Bengal & Assam Company Ltd.
|BSE: 533095||Sector: Financials|
|NSE: N.A.||ISIN Code: INE083K01017|
|BSE 00:00 | 27 Sep||3048.20||
|NSE 05:30 | 01 Jan||Bengal & Assam Company Ltd|
|Mkt Cap.(Rs cr)||3,444|
|Mkt Cap.(Rs cr)||3444.47|
Bengal & Assam Company Ltd. (BENGALASSAM) - Auditors Report
Company auditors report
To the Members of Bengal & Assam Company Limited
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements ofBengal & Assam Company Limited ("the Company") which comprise the BalanceSheet as at March 31 2022 the Statement of Profit and Loss (including OtherComprehensive Income) for the year ended on that date the Statement of Changes in Equityand the Statement of Cash Flows for the year ended on that date and notes to thestandalone financial statements including a summary of significant accounting policies andother explanatory information (hereinafter referred to as "the standalone financialstatements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Companies Act 2013 read with the Companies (IndianAccounting Standards) Rules 2015as amended ("Ind AS") and other accountingprinciples generally accepted in India of the state of affairs of the Company as at March312022 and its profit total comprehensive income changes in equity and its cash flowsfor the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial Statements inaccordance with Standards on Auditing (SAs) specified under section 143(10) of the Act.Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India ("ICAI") together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion on the Standalone Financial Statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements for thefinancial year ended March 312022. These matters were addressed in the context of ouraudit of the standalone financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. We have determined thematters described below to be the key audit matters to be communicated in our report.
Information other than the standalone 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 annexure to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Informationbut does not include the standalone financial statements and our auditor's reportthereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements
The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with Indian Accounting Standards and other accounting principles generallyaccepted in India. The Board of Directors of the Company are responsible for themaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
In preparing the standalone financial statements management isresponsible for assessing the ability of the Company 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 also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor'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 standalone financial statements.
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 financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate 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 financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls with referenceto standalone financial statements in place and the operating effectiveness of suchcontrols.
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 ability of the Company 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 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 thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (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 standalone financialstatements.
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 matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so 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 Act we give in "Annexure 1" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.
(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 othercomprehensive income) the Statement of Cash Flow and the Statement of Changes in Equitydealt with by this Report are in agreement with the relevant books of account;
d. In our opinion the aforesaid standalone financial statements readwith Notes there to comply with the Indian Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014;
e. On the basis of the written representations received from thedirectors as on March 31 2022 and 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 controls overfinancial reporting of the Company and the operating effectiveness of such controls wegive our separate report in "Annexure 2".
g. With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Actas amended:
In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of 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 litigations on itsfinancial position in its standalone financial statements - Refer Note no. 28 onContingent Liabilities to the standalone financial statements;
(ii) The Company did not have any long-term contracts includingderivative contracts. Hence the question of any material foreseeable losses does notarise;
(iii) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.
(iv) a. The Management has represented that to the best of itsknowledge and belief no funds (which are material either individually or in theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee 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 inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;
c. Based on the audit procedures that has been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) contain anymaterial misstatement.
(v) The final dividend paid by the Company during the year in respectof the same declared for the previous year is in accordance with section 123 of theCompanies Act 2013 to the extent it applies to payment of dividend.
As stated in Note 32 to the standalone financial statements the Boardof Directors of the Company have proposed final dividend for the year which is subject tothe approval of the members at the ensuing Annual General Meeting. The amount of dividenddeclared is in accordance with section 123 of the Act to the extent it applies todeclaration of dividend.
ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT
[Referred to in paragraph 1 under Report on Other Legal andRegulatory Requirements' in the Independent Auditor's Report of even date to themembers of Bengal & Assam Company Limited on the financial statements for theyear ended 31st March 2022]
To the best of our information and according to the explanationsprovided to us by the Company and the books of accounts and records examined by us in thenormal course of audit we state that:
(i) (a) The Company has maintained proper records showing fullparticulars including
(A) quantitative details and situation of property plant andequipment.
(B) The Company has maintained proper records showing full particularsof intangible assets.
(b) The Company has a regular program of physical verification of itsproperty plant and equipment under which the assets are physically verified in a phasedmanner over a period of two years which in our opinion is reasonable having regard tothe size of the Company and the nature of its assets. In accordance with this programcertain property plant and equipment were verified during the year. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.
