To the Members of Monte Carlo Fashions Limited
Report on the Audit of the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements ofMonte Carlo Fashions Limited (the Company') which comprise the Balance Sheetas at 31 March 2022 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Cash Flow and the Statement of Changes in Equity for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.
2. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid standalone finan-cial 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 Indian Accounting Standards(Ind AS') (as amended) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March 2022and its profit (including other comprehensive income) its cash flows and the changes inequity for the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditingspecified under section 143(10) of the Act. Our responsibilities under those standards arefurther described in the Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI') together with the ethical requirements that are relevant to ouraudit of the financial statements under the provisions of the Act 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.
Key Audit Matter
4. Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statements ofthe current period. ese matters were addressed in the context of our audit of thefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.
5. We have determined the matters described below to be the key auditmatters to be communicated in our report.
|Key audit matter ||How our audit addressed the key audit matter |
|Sales returns Refer accounting policies in note 1 to the Financial Statements. ||Our audit procedures in relation to revenue returns included but were not limited to the following: |
|One of the significant adjustments considered in revenue recogni- tion is the adjustment for sales returns. e Company has various types of arrangements with the customers including outright sales and sales with right of return in normal course of business where customers have right to return goods with no specific period of return from date of purchase. As per historic trend customers gen- erally exercise their right to return the goods within 3 years from the date of sale. || Reviewed the process of sales returns and assessed the appropriate- ness of the accounting policy adopted by the Company for revenue recognition. |
|The above arrangements result in a significant risk that sales made during the current year might be returned in subsequent periods. || Assessed the design and implementation of controls in respect of the revenue recognition and sales returns and tested the effectiveness of key revenue controls operating across the business. |
|Management adjusts revenue recognized during the year for expect- ed returns in the subsequent periods based on historical trends of sales return in the earlier years for various types of arrangements which are grouped on the basis of similar characteristics. || Obtained the historical trends for revenue and corresponding sales returns based on the accounting records maintained by the Com- pany. |
|In accordance with Ind-AS 115 Revenue from contracts with cus- tomers to account for the transfer of products with a right of return Company records the revenue for the transferred products and re- verses revenue for the products expected to be returned record a refund liability and an asset with corresponding adjustment to cost of sales for its right to recover products from customers on settling the refund liability. || Analyzed the appropriateness for the exclusions of certain revenue transactions from the estimations for expected sales returns. Veri- _ed the customer's right to return goods with the signed agreements and corroborated the sales return estimates made by the manage- ment for the year based on discussions with management around past trends and other relevant factors. |
|Accordingly Company has adjusted revenue of the current year by _ 1959.45 lakhs. Company has recognized refund liability amounting to _ 5628.98 lakhs and right to recover products from customers amount- ing to _ 3669.53 lakhs as at 31 March 2022. || Obtained the classification of contracts with similar characteris- tics performed detailed analysis of the terms applicable for differ- ent types of contracts. |
|Considering the materiality of the amounts involved and significant judgements as discussed including the inherent limitations involved in estimating the future sales returns based on past trends this matter has been identified as a key audit matter for the current year audit. || Tested the arithmetical accuracy of the calculations performed by the management in arriving at the expected value of sales returns. |
| || Ensured that the accounting treatment in accordance with the provisions of Ind AS 115. |
| || Assessed the adequacy and appropriateness of the disclosures made in the financial statements is in accordance with the appli- cable accounting standards. |
Information other than the Standalone Financial Statements andAuditor's Report thereon
6. e Company's Board of Directors are responsible for the otherinformation. Other information does not include the standalone financial statements andour auditor's report thereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.
e Annual Report is not made available to us at the date of thisauditor's report. We have nothing to report in this regard.
Responsibilities of Management and ose Charged with Governance for theStandalone Financial Statements
7. e accompanying standalone financial statements have been approved bythe Company's Board of Directors. e Company's Board of Directors are responsiblefor the matters stated in section 134(5) of the Act with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance including other comprehensive incomechanges in equity and cash flows of the Company in accordance with the Ind AS spec-i_edunder section 133 of the Act and other accounting principles generally accepted in India.is responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to error.
8. In preparing the standalone financial statements the Board ofDirectors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the Board of Directors either intend to liquidate theCompany or to cease operations or has no realistic alternative but to do so.
9. ose Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements
10. Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with Standards on Auditing 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.
