To The Members of Bliss GVS Pharma Limited
Report on the Audit of the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statementsof Bliss GVS Pharma Limited ("the Company") which comprises the BalanceSheet as at March 31 2022 the Statement of Profit and Loss (including OtherComprehensive Income) Statement of Changes in Equity and Statement of Cash Flows for theyear then ended and notes to the standalone Ind AS financial statements including asummary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022and its profit and other comprehensive income changes in equity and its cash flows forthe year ended on that date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements sectionof our report. We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India ("the ICAI") togetherwith the ethical requirements that are relevant to our audit of the standalone Ind ASfinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.
Emphasis of Matters
We draw attention to Note No. 3 11 and 40 to the Standalone Ind ASfinancial statements in respect of our reliance on the management representation includingcash flow projections in respect of the recoverability of the Company's investment inloans outstanding interest accrued and due thereon and trade receivables from one of itssubsidiary and two of its step- down subsidiaries aggregating to H 8612.40 Lakh.
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 standalone Ind AS financial statements ofthe current period. These matters were addressed in the context of our audit of thestandalone Ind AS financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters.
We have determined the matters described below to be the key auditmatters to be communicated to our report.
|Key Audit Matter Description ||How the scope of our audit addressed the Key Audit Matter |
|1. Business Development Expenses ||Our procedures included: |
|The Company agrees to incur the cost and expenses in connection with customer marketing and advertising taking into consideration such factors as the assistance provided by agent. ||We have reviewed the business development expenses as per Standard of Auditing (SA)540 "Auditing accounting estimates including fair value accounting estimates and related disclosures." |
|Third party service providers and other such factor that the Company might reasonably in determining whether to allocate resources to that agent or Third party. ||Tests of controls: |
|For the above the Company has provided for marketing expenses for distribution which is having impact to the profit and loss of the Company to the tune of H 1208.84 lakh. ||We have evaluated the design implementation and operating effectiveness of key controls over monitoring of business development expenses. |
| ||Tests of details: |
| ||We have reviewed the Company's Policy in regard with Business Development Expenses |
| ||We have verified the expenditure incurred/claimed with relevant supporting for the same. |
| ||We have compared provision for business development expenses against the expenditure incurred/ claimed till the date. |
|2. Information Technology General Controls ||Our procedures included: |
|A significant part of the company's financial reporting process is heavily reliant on IT systems with automated processes and controls over the capture storage and extraction of information. A fundamental component of these processes and controls is ensuring appropriate user access and change management protocols exist and being adhered to. ||We focused our audit on those IT systems and controls that are significant to the Company's financial reporting process. |
|These protocols are important because they ensure that access and changes to IT systems and related data are made and authorized in an appropriate manner. As our audit sought to place a high level of reliance on IT systems and application controls related to financial reporting high proportion of the overall audit effort was in Information Technology (IT) Systems and Controls. We focused our audit on those IT systems and controls that are significant to the Company's financial reporting process. ||As audit procedures over IT Systems and controls require specific expertise we involved our IT specialist. |
| ||We assessed the design and tested the operating effectiveness of the Company's IT controls including those over user access and change management as well as data reliability. |
| ||In a limited number of cases we adjusted our planned approach as follows: |
| ||- we extended our testing to identify whether there had been unauthorized or inappropriate access or changes made to critical IT systems and related data; |
| ||- where automated procedures were supported by systems with identified deficiencies we extended our procedures to identify and test alternative controls; and |
| ||- where required we performed a greater level of testing to validate the integrity and reliability of associated data and reporting. |
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in theDirector's Report Management Discussion & Analysis Report Corporate GovernanceReport and Business Responsibility Report but does not include the standalone Ind ASfinancial statements and our auditor's report thereon.
Our opinion on the standalone Ind AS financial statements does notcover the other information and we will not express any form of assurance conclusionthereon.
In connection with our audit of the standalone Ind AS financialstatements our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the standalone Ind ASfinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially 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 Ind AS 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 standaloneInd AS financial statements that give a true and fair view of the financial position thefinancial performance total comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards ("Ind AS") prescribed under section133 of the Act.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.
