THE MEMBERS OF ELECTROTHERM (INDIA) LTD.
Report on the Standalone Financial Statements Opinion
We have audited the accompanying standalone Ind AS financial statementsof ELECTROTHERM (INDIA) LIMITED ("the Company") which comprise the BalanceSheet as at March 31 2019 the Statement of Profit and Loss (including othercomprehensive income) Statement of Changes in Equity Statement of Cash Flows for theyear then ended and notes to the standalone financial statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone Ind AS financial statements").
In our opinion and to the best of our information and according to theexplanations given to us read with the notes to accounts except for the effects of thematter described in the Basis for Qualified Opinion section of our report the aforesaidstandalone financial statements give the information required by the Companies Act 2013("the Act") in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2019 and its profit (including other comprehensiveincome) changes in equity and its cash flows for the year ended on that date.
Basis for Qualified Opinion
We draw attention to Note No. 34(d) of non- provision of interest onNPA accounts of banks of Rs 124.31 Crore (Net of Reversal on settlement) for the yearunder consideration and the total amount of such unprovided interest till date is Rs876.35 Crore. The exact amounts of the said non provisions of interest are not determinedand accounted for by the Company and to that extent Bankers loan liabilities isunderstated and profit is overstated.
We conducted our audit in accordance with the Standards on Auditing(SAs) as specified under section 143(10) of the Act. Our responsibilities under those SAsare further described in the Auditor's Responsibilities for the Audit of the StandaloneInd AS Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules there under and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our qualified audit opinion on the Standalone IndAS Financial Statements.
Emphasis of Matter
1. We draw attention to point no. 1(b) of the accompanying StandaloneFinancial Statements in respect of reclassification /restatement of the repayment ofinstallments to the banks & financial institutions and reclassification of consumptionof coal.
2. We draw attention to Note No. 33(a) of the accompanying StandaloneInd AS Financial Statements in respect of Winding up petitions.
3. We draw attention to Note No. 33(b) of the accompanying StandaloneFinancial Statements in respect of treatment in the books of accounts of the assignment/settlement of Debts of various Banks and the financial institutions and its payment bythe company and effect of reduction of loan amount.
4. We draw attention to Note No. 33(b)(i)(d) of the accompanyingStandalone Financial Statements in respect of a Charge sheet filed by the Central Bureauof Investigation (CBI) against the Company and its few Directors.
5. We draw attention to Note No. 34(a)(b)(c) of the accompanyingStandalone Financial Statements in respect of non-provision of long disputedclaims/liability of various Government agency against the Company.
6. We draw attention to Note No. 35 of the accompanying StandaloneFinancial Statements in respect of third parties balance confirmations its classificationin respect of nature of realization of the amount provision thereof and in respect of thevarious other disclosures.
7. We draw attention to Note No. 37 of the accompanying StandaloneFinancial Statements in respect of other cases before various authorities.
In our opinion in respect of the above matters emphasized we do notprovide any modified opinion as these are not material.
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 forthe financial year ended March 31 2019. These matters were addressed in the context ofour audit of the standalone financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. In addition to thematter described in the Basis for Qualified Opinion section we have determined thematters described below to be the key audit matters to be communicated in our report.
|Key Audit Matters ||How the matter was addressed in our audit |
|Recoverability of Trade Receivable balances - Trade receivables (as described in note 10 of the Standalone Ind AS Financial Statements) ||Our audit procedures among other things included the following: |
| Year-end outstanding trade receivables represent balance outstanding from domestic and export customers. || Understood and tested on a sample basis the design and operating effectiveness of management control over the customer acceptance process collection and the assessment of the recoverability of receivables; |
| || |
| Trade receivables by nature carry certain risks in general which include overdue balances customers in weaker economic and geopolitical environment customer's ability to pay provision in relation to expected credit loss assessment of recovery process and compliance with risk management controls. || tested on a sample basis the ageing of trade receivables at year end; |
| || in respect of material trade receivables balances inspected relevant contracts and correspondence with the customers; |
| Procedures to mitigate such risks includes element of management judgment and are important to access recoverability of trade receivables. || In respect of material trade receivables balances which are past due additional procedures were performed to evaluate their historical payment trends terms & conditions of customer contracts assessed whether the customers are experiencing financial difficulties and assessed expected credit loss assessment provided by the management; |
| Trade receivable has been considered a key audit matter in the audit due to size of the outstanding balance of trade receivables. || Compared the collateral in the nature of bank guarantees/letter of credits provided by customers as applicable and; |
| || Evaluated the level of provisions made by management for trade receivables. |
The Company's management and Board of Directors are responsible for theother information. The other information comprises the information included in theCompany's annual report but does not include the standalone Ind AS financial statementsand our auditors' report thereon.
