To the Members of
Chembond Chemicals Limited
Report on the Audit of the Standalone Financial Statements: Opinion
We have audited the standalone financial statements
Chembond Chemicals Limited ("the Company") which comprise the standalonebalance sheet as at 31st March 2022 the standalone statement of Profit andLoss (including other comprehensive income) the standalone statement of changes inequity the standalone statement of cash flows for the year then ended and notes to thestandalone financial statements including a summaryofsignificantaccounting policies andother explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards (Ind AS') specifiedsection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015and other accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2022 and profit (including other comprehensiveincome) changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedAct.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 by theInstitute of Chartered Accountants of India together with the ethical requirements thatare relevant to our audit of the standalone financial statements under the provisions ofthe Act and the Rules thereunder and we have fulfilled our other ethical responsibilitiesin accordance with these requirements and the Code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.
Emphasis of Matter
We draw attention to note no. 48 to the standalone financial statements whichdescribes the effects of a fire in the Company's production facilities. Our opinion is notmodified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the currentperiod.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 ||How our audit addressed the key audit matter |
|Contingent liabilities for tax matters ||The audit procedures included but were not limited to: |
|The Company has disclosed in note no. 41 to the standalone financial statements the contingent liabilities as at 31st March 2022 which includes disputed liabilities in respect of income tax and service tax matters. ||a) Obtained the summary of all disputed tax matters of the Company and assessed the management's position through discussions. |
| ||b) Obtaining a detailed understanding of processes and controls of the Management with respect to disputed matters. |
|These involve a high degree of judgement to determine the possible outcomes and estimates relating to the timing and the amount of outflows of resources embodying economic benefits. ||c) Making corroborative inquiries with appropriate level of the management personnel including status update expectation of outcomes with basis and future course of action contemplated by the Company and perusing legal opinions if any obtained by the management. |
| ||d) Evaluating the evidences supporting the judgement of the management about the possible outcomes and the reasonableness of the estimates. |
| ||e) Evaluating appropriateness of adequate disclosures in accordance with the applicable accounting standards. |
Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report for exampleManagement Discussion and Analysis Board's Report including Annexures to Board's ReportCorporate Governance and Shareholders Information but does not include the standalonefinancial statements consolidated financial statements and our auditor's reports thereon.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact to those charged with governance. We havenothing to report in this regard.
Responsibilities of management and Those Charged with Governance for the StandaloneFinancial Statements
The accompanying standalone financial statements have been approved by the Company'sBoard of Directors. The Company's Board of Directors are 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 the accounting principles generally accepted in India including theIndian accounting Standards (Ind AS) specified under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand 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 the accuracy and completeness effectively of theaccounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. The Board of Directors are also responsible foroverseeing the
Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements:
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements 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 professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient for our opinion.The risk of not detecting a material misstatement resulting from fraud is higher than forone resulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or he override of internal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether the Companyhas adequate internal financial controls system in place and the operating effectivenessof such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that on the Company's ability may cast significantto continue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw attention in our auditor's report to the related disclosures in thestandalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Obtain the financial statements of the Company to express an opinion on thefinancial statements.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements We considerquantitative . may be influenced materiality and qualitative factors in
(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 among other matters theplanned scope and timing of the significantaudit findings including and ininternal control that we identify anysignificant during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of section 143(11) of the Act we givein the Annexure A a statement on the matters specified in the paragraph 3 and 4 of theOrder to the extent applicable.
2. Further to our comments in "Annexure A" as required by Section 143(3) of the Act we report that:
a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;
b. In our opinion proper books of account as required by law relating to preparation ofthe standalone financial statements have been kept by theCompany so far as it appears fromour examination of those books; appropriate audit evidence regarding
c. The standalone balance sheet the standalone statement of profit and loss (includingOther Comprehensive Income) the standalone statement of changes in equity and thestandalone cash flow statement dealt with by this Report are in agreement with the booksof account maintained for the purpose of preparation of these standalone financialstatements;
d. In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e. On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31 st March 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B".
