To the Members of KPT Industries Limited
Report on Audit of Indian Accounting Standards (Ind AS) FinancialStatements
I have audited the ind AS Financial Statements of KPT IndustriesLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2022 and the Statement of Profit and Loss (including Other Comprehensive Income)Statement of Changes in Equity and Statement of Cash Flows for the year then ended andnotes to the Financial Statements including a summary of Significant Accounting Policiesand other explanatory information (hereinafter referred to as "the Ind AS FinancialStatements")
In my opinion and to the best of my information and according to theexplanations given to me the aforesaid Financial Statements give the information requiredby the Companies Act 2013 (the Act?) in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31st March 2022 and its profit(including Other Comprehensive Income) changes in equity and its cash flows for the yearended on that date.
Basis for Opinion
I conducted my audit in accordance with the Standards on Auditing (SAs)specified under section 143(10) of the Act. My responsibilities under those Standards arefurther described in the Auditor?s Responsibilities for the Audit of the Ind ASFinancial Statements section of my report. I am independent of the Company in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of India togetherwith the ethical requirements that are relevant to my audit of the Ind AS FinancialStatements under the provisions of the Act and the Rules there under and I have fulfilledmy other ethical responsibilities in accordance with these requirements and the Code ofEthics.
I believe that the audit evidence I have obtained is sufficient andappropriate to provide a basis for my opinion. Other Information
1) The Company?s Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annualreport but does not include the Ind AS Financial Statements and my auditor?s reportthereon.
2) My opinion on the Ind AS Financial Statements does not cover theother information and I do not express any form of assurance conclusion thereon.
3) In connection with my audit of the Financial Statements myresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Ind AS Financial Statements or myknowledge obtained in the audit or otherwise appears to be materially misstated.
4) If based on the work I have performed I conclude that there is amaterial misstatement of this other information; I am required to report that fact. I havenothing to report in this regard.
Key Audit Matters
Key audit matters are those matters that in my professional judgmentwere of most significance in my audit of the Ind AS financial statements of the currentperiod. These matters were addressed in the context of my audit of the Ind AS FinancialStatements as a whole and in forming my opinion thereon and I do not provide a separateopinion on these matters. Following is the Key Audit Matter identified which is of mostsignificance:
1. Trade Receivables:
The Company has significant trade receivables at year end whichcomprises of almost 29.60% of Total Assets of the Company. Given the size of the balancesand the risk that some of the trade receivables may not be recoverable judgment isrequired to evaluate whether any provision should be made to reflect the risk. Assessmentof the recoverability of trade receivables is inherently subjective and requiressignificant management judgment (which includes repayment history and financial positionof entities from whom these balances are recoverable terms of underlining arrangementsoverdue balances market conditions etc.}.
Audit procedures performed:
My audit procedures for above Key Matter:
Obtaining an understanding of and assessing the designimplementation and operating effectiveness of the Company?s key internal controlsover the policy of estimating the loss allowance for trade receivables including adherenceto the requirements of the relevant accounting standards.
Assessing the Company?s methodology for provisioningtowards trade receivables.
Understanding the key inputs used in the provisioningmethodology by the Company such as repayment history terms of underlining arrangementsoverdue balances market conditions expert?s opinion etc.
Obtaining an understanding and assessing the reasonableness ofthe key outputs derived from provisioning methodology as well as key judgments andassumptions used by the management.
Disclosure requirements as per schedule III of the companies actwere verified.
Obtaining balance confirmation from debtors and matching payablebalances in this confirmation with the receivable balances of the Company and addressingthe reconciliation item.
Performed subsequent receipt testing of trade receivablebalances post year end.
Discussion with management about status and prospects of suitsfilled for receivables and assessment of requirement for provisioning.
