TO THE MEMBERS OF
MANALI PETROCHEMICALS LIMITED
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements ofManali Petrochemicals Limited ("the Company") which comprise the Balance sheetas at 31st March 2020 and the statement of Profit and Loss (Including OtherComprehensive Income) the Statement of Changes in Equity and the statement of cash flowsfor the year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 312020and its profit and its total comprehensive income its changes in equity and its cashflows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial 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.
Emphasis of Matter
Without qualifying the audit opinion attention is invited to
1) a) Note No. 49(a) to the Standalone Financial Statements whichexplains the lease relating to the leasehold land on which one of the manufacturing unitsof the Company is operating has since expired on June 30 2017 in respect of whichrequests seeking renewal have been filed by the Company with Govt. of Tamil Nadu (theLessor) and the extension of lease is awaited. Pending renewal of lease no adjustmentshave been made in the Standalone Financial Statements for the year ended March 31 2020for any potential impact of non-renewal of land lease which is unascertainable at thispoint of time. Further the Management has confirmed that the efforts to obtain the leaseextension are continuing and is confident of obtaining the renewal of the lease of theland.
b) Note no 49(b) to the Standalone Financial Statements which explainsthe position of the pendency of renewal of Lease of Land and fixation of lease rent byGovernment of Tamilnadu in respect of land on which Company's manufacturing plant(unit-II) is operating in view of which no adjustments have been made in the financialstatements for the year and in the opening retained earnings towards any possible impactarising on account of implementation of Ind AS 116 - "Leases" since the same isnot ascertainable at this point of time.
c) Note no 38(i)(a) to the standalone financial statements whichexplains the demand notice received from the Tahsildar Thiruvottiyur demanding payment ofRs 19836 Lakhs towards arrears of lease rent. The management based on a legal advicebelieves that demand for alleged arrears of lease rent is baseless unsubstantiatederroneous and is arbitrary and not tenable accordingly no provision has been considerednecessary. Taking into consideration the efforts of the management in seekingclarifications on the rationale and the basis for issuing the demand (which have not beenexplained in the demand notice) and subsequent representations made by the company toGovernment explaining the unreasonableness and arbitrariness of the demand and also basedon pending request seeking revision and withdrawal of the same which is currently pendingbefore Government of Tamilnadu and pending the outcome of representations by the companyno adjustments have been made in the Standalone financial Statements.
2) Attention is invited to Note no 50 to the standalone financialstatements which explains the management's assessment of the financial impact due to thelockdown and other restrictions and conditions related to the COVID - 19 pandemicsituation for which a definitive assessment of the impact in the subsequent period ishighly dependent upon circumstances as they evolve.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the Standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the below matters described to bethe key audit matters to be communicated in our Report.
1) Revenue recognition and discounts:
|Key Audit Matter ||Auditor's Response |
|Revenue is measured net of discounts given to the customers on the Company's sales. The estimation towards measurement of discounts given to its customers corresponding to the sales made during the year is material and is considered to be complex and judgmental. (Revenue recognition and discounts) ||(i) We have assessed the appropriateness of the Company's Revenue recognition accounting policies including those relating to estimation of discounts given to its customers |
| ||. (ii) We have tested the effectiveness of the entity's internal controls over calculation of discounts. |
|This is an area of significant judgement and with varying complexity depending on nature of arrangement which differs from customer to customer. Therefore there is a risk of revenue being misstated as a result of faulty estimations relating to discounts to its customers ||(iii) We have evaluated the documentation associated with the transactions of sale including credit notes and appropriate approvals for discounts offered to customers from the samples selected to determine whether revenue was recognised net of discounts in the relevant reporting period. The results of our tests are satisfactory and we considered the estimate of the accrual relating to discounts and the amount of revenue recognised is found to be acceptable on comparing current year discounts accruals to the prior year and where relevant completing further inquiries and testing. |
2) Evaluation of Contingent Liabilities
|Key Audit Matter ||Auditor's Response |
|The Company has contingent liabilities comprising claims against the company not acknowledged as debts and demands from various statutory authorities which are inherent to the normal course of their business filed by third parties former employees and statutory authorities. In general the settlement of these proceedings ||Our audit procedures included the following: (i) We have evaluated and tested the procedures and controls relating to the identification recognition and measurement of provisions for disputes and disclosures in relation to matters concerning the contingent liabilities; |
|takes a long time and involve not only discussions on the matter itself but also complex process-related aspects depending on the applicable legislation. ||(ii) We have considered the list of various orders/notices/ demands received with respect to various litigations from the management; |
|Among other things the aspects used to establish the likelihood of a loss attributed to each proceeding are subjective and the evolution of the jurisprudence over these disputes are not always uniform. In certain litigation and regulatory matters significant judgement is required by the Management to determine if there is a present obligation under relevant accounting standard. ||(iii) Reviewed the confirmations obtained by the Company from their legal counsel / consultants on a sample basis and also discussed and analysed material legal cases with the Company's Legal department. We have also analysed the responses obtained from the Company's legal advisors who conduct the court cases tax and administrative proceedings in which the status of the cases and possible/expected manner of proceedings were described. |