3. With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements Refer note no. 41 to the standalonefinancial statements;
ii. the Company does not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.
iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
iv. a) The management has represented that to the best of its knowledge and belief asdisclosed in note no. 46(D) no funds have been advanced or loaned or invested (eitherfrom borrowed funds or securities premium or any other sources or kind of funds) by theCompany to or in any other person(s) or entity(entities) including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or like onbehalf of the Ultimate Beneficiaries.
b) The management has represented that to the best of its knowledge and belief asdisclosed in note no. 46(E) no funds have been received by the Company from any person(s)or entity(entities) including foreign entities ("Funding Parties") with theUnderstanding whether recorded in writing or otherwise that the Company shall whetherdirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the funding party ("UltimateBeneficiaries")or provide any guarantee security or the like on behalf of the Ultimate Beneficiaries.
c) Based on such audit procedures that we have considered reasonable and appropriate inthe circumstances nothing has come to our notice that has caused us believe thatmanagement representations under sub-clause (a) and (b) above contain any materialmisstatement. v. The dividend declared or paid during the year by the Company is incompliance with Section 123 of the Act.
4. With respect to the matter to be included in the Auditors' Report under section197(16):
In our opinion and according to the information and explanations given to us theCompany has paid and / or provided remuneration to its directors during the year ended 31stMarch 2022 in accordance with the provisions of Section 197 of the Act.
For Bathiya & Associates LLP
Firm Registration No. 101046W / W100063
Jatin A. Thakkar
Membership No.: 134767
Place : Mumbai
Date : May 14 2022
UDIN : 22134767AIZKTH2120
Annexure - A to the Independent Auditors' Report
(Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' section of our report of even date for the year ended 31st March2022)
Report on Companies (Auditor's Report) Order 2020 ("the Order") issued bythe Central Government of India in terms of Section 143(11) of the Companies Act 2013("the Act") of the Company.
(i) (a) [A] The company has maintained proper records showing full particularsincluding quantitative details and situation of property plant and equipment.
[B] The Company has maintained proper records showing full particulars of Intangibleassets.
(b) The Company has a regular program of physical verification of its property plantand equipment under which the assets are physically verified in a phased manner over aperiod of three years which in our opinion is reasonable having regard to the size ofthe Company and the nature of its assets. In accordance with this program certainproperty plant and equipment were verified and no material discrepancies were noticed onsuch verification.
(c) According to the information and explanations given to us and in the basis of ourexamination of the conveyance deeds / registered sale deed provided to us we report thatthe title deeds comprising all the immovable properties of land and buildings which arefreehold are held in the name of Company as at the balance sheet date. In respect ofimmovable properties of land and building that have been taken on lease and disclosedunder property plant and equipment in the standalone financial statements the leaseagreements are held in the name of the Company.
(d) The Company has not revalued its property plant and equipment and intangibleassets during the year.
(e) No proceedings have been initiated or are pending against the Company for holdingany benami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) andrules made thereunder. Accordingly reporting under clause 3
(i) (e) of the Order is not applicable to the Company.
(ii) (a) The management has conducted physical verification of inventory at reasonableintervals during the year. In our opinion the coverage and procedure of such verificationby the management is appropriate and no discrepancies of 10% or more in the aggregate foreach class of inventory were noticed.
(b) The Company has a working capital limit in excess of 500.00 lakhs sanctioned by abank based on the security of current assets. The quarterly statements in respect of theworking capital limits have been filed by the Company with such bank and such statementsare in agreement with the books of account of the Company for the respective periodsexcept for the discrepancies as reported in note no. 47 of the standalone financialstatements.
(iii) (a) The Company has provided a loan to its three subsidiary companies. Thedetails of the same are given below:
|Particulars ||Loan (Rs. In lakhs) |
|Aggregate amount provided/ granted during the year - Subsidiaries ||165.00 |
|Balance outstanding as at balance sheet date in respect of above cases - Subsidiaries ||1982.00 |
during the year
(b) The Company has not provided or given any guarantee securityor advances in the nature of loans during the year except the corporate guarantees givento bank on behalf of its subsidiaries. In our opinion and according to the informationand explanations given to us the guarantees issued investments made and terms andconditions of the grant of all loans provided are prima facie not prejudicial to theinterest of the Company.
(c) In respect of loans granted by the Company the payment of interest has beenspecified and the receipt of interest is regular. Further there is repayment of principalamount of loans during the year as demanded from time to time.
(d) There is no overdue amount in respect of loans granted to such companies as theloans are repayable on demand.
(e) The Company has not granted any loan which has fallen due during the year. Furtherno fresh loans were granted to any party to settle the overdue loans.