Responsibilities of Management and Those Charged with Governance forthe Ind AS Financial Statements
The Company?s Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these Ind ASFinancial Statements that give a true and fair view of the financial position financialperformance (including other comprehensive income) changes in equity and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under section 133 of the Actread with the 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 Statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the Ind AS Financial Statements the management isresponsible for assessing the Company?s ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing theCompany?s financial reporting process. Auditor?s Responsibilities for the Auditof Ind AS Financial Statements
My objective is to obtain reasonable assurance about whether the Ind ASFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor?s report that includes my opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs 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 SAs I exercise professionaljudgment and maintain professional skepticism throughout the audit. I also:
1. Identify and assess the risks of material misstatement of the Ind ASFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for my opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
2. Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act. I am also responsible for expressing my opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
3. Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
4. 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 I conclude that amaterial uncertainty exists I am required to draw attention in my auditor?s reportto the related disclosures in the Financial Statements or if such disclosures areinadequate to modify my opinion. My conclusions are based on the audit evidence obtainedup to the date of my auditor?s report. However future events or conditions may causethe Company to cease to continue as a going concern.
5. Evaluate the overall presentation structure and content of theFinancial Statements including the disclosures and whether the Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
I communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that were identified duringaudit.
I also provide those charged with governance with a statement that Ihave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on my independence and where applicable related safeguards.
From the matters communicated with those charged with governance Idetermine those matters that were of most significance in the audit of the Ind ASFinancial Statements of the current period and are therefore the key audit matters. Idescribe these matters in my auditor?s report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances I determinethat a matter should not be communicated in my 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) Order 2020("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act I gave in the Annexure A; a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act I report that;
a) I have sought and obtained all the information and explanationswhich to the best of my knowledge and belief were necessary for the purposes of my audit.
b) In my opinion proper books of account as required by law have beenkept by the Company so far as it appears from my examination of those books.
c) The Balance Sheet the Statement of Profit and Loss (including othercomprehensive income) the Statement of Changes in Equity and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d) I n my opinion the aforesaid Financial Statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended.
e) On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directors noneof the directors is disqualified as on 31st March 2022 from being appointed asa director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto my separate Report in "Annexure B".
g) As required by section 197 (16) of the Act; in my opinion andaccording to information and explanation provided to me the remuneration paid by theCompany to its directors is in accordance with the provisions of section 197 of the Actand remuneration paid to its directors is not in excess of the limit laid down under thissection.
h) With respect to the other matters to be included in theAuditor?s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in my opinion and to the best of my information and according to theexplanations given to me;
(i) The Company has disclosed the impact of pending litigations on itsfinancial position in its Financial Statements - Refer Note No.27 to the financialstatements.
(ii) The Company did not have any long-term contracts includingderivative contracts as at 31st March 2022.
(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 to me that to the best of itsknowledge and belief other than as disclosed in the Note No. 46 to the accounts to thefinancial statements no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the Company toor in any other person(s) or entity(ies) including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries.
(b) the management has represented to me that to the best of itsknowledge and belief other than as disclosed in the Note No. 46 to the accounts to theFinancial Statements no funds have been received by the Company from any person(s) orentity(ies) including foreign entities ("Funding Parties") with theunderstanding whether recorded in writing or otherwise that the Company shall whetherdirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries.
(c) Based on the information and explanation given to me and auditprocedures performed as considered reasonable and appropriate in the circumstancesnothing has come to my notice that has caused me to believe that the representations madeby the management and as mentioned under sub-clause (iv)(a) and (iv)(b) above contain anymaterial misstatement.
(v) The dividend declared and paid during the year by the Company is incompliance with Section 123 of the Act.
(vi) The requirement to the use of accounting software for maintainingCompany?s books of account which has a feature of recording audit trail (edit log)facility is deferred to financial years commencing on or after 1st April 2023therefore reporting under Rule 11(g) of Companies (Audit & Auditors) Rules 2014 isnot applicable for financial year ended on 31st March 2022.
Annexure - A to the Independent Auditor?s Report
Referred to in paragraph 1 under the heading "Report on OtherLegal and Regulatory Requirements" of my report on even date to the Members of KPTIndustries Limited
(i) (a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant &Equipment.
