TO THE MEMBERS OF HG INDUSTRIES LIMITED
REPORT ONTHE AUDIT OFTHE FINANCIALSTATEMENTS
We have audited the accompanying financial statements of HG INDUSTRIES LIMITED (FormerlyHimalaya Granites Limited) ('the Company') which comprise the Balance Sheet as at 31March 2022 the Statement of Profit and Loss (including Other Comprehensive Income andNotes to the financial Statements) the Statement of Changes in Equity and the Statementof Cash Flow for the year ended on that date including a summary of significantaccounting policies and other explanatory information ('thefinancial statements').
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 theCompanies Act 2013 ('the Act') in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards prescribed under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended find AS')and other accounting principles generally accepted in India of the state of affairs ofthe Company as at 31 March 2022 the loss and total comprehensive loss changes in equityand its cash flows for the year ended on that date.
BASIS OF OPINION
We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under Section 143(10) of the Act. Our responsibilities underthoseStandards are further described in the auditor's responsibilities for the aud it 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 (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the rules made thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and Code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.
KEY AUDIT MATTERS
Key audit matters are those matters that in our professional judgement were the 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. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.
|Key Audit Matter ||Auditor's Response |
|Deferred Tax Liabilities (Note 11) ||Principal Audit Procedures |
|The Company has recognized deferred tax liabilities (net) of INR 1.33 lacs on the provision for gratuity & leave and netting of deferred tax liability on difference in Written down value of fixed assets as per the Companies Act 2013 and the Income Tax Act 1961. || Evaluated and tested the design and operating effectiveness of the Company's controls over recognition and assessment of recoverability of deferred tax assets on Business loss and unabsorbed depreciation. |
|The deferred tax asset is recognised as it is considered to be recoverable based on the Company's projected taxable profits in the forthcoming years considering the stability and improvements in the business conditions and current and likely future state of the industry. Under Indian Accounting Standard 12 Income Taxes the carrying amount of a deferred tax asset is required to be reviewed at the end of each reporting period. The future taxable profit projections involve several key assumptions including past trends expected demand and stability and improvement in the business conditions and current and likely future state of the industry. We considered this a key audit matter as the amount of deferred tax assets is material to the financial statements and significant management judgement is required in assessing its recoverability based on significant assumptions underlying the forecast of future taxable profits. Further recoverability of deferred tax assets depends on the achievement of Company's future business plan. || Reviewed the Company's accounting policy in respect of recognizing deferred tax assets on Business loss and unabsorbed depreciation. |
| || Evaluated whether the business loss and unabsorbed depreciation is legally available to the Company for the period considering the provisions of Income-tax Act 1961. |
| || Reviewed the setoff of carryforward Business loss and unabsorbed depreciation in the past. |
| || Assessed the reasonableness of the assumptions underlying profit projections made by management by reviewing the past trends and relevant economic and industry indicators. |
| || Reviewed the adequacy of disclosures made in the financial statements with regards to deferred taxes. |
| ||Based on the above procedures performed by us we considered the management's assessment of recoverability of deferred tax assets is reasonable. |
INFORMATION OTHERTHAN THE FINANCIALSTATEMENT AND AUDITOR'S REPORTTHEREON
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis; Board's Report including Annexure to Board's Report but does notinclude the financial statements and our auditor's report thereon. The other informationis expected to be made available to us after the date of this auditor's report.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.
When we read the other information identified above if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance and take necessary action as applicable under the request laws ®ulations
Reporting under this section is not applicable as no other information is obtained atthe date of this auditor's report
RESPONSIBILITY OF MANAGEMENT AND THOSE CHARGE WITH GOVERNANCE FORTHEFINANCIALSTATEMENT
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance total comprehensiveloss changes in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including specified under section 133 of the Actread with relevant rules issued there under. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgements and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
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 are responsible for overseeing the Company's financial reportingprocess.
AUDITOR'S RESPONSIBILITY FORTHE AUDITOFTHE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurances about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel 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 judgement andmaintain professional skepticism throughout the audit. We also
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act 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.
Evaluate the appropriateness of accounting policies used and reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that 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.
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.
Materiality is the magnitude of misstatements in the standalone financialstatements that individually or in the aggregate make it probable that the economicdecisions of a reasonably knowledgeable user of the standalone financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatement in 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 significant in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter 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 benefits of such communications.
REPORTON OTHER LEGALAND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the "Annexure A" a statement on the matters specified in paragraphs 3 and 4of the Order to the extent applicable.
2. As required by Section 143 (3) of the Act based on our audit 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 the law have been kept bythe Company so far as it appears from ourexamination ofthose books.
c The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the relevant books of account.
(d) In our opinion the aforesaid financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with relevant rulesissued there under.
