To the Members of
Kanishk Steel Industries Limited
Report on the Audit of the Financial Statements
We have audited the accompanying financial statements of Kanishk Steel IndustriesLimited (the Company') which comprise the Balance Sheet as at March 312022 theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and notes to thefinancial statements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "financial statements").
In our opinion and to the best of our information and according to the explanationsgiven to us the afore said financial statements give the information required by theCompanies Act 2013 (the Act') in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India includingIndian Accounting Standards (Ind AS') specified under Section 133 of the Act of thestate of affairs of the Company as at March 312022 and its profit including othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Our responsibilities under thosestandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI') together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Companies Act 2013 and the rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on the Financialstatements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Financial Statements of the current period. These matterswere addressed in the context of our audit of the Financial Statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.For each matter below our description of how our audit addressed the matter is providedin that context.
We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the Financial Statements section of ourreport including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the Financial Statements. The results of our audit procedures includingthe procedures performed to address the matters below provide the basis for our auditopinion on the accompanying Financial Statements :
|Key audit matters ||How the matter was addressed in our audit |
|Verification of Inventory and Valuation there of ||Our Audit procedures based on which we arrived at the conclusion regarding reasonableness of determination of year-end inventory and valuation thereof include the following: |
|The total inventory of the Companyamounting to ^6252.71 Lakhs (as on March 31 2022) forms about 44.83% of the total assets of the Company.This includes bulk materials such as MS Scrap Billets Steel Scrap etc. which are susceptible to handling loss spillage etc. and determination of the same requires estimation based on experience and technical expertise. || We have applied alternative methods of verification for arriving at Inventories as at the year-end by applying roll back principles and carrying out relevant adjustments for receipt and issues. Materiality for variations discrepancies after considering the reasonable allowance for volumetric measurement were duly adjusted with respect to subsequent move ments and discrepancies and adjustments pursuant to last such verification carried out. |
| || While necessary review and other corroborative evidences were obtained and verified professional expert's report and conclusions drawn by them on the matter |
| || We have verified the adjustments made for receipt and consumption to arrive at the physical stock as on March 312022; and |
| || We examined the valuation process / methodology and checks being performed at multiple levels to ensure that the valuation is consistent with and as per the policy followed in this respect. |
Information Other than the Financial Statements and Auditors' Report Thereon
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe standalone financial statements and our auditor's report thereon. The Annual report isexpected to be made available to us after the date of this auditor's report.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance (or) 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. If based on the workwe have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.
Responsibilities of Management for the Financial Statements and those charged withgovernance for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Financial statements that give a true and fair view of the state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) changes in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Ind AS specified under Section 133of the Act read with Companies (Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Financial statementsthat givea true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the Financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of Financial statements:
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance withStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Financial statements.
As part of an audit in accordance with Standards on Auditing we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
o Identify andassess the risksof material misstatement of the Financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control; o Obtainan understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Actwe are also responsible for explaining our opinion on whether the Company has adequateinternal financial controls system in place and the operating effectiveness of suchcontrols;
o Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management;
o Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern; and
o Evaluate the overall presentation structure and content of the Financial Statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonablyknowledgeable user of the financial statementsmay be influenced. We consider quantitativemateriality and qualitative factors in (i) planning the scope of our audit work and inevaluating the results of our work; and (ii) to evaluate the effect of any identifiedmisstatements in the financial 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 theFinancial Statements for thefinancial year ended March 312022 and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould 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) Order 2020 (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 4 of theOrder.
