To the members of The KCP Limited Chennai Report on StandaloneFinancial Statements:
We have audited the accompanying financial statements of THE KCPLIMITED ("the company") which comprise the Balance Sheet as at March 31 2022the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date and asummary of the significant accounting policies and other explanatory information (hereinafter referred to as "the Standalone financial statements").
In our opinion and to the best of our information and according to theexplanations given to us the accompanying financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standard) Rules2015 as amended ("Ind AS") and other accounting principles generally acceptedin India of the state of affairs of the Company as at March 312022 and its profit andtotal comprehensive income changes in equity and its cash flows for the year ended onthat date.
Basis for Opinion
We conducted our audit of the financial statements in accordance withthe Standards on Auditing (SAs) specified under Section 143(10) of the Act. Ourresponsibilities under those standards are further described in the Auditor?sresponsibility for the Audit of Financial Statements section of our report. We areindependent of the company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (ICAI) together with the ethical requirements that arerelevant to our audit of financial statements under the provisions of the Act and theRules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI?s code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the financial statements.
Key Audit Matters
Key Audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined that there are no key audit mattersto communicate in our report.
Information Other than the Standalone Financial Statements andAuditor?s Report Thereon
The Company?s Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board?s Report includingAnnexures to Board?s Report Business Responsibility Report Corporate Governance andShareholder?s Information but does not include the standalone financial statementsand our auditor?s report thereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard
Management?s Responsibility for the Standalone FinancialStatements:
The Company?s Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows and changes in equity of the Company in accordance with the IndianAccounting
Standards (Ind AS) prescribed under Section 133 of the Companies Act2013 read with relevant rules issued there under and other accounting principles generallyaccepted in India.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of thecompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofstandalone Ind AS financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the Standalone financial statements the Board ofDirectors is responsible for assessing the company?s ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the Board of Directors either intends to liquidate thecompany or to cease operations or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing theCompany?s financial reporting process.
Auditor?s Responsibility for the Audit of the Standalone FinancialStatements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor?s report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management?s use of thegoing 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 auditor?sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor?s report. However future events orconditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor?s report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor?s Report)Order2020("the Order") issued by the Central Government of India in terms ofsub-section (11) of section 143 of the Act we give in the Annexure A a statement on thematters specified in the paragraph 3 and 4 of the Order to the extent applicable.
2) As required by Section 143(3) of the Companies Act2013 we reportthat:
a) we have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;
b) in our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;
c) the Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income Statement of Changes in Equity and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account;
d) in our opinion the aforesaid financial statements comply with theIndian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act2013 read with Rule 7 of Companies (Accounts) Rules 2014;
e) on the basis of written representations received from the directorsas on 31st March 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 internal financial controls withreference to financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate report in "Annexure B" Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the company?sinternal financial controls with reference to financial statements;
g) With respect to Managerial Remuneration to be included in theAuditor?s report under Section 197(16) In our opinion and according to theinformation and explanations given to us the remuneration paid by the Company to itsdirectors during the year is in accordance with the provisions of Section 197 of the Act.The remuneration paid to any director is not in excess of the limit laid down underSection 197 of the Act. The Ministry of Corporate Affairs has not prescribed other detailsunder Section 197(16) which are required to be commented upon by us.
h) With respect to the other matters to be included in theAuditor?s report in accordance with Rule 11 of the Companies (Audit andAuditor?s) Rules 2014 as amended in our opinion and to the best of our informationand according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind AS financial statements - Refer Note 37 to thestandalone Ind AS financial statements;
ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long termcontracts but did not have derivative contractsRefer Note 52 to the Ind AS financialstatements
iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that to the best of itsknowledge and belief no funds (which are material either individually or in theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material misstatement.
v. a) Dividend of the previous year declared and paid by the Companyduring the year is in accordance with Section 123 of the Act as applicable.
b) The Board of Directors of the Company have proposed dividend Rupee 1per share for the year which is subject to the approval of the members at the ensuingAnnual General Meeting. The dividend proposed is in accordance with section 123 of theAct as applicable. ( Refer Note No 53 Notes to accounts of Standalone FinancialStatements)
Annexure A to the Independent Auditor?s Report (Referred to inparagraph 1 of our Report on Other Legal and Regulatory Requirements? sectionto the Members of The KCP LIMITED of even date) We report that:
In respect of the Company?s Property Plant and Equipment andIntangible Assets
i)(a) A) The company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant and Equipmentand relevant details of right-of-use assets.
