TO THE MEMBERS OF AUTOMOTIVE STAMPINGS AND ASSEMBLIES LIMITED Report onthe Audit of the Financial Statements
We have audited the financial statements of Automotive Stampings andAssemblies Limited (the Company?) which comprise the balance sheet as at 31March 2022 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 andnotes to the financial statements including a summary of the significant accountingpolicies and other explanatory information. In our opinion and to the best of ourinformation and according to the explanations given to us the aforesaid financialstatements give the information required by the Companies Act 2013 (Act) inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2022 and profit and other comprehensive income changes in equity and its cashflows for the year ended on that date. Basis for Opinion We conducted our audit inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those SAs are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the Act and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on the financialstatements. Material uncertainty Related to Going Concern We draw your attention to note4.2 to the financial statements which states that the Company has incurred losses in therecent years which was also impacted by COVID-19. While there has been an improvement inbusiness operations in the current period it has incurred a net loss before exceptionalitems and tax of INR 767.34 lakhs during the year ended 31 March 2022. Further as atdate the Company?s liabilities exceed its total assets by INR 3571.42 lakhs and thenet worth of the company as at 31 March 22 is negative. These events or conditionsindicate that a material uncertainty exists that may cast significant doubt on theCompany?s ability to continue as a going concern. However the Management hasprepared the financial statements on a going concern basis since they have a reasonableexpectation that the company would be able to meet its liabilities on the basis of letterof financial support provided by the Holding Company access to alternative sources offunding by the Group entities implementation of various measures to improve operationalefficiency and optimise margins. Our opinion is not modified in respect of this matter.Key Audit Matters Key audit matters are those matters that in our professional judgmentwere 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 awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. In addition to the matter described in the Material Uncertainty related toGoing Concern section we have determined the matter described below to be the key auditmatterto be communicated in our report.
|The Key Audit Matter ||How the matter was addressed in our audit |
|Impairment evaluation of Property Plant and Equipment (PPE) (refer note 2.4 and 5 to the financial statements) ||Our audit procedures included: |
|Based on the guidance provided by Ind AS 36 Impairment of assets? the following indicators that PPE may be impaired have been identified: || |
| ||Obtaining an understanding of the Company?s process and key controls over the impairment evaluation. |
|- As of 31 March 2022 the Company?s total liabilities exceeded its total assets by INR 3571.42 Lakhs || |
| ||Assessing and testing the design and operating effectiveness of such controls. |
|- The Company has been consistently reporting losses before exceptional items and tax for the past 10 years. For the year ended 31 March 2022 the Company has reported a net loss before exceptional items and tax amounting to INR 767.34 Lakhs. ||Evaluating the Company?s process with respect to impairment assessment and fair valuation. Assessed the competence experience and objectivity of the expert engaged by the management. |
| ||- Involving our valuation specialists to assess and challenge the appropriateness of the valuation model and the underlying assumptions. |
|- The automobile sector has business and operational challenges due to the COVID-19 pandemic. || |
| ||- Assessing and testing the sensitivity analysis performed by the Company and evaluating whether any possible changes in assumptions could lead to a significant change the recoverable value. |
|Therefore as required by Ind AS 36 the Company has estimated the recoverable amount of its PPE with the assistance of an external expert. The fallout of the COVID-19 pandemic has repercussions on the Indian economy. Any valuation / forecasting assessments performed in this environment are exposed to a higher- than-usual degree of estimation uncertainty and judgement. Accordingly this is a key audit matter. || |
The Company?s management and Board of Directors are responsiblefor the other information. The other infor- mation comprises the information included inthe Company?s annual report but does not include the financial statements and ourauditors? report thereon. Our opinion on the financial statements does not cover theother information and we co not express any form of assurance conclusion thereon. Inconnection with our audit of the financial statements our responsibility is to read theother information and in doing so consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. If based on the work we have performed weconclude that there is a material misstatement of this other information we are requiredto report that fact. We have nothing to report in this regard. Management?s and Boardof Directors? Responsibility for the Financial Statements The Company?sManagement and Board of Directors are responsible for the matters stated in section 134(5)of the Act with respect to the preparation of these financial statements that give a trueand fair view of the state of affairs profit/loss and other comprehensive income changesin equity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring accuracyand completeness of the accounting records relevant to the preparation and presentationof the financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error. In preparing the financial statements theManagement and Board of Directors are responsible for assessing the Company?s abilityto continue as a going concern disclosing as applicable matters related to goingconcern and using the going concern basis of accounting unless the Board of Directorseither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. The Board of Directors is also responsible for overseeing theCompany?s financial reporting process. Auditor?s Responsibilities for the Auditof the Financial Statements Our objectives are to obtain reasonable assurance aboutwhether the financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an aucitor?s report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted 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 financial statements. As part ofan audit in accordance with SAs we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:
. Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
. Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.
. Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures in the financial statementsmade by the Management and Board of Directors.
. Conclude on the appropriateness of the Management and Board ofDirectors use of the going concern basis of accounting and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant doubt on the Company?s ability to continue as a going concern. If weconclude that a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor?s report. However future events orconditions may cause the Company to cease to continue as a going concern.
. Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
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 we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards. From the matters communicatedwith those charged with governance we determine those matters that were of mostsignificance in the audit of the financial statements of the current period and aretherefore the key audit matters. We describe these matters in our auditors? reportunless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communi- cated inour report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication. Report on Other Legal andRegulatory Requirements
1. Asrequired by the Companies (Auditor?s Report) Order 2020(the Order?) issued by the Central Govern- ment of India in terms of Section143 (11) of the Act we give in the Annexure A? a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
2. (A)As required by Section 143(3) of the Act we report that: a) Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit. b) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books. c) The balance sheet the statement of profitand loss (including other comprehensive income) the statement of changes in equity andthe statement of cash flows dealt with by this Report are in agreement with the books ofaccount. da) In our opinion the aforesaid financial statements comply with the Ind ASspecified under section 133 of the Act. e) On the basis of the written representationsreceived from the directors as on 31 March 2022 taken on record by the Board of Directorsnone of the directors is disqualified as on 31 March 2022 from being appointed as adirector in terms of Section 164(2) of the Act. f) With respect to the adequacy of theinternal financial controls with reference to financial statements of the Company and theoperating effectiveness of such controls refer to our separate Report in AnnexureB?. (B) With respect to the other matters to be included in the Auditors? Reportin accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to us:a) The Company has disclosed the impact of pending litigations as at 31 March 2022 on itsfinancial position in its financial statements - Refer Note 41 to the financialstatements; b) The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses. c) There were no amountswhich were required to be transferred to the Investor Education and Pro- tection Fund bythe Company. da) (i) The management has represented that to the best of its knowledge andbelief no funds have been advanced or loaned or invested (either from borrowed funds orshare premium or any other sources or kind of funds) by the Company to or in any otherpersons or entities including foreign entities (Intermediaries) with theunderstanding whether recorded in writing or oth- erwise that the Intermediary shall: Rdirectly or indirectly lend or invest in other persons or entities identified in anymanner whatso- ever (Ultimate Beneficiaries) by or on behalf of the Company orR provide any guarantee security or the like to or on behalf of the UltimateBeneficiaries. (ii) The management has represented that to the best of its knowledge andbelief no funds have been received by the Company from any persons or entities includingforeign entities (Funding Parties) with the understanding whether recordedin writing or otherwise that the Company shall: R = directly or indirectly lend orinvest in other persons or entities identified in any manner what- soever (UltimateBeneficiaries) by or on behalf of the Funding Party or @ provide any guaranteesecurity or the like from or on behalf of the Ultimate Beneficiaries. (iii) Based on suchaudit procedures as considered reasonable and appropriate in the circumstances nothinghas come to our notice that has caused us to believe that the representations under sub-clause (d) (i) and (d) (ii) contain any material mis-statement. e) The Company has neitherdeclared nor paid any dividend during the year. With respect to the matter to be includedin the Auditors? Report under section 197(16): (Ccwe In our opinionand according to the information and explanations given to us the remuneration paid bythe Company to its directors during the current year is in accordance with the provisionsof Section 197 of the Act. The remuneration paid to any director is not in excess of thelimit laid down under Sec- tion 197 of the Act. The Ministry of Corporate Affairs has notprescribed other details under Section 197(16) of the Act which are required to becommented upon by us.
