The Members of
Khaitan (India) Limited
Report on the Audit of the Financial Statements
We have audited the accompanying Indian Accounting standard (Ind AS) financialstatement of Khaitan (India) Limited (the "Company") which comprise the BalanceSheet as at 31 March 2021 and the Statement of Profit and Loss (including OtherComprehensive Income) Statement of Changes in Equity and Statement of Cash Flows for theyear then ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information (Financial Statement).
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 andfair view subject to qualification as mention in the basis for qualified opinionparagraph in conformity with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards specified in the Companies (Indian AccountingStandards) Rule 2015 (as amended) under section 133 of the Act of the state of affairsof the Company as at 31 March 2021 and loss (including other comprehensive income)changes in equity and its cash flows for the year ended on that date.
Basis for Qualified Opinion
a) Reference is invited to Note No 46 to the financial statements regarding thenon-operation of sugar mill of the company and management has not yet decided todiscontinue the operation of the mill. The accounting has been done on going concernbasis.
Also with reference to Note No- 47 Fixed Assets of the Sugar Mill division especiallythe plant and machinery has not been used for active service for more than 2 years due tonon-operation of the sugar mill. Considering the age of the assets and non-usage ofmachineries for a considerable time the technical evaluation of the assets needs to bedone for ascertainment of impairment provision. Since the technical evaluation is pendingthe possible effect of the value of impairment of the assets on the financial statementsis not currently ascertainable. Had this technical evaluation carried out these may beincidental to any variation in the value of assets and consequently change in the amountof accumulated losses.
b) Reference is invited to Note No 11.1 In terms of the requirements of Ind AS109 Financial Instruments the company has not opted for Expected Credit Loss (ECL) modelfor estimating the provisions against Trade Receivables. Had the said model of estimationof receivable delinquencies been applied the balances of provisioning against tradereceivables might undergone a change. The possible effect of the non-application of theECL model on the financial statements is not currently ascertainable.
c) Reference is invited to Note no 10.1 The biological assets amounting to Rs.25700854/- includes Bearer and Non Bearer plants and trees. As per Ind AS-16 PropertyPlant & Equipment bearer plant is a part of Fixed Assets and depreciation to becharged based on useful life of the bearer plants. The company has not segregated theportfolio of biological assets into bearer and non-bearer plants and consequent accountingadjustment thereof and continues to recognize the same under current assets which is indisagreement with the requirements of the above referred Ind AS Accounting standard.Pending completion of the said exercise the consequent impact of the above matter on thefinancial statements could not be ascertained.
We conducted our audit in accordance with the Standards on Auditing (SAs) as specifiedunder Section 143(10) of the Companies Act 2013 as amended ("the Act"). Ourresponsibilities under those Standards are further described in the "Auditor'sResponsibilities for the Audit of the Financial Results" section of our report. Weare independent of the Company in accordance with the 'Code of Ethics' issued by theInstitute of Chartered Accountants of India together with the ethical requirements thatare relevant to our audit of the financial statements under the provisions of the Act andthe Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that theaudit evidence obtained by us is sufficient and appropriate to provide a basis for ouropinion.
Emphasis of Matter
Without modifying our opinion attention is drawn to following matters:
a) Reference is invited to Note No 5.1 Provision for impairment in value of thesaid unquoted investment has not been made. Since in the opinion of the management it isnot permanent in nature and realisable value of the assets of said company should behigher than the book value. In absence of the audited financial statement of the saidcompany and indicative details of realisable value of the assets of the company. We havenot examined the same.
b) Reference is invited to Note No - 48 to the financial statements detailing thereininitiation of proceedings under Insolvency Bankruptcy Code 2016 against the company bycertain operational and financial creditors. The matter is still not yet admitted /decided by the concerned court of law. The account has been prepared on going concernbasis.
c) Reference is invited to Note No.-50 to financial statements Balances of Tradereceivables Trade Payables Loans and advances Claims recoverable are subject toreconciliation and confirmation.
Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements for the financial year ended31 March 2021. These matters were addressed in the context of our audit of the Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. For each matter below our description of how ouraudit addressed the matter is provided in 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 Ind AS 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 Ind AS financial statements. The results of our audit proceduresincluding the procedures performed to address the matters below provide the basis for ouraudit opinion on the accompanying Ind AS financial statements.