(B) The Company is maintaining proper records showing full particularsof intangible assets
(b) The Property Plant & Equipment of the Company are physicallyverified by the Management during the year. The discrepancies noticed on such verificationwere not material and have been properly dealt with in the books of accounts. AlsoCompany has policy of verifying one block of fixed asset every year as per policy. In myopinion the frequency of verification is reasonable.
(c) The title deeds of immovable properties (other than propertieswhere the Company is the lessee and the lease agreements are duly executed in favour ofthe lessee) as disclosed in Note No.1 & 2 on Property Plant & Equipment andInvestment Property to the financial statements are held in the name of the Company.
(d) The Company has not revalued its Property Plant and Equipment(including Right of Use assets) or intangible assets or both during the year.
(e) According to the information and explanations provided to me thereare no proceedings have been initiated or are pending against the Company for holding anybenami property under the Prohibition of Benami Property Transactions Act 1988 (asamended in 2016) and rules made thereunder. Hence reporting under clause 3(i) (e) of theorder is not applicable.
(ii) (a) The physical verification of inventory including stocks withthird parties have been conducted at
reasonable intervals by the Management during the year. In respect ofinventory lying with third parties these have substantially been confirmed by them. In myopinion and based on the policy adopted by the management the coverage and procedure ofsuch verification is appropriate. The discrepancies noticed on physical verification ofinventory as compared to book records are not in aggregate 10% or more for each class ofinventory.
(b) According to the information and explanations provided to me theCompany has been sanctioned working capital limits in excess of five crore rupees duringthe year in aggregate from banks or financial institutions on the basis of security ofcurrent assets. The management of the Company has provided me with the quarterly returnsor statements which they have represented to me have been filed by the Company with theirbanks or financial institutions. In my opinion these quarterly returns or statements arein agreement with the books of account of the Company.
(iii) The Company during the year has not made investments in providedany guarantee or security or granted any loans or advances in the nature of loans securedor unsecured to companies firms Limited Liability Partnerships or any other parties.Hence reporting under Clause (iii)(a) (iii)(b) (iii)(c) (iii)(d) (iii)(e) and(iii)(f) of the said Order are not applicable to the Company.
(iv) The Company has not granted any loans or made any investments orprovided any guarantees or security to the parties covered under Section 185 and 186.Therefore the provisions of Clause 3(iv) of the said Order are not applicable to theCompany.
(v) The Company has not accepted any deposits or amounts which aredeemed to be deposits from the public within the meaning of Sections 73 74 75 and 76 ofthe Act and the Rules framed there under to the extent notified.
(vi) Pursuant to the rules made by the Central Government of India theCompany is required to maintain cost records as specified under Section 148(1) of the Actin respect of its products. I have broadly reviewed the same and is of the opinion thatprima facie the prescribed accounts and records have been made and maintained. I havenot however made a detailed examination of the records with a view to determine whetherthey are accurate or complete.
(vii) (a) According to the information and explanations given to me andthe records of the Company examined by me in my opinion the Company is regular indepositing the undisputed statutory dues including Goods and Service Tax provident fundemployees? state insurance income tax duty of customs cess and other materialstatutory dues as applicable with the appropriate authorities.
(b) According to the information and explanations given to me and therecords of the Company examined by me there are no statutory dues of Goods and ServiceTax provident fund employees? state insurance income tax duty of customs cesswhich have not been deposited on account of any dispute. The particulars of otherstatutory dues referred to in sub-clause (a) as at 31st March 2022 which havenot been deposited on account of a dispute are as follows.:
|Name of the statute ||Nature of dues ||Amount (Rs. In Lakhs) ||Period to which the amount relates ||Forum where the dispute is pending |
|Central Sales Tax Act 1956 and Maharashtra Value Added Tax2002 ||Central Sales Tax and Value added Tax ||19.35 ||2016-17 ||Joint Commissioner of sales Tax (Appeal) Kolhapur |
|Central Sales Tax Act1956 and Maharashtra Value Added Tax2002 ||Central Sales Tax and Value added Tax ||13.69 ||2017-18 ||Joint Commissioner of sales Tax (Appeal) Kolhapur |
(viii) In terms of the information and explanations given to me and thebooks of account and records examined by me the Company has not surrendered or disclosedas income during the year in the tax assessments under the Income Tax Act 1961. Hencereporting under clause 3(viii) of the order is not applicable.