(e) On the basis of the written representations received from the directors as on 31March 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31stMarch 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 as amended inour opinion and to the best of our information and according to the explanationsgiven tous:
i. There were no pending litigations which would impact the financial position in itsfinancial statements;
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv. (a) The Management has represented that to the best of its knowledge and beliefno funds (which are material either individually or in the aggregate) have been advancedor loaned or invested (eitherfrom borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentity ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;
(b) The Management has represented that to the best of its knowledge and belief nofunds (which are materia I either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement.
(h) The company has not declared or paid any dividend during the year in contraventionof the provision of Section 123 of the Companies Act 2013.
(i) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.
| ||For S.P.Shaw & Co. |
| ||Chartered Accountants |
| ||ICAI Firm Reg. No. 314229E |
|Place of Signature : Kolkata ||(S P Shaw) |
| ||Partner |
| ||Dated : 26th May 2022 |
| ||Membership No. 051927 |
| ||UDIN: 22051927AJQGXI2557 |
Annexure A'to the Independent Auditor's Report
(Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirements' section of our report to the members of even date) we report that
i In respect of the Company's Property Plant and Equipment (PPE) and Intangible:
a) (A) The Company has maintained proper records showing full particulars includingquantitative details and situation of PPE & relevant details of right to use assets.
(B) The Company has maintained proper records showing full particulars of intangibleassets.
b) According to the information and explanation provided to us the Property Plant& Equipment and right to use assets have been physically verified by the managementaccording to designed process to cover all the items every year which in our opinion isreasonable having regard to the size of the Company and the nature of its Assets. Thediscrepancies noticed on such physical verification had been properly dealt with in thebooks of account.
c) According to the information and explanation given to us and based on ourexamination of records we report that the title deeds of all immovable propertiesdisclosed in the financial statements included under Property Plant and Equipment (otherthan properties where the company is the lessee and the lease agreements are duly executedin favour of the lessee) are held in the name of the Company as at the balance sheet date.
d) According to the information and explanation given to us and based on ourexamination of records the Company has not revalued any of its Property Plant andEquipment (including right- of-use assets) and intangible assets during the year.
e) According to the information and explanation given to us and based on ourexamination of records no proceedings have been initiated during the year or are pendingagainst the Company as at March 312022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.
ii. a) The company does not hold any physical inventories. Hence clause 3(ii) of theOrder is not applicable.
b) According to the information and explanation given to us and based on ourexamination of records the company has been sanctioned working capital (i.e overdraftfacilities) in excess of five crore rupees in aggregate from banks or financialinstitutions on the basis of security of current assets. The returns filed at quarter endfiled with bank are in agreement with books of accounts of company.
iii. In our opinion and according to the information and explanations given to usduring the year the Company has not made any investments. Also it has not provided anyguarantee or security or granted any loans or advances in the nature of loans secured orunsecured to companies firms. Limited Liability Partnerships or any other parties.Accordingly reporting under clause 3 (iii) (a) 3(iii) (c) to 3 (iii) (f) of the Orderare not applicable.
iv. According to the information and explanations given to us the Company has notgiven any loan or guarantee or provided any security covered under section 185 of theCompanies Act 2013. The company has complied with the provisions of section 186 of thecompanies act 2013 in respect of the investments made.
v. According to the information and explanations given to us during the year theCompany has neither accepted any deposits from the public nor any deposits are outstandingduring the year. There are no deemed deposits under the provisions of Companies Act 2013and rules thereunder. Accordingly the provisions of clause 3 (v) of the Order are notapplicable to the Company.
vi. According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under section 148(1) of the Act for thebusiness activities carried out by the Company. Accordingly reporting under clause 3(vi)of the Order is not applicable to the Company.
vii. (a) According to the information and explanations given to us and on the basis ofour examination of records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income-tax. Goods and Services Tax cess and other material statutory dues havebeen generally regular in depositing during the year by the Company with the appropriateauthorities.
(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax goods andservice tax cess and other material statutory dues were in arrears as at 31st March 2022for a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us and on the basis of ourexamination of records of the Company there were no dues outstanding of income-tax goodsand service tax value added tax sales tax service tax duty of custom and cess onaccount of any dispute.
viii. There were no transactions relating to previously unrecorded income that havebeen surrendered or disclosed as income during the year in the tax assessments under theIncome Tax Act 1961 (43 of 1961). Hence reporting under clause 3(viii) of the Order isnot applicable.
ix. a) According to the records examined by us and the information and explanationgiven to us the Company does not have any loans or borrowings from any financialinstitution banks government or debenture holders during the year. Accordinglyreporting under clause 3(ix)(a)(c)(d)(e)(f) of the Order is not applicable to theCompany.
b) Based on the information and explanations obtained by us the Company has not beendeclared willful defaulter by any bank or financial institution or other lender.
x. a) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) or term loans during the year. Accordinglyreporting under clause (x) of the Order is not applicable to the Company.
b) According to the information and explanation given to us and based on ourexamination of records the company has not made any preferential allotment or privateplacement of shares Duringthe financial year companies has issued non - Convertibledebentures as per the requirements of section 42 and section 62 of the Companies Act 2013have been complied with and the funds raised have been used for the purposes for which thefunds were raised.
xi. (a) According to the information and explanations given to us no fraud by theCompany or no material fraud on the Company by its officers or employees has been noticedor reported during the year.
