To,
The Members of
WELCAST STEELS LIMITED Ahmedabad.
Report on the audit of financial statements
Opinion
We have audited the accompanying financial statements of WELCAST STEELS LIMITED
("the Company"), which comprise the Balance Sheet as at March 31, 2023, and the
Statement of Profit and Loss(including other comprehensive income), Statement of Changes
in Equity and Statement of Cash Flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies and other explanatory
information (herein after referred to as "the financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid IND AS financial statements give 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, and its profit, changes in equity and its
cash flows for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013 ("the Act"). Our
responsibilities under those Standards are further described in the Auditors
responsibilities for the Audit of the financial statements section of our report. We are
independent of the Company in accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India (ICAI) together with the independence 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
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 of the
current period. 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. We have determined the matters described below to be
the key audit matters to be communicated in our report:
Key Audit Matter |
Auditors Response |
| 1. Evaluation of Contingent Liabilities. |
We held discussions with senior management to obtain an
understanding of the factors considered by management in classification of the matter as
probable, possible and remote. |
Refer Notes: 39 of the Financial Statements |
| We understood the process, evaluated the design and implementation of
controls and tested the operating effectiveness of the companys controls over the
recording and reassessment of uncertain legal position, claims and contingent liabilities. |
| For those matters where management concluded that no provision should be
recorded, we also considered the adequacy and completeness of the companys disclosures
made in relation to contingent liabilities. |
| We have gone through i. the minutes of the Board of directors and
management judgements |
| ii. representations made by the company to the concerned authorities, |
| iii.pronouncements made by appellate authorities/ judiciary, |
| iv.other related correspondence on the issues raised by the concerned
authorities and considered the legal opinion/views of the legal counsel in order to
corroborate managements conclusions and assessed the probability of the contingency. |
Information other than the financial statements and auditors report thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexure to Board Report and Corporate
Governance Report, but does not include the financial statement 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 the 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.
Managements responsibilities for the financial statements
The Companys Board of Directors is responsible for 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, total comprehensive income,
changes in equity and the cash flows 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 of the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the 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 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 controls relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the
Act, we are also responsible for expressing our opinion on whether the company has
adequate internal financial control system in place and the operating effectiveness of
such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the 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 maybe 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 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 sub-section (11) of section 143 of the Act
and in terms of the information and explanations sought by us and given by the company and
the books and records examined by us in the normal course of our audit and to the best of
our knowledge and belief, we state below on the matters specified in paragraphs 3 and 4 of
the Order, to the extent applicable.
(i) (a) (A) The Company has maintained proper records showing full particulars
including quantitative details and situation of Property, plant and equipment.
(B) The Company has maintained proper records showing full particulars of intangible
assets.
(b) The Company has a regular program of physical verification of its Property, plant
and equipment by which all Property, plant and equipment are verified every year. In our
opinion, the 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 immovable properties are held in the name of the company.
(d) The company has not revalued its Property, Plant and Equipment or intangible assets
hence the reporting if the revaluation is based on the valuation of registered valuer and
specifying of changes of more than 10% or more in the aggregate value of each class of PPE
as per clause (i)(d) of the Order does not arise.
(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. Hence the reporting on disclosure of such transactions in the
financial statements as per clause 3 (i)(e) of the Order does not arise.
(ii)(a) The inventory has been physically verified during the year by the management.
In our opinion, the frequency of verification is reasonable. The coverage and procedures
of physical verification of inventories followed by the management are reasonable and
adequate in relation to the size of the company and the nature of its business and volume
of operations. The discrepancies noticed on verification between the physical stocks and
the book records were not 10% or more in the aggregate for each class of inventory and
have been properly dealt with in the books of account.
(b) The Company has been sanctioned working capital limits in excess of five crore
rupees, in aggregate, from banks or financial institutions on the basis of security of
current assets. The quarterly returns or statements filed by the company with such banks
or financial statements are in agreement with the books of account of the Company.
(iii) During the year the Company has not 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, except Interest free unsecured
loans/advances in the nature of loans to employees, hence the reporting of aggregate
amount during the year and balance outstanding of such loan/ advances/ guarantee/ security
and the question of schedule of repayment of interest and principal, recovery of principal
and interest on regular basis and steps for recovery of overdue amount for more than 90
days, loan or advance being renewed or extended or fresh loans granted to settle overdue
of existing parties; loan or advance granted either repayable on demand or without
specifying any terms or period of repayment as per clause 3
(iii) of the Order does not arise. According to the information and explanation given
to us the investments made by the company during the year are not prejudicial to the
companys interest.
(iv) In our opinion and according to the information and explanations given to us, the
company has complied with the provisions of Section 185 and 186 of the Act in respect of
investments made during the year. The company has not given any loans, nor given
guarantees, and/or security to any party attracting the provisions of section 185 and 186
of the Act.
