To the Members of
Elegant Marbles And Grani Industries Ltd.
Abu Road (Raj.)
We have audited the standalone financial statements of ELEGANT MARBLES AND GRANIINDUSTRIES LTD. ("the Company") which comprise the balance sheet as at 31stMarch 2022 the statement of Profit and Loss statement of changes in equity andstatement of cash flows for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India including Indian Accounting Standards (Ind AS)specified in Section 133 of the Act of the state of affairs of the Company as at March31 2022 its profit cash flows and the changes in equity for the year ended on thatdate.
2. Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial 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 Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
3. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
Non-receipt of audited statement of account in case of investment through PMS/FundManagers
a. The Company has invested in shares securities debentures units of mutual fundsetc. through Fund Managers & Portfolio Management Service (PMS) providers. These FundManagers/PMS entities provide statement showing investments made by them on behalf of thecompany gains/losses earned/incurred on sale of such investments expenses incurred bythem including their fees for managing the portfolio and the balance of investmentsremaining with them at the end of the year. The Company accounts for these transactions inits books of accounts on receipt of such statements. However in all these cases ofinvestment through PMS/fund managers the audited statements for the financial year areusually not received before finalisation of our audit and all the income expendituregains/losses investments are accounted for on the basis of unaudited statements providedby these PMS/fund managers to the Company available till the finalisation of our audit. Onthe basis of its past experience the management of the Company is of the opinion thatgenerally no material difference in the income expenditure gains/losses investment etc.is detected after the audited statements are provided by these PMS/fund managers.
Investment in Debentures
b. The Company has invested in debentures of various private/public limited companiesdirectly or through various funds managers/PMS and accounts for interest accrued and/orreceived on such investment in debentures from these companies/funds from time to time.However in the case of investment in 20.50% debentures of Green Farm Tech Pvt. Ltd.amounting to Rs.7500000/- 20% debentures of Samruddhi Realty Ltd. amounting toRs.10000000/- 18% debentures of Fortuna Buildcon (India) Pvt. Ltd. amounting toRs.4900000/- 20% debentures of Diyug Construction Pvt. Ltd. amounting toRs.7789858/- 17.25% debentures of Kasata Hometech (India) Pvt. Ltd. amounting toRs.8717500/- 15% debentures of Shashwati Realty Pvt. Ltd. amounting to Rs.15000000/- 19.532% debentures of Adima Developers Pvt. Ltd. amounting toRs.5000000/-(Bal o/s. 4250000/-); 17.50% debentures of Bhansali Infra Projects Pvt.Ltd. amounting to Rs.10000000/- (Bal o/s. 2550000/-) and 18% debentures of BCIL RedEarth Developers India Pvt. Ltd. amounting to Rs.7500000/- the interest and principalsums wherever due are not being received on due dates. These companies/fundsmanagers/PMS managers have earlier informed the Company about the financial and/orliquidity crunch faced by these companies status of their construction projects thelegal cases filed in various forums against these companies with current status of thesecases and accordingly advised the company not to account for such interest in its booksof accounts on accrual basis. Accordingly the interest on such debentures is not beingaccounted for on accrual basis. Further having regard to the communicationsreceived/talks with these companies/fund managers/PMS managers and evaluation of theunderlying assets made by the Board of Directors in the management's perception theamounts recoverable against these investments including interest thereon are fully securedby the underlying security of immoveable properties with their estimated market valuesadequately covering the principal amounts as well as interest accrued & alreadyaccounted for. In the circumstances the management has taken a conscious decision to notto make a provision for any loss on recoverability of these debenture investments &interest already accounted in its books of accounts and defer the same till finalrealisation/decision in various legal proceedings initiated by fund managers/PMS managersfor these debentures. In absence of any working for evaluation of underlying asset beingproduced before us we are not in a position to comment on it.
Impact of Covid19 pandemic
c. The attention is drawn to Note No. 27.08 to the Notes to accounts which specificallydiscusses the impact of COVID -19 pandemic and its consequent economic slowdown onbusiness operation. The company has made its assessment on the basis of its internal andexternal sources and believes that the impact of COVID-19 is not material to its financialstatements and expects to recover the carrying amount of its assets.