| ||ForBSR&CoLLP |
| ||Chartered Accountants |
| ||Firm Registration No: 101248WAWV-100022 |
| ||Abhishek |
| ||Partner |
|Place: Pune ||Membership No. No: 062343 |
|Date: 25 April 2022 ||UDIN: 22062343AHTAAX9948 |
Annexure A to the Independent Auditors? report on the financialstatements of Automotive Stampings and Assemblies Limited for the period ended 31 March2022. With reference to Annexure A referred to in paragraph 1 in Report on Other Legal andRegulatory Requirements of the Independent Auditors? Report of even date to themembers of the Company on the financial statements for the year ended 31 March 2022 wereport that:
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment.
(a) (B) The Company has maintained proper records showing full particulars ofintangible assets.
(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has a regular programme of physicalverification of its Property Plant and Equipment by which all property plant andequipment are verified every year. In accordance with this programme property plant andequipment were verified during the year. In our opinion this periodicity of physicalverification is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.
(c) The Company does not have any immovable property (other than properties where thecompany is the lessee and the lease agreements are duly executed in favour of thelessee). Accordingly clause3(i)(c) of the Order is not applicable.
(ad) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not revalued its PropertyPlant and Equipment (including Right of Use assets) or intangible assets or both duringthe year.
(e) According to information and explanations given to us and on the basis of ourexamination of the records of the Company there are no proceedings initiated or pendingagainst the Company for holding any benami property under the Prohibition of BenamiProperty Transactions Act 1988 and rules made thereunder.
i.(a) The inventory except goods-in-transit and stocks lying with third parties hasbeen physically verified by the management during the year. For stocks lying with thirdparties at the year-end written confirmations have been obtained and for goods-in-transitsubsequent evidence of receipts has been linked with inventory records. In our opinionthe frequency of such verification is reasonable and procedures and coverage as followedby management were appropriate. No discrepancies were noticed on verification between thephysical stocks and the book records that were more than 10% in the aggregate of eachclass of inventory.
(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has been sanctioned working capitallimits in excess of five crore rupees in aggregate from banks or financial institutionson the basis of security of current assets. In our opinion the quarterly returns orstatements filed by the Company with such banks or financial institutions are in agreementwith the books of account of the Company.
ili According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not mace any investmentsprovided guarantee or security or granted any loans or advances in the nature of loanssecured or unsecured to companies firms limited liability partnerships or any otherparties during the year. Accordingly provisions of clauses 3(ili)(a) to 3(ili)
(f) of the Order are not applicable to the Company. iv. According to the informationand explanations given to us and on the basis of our examination of records of theCompany the Company has neither made any investments nor has it given loans or providedguarantee or security and therefore the relevant provisions of Sections 185 and 186 of theCompanies Act 2013 (the Act) are not applicable to the Company. Accordinglyclause 3(iv) of the Order is not applicable.
v. The Company has not accepted any deposits or amounts which are deemed to be depositsfrom the public. Accordingly clause 3(v) of the Order is not applicable.
vi. According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under Section 148(1) of the CompaniesAct 2013 for the products
manufactured by it (and/or services provided by it). Accordingly clause 3(vi) of theOrder is not applicable.