B) The company has maintained proper records showing full particularsof intangible assets.
i)(b) The Property Plant and Equipment and right-of-use assets arephysically verified by the management according to a phased program designed to cover allthe items over a period of three years which in our opinion is reasonable having regardto the size of the company and the nature of its assets.
Pursuant to the program during the year under report the managementhas physically verified its Property Plant and Equipment and no material discrepancieshave been noticed on such verification.
i)(c) Based on our examination of the property tax receipts leaseagreements for land and registered sale deed/transfer deed/ conveyance deed in respect ofFree hold lands on which buildings were constructed provided to us we report that thetitle in respect of self-constructed buildings and title deeds of all other immovableproperties (other than properties where the company is the lessee and the lease agreementsare duly executed in favour of the lessee) disclosed in the financial statements includedunder Property Plant and Equipment are held in the name of the Company as at the balancesheet date except the following (Refer note No. 2 of Standalone Financial Statements)
|Description of property ||Gross carrying value ||Held in name of ||Whether promoter director or their relative or employee ||Period Held ||Reason for not being held in the name of company |
|Building situated at Flat No.406 4th floor Ansol Chamber-2 New Delhi ||Rs.1.67 Lakhs ||- ||No ||1986 to till date ||Pending for registration. |
|Land Survey No.1027/3 Extent 25cents in Macherla ||Rs.180/- ||- ||No ||1958 to till date ||Land registered by District civil court Gurajala mentioning survey no.1026/B2 instead of 1027/3 |
i)d) The company has not revalued any Property Plant & Equipment(including right-of-use assets) and intangible assets during the year and hence reportingunder this clause is not applicable to that extent.
i)e) No proceedings have been initiated during the year or are pendingagainst the Company as at March 31 2022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.
ii)a) The inventory has been physically verified by the managementunder a perpetual verification system which is focused on the verification of all highvalue items during the year and other items over a period of two years. During suchverification the discrepancies noticed as compared to book records have been properlydealt with in the books of account. The discrepancies in each class of inventory does notexceed 10% of aggregate of each class of inventory.
ii) b) The company has been sanctioned working capital limits in excessof Rs. 5 crore in aggregate from banks or financial institutions on the basis of securityof current assets and the quarterly returns filed by the company are in agreement with thebooks of accounts except (Refer Note No. 55) in respect of age-wise schedule of tradereceivables in one segment of the Company where there were certain variations inclassification of ageing during the period from April?21 to October?21 thoughover-all outstanding of the trade receivables were correct.
iii) During the year the Company has not made investments in grantedany loans or advance in the nature of loans guarantee or security secured or unsecuredto companies firms Limited Liability Partnerships or other parties. Therefore theprovisions of clause 3(iii)(a) 3(iii) (b) 3(iii)(c) 3(iii)(d) 3(iii)(e) & 3(iii)fof the said Order are not applicable for the year under report.
iv) In our opinion and according to the information and explanationsgiven to us the company has not granted any loans guarantees and security in accordancewith the provisions of section 185 of the Companies Act 2013. The company has compliedwith the provisions of Section 186 of the Companies Act 2013 in respect of investmentsmade by the company.
v) In our opinion the company has complied with the provisions ofsection 73 to 76 and other applicable provisions of the Companies Act 2013 and Companies(Acceptance of Deposits) Rules 2014 with regard to the deposits accepted from the publicor amounts which are deemed to be deposits. According to the information furnished to usno Order has been passed on the company by the Company Law Board or National Company LawTribunal or Reserve Bank of India or any Court or any other Tribunal for non-compliancewith the provisions of Sections 73 to 76 of the Companies Act 2013.
