To the Members of WSFx Global Pay Limited
(Formerly known as Wall Street Finance Limited)
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of WSFx Global
Pay Limited (Formerly known as Wall Street Finance Limited) ("the Company"),
which comprise the Balance sheet as at March 31,2023, the Statement of Profit and Loss,
including the statement of 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 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 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 accounting principles generally accepted
in India, of the state of affairs of the Company as at March 31,2023, its profit including
other 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 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
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 together with the ethical requirements
that are relevant to our audit of the 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 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 March 31,2023. 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. We have fulfilled the responsibilities described
in the Auditors responsibilities for the audit of the financial statements section
of our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risks of material
misstatement of the financial statements. The results of our audit procedures, including
the procedures performed to address the matters below, provide the basis for our audit
opinion on the accompanying financial statements.
| Key audit matters |
How our audit addressed the key audit matter |
| IT Systems and Controls |
Our audit procedures, with involvement of IT specialist,
included the following: |
| The financial accounting and reporting systems of the Company
are highly dependent on IT systems and IT controls as they process significant volume of
transactions. |
• Tested the design and operating effectiveness of the
Companys IT access controls over the information systems that are important to
financial reporting and various interfaces, configuration and other identified application
controls. |
| Automated application controls and IT environment controls
which include IT governance, general IT controls over program development and changes,
access to programs and data and IT operations, are required for reliable financial
reporting. |
• Tested IT general controls (logical access, changes
management and aspects of IT operational controls). This included testing requests for
access to systems were reviewed and authorized. |
| Therefore, due to the pervasive nature and complexity of the
IT environment, the assessment of the general IT controls and the application controls
specific to the accounting and preparation of the financial information is considered to
be a key audit matter. |
• Tested the Companys periodic review of access
rights. Also tested requests of changes to systems for approval and authorization. |
|
• In addition to the above, tested the design and
operating effectiveness of certain automated controls that were considered as key internal
controls. |
|
• Tested the design and operating effectiveness of
compensating controls in case deficiencies were identified and, where necessary, extended
the scope of our substantive audit procedures. |
Other Information
The Companys Board of Directors is responsible for the other
information. The other information comprises the information included in the board report,
but does not include the financial statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other
information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so, consider whether such
other information is materially inconsistent with the 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 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 accounting principles generally accepted in India, including the
Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 the design,
implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the 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.
Those Board of Directors are also 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
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 control relevant to the
audit in order to design audit procedures that are appropriate in the circumstances. Under
section 143(3)(i) of the Act, we are also responsible for expressing our opinion on
whether the Company has adequate internal financial controls with reference to financial
statements in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by management.
• 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.
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 for the financial year ended March 31,2023 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.
Other Matter
The financial statements of the Company for the year ended March
31,2022, included in these financial statements, have been audited by the predecessor
auditor who expressed an unmodified opinion on those statements on May 27, 2022.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020
("the Order"), issued by the Central Government of India in terms of sub-section
(11) of section 143 of the Act, we give in the "Annexure 1" 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 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 the
Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes
in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the
directors as on March 31, 2023 taken on record by the Board of Directors, none of the
directors is disqualified as on March 31,2023 from being appointed as a director in terms
of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls
with reference to these financial statements and the operating effectiveness of such
controls, refer to our separate Report in "Annexure 2" to this report;
(g) In our opinion, the managerial remuneration for the year ended
March 31,2023 has been paid / provided by the Company to its directors in accordance with
the provisions of section 197 read with Schedule V to 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 its
financial position in its financial statements - Refer Note 31 to the financial
/statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the Company.
iv. a) The management has represented that, to the best of its
knowledge and belief, other than as disclosed in the note 36 to the financial statements,
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 note 36 to the financial statements, 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 such audit procedures performed 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 (a) and (b) contain any
material misstatement.
v. No dividend has been declared or paid during the year by the
Company.
vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is
applicable for the Company only w.e.f. April 1,2023, reporting under this clause is not
applicable.
ANNEXURE 1 REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON
OTHER LEGAL AND REGULATORY REQUIRMENTS" OF OUR REPORT OF EVEN DATE
Re: WSFx Global Pay Limited (Formerly known as Wall Street Finance
Limited) ("the Company")
In terms of the information and explanations sought by us and given by
the company and the books of account and records examined by us in the normal course of
audit and to the best of our knowledge and belief, we state that:
(i) (a) (A) The Company has maintained proper records showing full
particulars, including quantitative details and situation of Property, Plant and
Equipment.
(a) (B) The Company has maintained proper records showing full
particulars of intangibles assets.
(b) All Property, Plant and Equipment were physically verified by the
management in the previous year in accordance with a planned programme of verifying them
once in three years which is reasonable having regard to the size of the Company and the
nature of its assets.
(c) There is no immovable property (other than properties where the
Company is the lessee and the lease agreements are duly executed in favour of the lessee),
held by the Company and accordingly, the requirement to report on clause 3(i)(c) of the
Order is not applicable to the Company.
