings or any interest due thereon to any lender. (b) In our opinion and according to
the information and explanations given to us, the company has not been a declared willful
defaulter by any bank or financial institution or other lender.
(c) In our opinion and according to the information and explanations given to us, the
loans were applied forthe purpose for which the loans were obtained.
(d) In our opinion and according to the information and explanations given to us, there
are no funds raised on short term basis which have been utilized for long term purposes.
(e) In our opinion and according to the information and explanations given to us, the
company has not taken any funds from any entity or person on account of or to meet the
obligations of its subsidiaries, associates, or joint ventures.
(f) In our opinion and according to the information and explanations given to us, the
company has not raised loans during the year on the pledge of securities held in its
subsidiaries, joint ventures, or associate companies.
x. (a) The Company has not raised money by way of an initial public offer or further
public offer (including debt instruments). Therefore, the provisions of Clause (x)(a) of
paragraph 3 of the order are not applicable to the Company.
(b) In our opinion and according to the information and explanations given to us, the
company has not made preferntial allotment of shares during the year and the requirements
of section 42 and section 62 of the Companies Act, 2013 is not applicable. xi. (a) We have
not noticed any case of fraud by the company or any fraud on the Company by its officers
or employees during the year. The management has also not reported any case of fraud
during the year. Therefore, the provisions of Clause (xi) (a) of paragraph 3 of the order
are not applicable to the Company (b) During the year no report under sub-section (12) of
section 143 of the Companies Act has been filed by the auditors in Form ADT-4 as
prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central
Government. (c) As auditor, we did not receive any whistle- blower complaint during the
year. Therefore, the provisions of Clause (xi) (b) of paragraph 3 of the order are not
applicable to the Company. xii. The company is not a Nidhi Company. Therefore, the
provisions of Clause (xii) of paragraph 3 of the order are not applicable to the Company.
xiii. As per the information and explanations received to us all transactions with the
related parties are in compliance with sections 177 and 188 of Companies Act where
applicable, and the details have been disclosed in the financial statements, etc., as
required by the applicable Indian Accounting Standards.
Identification of related parties were made and provided by the management of the
company. (Refer Note no: 38of Financial Statement) xiv. The company is a listed entity and
covered by section 138 of the Companies Act, 2013. The company has NOT complied the
provisions of Clause (xiv) (a)and (b) of paragraph 3 of the order. xv. The Company has not
entered any non-cash transactions with directors or persons connected with him for the
year under review. Therefore, the provisions of Clause (xv) of paragraph 3 of the order
are not applicable to the Company. xvi. (a) The Company is not required to be registered
under section 45-IA of the Reserve Bank of India Act, 1934. (b) The company has not
conducted any Non-Banking Financial or Housing Finance activities during the year.
(c) The company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India.
(d) As per the information and explanations received, the group does not have any CIC
as part of the group. xvii. The company has not incurred cash loss in the current
financial year as against the cash losses incurred in immediately preceding financial
year. xviii. There has been no resignation of the previous statutory auditors during the
year. Therefore, the provisions of Clause (xviii) of paragraph 3 of the order are not
applicable to the Company.
xix. On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, the auditors knowledge of the Board of Directors and management
plans, we are of the opinion that no material uncertainty exists as on the date of the
audit report that company is 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. (Refer Note no: 40 of Financial Statement) xx. The provisions of Section 135 are not
applicable to company during the current financial year therefore, the provisions of
Clause (xx) (a) and (b) of paragraph 3 of the order are not applicable to the Company.
xxi. The company has not made investments in subsidiary company. Therefore, the company
does not require us to prepare a consolidated financial statement. Therefore, the
provisions of Clause (xxi) of paragraph 3 of the order are not applicable to the Company
| For Jain Jagawat & Kamdar & Co. |
| Chartered Accountants |
| Firm Registration No. 122530W |
| CA Chandrashekhar Jagawat |
| Partner |
| M No. 116078 |
| UDIN: 23116078BGQLEC1609 |
| Mumbai, May 30th, 2023 |
"Annexure B" to the Independent Auditors Report on the standalone financial
statements of TPI INDIA LIMITED
Report on the internal financial controls with reference to the aforesaid financial
statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
(Referred to in paragraph 1(A)(f) under Report on Other Legal and Regulatory
Requirements section of our report of even date) Opinion
We have audited the internal financial controls with reference to financial statements
of TPI India Limited ("the Company") as of 31 March 2023 in conjunction with our
audit of the financial statements of the Company for the year ended on that date. In our
opinion, the Company has, in all material respects, adequate internal financial controls
with reference to financial statements and such internal financial controls were operating
effectively as at 31 March 2023, based on the internal financial controls with reference
to financial statements 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 and the Board of Directors are responsible for establishing
and maintaining internal financial controls based on the internal financial controls with
reference to financial statements 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 the 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 (hereinafter referred to as
"the Act").
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls with reference to financial statements based on our audit. We conducted our audit
in accordance with the Guidance Note 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 were established and maintained and whether such controls operated
effectivelyin all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls 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 such internal financial controls,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls with
reference to financial statements.
Meaning of Internal Financial Controls with Reference to Standalone Financial
Statements
A companys internal financial controls with reference to financial statements is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A companys internal financial controls
with reference to financial statements include those policies and procedures that (1)
pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the companys assets that could have a material effect on the financial
statements.
Inherent Limitations of Internal Financial Controls with Reference to Standalone
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 controls 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.
| For Jain Jagawat & Kamdar & Co. |
| Chartered Accountants |
| Firm Registration No. 122530W |
| CA Chandrashekhar Jagawat |
| Partner |
| M No. 116078 |
| UDIN: 23116078BGQLEC1609 |
| Mumbai, May 30th, 2023 |
+91-9892691696