|The complex nature of the Regulations and jurisprudence make this an ongoing area of Evaluation of Contingent Liabilities judgement and taking into consideration Management's judgement in assessing the likelihood that the pending claim will succeed or a liability will arise time period for resolution have been a matter of significance during the audit and the exposure of each case there is a risk that such cases may not be adequately provided for or disclosed in the standalone financial statements and hence considered as a key audit matter. ||(iv) We held discussions with the Management to understand their assessment of the quantification and likelihood of significant exposures and the provision required for specific cases; (v) Assessed the objectivity and competence of the Management and independence of the legal experts; and (vi) Evaluated the Management's assumptions and estimates relating to the recognition of the provisions for disputes and disclosures of contingent liabilities in the standalone financial statements. |
| ||(vii) Assessed the adequacy of the disclosures with regard to facts and circumstances of the legal and litigation matters. |
| ||Based on the procedures stated above we found that the criteria and assumptions adopted by Management for determining the provision for contingent liabilities as well as the information disclosed relating to contingent liabilities in the financial statements are appropriate. |
Information Other than the Standalone Financial Statements andAuditor's Report Thereon
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Company'sAnnual Report but does not include the Standalone financial statements and our auditor'sreport thereon. The above reports are expected to be made available to us after the dateof the auditor's report
Our opinion on the Standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone financial statementsour responsibility is to read the other information as identified above when madeavailable and in doing so consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. When we read the above reports if weconclude that there is a material misstatement therein we are required to communicate thematter to those charged with governance.
Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these Standalone Financial Statements that give a true and fair view of thefinancial position financial performance including Other Comprehensive Income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards (IND AS) specified undersection 133 of the Act read with relevant rules issued thereunder. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; the selection and application of appropriate accountingpolicies; making judgments and the estimates that are reasonable and prudent; and thedesign 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 Standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the Standalone financial statements 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.
The Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements
Our objectives are to obtain reasonable assurance about whether theStandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an Auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thefinancial 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 our 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.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has adequate internal financial controls with reference tofinancial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
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.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period 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 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Companies Act 2013 we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
2. As required by Section 143(3) of the Act we report that:
a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss the Statementof Changes in Equity and the
Cash Flow Statement dealt with by this Report are in agreement with thebooks of accounts.
d) In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.
e) On the basis of the written representations received from thedirectors as on 31st March 2020 taken on record by the Board of Directorsnone of the directors is disqualified as on 31st March 2020 from beingappointed as a 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 our separate Report in "Annexure B".
g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 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 itsfinancial position in its financial positions in Note 38(i) to the standalone financialstatements.
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company
3. With respect to the matter to be included in the Auditors' reportunder Section 197(16):
In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.
ANNEXURE A' TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in Independent Auditors' Report to the Membersof Manali Petrochemicals Limited on the Standalone Financial Statements for the year endedMarch 312020
i. In respect of company's fixed assets:
a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.
b) The Company has a regular programme of physical verification of itsfixed assets by which all fixed assets are verified in a phased manner over a period ofthree years. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets. Pursuant to theprogramme certain fixed assets were physically verified by the Management during theyear. In our opinion and according to the information and explanations given to us nomaterial discrepancies were noticed on such verification.
c) In our opinion and according to the information and explanationsgiven to us and on the basis of our examination of the records of the Company the titledeeds of immovable properties are held in the name of the Company.
ii. As explained to us the inventories were physically verified duringthe year by the Management at reasonable intervals. No material discrepancies were noticedupon physical verification during the year.
iii. In our opinion and according to the information and explanationsgiven to us the Company has not granted any loans secured or unsecured to companiesfirms limited liability partnerships or other parties covered in the register maintainedunder Section 189 of the Act. Accordingly paragraph 3(iii) of the Order is not applicableto the Company.
iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of grant of loans making investments and providingguarantees and securities as applicable.
v. In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits from the public during the year interms of the provisions of Sections 73 to 76 or any other relevant provisions of the Actand the rules framed there under. Accordingly paragraph 3(v) of the Order is notapplicable to the Company.
vi. We have broadly reviewed the cost records maintained by the Companyspecified by the Central Government under sub-section (1) of Section 148 of the CompaniesAct 2013 and are of the opinion that prima facie the prescribed cost records have beenmaintained. We have however not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.