2. As required by Section 143(3) of the Act 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 purpose of our audit;
b) in our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;
c) the balance sheet the statement of profit and loss (including other comprehensiveincome) the cash flow statement and the statement of changes in equity dealt with by thisreport are in agreement with the books of account;
d) in our opinion the aforesaid financial statements comply with Accounting Standardsspecified under Section 133 of the Act;
e) on the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on March 312022 from being appointed as a director in terms of Section 164(2) of the Act;
f) with respect to the adequacy of the internal financial controls over financialreporting of the company with reference these Financial statements and the operatingeffectiveness of such controls refer to our report as per "Annexure B" to thisreport. Our report expresses an unmodified opinion on the adequacy and operatingeffectiveness of the Company's internal control with reference to financial statements.
g) In our opinion the managerial remuneration for the year ended March 312022 hasbeen paid/ provided by the company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act;
h) 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 explanations given tous:
i. The Company has disclosed the impact of pending litigations on its financialposition in its Financial statements- Refer Note 33 to the Financial statements
ii. the Company has made provision as required under the applicable law or Ind AS formaterial fore see able losses if any on long-term contracts including derivativecontracts;
iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March312022;
iv. a) The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been advanced orloaned or invested (either from borrowed funds or share premium or other sources or kindof funds) by the Company to or in any other person or entity including foreign entity("intermediaries") with the understanding whether recorded in writing orotherwise that the intermediary shall directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the Company("ultimate beneficiaries") or provide any guarantee security or the like onbehalf of the ultimate beneficiaries;
b) The Management has represented that to the best of its knowledge and belief nofunds (which are material 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 (a) and (b) contain any material misstatement.
v. During the year the Company has not paid or declared dividend accordinglycompliance of provisions of section 123 are not applicable.
Annexure A to the Independent Auditor's Report of even date to the members of KanishkSteel Industries Limited on the Financial Statements for the year ended March 312022
With reference to Annexure A referred in paragraph 1 in Report on Other Legal andRegulatory Requirements of the Independent Auditors' Report of even date to the members ofthe Company on the financial statements for the year ended March 312022 we report that:
(i) (a) (A) According to the information and explanations given to us and the recordsof the
Company examined by us in our opinion the Company has maintained proper recordsshowing full particulars including quantitative details and situation of Property Plantand Equipment.
(B) According to the information and explanation given to us the Company does not haveany intangible assets. Therefore Clause (i)(a)(B) of the order is not applicable.
(b) According to the information and explanation given to us and basis of ourexamination of the records of the company the Company has a regular program of physicallyverifying all the Property Plant and Equipment at its plants / offices in a phased mannerover a period of three years which in our opinion is reasonable having regard to the sizeof the company and the nature of its assets. No material discrepancies as compared to bookrecords were noticed on such verification.
(c) According to the information and explanation given to us and the records examinedby us and based on examination of the registered sale deed / transfer deed/ conveyancedeed provided to us we report that title deed of free hold land are held in the name ofthe company as at the balance sheet date. In respect of immovable property of land thathave been taken on lease and disclosed as property plant and equipment in the financialstatements the lease agreements are in the name of the company where the company islessee in the agreement.
(d) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not revalued its PropertyPlant and Equipment (including Right of Use assets) or intangible assets or both duringthe year.
(e) According to information and explanations given to us and on the basis of ourexamination of the records of the Company there are no proceedings initiated or pendingagainst the Company for holding any benami property under the Prohibition of BenamiProperty Transactions Act 1988 and rules made there under.
(ii) (a) As informed the inventories of the Company except for materials in transithave been physically verified at reasonable intervals by the management during the year.In our opinion and according to the information and explanations given to us thefrequency of such verification is reasonable and no material discrepancies were noticed.
(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has been sanctioned working capitallimits in excess of five crore rupees in aggregate from banks or financial institutionson the basis of security of current assets. In our opinion the quarterly returns orstatements filed by the Company with such banks or financial institutions are in agreementwith the books of account of the Company.
(iii) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any i nvestmentsprovided guarantee or security or granted any loans or advances in the nature of loanssecured or unsecured to companies firms limited liability partnerships or any otherparties during the year. Accordingly provisions of clauses 3(iii)(a) to 3(iii)(f) of theOrder are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013with respect of loans and investments and providing guarantees and securities asapplicable.
(v) According to the information and explanation given to us the Company has notaccepted any deposits from the public to which the directives issued by the Reserve Bankof India and the provisions of section 73 to 76 or any other relevant provisions of theact and the Companies (Acceptance of Deposits) Rule 2014 as amended would apply.Accordingly paragraph 3(v) is not applicable to the company.