(ix) (a) According to the records of the Company examined by me and theinformation and explanation given to me the Company has not defaulted in repayment ofloans or other borrowings or in the payment of interest thereon to any lender as at thebalance sheet date.
(b) According to the information and explanations given to me and onthe basis of my audit procedures I report that the Company has not been declared willfuldefaulter by any bank or financial institution or government or any government authority.
(c) In my opinion and according to the information and explanationsgiven to me the Company has utilized the money obtained by way of term loans during theyear for the purposes for which they were obtained.
(d) According to the information and explanations given to me and theprocedures performed by me and on an overall examination of the financial statements ofthe Company I report that no funds raised on short-term basis have been used forlong-term purposes by the Company.
(e) The Company does not have any subsidiary associate or jointventure hence reporting under clause 3(ix)(e) of the order is not applicable.
(f) The Company does not have any subsidiary associate or jointventure hence reporting under clause 3(ix)(f) of the order is not applicable.
(x) (a) The Company has not raised any moneys by way of initial publicoffer further public offer (including debt instruments) during the year. Accordingly theprovisions of Clause 3(ix) of the Order are not applicable to the Company.
(b) The Company has not made any preferential allotment or privateplacement of shares or fully or partly or optionally convertible debentures during theyear. Accordingly the provisions of Clause 3(x) (b) of the Order are not applicable tothe Company.
(xi) (a) During the course of my examination of the books and recordsof the Company carried out in accordance with the generally accepted auditing practicesin India and according to the information and explanations given to me I have neithercome across any instance of fraud by the Company or on the Company noticed or reportedduring the year nor have been informed of any such case by the Management.
(b) During the course of my examination of the books and records of theCompany carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to me report in the formADT-4 as specified under sub-section (12) of section 143 of the Companies Act has not beenfiled. Accordingly reporting under clause 3(xi)(b) of the order is not applicable.
(c) During the course of my examination of the books and records of theCompany carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to me and as represented tome by the management there are no whistle blower complaints received by the Companyduring the year
(xii) As the Company is not a Nidhi Company and the Nidhi Rules 2014are not applicable to it the provisions of Clause 3(xii) of the Order are not applicableto the Company.
(xiii) The Company has entered into transactions with related partiesin compliance with the provisions of Sections 177 and 188 of the Act. The details ofrelated party transactions have been disclosed in the financial statements as requiredunder Ind AS 24 Related Party Disclosures specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.
(xiv) (a) In my opinion and based on my examination the Company has aninternal audit system commensurate with the size and nature of its business.
(b) I have considered the internal audit reports of the Company issuedtill date for the period under audit.
(xv) The Company has not entered into any non-cash transactions withits directors or persons connected with him. Accordingly the provisions of Clause 3(xv)of the Order are not applicable to the Company.
(xvi) (a) The Company is not required to be registered under Section45-IA of the Reserve Bank of India Act 1934. Accordingly the provisions of Clause 3(xvi)of the Order are not applicable to the Company.
(b) According to the information and explanations given to me andprocedures performed by me I report that the Company has not conducted any Non-BankingFinancial or Housing Finance activities during the year. Therefore reporting under clause3(xvi)(b) of the order is not applicable.
(c) According to the information and explanations given to me andprocedures performed by me the Company is not Core Investment Company (CIC) as defined inthe regulations made by the Reserve Bank of India hence reporting under clause 3(xvi)(c)of the order is not applicable.
(d) Based on information and explanation given to me and as representedby the management the Company is not a part of any group. Hence reporting under clause3(xvi)(d) of the order is not applicable.