(v) The company has not accepted any deposits from the public, hence the question of
compliance with the directives issued by the Reserve Bank of India and the provisions of
section 73 to 76 and other relevant provisions of the Act and the rules framed there under
as per clause 3
(v) of the Order does not arise.
(vi) We have broadly reviewed the books of accounts relating to materials, Labour and
other items of cost maintained by the company pursuant to the Rules made by the Central
Government for the maintenance of cost records under section 148
(1) of the Act and we are of the opinion that prima facie the prescribed accounts and
records have been made and maintained. We have not, however, made a detailed examination
of the records with a view to determine whether they are accurate or complete.
(vii)
(a) According to the records of the Company, the company is regular in depositing with
the appropriate authorities undisputed statutory dues including Provident Fund, Employees
State Insurance, Income Tax, Sales Tax, Service Tax, Goods & Services Tax, Duty of
Customs, Duty of Excise, Value Added Tax, Cess and other statutory dues to the extent
applicable to it.
(b) According to the information and explanation given to us and based on the records
verified by us, we state that no undisputed amount payable in respect of Provident fund,
Employees State Insurance, Income Tax, Sales Tax, Service Tax, Goods & Services Tax,
Value Added Tax, Duty of Customs, Duty of Excise or Cess and other statutory dues which
have remained outstanding as at 31 March 2023 for a period of more than six months from
the date they became payable.
(c) According to the information and explanations given to us there are no dues of
Income Tax, Sales Tax, Value Added Tax, Service Tax, Goods & Services Tax, Duty of
Customs, Duty of Excise or Cess and other statutory dues, which have not been deposited on
account of dispute except as stated below.
Sl No 1 |
Statute Finance Act, 1994 |
Nature of Liabilities Service Tax |
Amount in dispute including interest (Rs. in Lakhs) 206.42 |
Period to which amount relates September 2004 to August 2006 |
Forum where Dispute pending Customs, Excise & Service Tax Appellate |
2 |
Customs Act, 1962 |
Customs Duty |
1056.52 |
February 2005 to September 2005 |
Tribunal, Bangalore. Supreme Court of India |
(viii) According to the information and explanations given to us and on an overall
examination of the financial statements, there are no transactions not recorded in the
books of accounts that have been surrendered or disclosed as income during the year in the
tax assessments under the Income Tax Act, 1961. Hence the reporting whether the previously
unrecorded income has been properly recorded in books of account during the year as per
clause 3(viii) of the Order does not arise.
(ix) (a) According to the information and explanation given to us the Company has not
defaulted in repayment of loans or other borrowings or in the payment of interest thereon
to any lender.
(b) The Company has not been declared wilful defaulter by any bank or financial
institution or other Lender.
(c) The Company has not borrowed any term loans and consequently the question of
application of such loans for the purpose for which they were obtained as per clause
3(ix)(c) of the Order does not arise.
(d) According to the information and explanations given to us, and the procedures
performed by us, and on an overall examination of the financial statements of the Company,
we report that no funds raised on short term basis have been used for long-term purposes
by the Company.
(e) According to the information and explanations given to us, and on an overall
examination of the financial statements of the Company, we report that the Company does
not have any subsidiaries or joint ventures or associates. Hence the question of the
company raising funds from any entity or person on account of or to meet the obligations
of its subsidiaries, Joint Ventures or associates does not arise.
(f) According to the information and explanations given to us, and procedures performed
by us, as the Company do not have any subsidiaries or joint ventures or associates, the
question of raising funds on the pledge of securities held in its subsidiaries, joint
ventures or associates does not arise.
(x) (a) The company has not raised any money by way of initial public offer or further
public offer ( including debt instruments), hence the question of application of moneys
raised by way of initial public offer, further public offer during the year for the
purpose for which they were raised does not arise. Therefore, the provisions of clause
3(x) (a) of the Order are not applicable.
(b) The company has not made any preferential allotment or private placement of shares
or convertible debentures during the year hence the requirement of compliancewith the
provisions of Section 42 and section 62 of the Act and utilization of amounts so raided
for purpose for which the funds were raised as per clause 3 (x) (b) of the order does not
arise.
(xi) (a) To the best of our knowledge and according to the information and explanations
given to us, no fraud by the company or on the company has been noticed or reported during
the year (b) To the best of our knowledge and according to the information and
explanations given to us, no report under sub-section (12) of Section 143 of the 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 represented to us by the management, there are no whistle blower complaints
received by the company during the year.
(xii) The Company is not a Nidhi Company. Therefore, the provisions of clause 3 (xii)
(a) to (c)of the Order are not applicable to the Company. (xiii)In our opinion, the
company has complied with the provisions of Sections 177 and 188 of the Act and disclosed
such transactions in the Financial Statements etc., as required by applicable Indian
Accounting Standards in respect of transactions entered into with related parties.