(f) The Company has not granted any loans or advances in the nature of loans which arerepayable on demand or without specifying any terms or period of repayment except thefollowing loans [as per clause iii(a)] granted to its three subsidiary companies:
|Particulars ||Loan to subsidiaries (Rs. In lakhs) |
|Aggregate amount of loans: || |
|Repayable on demand (A) ||1982.00 |
|Agreement does not specify any terms or period of repayment (B) ||- |
|Total (A+B) ||1982.00 |
|Percentage of such loans to the total loans ||99.99% |
(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act in respect ofloans investments guarantees and security given for the year under report.
(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits or there is no amount which has been considered asdeemed deposit within the meaning of sections 73 to 76 of the Act and the Companies(Acceptance of Deposits) Rules 2014 (as amended). Accordingly reporting under clause3(v) of the Order is not applicable to the Company.
(vi) On the basis of explanation and representation given by the management and on ourbroad review of the cost records maintained by the Company pursuant to the Companies (costrecords and audit) Rules 2014 prescribed by the Central Government under Section 148(1)of the Act we are of the opinion that prima facie the prescribed cost records have beenmade and maintained. We have however not made a detailed examination of the cost recordswith a view to determine whether they are accurate or complete.
(vii) (a) As per information and explanations given to us undisputed statutory duesincluding provident fund employees' state insurance income tax profession tax Goodsand Service Tax custom duty cess and other statutory dues applicable to the Company havegenerally been regularly deposited with the appropriate authorities though there has beendelays in deposit in a few cases which are not serious. Further there are no undisputedamounts payable in respect of above-mentioned statutory dues which were in arrears as at31st March 2022 for a period of more than six months from the date they becamepayable.
(b) According to the information and explanation given to us there are no dues ofincome tax sales tax service tax Goods and Service Tax custom duty excise duty andcess which have not been deposited on account of any dispute except in the case of thefollowing disputes which are pending:
|Name of statute ||Nature of the Dues ||Amount (Rs. In lakhs) ||Period to which the amount relates ||Forum where dispute is pending |
|Income Tax Act 1961 ||Income Tax ||0.30 ||FY 2013-14 ||Commissioner of Income Tax (Appeals) |
|Income Tax Act 1961 ||Income Tax ||10.11 ||FY 2011-12 ||Commissioner of Income Tax (Appeals) |
|Income Tax Act 1961 ||Income Tax ||5.04 ||FY 2016-17 ||Commissioner of Income Tax (Appeals) |
|Finance Act 1994 (Service Tax) ||Service Tax & Cess ||265.71 ||FY 2014-15 to FY 2017- 18 (Up to June 2017) ||Dy. Commissioner (Audit) |
|Income Tax Act 1961 ||Demands pending for rectification ||98.35 ||FY 2006-07 FY 2010-11 FY 2011-12 FY 2014-15 FY 2017-18 ||Assistant Commissioner of Income Tax Circle 6(2)(1) Central Processing Center Bengaluru |
|TOTAL || ||379.51 || || |
(viii) According to the information and explanations given to us no transactions weresurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (43 of 1961) which have not been recorded in the books of accounts.
(ix) (a) According to the information and explanations given to us the Company has notdefaulted in repayment of its loans or borrowings or in the payment of interest thereon toany lender.
(b) According to the information and explanations given to us including representationreceived from the management of the Company and on the
53 basis of our audit procedures we report that the Company has not been declareda willful defaulter by any bank or financial institution or other lender.
(c) On the basis of records of the Company examined by us and according to theinformation and explanations given to us the Company has not raised money by way of termloan during the year. Therefore the clause 3(ix)(c) of the aforesaid Order is notapplicable to the Company.
(d) According to the information and explanations given to us including representationreceived from the management of the Company and on the basis of our audit procedures wereport that the Company has not utilized the funds raised on short term basis for longterm purposes.
(e) According to the information and explanations given to us and on an overallexamination of the financial statements of the Company the Company has not taken anyfunds from any entity or person on account of or to meet the obligations of itssubsidiaries.
(f) According to the information and explanations given to us the Company has notraised any loans during the year on the pledge of securities held in its subsidiaries.
(x) (a) In our opinion and according to the information and explanations given to usthe Company has not raised money by way of initial public offer during the year.Accordingly reporting under clause 3(x) (a) of the Order is not applicable to theCompany.
(b) According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or (fully partially oroptionally) convertible debentures during the year. Accordingly reporting under clause 3
(x)(b) of the Order is not applicable to the Company.