Our opinion on the standalone Ind AS financial statements does notcover the other information and we do 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 financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information; we are required to report that fact. We have nothing to report inthis regard.
Responsibilities of Management and Those Charged with Governance forthe Standalone Ind AS Financial Statements
The Company's management and Board of Directors are responsible for thematters stated in Section 134(5) of the Act with respect to the preparation of thesestandalone financial statements that give a true and fair view of the state of affairsprofit (including other 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) specified under Section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 Ind AS financial statements management andBoard of Directors are responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so. Board ofDirectors is also responsible for overseeing the Company'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 our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone 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 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 with reference to standalonefinancial statements in place 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 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 statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of the adoption of the accounts of the Company by the Board of theDirectors in their meeting on 28th May 2019. 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 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.
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 for the financial year ended March 31 2019 and are therefore thekey audit matters. We describe these matters in our auditors' report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.
Report on Other Legal and Regulatory Requirements
(A) As required by the Companies (Auditors' Report) Order 2016("the Order") issued by the Central Governmentof India in terms of Section143(11) of the Act we give in "Annexure A" a statement on the matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable.
(B) As required by Section 143(3) of the Act we broadly 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 havebeen kept by the Company so far as it appears from our examination of those books;
(c) The balance sheet the statement of profit and loss (includingother comprehensive income) the statement of changes in equity and the cash flowstatement dealt with by this report are in agreement with the books of account;
(d) In our opinion the aforesaid Ind AS financial statements complywith the Accounting Standards specified under section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;
(e) On the basis of the written representations received from thedirectors as on March 31 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2019 from being appointed as a director in termsof Section 164(2) of the Act; and
(f) With respect to the adequacy of the internal financial controlswith reference to financial statements of the Company and the operating effectiveness ofsuch controls refer to our separate Report in 'Annexure B'.
(g) In our opinion the managerial remuneration for the year endedMarch 31 2019 has been paid / provided by the Company to its directors in accordance withthe provisions of section 197 read with Schedule V to the Act;
(C) With respect to the other matters to be included in the Auditors'Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules 2014 as amended in our opinion and to the best of ourinformation and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Financial Statements - Mainly Refer Note No. 30 34and 37 to the Standalone Financial Statement;
(ii) There are no long term contracts including derivative contractsand accordingly no provision is required to be made for any loss from the same;
(iii) There is no fund which is pending to be transferred to theInvestor Education and Protection Fund by the Company.
(iv) The disclosures in the standalone financial statements regardingholdings as well as dealings in specified bank notes during the period from November 82016 to December 30 2016 have not been made in these standalone financial statementssince they do not pertain to the financial year ended March 31 2019.
| ||For Hitesh Prakash Shah & Co |
| ||(Firm Regd.no: 127614W) |
| ||Chartered Accountants |
| ||Hitesh Shah |
|Place : Ahmedabad ||Partner |
|Date : 31st August 2019 ||Membership No. 124095 |
ANNEXURE A TO THE AUDITOR'S REPORT
The Annexure A referred to in Independent Auditor's Report to themembers of Electrotherm (India) Limited on the Standalone Financial Statements for theyear ended on March 31 2019 we broadly report that for the year under consideration:
(i) (a) The Company has maintained records showing full particularsincluding quantitative details and situation of fixed assets; however the Company is inthe process of updating the fixed assets register in certain respect.
(b) As informed to us the Company has a programme of physicalverification of its fixed assets by which the fixed assets are verified by the Managementat periodic manner. In accordance with this programme fixed assets of Engineering Divisionwere verified during the year and as informed to us no material discrepancies werenoticed on such verification. In our opinion this periodicity of physical verification isreasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanation given to us the titledeeds of immovable properties (which are included under the note 3 - 'Property plant andequipment') are held in the name of the Company.
(ii) The physical verification of inventory has been conducted atreasonable intervals by the Management during the year except for goods-in-transit. Asinformed to us the discrepancies noticed on physical verification of inventory ascompared to book records were not material and have been appropriately dealt with in thebooks of accounts.
(iii) (a) The Company has granted loans to 1 company covered in theregister maintained under section 189 of the Act. In our opinion and according to theinformation and explanations given to us the terms and conditions of the grant of suchloans are not prejudicial to the Company's interest.
(b) In respect of the aforesaid loans the term of repayment ofprincipal and Interest has not been stipulated. However the repayments or receipts areregular.