11. As part of an audit in accordance with Standards on Auditingspecified under section 143(10) of the Act we exercise professional judgment and maintainprofessional 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. e 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 inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls with reference to financial statements inplace and the operating e_ec-tiveness 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 Board of Directors' use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to 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.
12. We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant de_ciencies in internal control that we identify during ouraudit. 13. 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.
14. From the matters communicated with those charged with governancewe determine those matters that were of most signifi-cance 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 publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
15. As required by section 197(16) of the Act based on our audit wereport that the Company has paid remuneration to its directors during the year inaccordance with the provisions of and limits laid down under section 197 read withSchedule V to the Act. 16. As required by the Companies (Auditor's Report) Order2020 (the Order') issued by the Central Government of India in terms of section143(11) of the Act we give in the Annexure I a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
17. Further to our comments in Annexure I as required by section143(3) of the Act based on our audit we report to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit of theaccompanying standalone financial statements;
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) e standalone financial statements dealt with by this report are in agreement withthe books of account;
d) In our opinion the aforesaid standalone financial statements comply with Ind ASspecified under section 133 of the Act;
e) On the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on 31 March2022 from being appointed as a director in terms of section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company as on 31 March 2022 and the operating effectiveness ofsuch controls refer to our separate Report in Annexure II wherein we have expressed anunmodified opinion.; and
g) With respect to the other matters to be included in the Auditor's Report inaccordance with rule 11 of the Companies (Audit and Auditors) Rules 2014 (as amended) inour opinion and to the best of our information and according to the explanations given tous:
i. e Company does not have any pending litigation which would impactits financial position as at 31 March 2022;
ii. e Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses as at 31 March 2022;
iii. ere has been no delay in transfering amounts required to betransferred to the Investor Education and Protection Fund by the Company during the yearended 31 March 2022;
iv. a. e management has represented that to the best of its knowledgeand belief as disclosed in note 44(a) to the standalone financial statements no fundshave been advanced or loaned or invested (either from borrowed funds or securities premiumor any other sources or kind of funds) by the Company to or in any person or entityincluding foreign entities (the intermediaries') with the understandingwhether recorded in writing or otherwise that the intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company (the Ultimate Beneficiaries') orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries;
b. e management has represented that to the best of its knowledge andbelief as disclosed in note 44(b) to the standalone financial statements no funds havebeen received by the Company from any person or entity including foreign entities(the Funding Parties') with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the FundingParty (Ultimate Beneficiaries') or provide any guarantee security or the likeon behalf of the Ultimate Beneficiaries; and
c. Based on such audit procedures performed as considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the management representations under sub-clauses (a) and (b) above containany material misstatement.
v. e final dividend paid by the Company during the year ended 31 March2022 in respect of such dividend declared for the previous year is in accordance withsection 123 of the Act to the extent it applies to payment of dividend.
As stated in note 48 to the accompanying standalone financialstatements the Board of Directors of the Company have proposed final dividend for theyear ended 31 March 2022 which is subject to the approval of the members at the ensuingAnnual General Meeting. e dividend declared is in accordance with section 123 of the Actto the extent it applies to declaration of dividend.
For Walker Chandiok & Co LLP
Firm's Registration No.: 001076N/N500013
Membership No.: 099410
Date: 30 May 2022
Annexure I referred to in Paragraph 16 of the IndependentAuditor's Report of even date to the members of Monte Carlo Fashions Limited on thestandalone financial statements for the year ended 31 March 2022
In terms of the information and explanations sought by us and given bythe Company and the books of account and records examined by us in the normal course ofaudit and to the best of our knowledge and belief we report that: (i) (a) (A) TheCompany has maintained proper records showing full particulars including quantitativedetails and situation of property plant and equipment and right of use assets.
(B) The Company has maintained proper records showing full particularsof intangible assets.
(b)The Company has a regular program of physical verification of itsproperty plant and equipment and right of use assets under which the assets arephysically verified in a phased manner over a period of three years which in our opinionis reasonable having regard to the size of the Company and the nature of its assets. Inaccordance with this program certain property plant and equipment and right of useassets were verified during the year and no material discrepancies were noticed on suchverification.
(c) The title deeds of all the immovable properties held by the Company(other than properties where the Company is the lessee and the lease agreements are dulyexecuted in favour of the lessee) are held in the name of the Company. (d) The Company hasnot revalued its Property Plant and Equipment and Right of Use assets or intangibleassets during the year.