vii. According to the information and explanations given to us inrespect of statutory dues:
a) on the basis of our examination of the records of the Company inrespect of undisputed statutory dues including Provident Fund Employees' State InsuranceIncome-Tax Sales-Tax Service Tax Duty of Custom Duty of Excise Value Added Tax Goodsand Services Tax Cess and other material statutory dues have generally been regularlydeposited with the appropriate authorities though there has been a slight delay in a fewcases. According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income-Tax Sales-TaxService Tax Duty of Customs Duty of Excise Value Added Tax Goods and Services TaxCess and other material statutory dues were in arrears as at 31 March 2020 for a period ofmore than six months from the date they became payable
b) According to the information and explanations given to us and on thebasis of our examination of the records of the Company details of dues of Income-TaxSales-Tax Service Tax Duty of Customs Duty of Excise and Value Added Tax which have notbeen deposited as on 31 March 2020 on account of disputes are given below:
Rs in Lakhs
|Name of the Statute ||Nature of dues ||Forum where the dispute is pending ||Period to which the amount relates ||Amount Involved ||Amount unpaid |
|Central Excise Act 1944 ||Excise Duty ||High Court of Madras ||2007-08 ||53.39 ||- |
| || ||High Court of Madras ||2012-13 ||380.89 ||380.89 |
|Customs Tariff Act 1962 ||Customs Duty ||Customs Excise and Service Tax Appellate Tribunal ||Various Years ||383.08 ||354.35 |
|Finance Act1994 ||Service Tax ||Customs Excise and Service Tax Appellate Tribunal ||Various Years ||6.80 ||6.80 |
|TNVAT & CST Acts ||Sales Tax ||TN Sales Tax Appellate Tribunal ||2000-01 ||10.74 ||10.74 |
| || ||TN Sales Tax Appellate Tribunal Chennai ||2008-09 ||6.06 ||6.06 |
| || ||TN Sales Tax Appellate Tribunal Chennai ||2008-09 ||10.76 ||10.76 |
|Income Tax Act1961 ||Income Tax ||Commissioner of Income Tax (Appeals) ||Assessment Year || || |
| || || ||2008-09 ||518.45 ||488.45 |
| || || ||2009-10 ||3.12 ||- |
| || ||Deputy Commissioner of Income Tax(LTU) ||2010-11 ||176.88 ||106.88 |
| || ||Commissioner of Income Tax (Appeals) ||2010-11 ||29.13 ||29.13 |
| || ||Commissioner of Income Tax (Appeals) ||2011-12 ||344.84 ||- |
| || ||Commissioner of Income Tax (Appeals) ||2012-13 ||476.90 ||381.10 |
| || ||ITAT ||2013-14 ||30.46 ||30.46 |
| || ||Commissioner of Income Tax (Appeals) ||2014-15 ||78.08 ||66.37 |
| || ||Commissioner of Income Tax (Appeals) ||2015-16 ||108.22 ||86.58 |
| || ||Commissioner of Income Tax (Appeals) ||2016-17 ||232.14 ||232.14 |
| || ||Commissioner of Income Tax (Appeals) ||2017-18 ||42.35 ||42.35 |
|Total ||2892.29 ||2233.06 || || || |
viii. Based on the audit procedures and according to the informationand explanations given to us the Company is generally regular in repayment of loans orborrowings from any financial institution banks government or debenture holders.
ix. The Company has not raised moneys by way of initial public offer orfurther public offer (including debt instruments). The Company has not obtained any termloans during the year.
x. According to the information and explanations given to us no fraudby the Company or on the Company by its officers or employees has been noticed or reportedduring the year.
xi. In our opinion and according to the information and explanationsgiven to us the Company has not paid /provided managerial remuneration in excess of thelimits and approvals prescribed under Section 197 read with Schedule V to the CompaniesAct 2013.
xii. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable to the Company.
xiii. According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with Sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the Standalone Financial Statements asrequired by the applicable Accounting Standards.
xiv. According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly paragraph 3(xiv) of the Order is not applicableto the Company.
xv. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered into noncashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable to the Company.
xvi. According to the information and explanations given to us theCompany is not required to be registered under section 45 IA of the Reserve Bank of IndiaAct 1934. Accordingly paragraph 3(xvi) of the Order is not applicable to the Company
|Place: Chennai ||For Brahmayya & Co. Chartered Accountants FRN: 000511S |
|Date: June 16 2020 ||N Sri Krishna Partner Membership No: 026575 UDIN 20026575AAAADO2294 |
ANNEXURE - B TO THE INDEPENDENT AUDITORS' REPORT
Report on the Internal Financial Controls under Clause
(i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")
In conjunction with our audit of the Standalone Financial Statements ofthe Company as of and for the year ended March 31 2020 we have audited the internalfinancial controls over financial reporting of Manali Petrochemicals Limited ("theCompany") as of 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(ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the Standalone Financial Statements whether due tofraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit
opinion on the Company's internal financial controls system overfinancial reporting.
Meaning of Internal Financial Controls over Financial Reporting
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 Financial Statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that
(1) Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
(2) Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of Financial Statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and
(3) Provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the Financial Statements.
Inherent Limitations of Internal Financial Controls over financialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion and to the best of our information and according to theexplanation given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
|Place: Chennai ||For Brahmayya & Co. Chartered Accountants FRN: 000511S |
|Date: June 16 2020 ||N Sri Krishna Partner Membership No: 026575 UDIN 20026575AAAADO2294 |