To the Members of G R Infraprojects Limited
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of G R InfraprojectsLimited ("the Company") which comprise the standalone Balance Sheet as at 31March 2021 the standalone Statement of Profit and Loss (including other comprehensiveincome) standalone Statement of Changes in Equity and standalone Statement of Cash Flowsfor the year then ended and notes to the standalone financial statements including asummary of the significant accounting policies and other explanatory information in whichis included the unaudited financial information of seven Joint operations as referred toin Note 42 in the standalone financial statements (hereinafter referred to as"standalone financial statements").
In our opinion and to the best of our information and according to the explanationsgiven to us and based on the consideration of reports of other auditors on separatefinancial information of such joint operations as were audited by other auditors theaforesaid standalone financial statements give the information required by the CompaniesAct 2013 ("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 31 March 2021 and profit and other comprehensive incomechanges 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) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance withthe Code of Ethics issued by the Institute of Chartered Accountants of India together withthe ethical requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained along with the considerationof audit reports of the other auditors referred to in the "Other Matter"paragraph below is sufficient and appropriate to provide a basis for our opinion.
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 current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.
Recognition of contract revenue and provision for loss making contracts:
|The key audit matter ||How the matter was addressed in our audit |
|The Company's business involves entering into contractual relationships with customers to provide a range of services with a significant proportion of the Company's revenues and profits derived from long term contracts. Revenue on individual contracts is recognized in accordance with Ind AS 115 Revenue from Contracts with Customers based on the extent of progress towards completion. ||Our audit procedures in this area included among others: |
|Significant portion of the Company's || evaluating the design implementation and operating effectiveness of relevant internal controls over the contract revenue recognition and cost estimation process; |
|Revenue from Civil Construction contracts arises from transactions with related parties mainly wholly owned subsidiaries of the Company. || inspecting a sample of contracts with customers and with subcontractors selected on random basis to observe key terms and conditions along with the methodology for quantifying liquidated and ascertained damages; |
|Due to the contracting nature of the business revenue recognition involves a significant degree of judgment and estimates including: || comparing the percentage of contract revenue recognized for ongoing contracts during the year with certification from independent engineers of the ultimate customers. |
| estimate the total contract costs; || inquiring with the directors and project directors about the status of major contracts in progress as at year end including those with low margin and contracts for which milestones are overdue; |
| estimate the stage of completion of the contract; || |
| estimate the total revenue and total costs to complete contracts; || questioning the key estimates and assumptions adopted in the forecast of contract revenue and contract costs including for ongoing projects with reference to key terms and conditions of the respective contract including sub-contracts; |
| estimate impact of variables such as scope modifications; and || inspecting the correspondence with customers regarding contract variations and claims; |
| provide for loss making contracts. || understanding the process in place by the Company for identifying recording and disclosing related parties and related party transactions; and |
|We identified revenue recognition as a key audit matter as there is a broad range of acceptable outcomes resulting from these estimates and Judgments that could lead to different revenue and profit being reported in the standalone financial statements. || testing the underlying data for ascertaining arm's length pricing and sighting the approvals of the Audit Committee for related party transactions. |
Information Other than the Standalone Financial Statements and Auditors' Report Thereon
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 standalone financial statements and our auditors'report 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 and based on the work done/ audit report of other auditors weconclude that there is a material misstatement of this other information we are requiredto report that fact. We have nothing to report in this regard.
Management's and Board of Directors' Responsibility for the Standalone FinancialStatements
The Company's Management and Board of Directors are responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the state of affairs profit/loss and othercomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under Section 133 of the Act. This 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 were operatingeffectively for ensuring accuracy and completeness of the accounting records relevant tothe preparation and presentation of the standalone financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.
In preparing the standalone financial statements the Management and Board of Directorsare responsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company's financialreporting process.
Auditors' 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 auditors' 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 and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
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 Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures in the standalone financial statementsmade by the Management and Board of Directors.
Conclude on the appropriateness of the Management and Board of Directors use ofthe going concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditors' report tothe related 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 our auditors' report. However future events or conditions maycause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Obtain sufficient appropriate audit evidence regarding the financial informationof such entities or business activities of the Company and its joint operations to expressan opinion on the Standalone Financial Statements. We are responsible for the directionsupervision and performance of the audit of financial information of the Company of whichwe are the independent auditors. For the joint operations included in the StandaloneFinancial Statements which have been audited by other auditors such other auditorsremain responsible for the direction supervision and performance of the audits carriedout by them. We remain solely responsible for our audit opinion. Our responsibilities inthis regard are further described in the Other Matter' paragraph in this auditreport.
We believe that the audit evidence obtained by us along with the consideration of auditreports of the other auditors referred to in the Other Matter paragraph below issufficient and appropriate to provide a basis for our audit opinion on the StandaloneFinancial Statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify 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 auditors' 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.