(e) No proceedings have been initiated or are pending against theCompany for holding any benami property under the Benami Transactions (Prohibition) Act1988 (45 of 1988) and rules made thereunder. Accordingly reporting under clause 3(i)(e)of the Order is not applicable to the Company.
(ii) (a) The management has conducted physical verification ofinventory at reasonable intervals during the year except for goods in transit andinventory lying with third parties. For stock lying with third parties writtenconfirmations haves been obtained by the management. In our opinion the coverage andprocedure of such verification by the management is appropriate and no discrepancies of10% or more in the aggregate for each class of inventory were noticed. In respect ofinventory lying with third parties these have substantially been confirmed by the thirdparties.
(b) e Company has a working capital limit in excess of Rs 5 croresanctioned by banks based on the security of current assets. e quarterly statements inrespect of the working capital limits have been filed by the Company with such banks andsuch statements are in agreement with the books of account of the Company for therespective periods which were subject to audit.
(iii) The Company has not provided any guarantee or given any securityor granted any loans or advances in the nature of loans during the year. However theCompany has made investments and in our opinion and according to the information andexplanations given to us such investments made are prima facie not prejudicial to theinterest of 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 theAct in respect of loans investments guarantees and security as applicable. (v) In ouropinion and according to the information and explanations given to us the Company hasnot accepted any deposits or there is no amount which has been considered as deemeddeposit within the meaning of sections_73 to 76 of the Act and the Companies (Acceptanceof Deposits) Rules 2014 (as amended). Accordingly reporting under clause 3(v) of theOrder is not applicable to the Company.
(vi) The Central Government has not specified maintenance of costrecords under sub-section (1) of section 148 of the Act in respect of Company'sproducts/business activity. Accordingly reporting under clause 3(vi) of the Order is notapplicable.
(vii) (a) In our opinion and according to the information andexplanations given to us the Company is regular in depositing un desputed statutory duesincluding goods and service charge provident fund employees' state insuranceincom-tax sales-tax service-tax duty of customs duty of excise value added tax cessand other material statutory dues as applicable with appropriate authority. Further noundisputed amounts payable in respect thereof were outstanding at the year-end for aperiod of more than six months from the date they became payable.
(b) According to the information and explanations given to us thereare no statutory dues referred to in subclause (a) above that have not been deposited withthe appropriate authorities on account of any dispute.
(viii) According to the information and explanations given to us notransactions were surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961) which have not been recorded inthe books of accounts.
(ix) (a) According to the information and explanations given to us theCompany has not defaulted in repayment of its loans or borrowings or in the payment ofinterest thereon to any lender._ (b) According to the information and explanations givento us including representation received from the management of the Company and on thebasis of our audit procedures we report that the Company has not been declared a willfuldefaulter by any bank or financial institution or other lender.
(c) In our opinion and according to the information and explanationsgiven to us money raised by way of term loans were applied for the purposes for whichthese were obtained.
(d) In our opinion and according to the information and explanationsgiven to us and on an overall examination of the financial statements of the Companyfunds raised by the Company on short term basis have not been utilised for long termpurposes.
(e) According to the information and explanations given to us and on anoverall examination of the financial statements of he Company the Company has not takenany funds from any entity or person on account of or to meet the obligations of itssubsidiary.
(f) According to the information and explanations given to us theCompany has not raised any loans during the year on the pledge of securities held in itssubsidiary.
(x) (a) e Company has not raised any money by way of initial publicoffer or further public offer (including debt instruments) during the year. Accordinglyreporting under clause 3(x)(a) of the Order is not applicable to the Company.
(b) According to the information and explanations given to us theCompany has not made any preferential allotment or private placement of shares or (fullypartially or optionally) convertible debentures during the year. Accordingly reportingunder clause 3(x)(b) of the Order is not applicable to the Company.
(xi) (a) To the best of our knowledge and according to the informationand explanations given to us no fraud by the Company or on the Company has been noticedor reported during the period covered by our audit except for certain instances identifiedby the management through customer complaints or internal checks where discounts asoffered by the Company were not passed to the end-customers by the franchisee owners asfurther explained in Note 47 to the financial statements. Based on internal investigationthe management is of the view that the potential impact of any such further instanceduring the year is not expected to be material to the accompanying financial statements.Further the Company has imposed financial penalties on such franchisees as described inthe said note. (b) No report under section 143(12) of the Act has been filed with theCentral Government for the period covered by our audit. (c) e whistle blower complaintsreceived by the Company during the year as shared with us by the management have beenconsidered by us while determining the nature timing and extent of audit procedures.
