To the Members of AMD Industries Limited
Report on the Standalone Ind AS financial Statements
We have audited the accompanying standalone Ind AS financial statementsof AMD Industries Limited ("the Company") which comprises the Balance Sheet asat March 31 2022 the Statement of Profit and Loss (including Other ComprehensiveIncome) Statement of Changes in Equity and Statement of Cash Flows for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the Ind AS and accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2022 and profit total comprehensiveincome the 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. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone Ind AS financial statements under the provisions of the Companies Act 2013 andthe Rules there under and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.
Key Audit Matters
Key Audit Matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone Ind AS financial statements ofthe current period. These matters were addressed in the context of our audit of theStandalone Ind AS financial statements as a whole and informing our opinion thereon andwe do not provide a separate opinion on these matters. We have determined the mattersdescribed below to be the key audit matters to be communicated in our report
|Implementation of ERP: || |
|The Company has implemented integrated ERP systems for its financial accounting and Inventory management and reporting purpose. Company's processes are highly dependent on information systems including automated controls and other systems used for its overall financial reporting. ||Our audit procedure include: |
| || Understood the end-to-end ERP Controls i.e. access controls system change reports over key financial accounting and reporting systems including operating systems and databases. |
| || Understood ERP application controls covering key interfaces and Test checked the General Controls for design and operating effectiveness for the audit period. |
| || Test checked controls over the IT infrastructure covering user access. |
We have determined that there are no other key audit matters tocommunicate in our report.
Information Other than the Standalone Ind AS financial Statements andAuditor's Report Thereon
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Informationbut does not include the standalone Ind AS financial statements and our auditor'sreport thereon.
Our opinion on the standalone Ind AS financial statements does notcover the other information and we do not express any form of assurance conclusionthereon. In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone Ind AS financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
Management Responsibility for the Standalone Ind AS financialStatements
The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome changes in equity and cash flows of the Company in accordance with accountingprinciples generally accepted in India including Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate implementation and maintenance ofaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone Ind AS financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the standalone Ind AS financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. The Board of Directors are alsoresponsible for overseeing the company's financial reporting process.
Auditor's Responsibilities for the Audit of Standalone Ind ASfinancial Statement
Our objectives are to obtain reasonable assurance about whether theStandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that anaudit conducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone Ind AS financialstatements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has internal financial controls with reference to FinancialStatements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the standalone Ind AS financial statements or ifsuch disclosures are inadequate to modify our opinion. Our conclusions are based on theaudit evidence obtained up to the date of our auditor's report. However futureevents or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone Ind AS financial statements including the disclosures and whether thestandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards. From the matterscommunicated with those charged with governance we determine those matters that were ofmost significance in the audit of the standalone Ind AS financial statements for thefinancial year ended March 31 2022 and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's 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 we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
2. As required by Section 143(3) of the Act we report that:
a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
b) In our opinion proper books of account as required by law have beenkept 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 theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion the aforesaid standalone Ind AS financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withCompanies (Indian Accounting Standards) Rules 2015 as amended.
e) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof Section 164 (2) of the Act.
f) With respect to the adequacy of the Internal Financial Control withreference to Financial Statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company'sinternal financial controls over financial reporting.
g) In our opinion the managerial remuneration for the year ended March31 2022 has been paid/provided by the Company to its directors in accordance with theprovisions of section 197 read with Schedule V to the Act.
h) With respect to the other matters to be included in theAuditor's 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 theexplanations given to us: (i) The Company has disclosed the impact of pending litigationson its financial position in its standalone Ind AS financial statements Refer Note42 to the Standalone Ind AS financial statements;
(ii) The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;
(iii) There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company.