(d) The Company has not revalued its Property, Plant and Equipment
(including Right of use assets) or intangible assets during the year ended March 31,2023.
(e) There are no proceedings initiated or are pending against the
Company for holding any benami property under the Prohibition of Benami Property
Transactions Act, 1988 and rules made thereunder.
(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 and no discrepancies were noticed.
(b) As disclosed in note 19 to the financial statements, the Company
has been sanctioned working capital limits in excess of Rs. five crores in aggregate from
banks and financial institutions during the year on the basis of security of current
assets of the Company. Based on the records examined by us in the normal course of audit
of the financial statements, the quarterly returns/statements filed by the Company with
such banks and financial institutions are in agreement with the unaudited books of
accounts of the Company.
(iii) (a) During the year the Company has not provided loans, advances
in the nature of loans, stood guarantee or provided security to companies, firms, Limited
Liability Partnerships or any other parties. Accordingly, the requirement to report on
clause 3(iii)(a) of the Order is not applicable to the Company.
(b) During the year the Company has not made investments, provided
guarantees, provided security and granted loans and advances in the nature of loans to
companies, firms, Limited Liability Partnerships or any other parties. Accordingly, the
requirement to report on clause 3(iii)(b) of the Order is not applicable to the Company.
(c) The Company has not granted loans and advances in the nature of
loans to companies, firms, Limited Liability Partnerships or any other parties.
Accordingly, the requirement to report on clause 3(iii)(c) of the Order is not applicable
to the Company.
(d) The Company has not granted loans or advances in the nature of
loans to companies, firms, Limited Liability Partnerships or any other parties.
Accordingly, the requirement to report on clause 3(iii)(d) of the Order is not applicable
to the Company.
(e) There were no loans or advance in the nature of loan granted to
companies, firms, Limited Liability Partnerships or any other parties. Accordingly, the
requirement to report on clause 3(iii)(e) of the Order is not applicable to the Company.
(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
to companies, firms, Limited Liability Partnerships or any other parties. Accordingly, the
requirement to report on clause 3(iii)(f) of the Order is not applicable to the Company.
(iv) There are no loans, investments, guarantees, and security in
respect of which provisions of sections 185 and 186 of the Companies Act, 2013 are
applicable and accordingly, the requirement to report on clause 3(iv) of the Order is not
applicable to the Company.
(v) The Company has neither accepted any deposits from the public nor
accepted any amounts which are deemed to be deposits within the meaning of sections 73 to
76 of the Companies Act and the rules made thereunder, to the extent applicable.
Accordingly, the requirement to report on clause 3(v) of the Order is not applicable to
the Company.
(vi) The Central Government has not specified the maintenance of cost
records under Section 148(1) of the Companies Act, 2013, for the products/services of the
Company.
(vii) (a) Undisputed statutory dues including goods and services tax,
provident fund, employees state insurance, income-tax, cess and other statutory dues
have generally been regularly deposited with the appropriate authorities though there has
been a slight delay in a few cases.
As explained to us, the Company did not have any dues on account of
sales-tax, service tax, duty of custom, duty of excise and value added tax.
(b) The dues of goods and services tax, provident fund, employees
state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value
added tax, cess, and other statutory dues have not been deposited on account of any
dispute, are as follows:
| Name of the statute |
Nature of the dues |
Amount (Rs. In lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
| Income Tax Act, 1961 |
TDS |
2.72 |
FY 2007-08 to FY 2020-21 |
DCIT-CPC TDS |
| Income Tax Act, 1961 |
Income Tax |
Nil (143.00 collected by IT department under
protest) |
FY 2015-16 |
Commissioner of Income - Tax (Appeals) |
| Income Tax Act, 1961 |
Income Tax |
4.80 (0.96 Paid under protest) |
FY 2016-17 |
Commissioner of Income - Tax (Appeals) |
(viii) The Company has not surrendered or disclosed any transaction,
previously unrecorded in the books of account, in the tax assessments under the Income Tax
Act, 1961 as income during the year. Accordingly, the requirement to report on clause
3(viii) of the Order is not applicable to the Company.
(ix) (a) The Company did not have any outstanding loans or borrowings
or interest thereon due to any lender during the year. Accordingly, the requirement to
report on clause ix(a) of the Order is not applicable to the Company.
(b) The Company has not been declared wilful defaulter by any bank or
financial institution or government or any government authority.
(c) The Company did not have any term loans outstanding during the year
hence, the requirement to report on clause (ix)(c) of the Order is not applicable to the
Company.
(d) The Company did not raise any funds during the year hence, the
requirement to report on clause (ix)(d) of the Order is not applicable to the Company.
(e) The Company does not have any subsidiary, associate or joint
venture. Accordingly, the requirement to report on clause 3(ix)(e) of the Order is not
applicable to the Company.