vi) We have broadly reviewed the books of account and recordsmaintained by the company at its cement engineering and electric power generation unitspursuant to the Rules made by the Central Government for the maintenance of Cost Recordsunder section 148(1) of the Companies Act 2013 and we are of the opinion that prima faciethe prescribed accounts and records have been made and maintained.
vii) (a) According to the information and explanations given to us andon the basis of our examination of the records of the company in our opinion the companyis regular in depositing with the appropriate authorities the undisputed statutory duesincluding Provident Fund Employees? State Insurance Income Tax Sales Tax Goodsand Service Tax Service Tax duty of Customs duty of Excise Value added tax Cess andother statutory dues applicable to it; and
According to the information and explanations given to us noundisputed amounts payable in respect of Provident Fund Income Tax Sales Tax Goods andService Tax Service Tax duty of customs duty of Excise value added tax cess and otherstatutory dues were in arrears as at March 31 2022 for a period of more than six monthsfrom the date they became payable.
(b) According to the information and explanations given to us therewere no amounts of Sales Tax duty of Customs Goods and Service Tax duty of ExciseCess Income Tax Service Tax Provident fund Employee State Insurance Value added taxand other statutory dues applicable to it that have been disputed by the company andhence were not remitted to the concerned authorities at the date of the Balance Sheetunder report except the dues mentioned hereunder
|No. Nature of dues ||Name of the statute ||Period ||Amount in Rs. Lakhs ||Amount paid under protest (Rs. in Lakhs) ||Forum where the dispute is pending |
|1 Excise duty and related demands ||Central Excise Act 1944 ||1996- 2017 ||1544.39 ||0 ||At various Appellate forums |
|2 Sales tax and related demands ||AP Sales Tax Act 1957 ||1996- 2001 and 2011-12 ||4744.29 ||92.56 ||AP High Court |
|3 Sales tax and related demands ||Tamilnadu Sales Tax Act ||2015-16 ||6.87 ||6.87 ||Addl. Commissioner of Commercial taxes |
|4 GST ||CGST Act2017 ||2017-18 and 2018- 19 ||200.97 ||11.76 ||Deputy Commissioner of CT & GST |
|5 State Load Despatch Centre charges ||AP Electricity Duty Act 1938 ||2010-11 ||35.51 ||0 ||Hon?ble High Court of Andhra Pradesh |
viii) There were no transactions relating to previously unrecordedincome that have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961. Hence reporting under clause 3(viii) is notapplicable.
ix) (a) According to the records of the company examined by us and theinformation and explanations given to us there were no defaults in repayment of loans orother borrowings or in the payment of interest thereon to any lender during the year underreport.
(b) The company has not been declared wilful defaulter by any bank orfinancial institution or other lender.
(c) The Company has not raised any new term loans during the year. Theterm loans outstanding at the beginning of the year were applied for the purpose for whichthey were taken.
(d) On an overall examination of the financial statements of theCompany funds raised on short-term basis have prima facie not been used during the yearfor long-term purposes by the Company.
(e) On an overall examination of the financial statements of thecompany the company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries associates or joint ventures.
(f) The company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries associate or joint venture. Hence the reporting onclause 3(ix)(f) of the Order is not applicable.
x) (a) The Company has not raised moneys by way of initial public offeror further public offer (including debt instruments) during the year and hence reportingunder clause 3(x)(a) of the Order is not applicable.
(b) During the year the Company has not made any preferentialallotment or private placement of shares or convertible debentures (fully or partly oroptionally) and hence reporting under clause 3(x)(b) of the Order is not applicable.
xi) (a) No fraud by the company and no material fraud on the companyhas been noticed or reported during the year.