(xii) e Company is not a Nidhi Company and the Nidhi Rules 2014 arenot applicable to it. Accordingly reporting under clause 3(xii) of the Order is notapplicable to the Company.
(xiii) In our opinion and according to the information and explanationsgiven to us all transactions entered into by the Company with the related parties are incompliance with sections 177 and 188 of the Act where applicable. Further the details ofsuch related party transactions have been disclosed in the standalone financialstatements as required under Indian Accounting Standard (Ind AS) 24 Related PartyDisclosures specified in Companies (Indian Accounting Standards) Rules 2015 as prescribedunder section 133 of the Act.
(xiv) (a) In our opinion and according to the information andexplanations given to us the Company has an internal audit system as required undersection 138 of the Act which is commensurate with the size and nature of its business.
(b) We have considered the reports issued by the Internal Auditors ofthe Company till date for the period under audit. (xv) According to the information andexplanation given to us the Company has not entered into any non-cash transactions withits directors or persons connected with them and accordingly provisions of section 192 ofthe Act are not applicable to the Company.
(xvi) e Company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934. Accordingly reporting under clause 3(xvi) of theOrder is not applicable to the Company.
(xvii) e Company has not incurred any cash loss in the current as wellas the immediately preceding financial year.
(xviii) ere has been no resignation of the statutory auditors duringthe year. Accordingly reporting under clause 3(xviii) of the Order is not applicable tothe Company.
(xix) According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the standalonefinancial statements our knowledge of the plans of the Board of Directors and managementand based on our examination of the evidence supporting the assumptions nothing has cometo our attention which causes us to believe that any material uncertainty exists as onthe date of the audit report that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the company as and when they fall due.
(xx) According to the information and explanations given to us theCompany does not have any unspent amount in respect of any ongoing or other than ongoingproject as at the expiry of the financial year. Accordingly reporting under clause 3(xx)of the Order is not applicable to the Company.
(xxi) e reporting under clause 3(xxi) of the Order is not applicable inrespect of audit of standalone financial statements of the Company. Accordingly nocomment has been included in respect of said clause under this report.
For Walker Chandiok & Co LLP
Firm's Registration No.: 001076N/N500013
Membership No.: 099410
Date: 30 May 2022
Independent Auditor's Report on the internal financial controlswith reference to the standalone financial statements under Clause (i) of Sub-section 3 ofSection 143 of the Companies Act 2013 (the Act')
1. I n conjunction with our audit of the standalone financialstatements of Monte Carlo Fashions Limited (the Company') as at and for theyear ended 31 March 2022 we have audited the internal financial controls with referenceto financial statements of the Company as at that date.
Responsibilities of Management and ose Charged with Governance forInternal Financial Controls
2. e Company's Board of Directors is responsible for establishingand maintaining internal financial controls based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting (the Guidance Note') issued by theInstitute of Chartered Accountants of India (ICAI'). ese responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of theCompany's business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.
Auditor's Responsibility for the Audit of the Internal FinancialControls with Reference to Financial Statements
3. Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to financial statements based on our audit. Weconducted our audit in accordance with the Standards on Auditing issued by the ICAIprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to financial statements and the Guidance Noteissued by the ICAI. ose Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls with reference to financial statements wereestablished and maintained and if such controls operated effectively in all materialrespects.
4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls with reference to financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to financial statements includes obtaining an understanding of suchinternal financial controls assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. e procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.
5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls with reference to financial statements.
Meaning of Internal Financial Controls with Reference to FinancialStatements
6. A company's internal financial controls with reference tofinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. Acompany's internal financial controls with reference to financial statements includethose policies and procedures that (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the company; (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 authorisations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could havea material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with Reference toFinancial Statements
7. Because of the inherent limitations of internal financial controlswith reference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial controls with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.
8. In our opinion the Company has in all material respects adequateinternal financial controls with reference to financial statements and such controls wereoperating effectively as at 31 March 2022 based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note issued by the ICAI.
For Walker Chandiok & Co LLP
Firm's Registration No.: 001076N/N500013
Membership No.: 099410
Date: 30 May 2022