(f) The Company does not have any subsidiary, associate or joint
venture. Accordingly, the requirement to report on Clause 3(ix)(f) of the Order is not
applicable to the Company.
(x) (a) The Company has not raised any money during the year by way of
initial public offer / further public offer (including debt instruments) hence, the
requirement to report on clause 3(x)(a) of the Order is not applicable to the Company.
(x) (b) The Company has not made any preferential allotment or private
placement of shares /fully or partially or optionally convertible debentures during the
year under audit and hence, the requirement to report on clause 3(x)(b) of the Order is
not applicable to the Company.
(xi) (a) No fraud by the Company or no fraud on the Company has been
noticed or reported during the year.
(b) During the year, no report under sub-section (12) of section 143 of
the Companies Act, 2013 has been filed by cost auditor/ secretarial auditor or by us 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, there are no whistle blower
complaints received by the Company during the year.
(xii) (a) The Company is not a nidhi Company as per the provisions of
the Companies Act, 2013. Therefore, the requirement to report on clause 3(xii)(a) of the
Order is not applicable to the Company.
(b) The Company is not a nidhi company as per the provisions of the
Companies Act, 2013. Therefore, the requirement to report on clause 3(xii)(b) of the Order
is not applicable to the Company.
(c) The Company is not a nidhi company as per the provisions of the
Companies Act, 2013. Therefore, the requirement to report on clause 3(xii)(c) of the Order
is not applicable to the Company.
(xiii) According to the information and explanations given by the
management and audit procedures performed, transactions with the related parties are in
compliance with section 177 and 188 of Companies Act, 2013 where applicable and the
details have been disclosed in the notes to the financial statements, as required by the
applicable accounting standards.
(xiv) (a) The Company has an internal audit system commensurate with
the size and nature of its business.
(b) The internal audit reports of the Company issued till the date of
the audit report, for the period under audit have been considered by us.
(xv) The Company has not entered into any non-cash transactions with
its directors or persons connected with its directors and hence requirement to report on
clause 3(xv) of the Order is not applicable to the Company.
(xvi) (a) The provisions of section 45-IA of the Reserve Bank of India
Act, 1934 (2 of 1934) are not applicable to the Company. Accordingly, the requirement to
report on clause (xvi)(a) of the Order is not applicable to the Company.
(b) The Company has not conducted any Non-Banking Financial or Housing
Finance activities without obtained a valid Certificate of Registration (CoR) from the
Reserve Bank of India as per the Reserve Bank of India Act, 1934.
(c) The Company is not a Core Investment Company as defined in the
regulations made by Reserve Bank of India. Accordingly, the requirement to report on
clause 3(xvi) of the Order is not applicable to the Company.
(d) There is no Core Investment Company as a part of the Group, hence,
the requirement to report on clause 3(xvi)(d) of the Order is not applicable to the
Company.
(xvii) The Company has not incurred cash losses in the current
financial year.
(xviii) The previous statutory auditors of the Company have resigned
during the year and we have taken into consideration the issues, objections or concerns
raised by the outgoing auditors.
(xix) On the basis of the financial ratios disclosed in note 35 to the
financial statements, ageing and expected dates of realization of financial assets and
payment of financial liabilities, other information accompanying the financial statements,
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 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) The provisions of Section 135 to the Companies Act, 2013 in
relation to Corporate Social Responsibility is not applicable to the Company. Accordingly,
the requirement to report on clause 3(xx)(a) and (b) of the Order is not applicable to the
Company.
ANNEXURE 2 TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE
FINANCIAL STATEMENTS OF WSFx GLOBAL PAY LIMITED
Report on the Internal Financial Controls under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls with reference to
financial statements of WSFx Global Pay Limited (Formerly known as Wall Street Finance
Limited) ("the Company") as of March 31,2023 in conjunction with our audit of
the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys Management is responsible for establishing and
maintaining internal financial controls based on the internal control over financial
reporting criteria established by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered Accountants of India
("ICAI"). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business, including adherence to 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.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys
internal financial controls with reference to these financial statements based on our
audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the "Guidance Note") and the
Standards on Auditing, as specified under section 143(10) of the Act, to the extent
applicable to an audit of internal financial controls, both issued by ICAI. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls with reference to these 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 with reference to these 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 these 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 with reference to these financial statements.
Meaning of Internal Financial Controls with Reference to these
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 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, the Company has, in all material respects, adequate
internal financial controls with reference to financial statements and such internal
financial controls with reference to financial statements were operating effectively as at
March 31, 2023, based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note issued by the ICAI.
|
For S.R. Batliboi & Co. LLP Chartered Accountants |
|
ICAI Firm Registration Number: 301003E/E300005 |
|
per Shrawan Jalan Partner |
| Place of Signature: Mumbai |
Membership Number: 102102 |
| Date: May 19, 2023 |
UDIN: 23102102BGXJDV7962 |
+91-9892691696