(iv) a) The Management has represented that to the best of itsknowledge and beliefno funds (which are material either individually or in the aggregate)have been advanced or loaned or invested (either from borrowed funds or share premium orany other sources or kind of funds) by the Company to or in any other person or entityincluding foreign entity (Intermediaries') with the understanding whetherrecorded in writing or otherwise that the intermediary shall whether directly orindirectly lend or invest in other persons or entities identified in any manner whatsoeverby or on behalf of the Company (Ultimate Beneficiaries') or provide anyguarantee security or the like on behalf of the Ultimate Beneficiaries.
b) The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity(Funding Parties') with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the FundingParty (Ultimate Beneficiaries') or provide any guarantee security or the likeon behalf of the Ultimate Beneficiaries. c) Based on the audit procedures that have beenconsidered reasonable and appropriate in the circumstances nothing has come to ourattention that has caused us to believe that the representations under sub-clause (i) and(ii) of Rule 11 (e) as provided under (a) and (b) above contain any materialmisstatement.
| ||For Goyal Nagpal & Co. |
| ||Chartered Accountants |
| ||(Firm's Registration No. 018289C) |
| ||Sd/- |
| ||(CA Virender Nagpal) |
|Place: New Delhi ||Partner |
|Date: 30 May 2022 ||(Membership No. 416004) |
| ||UDIN: 22416004AJWTGV6309 |
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 2 under Report on Other Legal andRegulatory Requirements' Section of our report of even date)
In terms of the information and explanations sought by us and given bythe Company and the books of account and records examined by us in the normal course ofaudit and to the best of our knowledge and belief we state that i) (a) (A) The Companyhas maintained proper records showing full particulars includingquantitative details andsituation of Property Plant and Equipment capital work-in-progress and investmentproperties.
(B) The Company has maintained proper records showing full particularsof intangible assets.
(b) According to the information and explanations given to us and onthe basis of our examination of the records of the company some of the Property Plantand Equipment capital work-in-progress and investment properties were physically verifiedduring the year by the Management in accordance with a programme of verification which inour opinion provides for physical verification of all the Property Plant and Equipmentcapital work-in-progress and investment properties at reasonable intervals having regardto the size of the Company and the nature of its activities. According to the informationand explanations given to us no material discrepancies were noticed on such verification.
(c) With respect to immovable properties (other than properties wherethe Company is the lessee and the lease agreements are duly executed in favour of theCompany) disclosed in the financial statements included in property plant and equipmentcapital work-in progress and investment properties according to the information andexplanations given to us and based on the examination of the registered sale deed / titledeed provided to us we report that the title deeds of such immovable properties are heldin the name of the company as at the balance sheet date.
(d) The Company has not revalued any of its property plant andequipment (including Right of Use assets) and intangible assets during the year.
(e) According to the information and explanations given to us and onthe basis of our examination of the records of the company no proceedings have beeninitiated during the year or are pending against the Company as at 31 March 2022 forholding any benami property under the Benami Transactions (Prohibition) Act 1988 (asamended in 2016) and rules made there ++under.
ii) (a) According to the information and explanations given to us andon the basis of our examination of the records produced before us the inventories werephysically verified during the year by the management at reasonable intervals. In ouropinion the coverage and procedure of such verification by the management is appropriatehaving regard to the size of the company and the nature of its operations. Nodiscrepancies of 10% or more in the aggregate for each class of inventories were noticedon such physical verification of inventories when compared with books of account.
(b) According to the information and explanations given to us and onthe basis of our examination of the records of the company the company has beensanctioned working capital limits in excess of five crore rupees in aggregate from banksor financial institutions on the basis of security of current assets. In our opinion thequarterly returns or statements filed by the company with such banks or financialinstitutions are in agreement with the books of account of the company.
iii) According to the information and explanations given to us at anypoint of time of the year the company has not made investments in provided any guaranteeor security or granted any loans or advances in the nature of loans secured or unsecuredto companies firms Limited Liability Partnerships or any other parties. Hence reportingunder clause (iii) of the Order is not applicable. iv) The Company has not granted/madeany loans investments and guarantees and securities under section 185 and 186 of TheCompanies Act 2013 during the year. Hence reporting under clause (iv) of the Order isnot applicable. v) According to the information and explanations given to us in ouropinion the Company has not accepted any deposit or amounts which are deemed to bedeposits during the year. Hence reporting under clause(v) of the Order is not applicable.vi) The maintenance of cost records has not been specified for the activities of thecompany by the Central Government under section 148(1) of the Companies Act 2013. Hencereporting under clause (vi) of the Order is not applicable.
vii) (a) According to the information and explanations given to us thecompany is generally regular in depositing with appropriate authorities undisputedstatutory dues including Goods and Services Tax provident fund employees' stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues.