Our procedures included but were not limited to the following:
(i) Non-receipt of audited statement of account in case of investment through PMS/FundManagers
(a) Obtained an understanding of management's process of recording of investmentsprofit/loss on sale of such investments expenses etc. and evaluated it on the basis ofearlier year's audited & unaudited statements furnished by the PMS entities to checkabout the difference in the results that occur.
(b) Assessed the appropriateness of the methodology and corrective actions taken insubsequent years.
(c) Assessed the reasonableness & correct recording of the transactions by the PMSentities based on historical data available with the Company.
(ii) Investment in debentures
(a) Obtained an understanding of management's process & methodology of investing indebentures evaluated the methodology adopted for assessing the realisability of thedebentures & interest thereon and security available against such investment indebentures. We also tested effectiveness of such evaluation process adopted by themanagement to determine recoverable value of the security available.
(b) Assessed the appropriateness of the methodology and valuation model used by themanagement to estimate the recoverable value of securities underlying these investments.
(c) Assessed the reasonableness of the assumptions made by the management regarding thevalue of underlying security and realisability of the same to cover the investment made bythe Company.
4. Other Information
The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditors' reportthereon. The Company's annual report is expected to be made availalbe to us after the dateof this auditors' report.
Our opinion on the standalone financial statements does not cover the other informationand we will not express any form of assurance conclusion thereon.
In connection with our audit our responsibility is to read the other informationidentified above when it becomes available and in doing so consider whether the otherinformation is materially inconsistent with the standalone financial statement or ourknowledge obtained in the audit or otherwise appears to be material misstated. When weread the Company's annual report if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance andtake necessary actions as applicable under the relevant laws and regulations.
5. Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance (changes in equity) and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
The Board of Directors is also responsible for overseeing the Company's financialreporting process.
6. Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditors' report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
a. identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
b. obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
c. evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.
d. conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
e. evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
7. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
8. 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.
8. From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors' report unless law or regulation precludes public disclosure about the matters orwhen 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 of such communication.
9. Other Matters
Our attendance at the time of physical inventory taken by the management was notpracticable under the circumstances and accordingly we have relied upon the report of theinternal auditors and have performed alternative procedures to audit on the existence andcondition of inventory at year end as per the guidance provided in "SA- 501-AuditEvidence-Specific considerations for selected items" and have obtained sufficientaudit evidence to issue our unmodified opinion on these financial results.
In respect of matters related to Goods & Service Tax this being a legal &technical matter we have relied upon the working made & returns filed by the Companybased on the professional advice received by it.
10 Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
11 Further to our comments in Annexure A as required by Section 143(3) of the Act wereport 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 have been kept by theCompany so far as it appears from our examination of those books.
(c) The Standalone Balance Sheet the Statement of Profit and Loss and the Cash FlowStatement dealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statements comply with theAccounting 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 31st March 2022 from being appointed as a director in terms of Section164 (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".
(g) With respect to the other matters to be included in the Auditor's 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:
(9) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements;
ii. The Company did not have any long-term contracts including derivative contracts forwhich 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.
For SDBA & Co.
(FRN : 142004W)
(Sanjeev A. Mehta)
28th May 2022
Annexure 'A' to the Independent Auditors' Report
Referred to in paragraph 10 of the Independent Auditors Report of even date to theMembers of Elegant Marbles and Grani Industries Ltd. on the standalone financialstatements of the Company for the year ended March 31 2022
(i) (a) (A) The company has maintained proper records of fixed assets showing fullparticulars including quantitative details and situation of fixed assets.
(B) The company does not have any intangible assets.
(b) As explained to us the fixed assets have been physically verified by themanagement during the year in accordance with a regular programme for verification whichin our opinion is reasonable having regard to the size of the company and nature of itsassets. No material discrepancies were noticed on such physical verification.
(c) The title deeds of the immovable properties disclosed in the financial statementsare held in the name of company.
(d) The company has not revalued any of its Property Plant and Equipment during theyear.
(e) Having regard to the representation made by the management we have to state thatno proceedings under the Benami Transactions (Prohibition) Act 1988 (as amended in 2016)and rules made thereunder have been initiated during the year or are pending against thecompany as at 31st March 2022 for holding any benami property.