vil.(a) The Company does not have liability in respect of Service taxDuty of excise Sales tax and Value added tax during the year since effective 1 July 2017these statutory dues has been subsumed into GST. According to the information andexplanations given to us and on the basis of our examination of the records of theCompany amounts deducted / accrued in the books of account in respect of undisputedstatutory dues including Goods and Services Tax (GST?) Provident fundEmployees? State Insurance Income-Tax Duty of Customs Cess and other statutorydues have generally been regularly deposited with the appropriate authorities thoughthere have been slight delays in a few cases of Profession Tax Provident fund andEmployees? State Insurance except for certain dues in relation to provident fundrelated matters referred to in note 41(b) to the financial statements. According to theinformation and explanations given to us no undisputed amounts payable in respect ofGoods and Services Tax (GST?) Provident fund Employees? State InsuranceIncome-Tax Duty of Customs Cess and other statutory dues were in arrears as at 31 March2022 for a period of more than six months from the date they became payable except forcertain dues in relation to provident fund related matters referred to in note 41(b) tothe financial statements. (b) According to the information and explanations given to usstatutory dues relating to Goods and Service Tax Provident Fund Employees StateInsurance Income-Tax Duty of Customs or Cess or other statutory dues which have not beendeposited on account of any dispute are as follows:
|Name of the statute ||Nature of the dues ||Amount (= in Lakhs) (Gross Demand) ||Amount (@in Lakhs) (Paid under Protest) ||Period to which the amount relates ||Forum where dispute is pending |
|Central Excise Act 1944 ||Duty ||31.70 ||- ||2007-08 ||Custom Excise and Service Tax Appellate Tribunal |
| ||Duty ||123.96 ||- ||2008-09 ||Custom Excise and Service Tax Appellate Tribunal |
| ||Penalty ||83.82 ||69.83 ||2006-11 ||Bombay High Court |
| ||Duty ||357.37 ||- ||2002-05 ||Custom Excise and Service Tax Appellate Tribunal |
|Bombay Sales Tax Act 1959 ||Sale Tax ||2.92 ||- ||2002-03 ||Joint Commission (Appeals) |
|Income Tax Act 1961 ||Income Tax ||30.08 ||- ||2002-03 ||Commissioner of Income Tax (Appeals) |
| ||Income Tax ||17.78 ||- ||2005-06 ||Commissioner of Income Tax (Appeals) |
Vii. According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has notsurrendered or disclosed any transactions previously unrecorded as income in the books ofaccount in the tax assessments under the Income Tax Act 1961 as income during the year.
ix. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has not defaulted in repaymentof loans and borrowing or in the payment of interest thereon to banks or financialinstitutions or any other lender during the year.
(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not been declared a willfuldefaulter by any bank or financial institution or government or government authority.
(c) In our opinion and according to the information and explanations given to us by themanagement no term loans were obtained. Accordingly clause 3(ix)(c) is not applicable.
(d) According to the information and explanations given to us and on an overallexamination of the balance sheet of the company we report that no funds raised onshort-term basis have been used for long-term purposes by the company.
(e) The Company does not hold any investment in any subsidiary associate or jointventure (as defined under Companies Act 2013) during the year ended 31 March 2022.Accordingly clause 3(ix)(e) is not applicable.
(f) According to the information and explanations given to us and procedures performedby us we report that the company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries joint ventures or associate companies (as definedunder the Act).
(a) The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) Accordingly clause 3(x)(a) of the Order is notapplicable.
(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not mace any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly clause 3(x)(b) of the Order is not applicable.
Xi. (a) Based on examination of the books and records of the Company and according tothe information and explanations given to us no fraud by the Company or on the Companyhas been noticed or reported during the course of the audit.
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 prescribedunder rule 13 of Companies (Audit and Auditors) Rules 2014 with the Central Government.As represented to us by the management there are no whistle blower complaints received bythe Company during the year.
Xil. According to the information and explanations given to us the Company is not aNidhi Company.
Accordingly clause 3(xii) of the Order is not applicable.
xili. In our opinion and according to the information and explanations given to us thetransactions with related parties are in compliance with Section 177 and 188 of theCompanies Act 2013 where applicable and the details of the related party transactionshave been disclosed in the financial statements as required by the applicable accountingstandards.
xiv. (a) Based on information and explanations provided to us and our audit proceduresin our opinion the
Company has an internal audit system commensurate with the size and nature of itsbusiness
(b) We have considered the internal audit reports of the Company issued till date forthe period under audit.
XV. In our opinion and according to the information and explanations given to us theCompany has not
entered into any non-cash transactions with its directors or persons connected to itsdirectors and hence
provisions of Section 192 of the Companies Act 2013 are not applicable to the Company.