In preparing the standalone Ind AS financial statements the managementis responsible 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 the management either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the standalone Ind ASFinancial Statements
Our objectives are to obtain reasonable assurance about whether thestandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that anaudit conducted in accordance with SAs will always detect a material misstatement when itexists.
Misstatements can arise from fraud or error and are considered materialif individually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone Ind AS financialstatements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal 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 system inplace and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the standalone Ind AS financial statements or ifsuch disclosures are inadequate to modify our opinion. Our conclusions are based on theaudit evidence obtained up to the date of our auditor's report. However futureevents or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone Ind AS financial statements including the disclosures and whether thestandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of the users of the standalone financial statements may be influenced.We consider quantitative materiality and qualitative factors in
(i) planning the scope of our audit work and in evaluating the resultsof our work; and
(ii) to evaluate the effect of any identified misstatements in thestandalone financial statements.
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 standalone IndAS financial 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 in terms of Section 143(11) ofthe Act we give in "Annexure A" a statement on the matters specified inparagraphs 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 Standalone Balance Sheet the Standalone Statement of Profit andLoss including Other Comprehensive Income Standalone Statement of Changes in Equity andthe Standalone Statement of Cash Flows dealt with by this Report are in agreement with therelevant books of account.
d) In our opinion the aforesaid standalone Ind AS financial statementscomply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director interms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls withreference to financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".
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 itsstandalone financial position in its standalone Ind AS financial statements ReferNote 37 to the standalone Ind AS financial statements.
ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative 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 (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 have 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) as providedunder (a) and (b) above contain any material misstatement.
v. (a) As stated in Note 14 to the standalone financial statements thefinal dividend proposed in the previous year declared and paid by the Company during theyear is in accordance with Section 123 of the Act as applicable.
(b) The Board of Directors of the Company have proposed final dividendfor the year which is subject to the approval of the members at the ensuing Annual GeneralMeeting. The amount of dividend proposed is in accordance with section 123 of the Act asapplicable.
For KALYANIWALLA & MISTRY LLP
Firm Registration No. 104607W / W100166
Sai Venkata Ramana Damarla
Membership. No. 107017
Dated: April 30 2022
To the Independent Auditor's Report
Referred to in in Para 1 Report on Other Legal and RegulatoryRequirements' in our Independent Auditors' Report to the members of the Companyon the standalone Ind AS financial statements for the year ended March 31 2022.
Statement on Matters specified in paragraphs 3
& 4 of the Companies (Auditor's Report) Order 2020:
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. As explained to us the Property Plant and Equipment andright-of-use assets are physically verified by the management according to a phasedprogram designed to cover all the items over a period of three years which the frequencyof which in our opinion is reasonable having regard to the size of the Company and natureof its assets. Pursuant to the program the Property Plant and Equipment of the Companyhave been physically verified by the management during the year. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.
c. According to the information and explanations given to us and on thebasis of examination of the records of the company the title deeds of all the immovableproperties (other than properties where the Company is the lessee and the leaseagreements are duly executed in favour of the lessee) disclosed in the financialstatements are held in the name of the Company.
d. The Company has not revalued any of its Property Plant andEquipment (including right-of-use assets) and intangible assets during the year.
e. No proceedings have been initiated during the year or are pendingagainst the Company as at March 31 2022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (45 of 1988) and rules made thereunder.
ii. a. The inventory including stocks with certain third parties havebeen physically verified by the management at reasonable intervals and confirmations havebeen obtained for other inventories lying with third parties. In our opinion the coverageand procedure of such verification by the management is appropriate; the discrepanciesnoticed were less than 10% for each class of inventory.
b. The Company has working capital limits in the excess of five crorerupees from banks or financial institutions on the basis of security of current assets;the quarterly statements filed by the company with such banks or financial institutionsare in agreement with the books of account of the Company.
iii. The Company has made investments in companies firms LimitedLiability Partnerships and granted unsecured loans to other parties during the year inrespect of which:
a. The Company has provided loans to three of its subsidiary companiesduring the year. Details are as follows:
(Rs. in Lakh)
|Particulars ||Loans |
|Aggregate amount granted/ provided during the year || |
|Subsidiaries ||4401.28 |
|Other ||- |
|Balance outstanding as at balance sheet date in respect of above cases || |
|Subsidiaries ||8090.73 |
|Other ||- |
b. In our opinion and according to the information and explanationsgiven to us and based on audit procedures performed by us the investments made and theterms and conditions of the grant of all loans are prima facie not prejudicial to theCompany's interest.