|Key Audit Matters ||Auditor response to key audit matters |
|Revenue Recognition || |
|Revenue is measured at the fair value of consideration received/receivable from its customers and in determining the transaction price for the sale of products the Company considers the effects of various factors such as volume based discounts rebates and other promotion incentives schemes provided to the customers. ||Our audit approach was a combination of test of internal controls and substantive procedures which included the following: |
|At year end amounts for volume based discounts rebates and other promotion incentives schemes that have been incurred and not yet provided to the customers are estimated and accrued. We have considered this as a key audit matter on account of significant judgement and estimate involved in calculation of provision for such trade schemes as at the Balance Sheet date. || Assessed the Company's accounting policy for revenue recognition including the policy for recording trade schemes in accordance with Ind AS 115. |
| || Obtained understanding of the revenue process the assumptions used by the management in calculation of accrual of trade schemes and design and implementation of controls. |
| || Evaluated management's methodology and assumptions used in the calculations of such accruals for trade schemes. |
| || Tested on sample basis management's calculation of the provisions for such schemes at year end with approved schemes and underlying sales data including testing of completeness and arithmetical accuracy of the data used. |
| || Tested on sample basis credit notes issued to customer/ payments for incentives as per the approved schemes. |
| || Performed analytical procedures to identify any unusual trends and items. |
| ||Hence the revenue from such service charges so collected are not recognized in the books of accounts of Khaitan (India) Ltd. |
|Property Plant & Equipment: || |
|Estimates of useful lives and residual value of Property Plant and Equipment is a significant area requiring Management judgment of estimates and application of accounting policies that have significant effect on the amounts recognized in the Standalone Ind AS Financial Statements. ||We examined whether the Corporation has maintained proper records showing full particulars including quantitative details and situation of fixed assets. |
| ||The physical verification of Property Plant and Equipment has been carried out by the Management in accordance with the phased program of verification of all assets and necessary accounting entries based on such physical verification has been appropriately posted which were reviewed by us. |
| ||We have ascertained that all the major property plant and Equipment have been properly maintained and the useful life of the assets are determined and depreciation has been changed as per schedule II of the company's Act 2013. |
Information other than the Financial Statements and Auditors' Report thereon
The Company's management and Board of Directors are responsible for preparation of theother information. The other information comprises the information included in theDirectors' report Management Discussion & Analysis etc but does not include thefinancial statements and our auditors' report thereon. Such other Information's areexpected to be made available to us after the date of this auditor's report. Our opinionon the financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information identified as above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.
When we read the other information if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance and take appropriate actions necessitated by the circumstances and theapplicable laws and regulations
Responsibilities of Management and Those Charged with Governance for the FinancialStatements
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 financial positionfinancial performance changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian accountingStandards (Ind AS) specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.
In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.
That Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Financial Statements.
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an 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 with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting 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 financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in
(i) planning the scope of our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in the standalone financialstatement
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 alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
Referring to the note no 45 and as per explanation and information given to us thecompany has not make the consolidated financial statement for the year ended 31 March 2021due to the losses incurred by the associate company in the immediately preceding fewfinancial years and the net assets of the company eroded during last few financial years.
Report on Other Legal and Regulatory Requirements
i) As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
ii) 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 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 Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 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) 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 read with Schedule V to the Act. In respectof one director (Sunay Krishna Khaitan) aggregate remuneration of Rs. 1114535/- paid /provided during the year is subject to the approval of the Members at the forthcomingAnnual General Meeting.
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:
1. Reference to the Note no 35 the Company has disclosed the impact of pendinglitigations on its financial position in its financial statements in accordance with thegenerally accepted accounting practice in the financial statements.
2. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
3. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company. However there are no such instancesduring this year.
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
The Annexure referred to in paragraph (i) under the heading "Report on Other Legaland Regulatory requirements" of our Independent Auditors' Report of even date to themembers of the Company on the standalone Ind AS financial statements for the year ended31st March 2021 we report that:
ii. In respect of the Company's fixed assets:
The Company has maintained proper records showing full particulars includingquantitative details and situation a. of Property plant and equipment.
As per information and explanations given to us the fixed assets of the Company havebeen physically verified by the management in a phased manner designed to cover all theitems over a period of three years which in our opinion is reasonable having regard tothe size of the Company and nature of its assets. Pursuant to the b. program ofverification the Building Plant & Machineries etc. have been physically verified bythe management during the year and the discrepancies noticed between book records andphysical inventory have been duly adjusted in the books of account.
According to the information and explanations given to us the records examined by usand based on the examination of the records of the Company the lands measuring 8053.54acres approximately are held by the c. company originally in the name of Ramnagar Cane& Sugar Company limited as per the order no. 4572-L dated 12th March 1964 of LandReform Branch Land and Revenue Department Government of west Bengal and thereafter thename of the company was changed to Khaitan Agro complex Limited as per the certificate ofincorporation issued by the registrar of the companies on 1st October 1994. Further M/sKhaitan (India) Limited was amalgamated with Khaitan Agro Complex limited with effect from1st January 1994 as per the order of Honorable Calcutta High court dated 17th October 1994and as per the order of the court the name of the company was retained as Khaitan IndiaLimited. The registrar of the Companies West Bengal issued the Fresh Certificate ofIncorporation on 14th November 1994 and changed the name of the company from Khaitan AgroComplex Limited to Khaitan (India) Limited. Subsequently the Government of West Bengal inits Calcutta Gazette published on 17th April 1995 vide its Notification no. 186-Ci/Cdated 24th march 1995 issued by the commerce and Industries Department Group C made theamendments and substitute the Word and brackets from Khaitan Agro Complex Limited (SugarDivision) to Khaitan (India) Limited.