(xiv)(a) In our opinion and based on our examination, the Company has an internal audit
system commensurate with the size and nature of its business.
(b) We have considered the internal audit reports of the Company issued till date, for
the period under audit.
(xv) In our opinion the Company has not entered into any non-cash transactions with
directors or persons connected with them; hence the requirement of compliance to
provisions of Section 192 of the Act as per clause 3 (xv) of the Order does not arise.
(xvi)(a) The company is not required to be registered under Sec 45-IA of the Reserve
Bank of India Act, 1934, hence the requirements of clause 3 (xvi) of the Order does not
arise.
(b) The Company has not conducted any non-banking financial or housing finance
activities without a valid certificate of Registration (COR) from the Reserve Bank of
India as per Reserve Bank of India Act, 1934 (c) The Company is not a core investment
company (CIC) as defined in the regulations made by the Reserve Bank of India . Hence the
reporting of whether the company continues to fulfill the criteria of CIC and in case the
companies exempted or unregistered CIC and if it continues to fulfill such criteria as per
clause 3 (xvi) (c) of the order does not arise.
(d) The Company has no CIC hence the requirements of Clause 3 (xvi) (d) of the Order
does not arise (xvii) The Company has not incurred cash losses in the financial year and
in the immediately preceding financial year.
(xviii)There has been no resignation of the Companys statutory auditors during the
year hence, Clause 3(xviii) of the Order is not applicable.
(xix)According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dates of realisation of financial assets and payment
of financial liabilities, other information accompanying the financial statements, 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
the Company is not capable of meeting its liabilities existing as at the date of the
balance sheet 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 given 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 sec 135 (Corporate Social Responsibility) of the Act are not
applicable to the company for the year and hence the reporting requirements under Clause 3
(xx) of the Order is not applicable. (xxi)The accounts reported being stand alone
financials, requirements of the provision of Clause 3(xxi) of the Order is not applicable.
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, Statement of Profit and Loss, 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 Indian
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
31March 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31March 2023 from being appointed as a director in terms of Section
164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial
reporting of the company and the operating effectiveness of such controls, refer to our
separate report in "Annexure A".
(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, company
has not paid any managerial remuneration other than directors sitting fees, for attending
board and committee meetings during the year and such remuneration paid by the Company to
its directors during the year is in accordance with the provisions of section 197 of the
Act ,and (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, 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 No. 39 and 49 to the financial statements.
ii. As explained to us, the Company does not foresee any loss on long-term contracts
entered in to.
The company has not entered into any derivative contracts. In view of the above the
question of making provision does not arise. 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 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 such audit procedures that has 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 mis-statement.
v. The company has not declared or paid dividend during the year hence the
question of compliance with Section 123 of the Act does not arise.
|
For DAGLIYA& CO. |
|
CHARTERED ACCOUNTANTS |
|
FIRM REG NO:-000671S |
| UDIN: 23224048BGSMQY4648 |
CHETAN KUMAR K JAIN |
| PLACE: BANGALORE |
PARTNER |
| DATE: 16th May, 2023. |
MEMBERSHIP NO.224048 |
ANNEXURE-A TO THE INDEPENDENT AUDITORS REPORT
ON THE FINANCIALS STATEMENTS OF WELCAST STEELS LIMITED FOR THE YEAR ENDED 31 MARCH 2023
(Referred to in Paragraph 2(f) under Report on Other Legal and Regulatory Requirements
section of our report of even date)
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
("the Act") Opinion
We have audited the internal financial controls over financial reporting of Welcast
Steels 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.
In our opinion, to the best of our information and according to the explanations given
to us, the Company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at March 31,2023, based on the 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
Control 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 control based on the internal control over financial
reporting criteria established by the company considering the essential components of
internal control stated in the Guidance Note. These responsibilities include the design,
implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business including
adherence to companys policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness of the accounting records,
and the timely preparation of reliable financial information, as required under the
Companies Act, 2013.
Auditors responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note and the Standards on Auditing, issued by the Institute of Chartered
Accountants of India (ICAI) and deemed to be prescribed under section 143(10) of the
Companies Act, 2013, to the extent applicable to an audit of internal financial controls,
both applicable to an audit of Internal Financial Controls and, both issued by the ICAI.
Those Standards and the Guidance Note require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors 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 Over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) Pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) Provide reasonable assurance that
transactions are recorded as necessary to permit preparation of 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 Over Financial reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
|
For DAGLIYA& CO. |
|
CHARTERED ACCOUNTANTS |
|
FIRM REG NO:-000671S |
| UDIN: 23224048BGSMQY4648 |
CHETAN KUMAR K JAIN |
| PLACE: BANGALORE |
PARTNER |
| DATE: 16th May, 2023. |
MEMBERSHIP NO.224048 |
+91-9892691696