(c) In respect of the aforesaid loans in view of above there is noamount overdue for more than ninety days.
(iv) In our opinion and according to the information and explanationsgiven to us mainly provisions of sections 185 and 186 of the Act in respect of loans todirectors including entities in which they are interested and in respect of loans givenand investments made have been complied with by the Company. The Company has not grantedany guarantees & security in terms of sections 185 and 186 of the Act.
(v) In our opinion and according to the information and explanationsgiven to us during the year under consideration the Company has not accepted anydeposits within the meaning of sections 73 to 76 of the Act and Companies (Acceptance ofDeposits) Rules 2014 (as amended). Accordingly the provisions of clause 3(v) of theOrder are not applicable to the Company.
(vi) Pursuant to the rules made by the Central Government of India theCompany is required to maintain cost records as specified under Section 148(1) of the Actin respect of its products. We have broadly reviewed the same and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained. Wehave not however made a detailed examination of the records with a view to determinewhether they are accurate or complete.
(vii) (a) According to the information and explanations given to us andthe records of the Company examined by us in our opinion the
Company is generally regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Goods and Service TaxSales Tax Duty of Customs Cess and other material statutory dues as applicable withthe appropriate authorities though there has been a slight delay in a few cases.
There are no undisputed amounts payable in respect of above dues whichwere in arrears as at March 31 2019 for a period of more than six months from the datethey became payable.
(b) According to the information and explanations given to us and therecords of the Company examined by us following are the details of outstanding dues inrespect of Income Tax Goods and Service Tax Sales Tax service tax duty of customsduty of excise value added tax or cess etc which have not beendeposited/adjusted/reversed on account of any dispute:-
|Name Of The Statue ||Nature Of Dues ||Amount (In Crore Rupees) ||Period To Which The Amount Relates ||Forum Where Dispute Is Pending |
|Central Excise Act1944 ||Excise Duty ||0.004 ||2005-06 ||Commissioner Central Excise Gandhidham |
| ||Excise Duty ||11.65 ||Dec-05 To Dec-08 ||CESTAT Ahmedabad |
| ||Excise Duty ||175.00 ||Apr-05 To Mar-10 ||CESTAT Ahmedabad |
| ||Excise Duty (Advance License) ||22.41 ||Mar-11 To Dec-11 ||Commissioner Central Excise Gandhidham |
| ||Excise Duty ||68.62 ||Oct-07 To Sep-12 ||Commissioner Central Excise Gandhidham |
| ||Excise Duty ||0.12 ||Apr-08 To July-11 ||CESTAT Ahmedabad |
| ||Excise Duty ||2.40 ||2008-09 ||CESTAT Ahmedabad |
| ||Excise Duty ||57.38 ||Apr-09 To Mar-10 ||Commissioner Central Excise Gandhidham |
| ||Excise Duty ||6.82 ||February 2014 to March 2015 ||Comissioner of Central GST Audit Rajkot |
|Sub Total || ||344.40 || || |
|Finance Act1994 ||Service Tax ||1.84 ||Apr-07 To Mar-08 ||Commissioner Central Excise Gandhidham |
| ||Service Tax ||0.19 ||Apr-09 To Aug-10 ||CESTAT Ahmedabad |
|Sub Total || ||2.03 || || |
|Customs Act1962 ||CVD ||7.27 ||Mar-11 To Dec-11 ||CESTAT Ahmedabad |
| ||Interest ||6.09 ||May-07 To Feb-08 ||CESTAT Ahmedabad |
| ||Custom Duty ||0.83 ||Mar-12 To Jan-13 ||CESTAT Ahmedabad |
| ||Custom Duty ||0.02 ||Apr-11 ||Commissioner Of Customs (Preventive) Jamnagar |
|Sub Total || ||14.21 || || |
|Maharshtra VAT Act 2002 ||VAT ||6.28 ||2009-10 ||Assistant Commissioner of MVAT Mazgaon |
| ||VAT ||23.93 ||2010-11 ||Assistant Commissioner of MVAT Mazgaon |
|Sub Total || ||30.21 || || |
|Gujarat VAT Act 2005 ||VAT ||10.35 ||Financial Year (2010-11) ||Joint CommissionerRajkot |
|Sub Total || ||10.35 || || |
|Central Sales Tax Act ||CST ||9.65 ||Financial Year (2010-11) ||Joint CommissionerRajkot |
| || || || || |
|1956 ||CST ||4.91 ||Financial Year (2013-14) ||Joint CommissionerRajkot |
|Sub Total || ||14.65 || || |
|Grand Total || ||415.76 || || |
(viii) According to the records of the Company examined by us and theinformation and explanation given to us the Company has defaulted in repayment of loansor borrowings to financial institution and bank as at the balance sheet date. Details ofwhich are as below:
|Name of Lender || |
Amount of Default as on March 31 2019* (Rs. in Crore)
|Default From |
| ||Principal ||Interest ||Total || |
|Central Bank of India ||428.94 ||7.19 ||436.13 ||March 2012 |
|Indian Overseas Bank ||200.00 ||0.01 ||200.01 ||August 2011 |
|Standard Chartered Bank ||15.31 || ||15.31 ||December 2011 |
The above table only includes the banks which are not settled as onMarch 31 2019.