Xvi. (a) The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly clause 3(xvi)(a) of the Order is notapplicable. (b) The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly clause 3(xvi)(b) of the Order is notapplicable. The Company is not a Core Investment Company (CIC) as defined in theregulations made by the
Reserve Bank of India. Accordingly clause 3(xvi)(c) of the Order is not applicable.According to the information and explanation given to us by the management the Group hasfive CICs which are registered with the Reserve Bank of India and 1 CIC which is notrequired to be registered with the Reserve Bank of India.
Xvi. The Company has not incurred cash losses in the current financial year howevercash losses of INR 1823.46 lakhs was incurred in the immediately preceding financialyear.
XVlii. There has been no resignation of the statutory auditors during the year.Accordingly clause 3(xviil) of the Order is not applicable.
xix. We draw attention to Note 4.2 to the financial statements which indicates thatthe Company has incurred a net loss before exceptional items and tax of INR 767.34 lakhsduring the year ended 31 March 2022 and as of that date the Company?s net worth isfully eroded and that the current liabilities exceed its current assets by INR 3571.42lakhs. On the basis of the above and according to the information and explanations givento us and on the basis of the financial ratios ageing and expected dates of realisationof financial assets and payment of financial liabilities other information accompanyingthe financial statements our knowledge of the Board of Directors and management plans andbased on our examination of the evidence supporting the assumptions the aforesaid eventsor conditions indicate that a material uncertainty exists as on the date of the auditreport regarding whether the Company is capable of meeting its liabilities existing at thedate of balance sheet as and when they fall due within a period of one year from thebalance sheet date. However Tata AutoComp System Limited the holding company has givena letter that it would continue to provide financial support to the Company in theforeseeable future to meet its obligations.
XX. In our opinion and according to the information and explanations given to us thereis no unspent amount under sub-section (5) of section 135 of the Companies Act 2013pursuant to any project. Accordingly clauses 3(xx)(a) and 3(xx)(b) of the Order are notapplicable.
|ForBSR&Co LLP |
|Chartered Accountants |
|Firm Registration No: 101248WAWV-100022 |
|Place: Pune Membership No.: 062343 |
|Date: 25 April 2022 UDIN: 22062343AHTAAX9948 |
Annexure B to the Independent Auditors? report on the financialstatements of Automotive Stampings and Assemblies Limited for the period ended 31 March2022.
Report on the internal financial controls with reference to theaforesaid financial statements under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act 2013
(Referred to in paragraph 2(A)(f) under Report on Other Legal andRegulatory Requirements? section of our report of even date)
We have audited the internal financial controls with reference tofinancial statements of Automotive Stampings and Assemblies Limited (theCompany) as of 31 March 2022 in conjunction with our audit of the financialstatements of the Company for the year ended on that date.
In our opinion the Company has in all material respects adequateinternal financial controlswith reference to financial statements and such internalfinancial controls were operating effectively as at 31 March 2022 based on the internalfinancial controls with reference to financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India (the Guidance Note?).
Management?s Responsibility for Internal Financial Controls
The Company?s management and the Board of Directors areresponsible for establishing and maintaining internal financial controls based on theinternal financial controls with reference to financial statements criteria established bythe Company considering the essential components of internal control stated in theGuidance Note. These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company?spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013(hereinafter referred to as the Act?).
Our responsibility is to express an opinion on the Company?sinternal financial controls with reference to financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to financial statements. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols with reference to financial statements were established and maintained andwhether such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of such internal financialcontrols 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 with reference to financial statements.
Meaning of Internal Financial controls with Reference to FinancialStatements
A company?s internal financial controls with reference tofinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles.Acompany?s internal financial controls with reference to financial statements includethose policies and procedures that (1) pertain to the maintenance of records that inreasonable cetail accurately and fairly reflect the transactions and dispositions of theassets of the company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company?s assets that could havea material effect on the financial statements.
Inherent Limitations of Internal Financial controls with Reference toFinancial Statements
Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial controls with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.
| ||ForBSR&Co. LLP |
| ||Chartered Accountants |
| ||Firm?s Registration No. 101248W/W-100022 |
| ||Abhishek |
| ||Partner |
| ||Membership No. 062343 |
|Place: Pune ||UDIN: 22062343AHTAAX9948 |
|Date: 25 April 2022 || |