(ii)(a) The inventories have been physically verified by the management during the yearon a monthly basis. In our opinion the frequency of such verification is reasonable. Asexplained to us the internal auditors have also participated in the inventory physicalverification process and have reported slight variations which were insignificant havingregard to the size of the company. We have relied on the same and in our opinion thefrequency of such verification is reasonable.
k (b) The company has not been sanctioned any working capital limits during the yearfrom any bank or financials institution. In view of it the reporting under clause3(ii)(b) is not applicable to the Company.
(iii) (a) The company has not granted any loans or advances in the nature of loan orstood guarantee or provided security to any other entity to Companies firms LLPs orother parties. In view of it we have nothing to report under clause 3(iii)(a)(A) &(B) of this Order.
(b) In our opinion the investments made are prime facie not prejudicial to theinterest of the Company. In our opinion the Company has not given any loans during theyear.
(c) In our opinion as the Company has not provided any loan during the year thisclause is not applicable.
(d) In our opinion as the Company has not provided any loan during the year thisclause is not applicable.
(e) In our opinion as the Company has not provided any loan during the year thisclause is not applicable.
(f) The Company has not granted loans during the year to the promoters related partiesas defined in clause (76) of section 2 of the Companies Act 2013.
(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013in respect of loans investments guarantees and security.
(v) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposit in contravention of section 73 to section 76 or anyother relevant provisions of the Companies Act 2013 and Companies (Acceptance ofDeposits) Rules 2014. As informed to us no order has been passed by the Company LawBoard or National Company Law Tribunal or Reserve Bank of India or any other Court ortribunal.
(vi) Having regard to the turnover of the Company and as per the information andexplanation given to us in our opinion the rules regarding maintenance of cost recordsunder section 148(1) of the Companies Act 2013 are not applicable to the Company.
(vii)(a) The company is generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income tax sales tax service taxgoods and service tax customs duty excise duty value added tax cess and other materialstatutory dues with appropriate authorities wherever applicable to it. However thecompany has not deposited demand raised by the Income Tax authorities for A.Yr. 2016-17amounting to Rs.77530/- on account of its application to the Income-tax authorities foradjustment of the demand against refund for the A.Yr. 2008-2009 and A. Yr. 2009-10 due tothe company.
(b) In our opinion and in accordance with the information and explanation given to usthe following demands were not deposited on account of dispute:
|Name of the Statute ||Nature of Dues ||Period to which the amount relates ||Forum where dispute is pending ||Amount (Rs.) |
|Income Tax Act 1961 ||Income Tax ||A.Yr. 2014-2015 ||CIT (Appeals) ||Rs.799670/- |
|Income Tax Act 1961 ||Income Tax ||A.Yr. 2013-2014 ||CIT (Appeals) ||Rs.4173670/- |
|Income Tax Act 1961 ||Income Tax ||A.Yr. 2017-2018 ||CIT (Appeals) ||Rs.515400/- |
(viii) Having regard to the representation made by the management there were notransactions relating to previously unrecorded incomes that have been surrendered ordisclosed as income during the year in the tax assessments under the Income Tax Act 1961.
(ix)(a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the company has not borrowed funds from anyfinancial institutions banks or lenders. Hence reporting under clause 3(ix)(a) of theOrder is not applicable.
(b) Accordingly to the information and explanations given to us and on the basis of ourexaminations of the records of the Company the company has not been declared as willfuldefaulter by any bank or financial institution or government or any government authority.
(c) According to the information and explanations given to us the company has nottaken any term loan during the year and hence reporting under this clause 3(ix)(c) of theOrder is not applicable.
(d) According to the information and explanations given to us and on an overallexamination of the financial statements of the Company we report that no funds have beenraised during the year by the Company. Accordingly the clause 3(ix)(d) of the Order isnot applicable to the company.
(e) According to the information and explanations given to us and on an overallexamination of the financial statements of the Company we report that the Company has nottaken any funds from any entity or person on account of or to meet the obligations of itssubsidiaries as defined under the Companies Act 2013. Accordingly clause 3(ix)(e) of theOrder is not applicable.
(f) According to the information and explanations given to us and procedures performedby us we report that the company has not raised any loans during the year on the pledgeof securities held in its subsidiaries joint ventures or associate companies hence theclause 3(ix)(f) of the Order is not applicable to the company.
(x) (a) The company has not raised any funds from initial public offer or furtherpublic offer (including debt instruments). Accordingly clause 3(x)(a) of the Order is notapplicable.
