The Members of
Bhartiya International Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of M/sBhartiya International Limited ('the Company') which comprise the Balance Sheet asat 31st March 2022 the Statement of Profit and Loss(including other ComprehensiveIncome) the Cash Flow Statement and Statement of Changes in Equity for the year thenended and notes to the standalone financial statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone financial statements").
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 Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia of the state of affairs of the Company as at 31st March 2022 its Profit and othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Our responsibilities under those Standards arefurther described in the Auditor's Responsibility for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the ethical requirements that are relevant to our audit of the financial statementsunder the provisions of the Act and the Rules made thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the ICAI's Codeof Ethics. We believe that the audit evidence obtained by us is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matter
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|Key Audit Matters ||Auditor's Response |
|Hedge Accounting and the Related Disclosures for Currency Derivatives: ||Principal audit procedures performed: |
|We identified the hedge accounting for currency derivatives and the adequacy of the related disclosures as a key audit matter because the evaluation of hedge effectiveness involved management's judgement and estimation. || Obtaining an understanding of and testing the design and implementation and operating effectiveness of the management's controls over the valuation of currency derivatives and hedge accounting. |
|Besides the changes in fair values of these currency derivatives also had a significant impact on the standalone financial statements. || Inspecting the hedge documentations and contracts and evaluating the management's determination of mark to market valuations and assessment of hedge effectiveness on a sample basis to evaluate the accounting for these currency derivatives in accordance with the requirements of the relevant Indian Accounting Standards. |
|As disclosed in note 51 to the standalone financial statements the Company was exposed to currency risk primarily arising from Foreign currency denominated Trade Receivables Creditors and Loans. || Obtaining confirmations from contract counterparties to verify the existence of each currency derivative held at 31st March 2022. |
| || Re performing mark-to-market valuations on a sample basis to evaluate the reasonability of fair values of the currency derivatives and the hedge effectiveness thereof has been appropriately determined by the management; and |
| || Assessed the adequacy of the disclosures in respect of the currency derivatives and hedge accounting in accordance with the disclosure requirements of Ind AS 107-Financial Instruments: Disclosures Ind AS113- Fair Value Measurement. |
Information Other than the Financial Statement and Auditor's ReportThereon
The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexures to Board's Reportbut does not include the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statement 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 statement ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statement or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information we are required to report that fact. We have nothing to reportin this regard.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these standalone financial statements that give a true andfair view of the financial position financial performance including other comprehensiveincome statement of changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards ("Ind As") specified under Section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the standalone 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 also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibility for the Audit of Standalone FinancialStatements
Our objectives are to obtain reasonable assurance about whether thefinancial statement as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken 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 statement 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 control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3) (i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls system in place and theoperating 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 the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statement or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statement 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 statement that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatement 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 financialstatement.
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 the 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 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 communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statement of the current period and are therefore the key audit matters. Wedescribe these 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 Act we give in the Annexure A a statement on the mattersspecified in the paragraph 3 and 4 of the order.
2. As required by Section 143 (3) of the Act we report that:
(a) We have sought and obtained all the information and 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 Standalone Financial Statements dealt with by this report arein agreement with the books of account.
(d) In our opinion the aforesaid Standalone Financial Statementscomply with the Ind AS specified under Section 133 of the Act.
(e) On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directors noneof the directors is disqualified as on 31st March 2022 from being appointed asa director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company with reference to these Standalone FinancialStatements and the operating effectiveness of such controls refer to our separate reportin "Annexure B" to this report.
(g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended inour opinion and to the best of our information and according to the explanations given tous the remuneration paid/ provided by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.
(h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended 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 39 to standalonefinancial statements.)
ii) The company has made provision as required under the applicable lawor Ind AS for material foreseeable losses if any on long term contracts includingderivatives contracts.
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 have been received by the Company from any persons or entitiesincluding foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the Company shall directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever ("UltimateBeneficiaries") by or on behalf of the Funding Parties or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed that have been consideredreasonable and appropriate in the circumstances nothing has come to our notice that hascaused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e)contain any material misstatement.
v) No dividend has been declared or paid during the year by theCompany.
for K A S G & CO.
Firm's Registration No. 002228C
Mem. No. 075701
Gurugram 30th May 2022
ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in Independent Auditors' Report to the membersof the Company on the standalone financial statements for the year ended 31st March 2022we report that:
I (a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant and Equipmentand relevant details of right-of-use assets.