c. According to the information and explanations given to us and basedon the audit procedures performed by us there is no stipulation of schedule of repaymentof principal and payment of interest in respect of loan given to two of its subsidiarycompanies aggregating to H 8090.73 lakh. Hence we are unable to comment on theregularity of repayment of principal and payment of interest.
d. In respect of these loans in view of no specific stipulation as topayment of principal and interest we are unable to comment on the overdue amount if anyon such loans.
e. According to the information and explanations given to us and basedon the audit procedures performed by us no loans or advances in the nature of loan hasbeen granted by the Company which has fallen due during the year have been renewed orextended or fresh loans granted to settle the overdues of existing loans given to the sameparties.
f. According to the information and explanations given to us and basedon the audit procedures performed by us the Company has granted following loans which arerepayable on demand.
(Rs. in Lakh)
|Particulars ||Related Parties |
|Aggregate amount of loans: || |
|Repayable on demand (A) ||8090.73 |
|Agreement does not specify any terms or period of repayment (B) ||- |
|Total (A+B) ||8090.73 |
|Percentage of loans to the total loans ||99.99% |
iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 and the Rules framed thereunder with respect to loans granted andinvestment made by the Company.
v. In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits or amounts which are deemed to bedeposits from the public and hence the directives issued by the Reserve Bank of India andthe provisions of Sections 73 to 76 of the Act or any other relevant provisions of theAct and the relevant rules framed thereunder are not applicable.
vi. To best of our knowledge and as explained the Central Governmentof India has not specified the maintenance the of cost records under sub-section (1) ofsection 148 of the Act for any of the products of the Company. Accordingly the provisionof para 3(vi) of the order are not applicable to the Company.
vii. (a) According to the information and explanations given to us andthe records examined by us the Company is generally regular in depositing undisputedstatutory dues including Provident Fund Employees' State Insurance Income TaxSales Tax Service Tax Goods and Service Tax Duty of Customs Duty of Excise ValueAdded Tax Cess and other material statutory dues with the appropriate authorities.According to the information and explanations given to us there are no arrears ofoutstanding statutory dues in respect of above as on the last day of the financial yearfor a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and therecords examined by us there are no material dues of Income Tax Sales Tax Service TaxGoods and Service Tax Duty of Customs Duty of Excise Value added tax and Cess whichhave not been deposited on account of any dispute other than the following:
|Sr. No. Name of the Statute ||Assessment Year (AY) to which the amount relates ||Amount (J In Lakh) ||Forum where dispute is pending |
|1 Income Tax Act 1961 ||2015-16 ||7.30 ||Commissioner of Income Tax (Appeals) |
|2 Income Tax Act 1961 ||2016-17 ||5.55 ||Commissioner of Income Tax (Appeals) |
|3 Income Tax Act 1961 ||2017-18 ||152.93 ||Commissioner of Income Tax (Appeals) |
viii. According to information and explanations given to us and on thebasis of our procedures carried out during the course of audit there were no transactionsrelating to previously unrecorded income that have been surrendered or disclosed as incomeduring the year in the tax assessments under the Income Tax Act 1961 (43 of 1961).
ix. a) According to information and explanations given to us and basedon examination of the records the Company has not defaulted in repayment of loans orother borrowings or in the payment of interest thereon to any financial institutions andbanks during the year.
b) According to information and explanations given to us and on thebasis of our audit procedures the Company has not been declared wilful defaulter by anybank or financial institution or government or any government authority.
c) In opinion and according to the information and explanations givento us the Company has utilized the money obtained by way of term loans during the yearfor the purposes for which they were obtained.
d) According to information and explanations given to us and on thebasis of our audit procedures performed by us and on an overall examination of thefinancial statements of the Company no funds raised on short-term basis have primafacie been used during the year for long-term purposes by the Company.
e) According to information and explanations given to us and on anoverall examination of the financial statements of the Company the Company has not takenany funds from any entity or person on account of or to meet the obligations of itssubsidiaries.