(c) The title deeds of immovable properties included in investmentproperties [note 8 to the standalone financial statements] are held in the name of theCompany except as stated in the footnote of Note No. 08 of the standalone financialstatements one property having value of Rs. 2.70 Lakhs which is not transferred in thename of the company.
(e) According to the information & explanations given to us by themanagement no proceedings have been initiated or are pending against the Company forholding any benami property under the Benami Transactions (Prohibition) Act 1988 (45 of1988) and rules made there under.
(ii) (a) The Company has no inventory. Accordingly reporting underclause 3(ii)(b) of the Order is not applicable to the Company.
(b) The Company has not been sanctioned working capital limits inexcess of Rs. 5 crore by banks or financial institutions on the basis of security ofcurrent assets during any point of time of the year. Accordingly reporting under clause3(ii)(b) of the Order is not applicable to the Company.
(iii) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has madeinvestments in companies and other parties the same has been disclosed in the financialstatements. The Company has not made any investments in firms or limited liabilitypartnership during the year.
The Company has not granted any loans and advances in the nature ofloans secured or unsecured to companies firms limited liability partnership or anyother parties during the year.
(a) Based on the audit procedures performed by us and as per theinformation and explanations given to us the Company has not provided loans or advancesin the nature of loans or stood guarantee or provided security to any other entity.Accordingly reporting under clause 3(iii) (a) of the Order is not applicable to theCompany.
(b) According to the information and explanations given to us and basedon the audit procedures conducted by us in our opinion the investments made during theyear and the terms and conditions of the grant of loans and advances in the nature ofloans and guarantees provided during the year are prima facie not prejudicial to theinterest of the Company.
(c) The Company has not provided loans or advances in the nature ofloans or stood guarantee or provided security to any other entity. Accordinglyreporting under clause 3(iii) (c) 3(iii) (d) 3(iii) (e) & 3(iii) (f) of the Order isnot applicable to the Company.
(iv) In our opinion and according to the information and explanationsgiven to us in respect of loans investments guarantees and securities the Company hascomplied with provisions of section 186 of the Act in respect of Investments made duringthe year no loans guarantees and securities covered under section 185 and section 186 ofthe Act have given during the year.
(v) The Company has not accepted any deposits or deemed deposits fromthe public within the provisions of sections 73 to 76 of the Act or any other relevantprovisions of the Companies Act 2013 and the rules framed there under. Accordinglyreporting under clause 3 (v) of the Order is not applicable to the Company.
(vi) The maintenance of cost records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act and the rules framedthere under for the business activities carried out by the company. Accordinglyreporting under clause 3 (vi) of the Order is not applicable to the Company.
(vii) (a) In our opinion the Company has generally being regular indepositing with appropriate authorities undisputed statutory dues including providentfund employee's state insurance income tax Goods and services tax sales taxservice tax value added tax customs duty excise duty cess and any other materialstatutory dues as applicable to it.
According to the information and explanations given and as verified byus no undisputed amounts payable in respect of provident fund employees state insuranceincome tax sales tax service tax value added tax goods and services tax customs dutyexcise duty cess and any other material statutory dues applicable to it wereoutstanding at the year end for a period of more than six months from the date theybecame payable.
(b) In our opinion and according to the information and explanationsgiven to us there are no dues with respect to income tax sales tax goods and servicestax service tax value added tax customs duty which have not been deposited on accountof any dispute except for the following.
(viii) According to the information and explanations given to us notransactions were surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961) which have not been recorded inthe books of accounts.
(ix) (a) In our opinion and according to the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to financial institutions banks governments. The company has not issued anydebentures.
(b) In our opinion and according to the information and explanationsgiven to us the Company has not been declared a willful defaulter by any bank orfinancial institution or Government or any Government authority.
(c) In our opinion and according to the information and explanationsgiven to us the Company has not taken any term loan during the year and there are nooutstanding term loans at the beginning of the year. Accordingly reporting under clause3(ix)(c) of the Order is not applicable to the Company.
(d) In our opinion and according to the information and explanationsgiven to us since the company has not raised any funds on short-term basis thus reportingof its use for long term purpose does not arise hence clause 3(ix)(d) of the Order is notapplicable.
(e) In our opinion and according to the information and explanationsgiven to us the Company has not taken any funds from any entity or person on account ofor to meet the obligations of its associates.
(f) In our opinion and according to the information and explanationsgiven to us the Company has not raised any loans during the year on the pledge ofsecurities held in its associate companies.