The financial information of seven joint operations whose financial informationreflects total assets (before elimination adjustments) of Rs. 11257.20 lakhs as at 31March 2021 total revenues (before elimination adjustments) of Rs. 31912.25 lakhs netprofit after tax (before elimination adjustments) of Rs. 70.10 lakhs and net cash inflowsof Rs. 1642.96 lakhs for the year ended on that date as considered in the standalonefinancial statements has not been audited by us. These joint operations have been auditedby other auditors whose reports have been furnished to us and our opinion in so far as itrelates to the amounts and disclosures included in respect of joint operations is basedsolely on the report of such other auditors. In our opinion and according to theinformation and explanations given to us by the Management this financial information isnot material to the Company.
Our opinion on the standalone financial statements and our report on Other Legal andRegulatory Requirements below is not modified in respect of the above matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143 (11) of the Act we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.
(A) As required by Section 143(3) of the Act based on our audit and on theconsideration of reports of the other auditors on separate financial information of jointoperations as were audited by other auditors as noted in the Other Matters'paragraph 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 have been kept by theCompany so far as it appears from our examination of those books and reports of otherauditors.
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.
d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 from being appointed as a director in terms ofSection 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".
(B) 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 and basedon the consideration of the reports of the other auditors on separate financialinformation of the joint operations as noted in the Other Matters' paragraph:
i. The Company has disclosed the impact of pending litigations as at 31 March 2021 onits financial position in its standalone financial statements - Refer Note 41 to thestandalone financial statements.
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts - Refer Note 22 to the standalone financial statements.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv. The disclosures in the standalone financial statements regarding holdings as wellas dealings in specified bank notes during the period from 8 November 2016 to 30 December2016 have not been made in these financial statements since they do not pertain to thefinancial year ended 31 March 2021.
(C) 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 theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.
Annexure A to the Independent Auditors' Report - 31 March 2021
(Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' section of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets ("Property plant andequipment").
(b) The Company has a regular programme of physical verification of its fixed assets("Property plant and equipment") by which all items of fixed assets("Property plant and equipment") are verified annually. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets. However Fixed assets other than land building andother significant plant and machinery have not been physically verified by the managementduring the year. No discrepancies have been noticed on verification of the assets covered.Discrepancies if any on other assets can be commented only subsequent to theirverification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company except in respect of freehold land (gross and net block:Rs 279.51 lakhs) and building (gross block: Rs 88.17 lakhs and net block: Rs 64.41 lakhs)which are in the erstwhile name of the Company.
(ii) The inventory except material in transit has been physically verified by themanagement during the year. In our opinion the frequency of such verification isreasonable. The discrepancies noticed on verification between the physical stocks and thebook records were not material and have been properly dealt with in the books of account.
(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of theAct. Accordingly paragraphs 3 (iii) (a) (b) and (c) of the Order are not applicable tothe Company.
(iv) In our opinion and according to the information and explanations given to us theCompany has not granted any loans given any guarantees or provided any securities to theparties covered under Section 185 of the Act. Accordingly compliance under Section 185 ofthe Act is not applicable to the Company. According to the information and explanationsgiven to us the Company is engaged in the business of providing infrastructuralfacilities and accordingly the provisions of section 186 (except subsection (1) of Section186) of the Act are not applicable to the Company. In our opinion and according to theinformation and explanations given to us the Company has made investment referred inSection 186 (1) of the Act and has complied with the provisions of Section 186 of the Act.
(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits from public in accordance with the provisions ofSections 73 to 76 or any other relevant provisions of the Act and the rules framedthereunder. Accordingly paragraph 3 (v) of the Order is not applicable to the Company.
(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost Records and Audit) Rules 2014 as amended prescribed by the CentralGovernment under Section 148 (1) of the Act and are of the opinion that prima facie theprescribed cost records have been made and maintained. However we have not made adetailed examination of such records with a view to determine whether they are accurate orcomplete.
(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Income taxGoods and Service tax duty of customs Employees state insurance contributionProfessional tax Cess and other material statutory dues have generally been regularlydeposited during the year by the Company with the appropriate authorities except therewere significant delays observed in depositing Provident fund and Employee state insurancecontribution during the year.
According to the information and explanations given to us no undisputed amountspayable in respect of Professional tax Employee state insurance contribution Servicetax Goods and Service tax Customs duty duty of excise Income tax Sales tax Entrytax Value added tax Cess and other material statutory dues were in arrears as at 31March 2021 for a period of more than six months from the date they became payable.
In respect of Provident Fund as explained in Note 41 to the standalone financialstatements the management has not accounted for or deposited any amounts towardsadditional liability with respect to Supreme Court's judgement over Provident fundconsidering uncertainty around the timing manner and extent in which the Judgment will beinterpreted and applied by the regulatory authorities. Accordingly we are unable tocomment on such Provident Fund arrears if any with respect to outstanding as at 31 March2021 for a period of more than six months from the date they become payable.