There were no undisputed amounts payable in respect of Goods andService tax Provident Fund Income-tax Sales Tax Service Tax duty of Custom Duty ofExcise Value Added Tax cess and other material statutory dues in arrears as at March 312022 for a period of more than six months from the date they became payable. b) Statutorydues referred to in sub-clause (a) above which have not been deposited as on March 312022 on account of disputes are given below:
|Name of Statute ||Nature of Dues ||Amount (in Rs.) ||Period to which the amount Relate ||Forum where dispute is pending |
|The U.P.Trade Tax Act1948 ||Local Sales Tax raised under section 4A of the Act. The department levied tax on Goods under modernization certificate on base production ||Rs.950962/- ||F.Y. 1999-2000 to 2006-07 ||Supreme Court |
|The Central Sales Tax Act 1956 ||Central Sales Tax raised under section 4A of the Act. The department levied tax on Goods under modernization certificate on base production ||Rs.3118745/- ||F.Y. 1999-2000 to 2006-07 ||Supreme Court |
|The Central Sales Tax Act 1956 ||Demand raised by Sales Tax Authority on account of non-submission of Concessional Forms ||Rs.358400/- ||F.Y. 2003-04 ||Tribunal Court Ghaziabad |
|The U.P. Tax on entry of Goods into Local Area Act2007 ||Entry tax raised by UP Trade Tax Authorities ||Rs.1145102/- ||F.Y. 2001-02 ||Tribunal Court Ghaziabad |
|The U.P. Tax on entry of Goods into Local Area Act2007 ||Entry tax raised by UP trade tax Authorities. ||Rs.1140307/- ||F.Y. 2002-03 ||Supreme Court |
|The U.P. Tax on entry of Goods into Local Area Act2007 ||Entry tax raised by UP trade tax Authorities. ||Rs.1637643/- ||FY 2004-05 ||Allahabad High Court |
|Industrial Dispute Act1947 ||Accident Claim made by Worker ||Rs.200000/- ||F Y 2001-02 ||Labour Court-I Ghaziabad |
|The U.P. Tax on entry of Goods into Local Area Act2007 ||Sales Tax Demand raised for non-filing of export certificates at the time of assessment ||Rs.447623/- ||F.Y. 2005-06 ||Addl. Commissioner Appeal (Trade Tax)-I Ghaziabad |
|The U.P. Tax on entry of Goods into Local Area Act2007 ||Entry tax raised by UP trade tax Authorities. ||Rs.220397/- ||F. Y 2005-2006 ||Supreme Court |
|The U.P. Value Added Tax Act2008 ||The company charged UP Vat on Preform @ 5% as classified item under the Act but department denied and raised the demand @ 13.50% ||Rs.3809702/- ||F.Y 2007-2008 ||Hon'ble High Court Allahabad |
|The U.P. Value Added Tax Act2008 ||The company charged UP Vat on Preform @ 5% as classified item under the Act but department denied and raised the demand @ 13.50% ||Rs. 29718848/- ||2008-09 & 2009-10 ||Tribunal court Ghaziabad |
viii) According to the information and explanations given to us and onthe basis of our examination of the records of the company there were no transactionsrelating to previously unrecorded income that were surrendered or disclosed as income inthe tax assessments under the Income Tax Act 1961 (43 of 1961) during the year. Hencereporting under clause (viii) of the Order is not applicable.
ix) (a) According to the information and explanations given to us andon the basis of our examination of the records of the company in our opinion the Companyhas not defaulted in the repayment of loans or borrowings from banks financialinstitutions and Government.