(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersubsection (1) of Section 148 of the Act in respect of Company's products and services andare of the opinion that prima facie the prescribed accounts and records have been madeand maintained. However we have not made a detailed examination of the cost records witha view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us the Company isregular in depositing undisputed statutory dues including provident fund employees' stateinsurance income-tax duty of customs goods and service tax cess and other materialstatutory dues as applicable with the appropriate authorities. Further no undisputedamounts payable in respect thereof were outstanding at the year-end for a period of morethan six months from the date they became payable.
(b) The dues outstanding in respect of income-tax salestax duty of customs duty ofexcise and value added tax on account of any dispute are as follows:
|Statute Name ||Nature of dues ||Amount in Rs. ||Forum where dispute is pending |
|Central Excise Law ||Dispute relating to re-fixation of Annual capacity ||Rs.900000 Plus equal amount of penalty Rs.900000 Plus interest thereon. ||Hon'ble High Court of Madras. |
|Income tax Act 1961 ||Income Tax ||Rs. 603.70 Lakhs ||The CIT Appeals Chennai |
|Income tax Act 1961 ||TDS ||Rs. 2.87 Lakhs ||Assessing Officer |
(viii) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has not surrendered ordisclosed any transactions previously unrecorded as income in the books of account inthe tax assessments under the Income Tax Act 1961 as income during the year.
(ix) On the basis of verification of records on an overall examination of thefinancial statements of the Company and according to the information and explanationsgiven to us
(a) The Company has not defaulted in repayment of loans or other borrowings or in thepayment of interest thereon to any lender
(b) The Company is not declared as willful defaulter by any bank or financialinstitution or other lender.
(c) In our opinion and according to the information and explanations given to us by themanagement no term loans were obtained. Accordingly clause 3(ix)(c) is not applicable.
(d) According to the information and explanations givento us and the proceduresperformed by us and on an overall examination of the financial statements of the Companythe Company has not utilized funds raised on short-term basis for long-term purposes.
(e) According to the information and explanation givento us and on overall examinationof the financial statements of the Company the Company does not hold any investment inany subsidiary associate or joint venture (as defined under Companies Act 2013) duringthe year ended March 312022. Accordingly clause 3 (ix)(e) is not applicable.
(f) According to the information and explanations givento us and based on the recordsof the Company examined by us the Company has not raised loans during the year on thepledge of securities held in its subsidiaries or associate companies. Hence therequirement to report on clause (ix) (f) of the Order is not applicable to the Company.
(x) (a) In our opinion and according to the information and explanations given to usthe company did not raise any money by way of initial public offer or further public offer(including debt instruments) or term loans during the year and therefore clause 3(xa) ofthe Order is not applicable to the Company.
(b) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotmentor privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly provisions of clause 3(xb) of the Order are not applicable.
(xi) (a) Based on examination of the books and records of the Company and according tothe information and explanations given to us no fraud by the Company or on the Companyhas been noticed or reported during the course of the audit.
(b) According to the information and explanations given to us no report undersub-section (12) of Section 143 of the Act has been filed by the auditors in Form ADT-4 asprescribed under rule 13 of Companies (Audit and Auditors) Rules 2014 with the CentralGovernment.
(c) As represented to us by the management there are no whistle blower complaintsreceived by the Company during the year.
(xii) In our opinion and according to the information and explanation given to us theCompany is not a Nidhi Company. Therefore the provisions of clause 3 (xii) of the Orderare not applicable to the Company.
(xiii) In our opinion and according to the information and explanations given to usthe Company is in compliance with Section 188 and 177 of the Companies Act 2013whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the Financial statements.
(xiv) (a) Based on information and explanations provided to us and our auditprocedures in our opinion the Company has an internal audit system commensurate with thesize and nature of its business.
(b) We have considered the internal audit reports of the Company issued till date forthe period under audit.
(xv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him covered under section192 of the Act. Accordinglythe provisions of clause 3 (xv) of the Order are not applicable to the Company.