f) According to information and explanations given to us and on thebasis of our audit procedures performed by us the Company has not raised loans during theyear on the pledge of securities held in its subsidiaries.
x. a) The Company has not raised money through initial public offer orfurther public offer (including debt instruments).
b) The Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully partially or optionally convertible)during the year.
xi. a) Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and according to theinformation and explanations given by the management we report that no fraud by theCompany or no fraud on the Company has been 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.
c) As represented to us by the management there are no whistle blowercomplaints received by the Company during the year.
xii. In our opinion and according to the information and explanationgiven to us the Company is not a Nidhi Company. Accordingly provisions of paragraph3(xii) of the Order are not applicable.
xiii. According to the information and explanations and records madeavailable to us by the Company and audit procedures performed by us all transactions withrelated parties are in compliance with sections 177 and 188 of the Act. Details of suchtransactions during the year have been disclosed in the standalone Ind AS financialstatements as required by the applicable Ind AS. Refer Note No. 40 to the standalone IndAS financial statements.
xiv. a) In our opinion and based on our examination the Company has anadequate internal audit system commensurate with the size and the nature of its business.
b) We have considered the internal audit reports for the year underaudit issued to the Company during the year and till date in determining the naturetiming and extent of our audit procedures.
xv. According to the information and explanations given to us in ouropinion during the year the Company has not entered into any non- cash transactions withits directors or persons connected with its directors and hence provisions of Section 192of the Act 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 hence the provisions of paragraph 3(xvi)(a)(b) and (c) of the Order are not applicable.
b) In our opinion there is no core investment company within the Group(as defined in the Core Investment Companies (Reserve Bank) Directions 2016) andaccordingly reporting under clause 3(xvi)(d) of the Order is not applicable.
xvii. The Company has not incurred cash loss during the financial yearcovered by our audit and the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors of theCompany during the year and accordingly this clause is not applicable.
xix. On the basis of the financial ratios ageing and expected dates ofrealization 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. There are no unspent amounts towards Corporate SocialResponsibility (CSR) on projects other than ongoing projects requiring a transfer to aFund specified in Schedule VII to the Companies Act in compliance with second proviso tosub-section (5) of Section 135 of the said Act. Accordingly reporting under clause3(xx)(a) of the Order is not applicable for the year.
For KALYANIWALLA & MISTRY LLP
Firm Registration No. 104607W / W100166
Sai Venkata Ramana Damarla
Membership. No. 107017
Dated: April 30 2022
To the Independent Auditor's Report
Referred to in Para 2 (f) Report on Other Legal and RegulatoryRequirements' in our Independent Auditor's Report to the members of the Companyon the standalone Ind AS financial statements for the year ended March 31 2022.
Report on the Internal Financial Controls with reference to financialstatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")
We have audited the internal financial controls with reference tofinancial statements of Bliss GVS Pharma Ltd ("the Company") as of March31 2022 in conjunction with our audit of the standalone Ind AS financial statements ofthe 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 to 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 (the "Guidance Note") issued by the Institute of CharteredAccountants of India ("ICAI"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of the Company's businessincluding adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013 ("the Act").
Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to financial statements based on our audit. We conductedour audit in accordance with the Guidance Note and the Standards on Auditing issued byICAI and deemed to be prescribed under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls withreference to financial statements were established and maintained and if such controlsoperated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system with reference to financialstatements and their operating effectiveness.
Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financial controls withreference to financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgmentincluding the assessment of the risks of material misstatement of the financialstatements 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 internalfinancial controls system with reference to financial statements.
Meaning of Internal Financial Controls with reference to FinancialStatements
A Company's internal financial control with reference to financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of Ind AS financial statements for externalpurposes in accordance with generally accepted accounting principles. A company's internalfinancial control with reference to financial statements includes those policies andprocedures 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 Ind AS financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the standalone Ind AS 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 control with respect to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial control with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 31 2022 based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note issued by the ICAI.
For KALYANIWALLA & MISTRY LLP
Firm Registration No. 104607W / W100166
Sai Venkata Ramana Damarla
Membership. No. 107017
Dated: April 30 2022