(b) The Company has not been declared wilful defaulter by any bank orfinancial institution or government or any government authority.
(c) According to the information and explanations given to us and onthe basis of our examination of the records of the company in our opinion term loanswere applied for the purpose for which the loans were obtained.
(d) On an overall examination of the financial statements of theCompany funds raised on short-term basis have prima facie not been used during the yearfor long-term purposes by the Company.
(e) On an overall examination of the financial statements of theCompany the Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries associates or joint ventures.
(f) In our opinion the Company has not raised loans during the year onthe pledge of securities held in its subsidiaries joint ventures or associate companies.
x) (a) The Company not raised moneys by way of initial public offer orfurther public offer (including debt instruments) during the year and hence reportingunder clause (x)(a) of the Order is not applicable.
(b) During the year the Company has not made any preferential allotmentor private placement of shares or convertible debentures (fully or partly or optionally)and hence reporting under clause (x)(b) of the Order is not applicable to the Company.
xi) (a) To the best of our knowledge no fraud by the Company and nomaterial fraud on the Company has been noticed or reported during the year.
(b) To the best of our knowledge no report under sub-section (12) ofsection 143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13of Companies (Audit and Auditors) Rules 2014 with the Central Government during the yearand upto the date of this report.
(c) We have taken into consideration the whistle blower complaintsreceived by the Company during the year and provided to us when performing our audit.
xii) The Company is not a Nidhi Company and hence reporting underclause (xii) of the Order is not applicable. xiii) According to the information andexplanations given to us and on the basis of our examination of the records of thecompany in our opinion the company is in compliance with Section 177 and 188 of theCompanies Act where applicable for all transactions with the related parties and thedetails of related party transactions have been disclosed in the financial statements etc.as required by the applicable accounting standards.
xiv) (a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.
(b) We have considered the internal audit reports issued to theCompany during the year and covering the period up to 31 March 2022 for the period underaudit. xv) According to the information and explanations given to us and on the basis ofour examination of the records of the company in our opinion during the year the Companyhas not entered into any non-cash transactions with its directors or persons connectedwith its directors and hence provisions of section 192 of the Companies Act 2013 are notapplicable to the Company. xvi) The Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause (xvi)(a) (b)(c) and (d) of the Order is not applicable.
xvii) According to the information and explanations given to us and onthe basis of our examination of the records of the company in our opinion the companyhas not incurred cash losses during the financial year covered by our audit and theimmediately preceding financial year. Hence reporting under clause (xvii) of the Order isnot applicable.
xviii) There has been no resignation of the statutory auditors of theCompany during the year. Hence reporting under clause (xviii) of the Order is notapplicable. xix) According to the information and explanations given to us and on thebasis of our examination of the records of the company in our opinion on the basis ofthe financial ratios ageing and expected dates of realization of financial assets andpayment of financial liabilities other information accompanying the financial statementsand our knowledge of the Board of Directors and Management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report indicating that Company is not capable of meeting its liabilities existing atthe date of balance sheet as and when they fall due within a period of one year from thebalance sheet date. We however state that this is not an assurance as to the futureviability of the Company. We further state that our reporting is based on the facts up tothe date of the audit report and we neither give any guarantee nor any assurance that allliabilities falling due within a period of one year from the balance sheet date will getdischarged by the Company as and when they fall due.
ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013
We have audited the internal financial controls over financialreporting of AMD Industries Limited(the company') as of March 31 2022in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on "the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants ofIndia(ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the" Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial reporting includes those policies and procedures that (1) Pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) Provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2022 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
| ||For Goyal Nagpal & Co. |
| ||Chartered Accountants |
| ||(Firm's Registration No. 018289C) |
| ||Sd/- |
| ||(CA Virender Nagpal) |
|Place: New Delhi ||Partner |
|Date: 30 May 2022 ||(Membership No. 416004) |
| ||UDIN: 22416004AJWTGV6309 |