(b) 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 taken into consideration the whistle blower complaintsreceived by the Company during the year (and up to the date of this report) whiledetermining the nature timing and extent of our audit procedures.
xii) The company is not a Nidhi Company and hence reporting underclause 3(xii) of the Order is not applicable.
xiii) In our opinion the Company is in compliance with section 177 and188 of the Companies Act 2013 with respect to applicable transactions with the relatedparties and the details of related party transactions have been disclosed in thestandalone financial statements as required by the applicable accounting standards.
xiv) (a) In our opinion the company has an adequate internal auditsystem commensurate with the size and the nature of its business.
(b) We have considered the internal audit reports for the year underaudit issued to the Company during the year and till date in determining the naturetiming and extent of our audit procedures.
xv) In our opinion during the year the company has not entered intonon-cash transactions with directors or persons connected with its directors and henceprovisions of section 192 of the Companies Act 2013 are not applicable to the Company.
xvi) (a) In our opinion the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause3(xvi)(a) (b) ad (c) of the Order is not applicable.
(b) In our opinion there is no core investment company within theGroup (as defined in the Core Investment Companies (Reserve Bank) Directions 2016 andaccordingly reporting under 3(xvi)(d) of the Order is not applicable.
xvii) The Company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.
xviii) There has been no resignation of the statutory auditors of theCompany during the year.
xix) On the basis of the financial ratios ageing and expected dates ofrealisation of financial assets and payment of financial liabilities other informationaccompanying the financial statements the auditor?s knowledge of the Board ofDirectors and management plans and based on our examination of the evidence supporting theassumptions nothing has come to our attention which causes us to believe that anymaterial uncertainty exists as on the date of the audit report indicating that company isnot capable of meeting its liabilities existing at the date of balance sheet as and whenthey fall due within a period of one year from the balance sheet date. We however statethat this is not an assurance as to the future viability of the Company. We further statethat our reporting is based on the facts up to the date of the audit report and we neithergive any guarantee nor any assurance that all liabilities falling due within a period ofone year from the balance sheet date will get discharged by the Company as and when theyfall due.
xx) (a) There are no unspent amounts towards
Corporate Social Responsibility (CSR) on other than ongoing projectsrequiring 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) of the Order is not applicable for the year.
(b) There are no ongoing projects and hence no unspent amount requiredto be transferred to special account in compliance with the provision of sub-section 6 ofsection 135 of the Companies Act 2013.
Annexure - B to the Independent Auditors? Report
(Referred to in paragraph 2 (f) under Report on Other Legal andRegulatory Requirements? section of our report to the Members of The KCP LIMITED ofeven date)
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls with reference tofinancial statements of The KCP Limited ("the Company") as of March312022 in conjunction with our audit of the standalone Ind AS financial statements of theCompany for the year ended on that date.
Management?s Responsibility for Internal Financial Controls
The Company?s management is responsible for establishing andmaintaining internal financial controls based on the internal control with reference tofinancial 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 (ICAI?). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany?s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company?sinternal financial controls with reference to financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls over Financial Reporting (the "Guidance Note") and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. 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 with reference tofinancial statements was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system with reference to financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to financial statements included obtaining an understanding of internalfinancial controls with reference to financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor?s judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company?s internalfinancial controls system with reference to financial statements.
Meaning of Internal Financial Controls with reference to FinancialStatements
A company?s internal financial control with reference to financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company?s internalfinancial control with reference to financial statements includes those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)
provide reasonable assurance regarding prevention or timely detectionof unauthorised acquisition use or disposition of the company?s assets that couldhave a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference toFinancial Statements
Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial Statements to future periods are subject to the riskthat the internal financial control with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system with reference to financial statements and suchinternal financial controls with reference to financial statements were operatingeffectively as at March 31 2022 based on the internal control 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.
| ||for K.S.RAO & CO |
| ||Chartered Accountants |
| ||Firm Regn.No.003109S |
| ||(P.GOVARDHANA REDDY) |
| ||Partner |
|Place : Chennai ||Membership No. 029193 |
|Date: May 18 2022 ||UDIN220229193AJRMZA2175 |