(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or convertible debentures during the year.Accordingly reporting under clause 3(x)(b) is not applicable.
(xi)(a) Based on examination of the books and records of the Company and according toinformation and explanations given to us and on the basis of audit conducted by us nofraud on or by the company has been noticed or reported during the course of our audit.
(b) According to the information and explanations given to us no report undersub-section (12) of Section 143 of the Companies Act 2013 has been filed by the auditorswith the Central Government in Form ADT-4 as prescribed under Rule 13 of Companies (Auditand Auditors) Rules 2014.
(c) In accordance with the representation received from the management of the Companythe company has not received any complaints from any whistle-blower during the year.
(xii)(a) According to the information and explanations given to us in our opinion theCompany is not a Nidhi Company. Therefore clause 3 (xii)(a) (b) & (c) of the Orderare not applicable to the Company.
(xiii) In our opinion and according to the information and explanations given to usthe transactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 and the details have been disclosed in the Financial Statements asrequired by the applicable accounting standards.
(xiv)(a) Based on information and explanations provided to us and our audit proceduresin our opinion the Company has an adequate internal audit system commensurate with thesize and the nature of its business.
(b) We have considered the internal audit reports for the year under audit issued tothe company during the year and till date in determining the nature timing and extent ofaudit procedures.
(xv) According to the information and explanations given during the course of ouraudit in our opinion the company has not entered into any non-cash transactions withdirectors or persons connected with them covered under Section 192 of the Act.Accordingly the provisions of clause 3 (xv) of the Order are not applicable to theCompany and hence not commented upon.
(xvi) (a) In our opinion the company is not required to be registered under section 45IA of the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3(xvi) of the Order are not applicable to the Company and hence not commented upon.
(b) According to the information and explanations given to us the Company has notconducted any Non-Banking Financial or Housing finance activities without a validCertificate of Registration from the Reserve Bank of India under the Reserve Bank of IndiaAct 1934.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of the Order is notapplicable.
(d) According to the information and explanations given to us during the course ofaudit the Company Group does not have any CIC. Accordingly clause 3(xvi)(d) of the Orderis not applicable and not commented upon.
(xvii) The Company has not incurred cash loss during the current financial year. TheCompany has however incurred cash loss amounting to Rs.65.04 lakhs in precedingfinancial year.
(xviii) There has been no resignation of the statutory auditors of the Company duringthe year. Accordingly clause 3(xviii) of the Order is not applicable.
(xix) On the basis of representation made by the Company according to the informationand explanations given to us and on the basis of the financial ratios ageing and expecteddates of realisation of financial assets and payment of financial liabilities otherinformation accompanying the financial statements our knowledge of the Board of Directorsand management plans and based on our examination of the evidence supporting theassumptions nothing has come to our attention which cause us to believe that any materialuncertainty exists as on the date of the audit report that the Company is not capable ofmeeting 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 ourreporting is based on the facts data and other information up to the date of the auditreport and we neither give any guarantee nor any assurance that all liabilities fallingdue within a period of one year from the balance sheet date will get discharged by theCompany as and when they fall due.
(xx)(a) The provisions of section 135 (5) of the Companies Act 2013 have not beenapplicable to the company since March 2020. However on the basis of information andexplanation available to us there is no unspent amount towards Corporate SocialResponsibility (CSR) and hence reporting under clause 3(xx)(a) & (b) of the Order isnot applicable.
For SDBA & CO.
(SANJEEV A. MEHTA)
M.No : 41287
28th May 2022
Annexure 'B' to the Independent Auditor's Report
Referred to in paragraph 11(f) of the Independent Auditors' Report of even date to theMembers of Elegant Marbles And Grani Industries Ltd. on the Standalone financialstatements for the year ended March 31 2022.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
1. We have audited the internal financial controls over financial reporting of ELEGANTMARBLES & GRANI INDUSTRIES LTD. ("the Company") as of March 31 2022 inconjunction with our audit of the financial statements of the Company for the year endedon that date.
Management's Responsibility for Internal Financial Controls
2. 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". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including 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.
3. Auditors' Responsibility
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
6. 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
7. 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 March 31 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
For SDBA & CO.
(FRN : 142004W)
(SANJEEV A. MEHTA)
M.No : 41287
28th May 2022
UDIN : 22041287AKKFSA4215.