(b) According to the information and explanations given to us there are no dues ofIncome-tax Sales-tax Service tax duty of customs duty of excise Goods and Service taxand Value added tax which have not been deposited with the appropriate authorities onaccount of any dispute except the following:
|Name of the statute ||Nature of dues ||Amount demanded (Rs. in lakhs) ||Amount under dispute not deposited (Rs. in lakhs) ||Period to which the amount relates ||Forum where dispute is pending |
|Income Tax 1961 ||Additions of unaccounted income ||364.15 ||105 72 ||FY 2010-11 ||CIT (Appeal) Udaipur |
| ||Additions of unaccounted income ||31 94 ||23 83 ||FY 2011-12 ||ACIT Central Circle- Udaipur |
| ||Disallowance of claim under section 80-IA ||663 41 ||663.41 ||FY 2014-15 ||ITAT Jaipur |
| ||Disallowance of TDS credit and others ||1384.07 ||138407 ||FY 2017-18 ||DCIT Central Circle- Udaipur |
| ||Disallowance of TDS credit ||839.97 ||839 97 ||FY 2018-19 ||DCIT Cirle-2 Udaipur |
|Customs Act 1962 ||Customs duty on imported machinery ||512.08 ||411.00 ||December 2012 to August 2016 ||Customs Excise and Service Tax Appellate Tribunal (CESTAT) |
|Finance Act 1994 ||Service Tax on royalty under RCM ||93.02 ||93 02 ||October 2016 and June 2017 ||Customs Excise and Service Tax Appellate Tribunal (CESTAT) |
| ||Service Tax on royalty under RCM and demand under RCM ||588 86 ||588 86 ||FY 2015-16 and FY 2016-17 ||Customs Excise and Service Tax Appellate Tribunal (CESTAT |
|Sales Tax Acts of respective states ||Penalty u/s 51(7)(b) of the Punjab VAT Act 2005 ||7 34 ||7 34 ||FY 2016-17 ||Joint Excise and Taxation Commissioner (Appeal) Bbatinda |
| ||Mismatch of amounts in return ||1232 32 ||1232 32 ||FY 2016-17 and FY 2017-18 ||Joint Commissioner Special Circle Patna |
| ||Dispute regarding applicable rate of tax ||86 76 ||79.71 ||FY 2017-18 ||Tax Board Ajmer |
| ||Dispute regarding Valued Added Tax ||59.10 ||59 10 ||FY 2016-17 and FY 2017-18 ||Noida Commercial Tax Tribunal Uttar Pradesh |
| ||Input tax credit disallowed in VAT ||792.21 ||792.21 ||FY 2015-16 ||Appeal pending to filed |
| ||Dispute regarding applicable rate of tax ||249 92 ||226 30 ||FY 2016-17 ||Tax Board Ajmer |
(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to its bankers or to its financialinstitutions or debenture holders. The Company does not have any loans or borrowings fromGovernment.
(ix) In our opinion and according to the information and explanations given to us themoneys raised through term loans and private placement of debentures by the Company havebeen applied for the purpose for which they were raised.
(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of such case by theManagement.
(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company as prescribed under Section 406 of the Act. Accordinglyparagraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards.
(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3 (xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions within the meaning of Section 192 of the Act with directors or personsconnected with him. Accordingly paragraph 3(xv) of the Order is not applicable.
(xvi) According to the information and explanations given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.Accordingly paragraph 3(xvi) of the Order is not applicable.
Annexure B to the Independent Auditors' Report on the standalone financial statementsof G R Infraprojects Limited for the year ended 31 March 2021
Report on the internal financial controls with reference to the aforesaid standalonefinancial statements under Clause (i) of Sub-section 3 of Section 143 of the CompaniesAct 2013 ("the Act")
(Referred to in paragraph l(A)(f) under Report on Other Legal and RegulatoryRequirements' section of our report of even date)
We have audited the internal financial controls with reference to financial statementsof G R Infraprojects Limited ("the Company") as of 31 March 2021 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.
In our opinion the Company has in all material respects adequate internal financialcontrols with reference to financial statements and such internal financial controls wereoperating effectively as at 31 March 2021 based on the internal controls with referenceto financial statements 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 (the "Guidance Note").
Management's Responsibility for Internal Financial Controls
The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal financial control withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note. 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 (hereinafter referred to as"the Act").
Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing specified underSection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols with reference to financial statements. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements were established and maintained and whether such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financial controls assessingthe risk that a material weakness exists and testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the Auditor's 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 and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls withreference to financial statements.
Meaning of Internal Financial Controls with Reference to Financial Statements
A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls with Reference to FinancialStatements
Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.
| ||For B S R & Associates LLP |
| ||Chartered Accountants |
| ||Firm's registration number: 116231W/W-100024 |
| ||Jeyur Shah |
| ||Partner |
|Place : Ahmedabad ||Membership No. 045754 |
|Date : 02 June 2021 ||ICAl UDIN: 21045754AAAACE3738 |