* The above table does not include the interest which bank has notprovided after the account has been classified Non Performing Assets and the amount whichhas been assigned/settled by the lenders.
(ix) The Company has not raised any money by way of initial publicoffer or further public offer (including debt instruments) and term loans during the year.Accordingly the provisions of Clause 3(ix) of the Order are not applicable to theCompany.
(x) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the Management.
(xi) In our opinion and according to the information and explanationsgiven to us the Company has paid / provided managerial remuneration in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Companies Act 2013.
(xii) In our opinion and according to the information and explanationgiven to us the Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Orderis not applicable to the Company.
(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the Financial Statements as requiredby the applicable Ind AS-24 Related Party Disclosures.
(xiv) According to the information and explanation given to us and onoverall examination of the balance sheet the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and hence reporting requirements under clause 3(xiv) are notapplicable to the Company and not commented upon.
(xv) The Company has not entered into any non-cash transactions withits directors or persons connected with him. Accordingly paragraph 3(xv) of the Order isnot applicable to the Company.
(xvi) According to the information and explanations provided to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly the paragraph 3(xvi) of the Order is not applicable to theCompany.
For Hitesh Prakash Shah & Co
(Firm Regd.no: 127614W)
Place : Ahmedabad
Date : 31st August 2019
Membership No. 124095
Annexure B referred to paragraph B of Report on Other Legal RegulatoryRequirements of Independent Auditor's report of even date for year ended March 31 2019.
Report on the Internal Financial Controls under Clause (i) of Sub -section 3 of Section 143 of the Companies Act 2013 ("the Act").
We have audited the internal financial controls over financialreporting of Electrotherm (India) Limited ("the Company") as of March 31 2019in conjunction with our audit of the Standalone IND AS Financial Statements of the companyfor 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. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting with reference to these Standalone Ind ASFinancial Statements based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting with reference to these Standalone Ind ASFinancial Statements was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls over financial reporting with reference tothese Standalone Ind AS Financial Statements and their operating effectiveness. Our auditof internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting with reference tothese Standalone Ind AS Financial Statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including 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 internal financial controlsover financial reporting with reference to these Standalone Ind AS Financial Statements.
Meaning of Internal Financial Controls Over Financial Reporting WithReference to these Standalone Ind AS Financial Statements
A company's internal financial control over financial reporting withreference to these Standalone Ind AS Financial Statements is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingwith reference to these Standalone Ind AS 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 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 un-authorized 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 with Reference to these Standalone Ind AS Financial Statements
Because of the inherent limitations of internal financial controls overfinancial reporting with reference to these Standalone Ind AS Financial Statementsincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingwith reference to these Standalone Ind AS Financial Statements to future periods aresubject to the risk that the internal financial control over financial reporting withreference to these Standalone Ind AS Financial Statements may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.
In our opinion the Company has in all material respects exceptstated otherwise or reported to the company adequate internal financial controls overfinancial reporting with reference to these Standalone Ind AS Financial Statements andsuch internal financial controls over financial reporting with reference to theseStandalone Ind AS Financial Statements were operating effectively as at March 31 2019based on 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 Hitesh Prakash Shah & Co |
| ||(Firm Regd.no: 127614W) |
| ||Chartered Accountants |
| ||Hitesh Shah |
|Place : Ahmedabad ||Partner |
|Date : 31st August 2019 ||Membership No. 124095 |
PS: It is clarified that financial statements were approved and twoDirectors & Other Signatories were authorized to sign the financial statement in theBoard of the Director's Meeting held on 28th May 2019. Now these financial statementshaveen signed by the another Authorized Directors and Other signatories in pursuance topartly modification resolution passed by the Board of Directors in their meeting held on31st August 2019 and accordingly this report and financial statement are signed by us on31st August 2019 on the basis of the accounts adopted in the Board of Directors Meetingand events up to 28th May 2019.