(B) The Company has maintained proper records showing full particularsof intangible assets.
(b) The fixed assets are physically verified by the Managementaccording to a phased programme designed to cover all the items over a period of threeyears which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets. Pursuant to the Programme a portion of the fixed assets hasbeen physically verified by the Management during the year and no material discrepancieshave been noticed on such verification. In our opinion this periodicity of physicalverification is reasonable having regard to the size of the Company and the nature of itsassets.
(c) Based upon the audit procedure performed and according to therecords of the Company the title deeds of all the immovable properties (other thanself-constructed building and properties where the Company is the lessee and the leaseagreements are duly executed in favour of the lessee) are held in the name of the Companyexcept for the following which are not held in the name of the Company:
|Description of Property ||Gross carrying value ||Held in the name of ||Whether promoter director of their relative of Employee ||Period held ||Reason for not being held in name of company |
|PPE ||1850000 ||Pardeep Goyal ||Yes ||12.08.2000 ||Due to issue in Registation |
(d) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not revaluedits property plant and equipment (including right of use assets) or intangible assets orboth 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 there are no proceedingsinitiated or pending against the Company for holding any benami property under theProhibition of Benami Property Transactions Act 1988 and rules made thereunder.
II (a) The inventory except goods-in-transit and stocks lying withthird parties has been physically verified by the management during the year. In respectof inventory lying with third parties at the year-end these have substantially beenconfirmed by them. In our opinion the frequency of such verification is reasonable andprocedures and coverage as followed by management were appropriate. No discrepancies werenoticed on verification between the physical stocks and the book records that were morethan 10% in the aggregate of each class of inventory.
(b) The Company has been sanctioned working capital limits in excess ofRs. 5 crores in aggregate from banks on the basis of security of current assets duringthe year. According to the information and explanations given to us the quarterly returnsor statements filed by the Company with such banks are in agreement with the books ofaccounts of 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 not made anyinvestments in or granted any loans or advances in the nature of loans secured orunsecured to companies firms limited liability partnerships or any other parties duringthe year. The Company has provided guarantees during the year to companies and otherparties details of which are stated below. The Company has not provided guarantees duringthe year to firms or limited liability partnerships.
(a) Based on the audit procedures carried on by us and as per theinformation and explanations given to us the Company has provided guarantee to any otherentity as below:
|Particulars ||Guarantee Amounts |
|Aggregate amount of guarantee provided during the year - Subsidiaries ||Rs. 91.08 Crore |
|Balance outstanding as at balance sheet date - 31st March 2022 - Subsidiaries ||Rs. 91.08 Crore |
(b) According to the information and explanations given to us and basedon the audit procedures conducted by us in our opinion the guarantees provided during theyear are prima facie not prejudicial to the interest of the Company.
(c) The Company has not granted any loans or advances in the nature ofloan secured or unsecured. Hence reporting under clause 3(iii)(c) 3(iii)(d) and3(iii)(e) of the Order is not applicable.
IV According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has complied with theprovisions of Sections 185 and 186 of the Companies Act 2013 in respect of loans grantedinvestments made and guarantees and securities provided as applicable.
V The Company has not accepted any deposit or amounts which are deemedto be deposits. Hence reporting under clause 3(v) of the Order is not applicable.
VI According to the information and explanations given to us theCentral Government has not prescribed the maintenance of cost records under Section 148(1)of the Act for the business activities carried out by the company. Accordingly clause3(vi) of the Order is not applicable.
VII In respect of statutory dues:
(a) In our opinion the Company has generally been regular indepositing undisputed statutory dues including Goods and Services tax Provident FundEmployees' State Insurance Income Tax Sales Tax Service Tax duty of Custom duty ofExcise Value Added Tax Cess and other material statutory dues applicable to it with theappropriate authorities.
There were no undisputed amounts payable in respect of Goods andService tax Provident Fund Employees' State Insurance Income Tax Sales Tax ServiceTax duty of Custom duty of Excise Value Added Tax Cess and other material statutorydues in arrears as at 31st March 2022 for a period of more than six months from the datethey became payable.