(xvii) The Company has not incurred cash losses during currentfinancial year and had not incurred cash losses during immediately preceding financialyear.
(xviii) There has been no resignation by statutory auditors during theyear hence reporting under clause 3(xviii) of the order is not applicable
(xix) According to the information and explanations given to me and onthe basis of the financial ratios ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the financialstatements my knowledge of the Board of Directors and management plans and based on myexamination of the evidence supporting the assumptions nothing has come to my attentionwhich causes me to believe that any material uncertainty exists as on the date of theaudit report that Company is not capable of meeting its liabilities existing at the dateof balance sheet as and when they fall due within a period of one year from the balancesheet date. We however state that this is not an assurance as to the future viability ofthe Company. I further state that my reporting is based on the facts up to the date of theaudit report and I neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.
(xx) Company has net profit less than five crore rupees during theimmediately preceding financial year so provisions of Section 135 of the Companies Act2013 is not applicable to the Company. Accordingly reporting under Clause 3(xx)(a) and3(xx)(b) of the order is not applicable.
Annexure - B to the Independent Auditor?s Report
Referred to in paragraph 2(f) of my Report on Other Legal andRegulatory Requirements of even date to the Members of KPT Industries Limited
Report on the Internal Financial Controls with reference to Ind ASFinancial Statements under Clause (i) of Sub-section 3 of Section 143 of the CompaniesAct 2013 ("the Act")
I have audited the internal financial controls with reference to theInd AS Financial Statements of KPT Industries Limited ("the Company") as of 31stMarch 2022 in conjunction with my audit of the Ind AS financial statements of the Companyfor 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 over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of internal Financial Controls OverFinancial Reporting issued by the institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company?s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.
My responsibility is to express an opinion on the Company's internalfinancial controls with reference to the Ind AS Financial Statements based on my audit. iconducted my audit in accordance with the Guidance Note on Audit of internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing to the extent applicable to an audit of internal financial controls both issuedby the Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that i 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.
My audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to the ind AS FinancialStatements and their operating effectiveness. My audit of internal financial controls withreference to the Ind AS Financial Statements included obtaining an understanding ofinternal financial controls with reference to the Ind AS Financial Statements assessingthe risk that a material weakness exists and testing and evaluating the design andoperating effectiveness of internal controls based on the assessed risk. The proceduresselected depend on the auditor?s judgement including the assessment of the risks ofmaterial misstatement of the ind AS Financial Statements whether due to fraud or error.
I believe that the audit evidence I have obtained is sufficient andappropriate to provide a basis for my audit opinion on the Company?s internalfinancial controls with reference to Ind AS financial statements.
Meaning of Internal Financial Controls with reference to the Ind ASFinancial Statements
A Company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Ind AS financial statements for external purposes inaccordance with generally accepted accounting principles. A Company's internal financialcontrol over financial reporting includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorisations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on the Ind ASfinancial statements.
Inherent Limitations of Internal Financial Controls with reference tothe Ind AS Financial Statements
Because of the inherent limitations of internal financial controls overfinancial reporting with reference to the Ind AS Financial Statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls with reference to the Ind AS FinancialStatements to future periods are subject to the risk that the internal financial controlwith reference to the Ind AS Financial Statements may become inadequate because of changesin conditions or that the degree of compliance with the policies or procedures maydeteriorate.
In my opinion the Company has in all material respects adequateinternal financial controls with reference to the Ind AS Financial Statements and suchinternal financial controls with reference to the Ind AS Financial Statements wereoperating effectively as at 31st March 2022 based on the internal controlsover financial reporting criteria established by the Company considering the essentialcomponents of internal controls stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
| ||Dharmendra R. Prabhukhot |
| ||Chartered Accountant |
| ||Membership No: 219438 |
| ||UDIN:22219438AJSAEV4134 |
|Place : Belagavi || |
|Date : 27th May 2022 || |