Further as per the letter issued by the Government of West Bengal Memo No.- 158/BL& LRO/Bel-II/18 dated 19.04.2018 the "retainer" mill is a"lessee" directly under the State for such land with the terms and conditionsspecified in rules made under section 4B of the WBLR Act 1955.
However based on legal advice the management is of the opinion that pendingcompletion of necessary legal formalities and resolution of the demands as made by theGovernment of West Bengal the Company continued to consider the said parcel of landfreehold in character.
The inventories (excluding stocks with third parties if any) have been physicallyverified during the year by the ii. management at reasonable intervals. No materialdiscrepancies were noticed on such physical verification of stocks by the management ascompared to book records.
According to the information and explanations given to us the Company has not grantedloan secured unsecured to companies firms limited liability partnership or otherparties covered in the register maintained under section 189 of the iii.
Companies Act 2013. Therefore clause (iii) (a) (b) and (c) of paragraph 3 of the saidorder are not applicable to the company.
In our opinion and according to the information and explanations given to us theCompany has complied with the iv. provisions of Sections 185 and 186 of the Act in respectof grant of loans making investments and providing guarantees and securities asapplicable.
The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of v. India and the provisions of Sections 73 to 76 or anyother relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015with regard to the deposits accepted from the public are not applicable
We were unable to review the books of account maintained by the Company in respect ofthe products where the maintenance of cost records has been specified by the CentralGovernment under Section 148(1) of the Companies vi. Act 2013 and the rules framedthereunder due to the operation of Sugar Mills was under suspension for more than 24months and we are not able to express our opinion that whether the prescribed books ofaccounts and cost records have been made and maintained or not. vii. According to theinformation and explanations given to us in respect of statutory dues:
(a) The Company has generally been irregular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales Tax Service TaxValue Added Tax duty of excise Customs Duty Goods and Service Tax Cess and othermaterial statutory dues to the extent applicable with appropriate authorities.
According to the records the following statutory dues were outstanding as at 31 March2021 for a period of more than more six months from the day they became payable are givenbelow:
|Nature of Statute ||Nature of Dues ||Amount (Rs.) ||Period to which the Amount Relates ||Due Dates |
|Provident Fund ||EPF ||722563 ||From 01.03.2019 to 30.09.2020 ||15th of Next Month |
|State Tax ||PROFESSIONAL TAX ||645601 ||From 01.05.2017 to 30.09.2020 ||21st of Next Month |
|Income Tax ||TDS ||2086519 ||From 01.10.2019 to 30.09.2020 ||7th of Next Month |
|Sales Tax ||GST ||29400033 ||From 01.09.2017 to 30.09.2020 ||21st of Next Month |
|Sales Tax ||VAT ||3721987 ||From 01.04.2016 to 30.06.2017 ||21st of Next Month |
(b) According to the records of the Company and the information and explanations givento us following are the details of disputed dues of Sales Tax as on 31st March 2021:
|Name of the statute ||Nature of dues ||Demand Raised ||Period to which is relating ||Forum where dispute is pending |
|Maharashtra Sales Tax Act ||Tax & Penalty on higher turnover on reassessment ||9487225 ||- ||Joint Commissioner & Sales Tax (Appellate) Mumbai. |
viii. Based on our audit procedures and according to the information and explanationsgiven to us the Company has not defaulted in repayment of loans to any financialinstitution bank Government or dues to debenture holders.
ix. Based on our audit procedures and according to the information given by themanagement the company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) or taken any term loan during the year.
x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us and representation obtained fromthe management no instances of fraud by the Company or any fraud on the company by itsofficers or employees have been noticed or reported during the year.
xi. In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.
In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company.
xii. According to the information & explanation given to us and based on ourexamination of the records all transactions entered into by the Company with the relatedparties are in compliance with Section 177 and 188 of Companies Act 2013 whereverapplicable and details have been disclosed in the Standalone Ind AS Financial Statementsas required by the applicable Indian Accounting Standards.
xiii. According to the information and explanation given by the management the Companyhas not made any xiv. preferential allotment or private placement of shares or fully orpartly paid convertible debentures and hence reporting under clause 3 (xiv) of the Orderis not applicable to the Company.
xv. According to the information and explanations given to us and based on ourexamination the Company has not entered during the year into any non-cash transactionswith directors or persons connected with them.
xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
[Referred to in paragraph (iii)(f) under 'Report on other Legal and RegulatoryRequirements' in the Independent Auditors' Report of even date on the Ind AS financialstatements of Khaitan (India) Limited.]
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 of Khaitan(India) Limited ("the Company") as of 31 March 2021 in conjunction with ouraudit of the Ind AS financial statements of the Company for the year ended on that date
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 Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and Standards on Auditing issued by the Institute ofChartered Accountants of India 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 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 judgment including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor 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 internal financialcontrols system over financial Reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that
1. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;
2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
3. provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants OfIndia.
For K. C. Bhattacherjee & Paul
Chartered Accountants FRN: 303026E
(Partner) Membership No.: 066509 UDIN: 21066509AAAACN9295
Place: Kolkata Date: 30 June 2021