(b) According to the information and explanation given to us and based on ourexamination of records no report under sub-section (12) of section 143 of the CompaniesAct has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government during the year and up to the date ofthis report.
(c) We have been informed that there is no whistle blower complaint received by theCompany during the year (and up to the date of this report) while determining the naturetiming and extent of our audit procedures. Accordingly the reporting under the clause3(xi) of the Order is not applicable.
xii. The company is not Nidhi Company. Accordingly Clause (xii)(a) (xii)(b) and(xii)(c) of Para 3 of the order is not applicable to the Company.
xiii. In our opinion the Company is in compliance with Section 177 and 188 of theCompanies Act 2013 with respect to applicable transactions with the related parties andthe details of related party transactions have been disclosed in the standalone financialstatements as required by the applicable Ind AS. (Refer Note No. 29 to the financialstatements).
xiv. (a) According to the information and explanation given to us and based on ourexamination of records in our opinion the Company has an adequate internal audit systemcommensurate with the size 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 of our report in determining the nature timingand extent of our audit procedures.
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 with directors or persons connected with him. Accordingly clause 3(xv) ofthe Order is not applicable.
xvi. (a) The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934 (2 of 1934). Accordingly the provisions of the clause3(xvi)(a) of the Order are not applicable to the company.
(b) According to the information and explanations given to us and based on ourexamination of the records the Company has not conducted any Non-Banking Financial orHousing Finance activities. Accordingly paragraph 3(xvi)(b) of the Order is notapplicable.
(c) According to the information and explanations given to us and based on ourexamination of the records the Company is not a Core Investment Company (CIC) as definedin the regulations made by the Reserve Bank of India accordingly paragraph 3(xvi)(c) ofthe Order is not applicable.
(d) According to the information and explanations given to us and based on ourexamination of the records there is no core investment company within the Group (asdefined in the Core Investment Companies (Reserve Bank) Directions 2016) and accordinglyreporting under clause 3(xvi)(d)ofthe Order is not applicable.
xvii. The Company has not incurred cash losses during the financial year covered by ouraudit and the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors during the yearaccordingly reporting under clause 3(xviii) of the Order is not applicable.
xix. On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.
xx. According to the information and explanations given to us (a) There are no unspentamounts towards Corporate Social Responsibility (CSR) on ongoing or other than ongoingprojects requiring a transfer to a Fund specified in Schedule VII to the Companies Act incompliance with second proviso to sub-section (5) of Section 135 of the said Act.Accordingly reporting under clause 3(xx)(a) and 3(xx)(b) of the Order is not applicablefor theyear.
| ||For S.P.Shaw & Co. |
| ||Chartered Accountants |
| ||ICAI Firm Reg. No. 314229E |
| ||(S P Shaw) |
|Place of Signature : Kolkata ||Partner |
|Dated : 26h May 2022 ||Membership No. 051927 |
| ||UDIN: 22051927AJQGXI2557 |
Annexure B' to the Independent Auditor's Report
(Referred to in paragraph 2(f) of our report of even date)
Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of HGIndustries Limited ('the Company') as of 31 March 2022 in conjunction with our audit ofthe financial statements of the Company for the year ended on that date.
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 2022 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 (the "Guidance Note").
MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting('the Guidance Note') issued by the Institute of Chartered Accountants of India ('ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing as specified under Section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls both applicableto an audit of Internal Financial Controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the 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 internal financial controls system withreference to financial statement.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A Company's internal financial control with reference to financial statement 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 control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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.
INHERENT LIMITATIONSOF INTERNAL FINANCIAL CONTROLS OVER FINANCIALREPORTING
Because of the inherent limitations of internal financial controls with reference tofinancial statement 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 controlsoverfinancial reporting to future periods are subject to the risk that the internalfinancial control over financial reporting may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.
| ||For S.P.Shaw & Co. |
| ||Chartered Accountants |
| ||ICAI Firm Reg. No. 314229E |
|Place of Signature : Kolkata ||(S P Shaw) |
|Dated : 26th May 2022 ||Partner |
| ||Membership No. 051927 |
|Annual Report 2021-22 ||UDIN: 22051927AJQGXI2557 |