(xvi) (a) In our opinion the company is not required to be registered under section 45IA of the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3(xvi)(a) of the Order are not applicable to the Company.
(b) In our opinion the company is not a Non-Banking Finance or Housing Finance Companyand accordingly the provisions of clause 3 (xvi) (b) of the Order are not applicable tothe Company.
(c) &(d) In our opinion the company is not a Core Investment Company andaccordingly the provisions of clause 3 (xvi) (c) and (d) of the Order are not applicableto the Company.
(xvii) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not incurred cash losses during the current andpreceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year.Accordingly clause 3 (xviii) of the Order is not applicable.
(xix) On the basis of the financial ratios disclosed in Note 42 to the financialstatements ageing and expected dates of realization of current assets and payment offinancial liabilities other information accompanying the financial statements ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatCompany is not capable of meeting its liabilities existing at the date of balance sheet asand when they fall due within a period of one year from the balance sheet date. Wehowever state that this is not an assurance as to the future viability of the Company. Wefurther state that our reporting is based on the facts up to the date of the audit reportand we neither give any guarantee nor any assurance that all liabilities falling duewithin a period of one year from the balance sheet date will get discharged by theCompany as and when they fall due.
(xx) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the unspent Corporate Social Responsibility(CSR) amount other than ongoing projectsrequired to be spent as at the Balance Sheet datehas not been transferred to Fund specifiedin Schedule VII during the year in compliancewith 2nd Proviso to Section 135(5) of the Act till the date of our report since the timeperiod for such transfer i.e six months from the end of the financial year has not elapsedas on the date of signing of this report. (Refer Note 30 to the financial statements)
|Financial year ||2021-2022 |
|Amount unspent on Corporate Social Responsibility activities "other than On going Projects" ||Z 6.98 Lakhs |
|Amount to be transferred Fund specifiedin Schedule VII within 6months fromthe end of the Financial Year ||Z 6.98 Lakhs |
|AmountTransferredafter the due date ||Nil |
(b) According to the information and explanations givento us and based on the recordsthere are no unspent amounts in respect of on going projects that arerequired to betransferred to a special account incompliance of provision of sub section (6) ofsection135 of Companies Act
(xxi) The Company is not required to prepare consolidated financial statements. Hencereporting under Clause 3(xxi) of the Order is not applicable.
Annexure B to the Independent Auditor's Report of even date to the members of KanishkSteel Industries Limited on the Financial Statements for the year ended March 312022
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 (the "Act")
We have audited the internal financial controls over financial reporting (IFCoFR) ofKanishk Steel Industries Limited (the "Company") as of that date in conjunctionwith our audit of the Financial Statements of the Company for the year ended March312022.
Management's Responsibility for Internal Financial Controls
The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India (ICAI). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of the Company's business including adherence to Company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company's IFCoFR with reference tothese financial statements based on our audit. We conducted our audit in accordance withthe Guidance Note and Standards on Auditing as specified under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of IFCoFR and both issued bythe ICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate IFCoFR with reference to these financial statements was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe IFCoFR with reference to these financial statements and their operating effectiveness.Our audit of IFCoFR included obtaining an understanding of IFCoFR with reference to thesefinancial statementsassessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's IFCoFR with reference to thesefinancial statements.
Meaning of Internal Financial Controls over Financial Reporting with reference to thesefinancial statements
A Company's IFCoFR with reference to these financial statements is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's IFCoFR with reference to these financialstatements includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting withreference to these financial statements
Because of the inherent limitations of IFCoFR with reference to these financialstatements including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the IFCoFR with reference to theseFinancialStatements to future periods are subject to the risk that IFCoFR with referenceto these financial statements may become inadequate because of changes in conditions orthat the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these financial statementsand suchinternal financial controls over financial reporting with reference to these financialstatements were operating effectively as at March 312022 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the ICAI.
| ||For Puja Rathi & Associates Chartered Accountants |
| ||FRN 014457S |
|Date : 27-05-2022 ||Puja Rathi FCA Proprietor |
| ||M. No. 064246 |
|Place : Chennai ||UDIN. : 22064246AJTWBV7137 |