(xi) (a) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or on the Company has been noticed or reported duringthe period covered by our audit.
(b) No report under sub-section (12) of Section 143 of the Act has been filed by theauditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors)Rules 2014 with the Central Government for the period covered by our audit.
(c) According to the information and explanations given to us including therepresentation made to us by the management of the Company there are no whistle-blowercomplaints received by the Company during the year.
(xii) The Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it. Accordingly reporting under clause 3(xii) of the Order is not applicable to theCompany.
(xiii) In our opinion and according to the information and explanations given to usall transactions entered into by the Company with the related parties are in compliancewith sections 177 and 188 of the Act where applicable. Further the details of suchrelated party transactions have been disclosed in the standalone financial statements asrequired under Indian Accounting Standard (Ind AS) 24 Related Party Disclosures specifiedin Companies (Indian Accounting Standards)Rules 2015 as prescribed under section 133 ofthe Act.
(xiv) (a) In our opinion and according to the information and explanations given to usthe Company has an internal audit system as required under section 138 of the Act which iscommensurate with the size and nature of its business.
(b) We have considered the reports issued by the Internal Auditors of the Company tilldate for the period under audit.
(xv) According to the information and explanation given to us the Company has notentered into any non-cash transactions with its directors or persons connected with themand accordingly provisions of section 192 of the Act are not applicable to the Company.
(xvi) (a) The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly clause 3(xvi)(a) of the Order is notapplicable.
(b) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly clause 3(xvi)(b) of the Order is not applicable.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by theReserve Bank of India. Accordingly clause 3(xvi) (c) of the Order is notapplicable.
(d) According to the information and explanations provided to us during the course ofaudit the Group (as defined in Core Investment Companies (Reserve Bank) Directions 2016)does not have any CIC. Accordingly the requirements of clause 3(xvi)(d) are notapplicable.
(xvii)The Company has not incurred any cash loss in the current as well as theimmediately preceding financial year.
(xviii)There has been no resignation of the statutory auditors during the year.Accordingly reporting under clause 3(xviii) of the Order is not applicable to theCompany.
(xix) According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realisation of financial assets and paymentof financial liabilities our knowledge of the plans of the Board of Directors andmanagement nothing has come to our attention which causes us to believe that anymaterial uncertainty exists as on the date of the audit report that Company is not capableof meeting its liabilities existing at the date of balance sheet as and when they fall duewithin a period of one year from the balance sheet date. We however state that this isnot an assurance as to the future viability of the company. We further state that ourreporting is based on the facts up to the date of the audit report and we neither give anyguarantee nor any assurance that all liabilities falling due within a period of one yearfrom the balance sheet date will get discharged by the company as and when they fall due.
(xx) In our opinion and according to the information and explanations given to usthere is no unspent amount under subsection (5) of Section 135 of the Act pursuant to anyproject. Accordingly clauses 3(xx)(a) and 3(xx) (b) of the Order are not applicable.
(xxi) The reporting under clause (xxi) is not applicable in respect of audit ofstandalone financial statements of the Company. Accordingly no comment has been includedin respect of said clause under this report.
For Bathiya & Associates LLP
Firm Registration No. 101046W / W100063
Jatin A. Thakkar
Membership No.: 134767 Place : Mumbai Date : May 14 2022 UDIN : 22134767AIZKTH2120
Annexure - B to the Independent Auditors' Report
(Referred to in paragraph 2(f) under Report on Other Legal and RegulatoryRequirements' section of our report of even date for the year ended 31st March2022)
Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of ChembondChemicals Limited ("the Company") as of 31st March 2022 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (the Guidance Note').These responsibilities include the design implementation and maintenance of adequateinternal financial controls thatwereoperatingeffectivelyfor 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 Act.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing deemed to be prescribed undersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols. Those
Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.
We believe that the audit evidence we have obtained is sufficient opinion on theCompany's internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of standalone financial statements for external purposes in accordance withgenerally 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 detail accurately andfairly reflect dispositions of the assets of the Company;
(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of Management and directors of the Company; and (3)Provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the Company's assets that could have a material effecton the standalone financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper Management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note.
For Bathiya & Associates LLP
Firm Registration No. 101046W / W100063
Jatin A. Thakkar
Membership No.: 134767
Place : Mumbai
Date : May 14 2022
UDIN : 22134767AIZKTH2120