(x) (a) In our opinion and according to the information andexplanations given to us the Company has not raised any money by way of initial publicoffer or further public offer (including debt instruments) during the year. Accordinglyreporting under clause 3(x)(a) of the Order is not applicable to the Company.
(b) According to the information and explanations given to us theCompany has not made any preferential allotment or private placement of shares or (fullypartially or optionally) convertible debentures during the year. Accordingly reportingunder clause 3(x)(b) of the Order is not applicable to the Company.
(xi) (a) During the course of our examination of the books and recordsof the Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of fraud by the Company or any fraud on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any suchinstance by the management.
(b) No report under section 143(12) of the Act has been filed in formADT-4 with the Central Government as prescribed under rule 13 of Companies (Audit andAuditors) Rules 2014 during the year and up to the date of this report.
(c) According to the information and explanations given to usincluding the representation made to us by the management of the Company and auditprocedures followed there are no whistle-blower complaints received by the Company duringthe year.
(xii) The Company is not a Nidhi Company and the Nidhi Rules 2014 arenot applicable to it. Accordingly reporting under clause 3(xii) of the Order is notapplicable to the Company.
(xiii) In our opinion and according to the information and explanationgiven to us all transactions entered into by the Company with the related parties are incompliance with Sections 177 and 188 of Act where applicable and the details have beendisclosed in the Financial Statements etc. as required by the applicable accountingstandards.
(xiv) (a) In our opinion and according to the information andexplanations given to us the Company has an internal audit system as required undersection 138 of the Companies Act 2013 which commensurate with the size and nature of itsbusiness.
(b) We have considered the reports issued by the Internal Auditors ofthe Company during the year and till date in determining the nature timing and extent ofour audit procedures.
(xv) In our opinion during the year the Company has not entered intoany non-cash transactions with Directors or persons connected with its directors.Accordingly the provisions of Section 192 of the Companies Act 2013 are not applicable.
(xvi) (a) The Company is engaged in the business of Non-BankingFinancial Institution and has obtained the certificate of registration under section 45-IAof the Reserve Bank of India Act 1934.
(b) Since the Company has conducted Non-banking financial activitiesbeing Investment Activities and accordingly the Company is duly registered under section45-1A of the Reserve Bank of India Act 1934 However the company has not conducted anyHousing Finance activities during the year. Accordingly reporting under clause clause 3(xvi) (b) of the Order is not applicable to the Company.
(c) In our opinion and according to the information and explanationsgiven to us the Company is a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India and it continues to fulfil the criteria of a CoreInvestment Company (CIC).
(d) Based on the information and explanations given to us and asrepresented by the management of the Company the Group (as defined in Core InvestmentCompanies (Reserve Bank) Directions 2016) has two CICs as part of the Group.
(xvii) The Company has not incurred any cash loss in the current aswell as the immediately preceding financial year.
(xviii) There has been resignation of the statutory auditors during theyear to comply with the requirements of Reserve Bank of India and based on theinformation and explanation given to us by the management and the response to ourcommunication with the outgoing auditors there have been no issues objections orconcerns raised by the outgoing auditors.
(xix) On the basis of the financial ratios ageing and expected datesof realisation of financial assets and payment of financial liabilities other informationaccompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examination of the evidence supporting the assumptionsnothing has come to our attention which causes us to believe that any materialuncertainty exists as on the date of the audit report indicating that Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the Company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the Company as and when they falldue.
(xx) The requirement of Corporate Social Responsibility (CSR) in termsof Section 135 of the Companies Act 2013 and the rules made thereunder is not applicableto the Company since the Company's main source of income is dividend from CSRcompliant companies.
(xxi) The reporting under clause (xxi) is not applicable in respect ofaudit of standalone financial statements of the Company. Accordingly no comment has beenincluded in respect of said clause under this report.
ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT
[Referred to in paragraph 2(f) under Report on Other Legal andRegulatory Requirements' in the Independent Auditor's Report of even date to themembers of Bengal & Assam Company Limited on the standalone financialstatements for the year ended March 312022]
Report on the Internal Financial Controls with reference to theaforesaid standalone financial statements under Clause (i) of Sub-section 3 of Section 143of the Companies Act 2013 ("the Act")
We have audited the internal financial controls with reference tofinancial statements of Bengal & Assam Company Limited ("theCompany") as of March 31 2022 in conjunction with our audit of the standalonefinancial statements of the Company for the 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 of India("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 specifiedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both issued by the ICAI. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 control 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 to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by ICAI.