(b) Details of statutory dues referred to in sub-clause (a) above whichhave not been deposited as on 31st March 2022 on account of disputes are given below:
|Nature of the statute ||Nature of dues ||Forum where Dispute is Pending ||Period to which the Amount Relates ||Amount in Rs. |
|Goods and Service Tax Act 2017 ||Goods and Service Tax ||Appellate Authority upto Commissioner level ||F.Y. 2017-18 2018-19 & 2019-20 ||7177578 |
|KVAT Act ||Karnataka VAT ||Karnataka Appellate Tribunal ||F.Y. 2009-2010 & 2010-2011 ||5659787/- |
|Income Tax Act 1961 ||Income Tax ||Commissioner of Income Tax Appeals ||F.Y. 2019-2020 ||5074770/- |
viii There were no transactions relating to previously unrecordedincome that have been surrendered or disclosed as income during the year in the taxassessments under the IncomeTaxAct1961 (43 of 1961).
IX (a) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not defaultedin the repayment of loans or borrowings or in the payment of interest thereon to anylender.
(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 not beendeclared a willful defaulter by any bank or financial institution or government orgovernment authority.
(c) In our opinion and according to the information and explanationsgiven to us by the management term loans were applied for the purpose for which the loanswere obtained.
(d) According to the information and explanations given to us and on anoverall examination 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) According to the information and explanations given to us and on anoverall examination of the standalone financial statements of the Company we report thatthe Company has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries or associates as defined in the Act. The Company does nothold any investment in any joint venture (as defined in the Act) during the year ended31st March 2022.
(f) According to the information and explanations given to us andprocedures performed by us we report that the Company has not raised loans during theyear on the pledge of securities held in its subsidiaries or associates (as defined underthe Act).
X a) The Company has not raised moneys by way of initial public offeror further public offer (including debt instruments) during the year and hence reportingunder clause 3(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)except equity shares issued on exercise of option granted under the Employee Stock OptionPlan (ESOP).
XI a) No fraud by the Company and no material fraud on the Company hasbeen noticed or reported during the year.
b) No report under sub-section (12) of section 143 of the Companies Acthas been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)Rules 2014 with the Central Government during the year and upto the date of this report.
c) As represented to us by the management there are no whistle blowercomplaints received by the company during the year.
XII The Company is not a Nidhi Company and hence reporting under clause(xii) of the Order is not applicable
XIII In our opinion the Company is in compliance with Section 177 and188 of the Companies Act 2013 with respect to applicable transactions with the relatedparties and the details of related party transactions have been disclosed in thestandalone financial statements 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 for the year underaudit in determining the nature timing and extent of our audit procedures.
XV In our opinion during the year the Company has not entered into anynon-cash transactions with its Directors or persons connected with its directors and henceprovisions 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 Section45-IA of the Reserve Bank of India Act 1934.
Accordingly clauses 3(xvi)(a) and 3(xvi)(b) of the Order are notapplicable.
(b) The Company is not a Core Investment Company (CIC) as defined inthe regulations made by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of theOrder is not applicable.
(c) According to the information and explanations provided to us duringthe course of audit the Group does not have any CICs
XVII The Company has not incurred cash losses in the current and in theimmediately preceding financial year.
XVIII There has been no resignation of the statutory auditors of theCompany during the year. Accordingly clause 3(xviii) of the Order is not applicable.
XIX According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the standalonefinancial statements our knowledge of the Board of Directors and management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report that the Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.
XX a) In our opinion and according to the information and explanationsgiven to us there is no unspent amount under sub-section (5) of Section 135 of the Actpursuant to any project other than ongoing projects. Accordingly clause 3(xx)(a) of theOrder is not applicable.
(b) In respect of ongoing projects the Company has transferred theunspent amount to a Special Account within a period of 30 days from the end of thefinancial year in compliance with Section 135(6) of the Act.
for K A S G & CO.
Firm's Registration No. 002228C
Mem. No. 075701
Gurugram 30th May 2022
ANNEXURE - B TO THE AUDITORS' REPORT
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of "Bhartiya International Limited" ("the Company")as of 31st March 2022 in conjunction with our audit of the standalone financialstatements 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 and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is aprocess 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 control overfinancial reporting includes those policies and procedures that:
(1) Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
(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 authorizations of management and directors of thecompany; and
(3) Provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould 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 31st March 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 K A S G & CO.
Firm's Registration No. 002228C
Mem. No. 075701
Gurugram 30th May 2022