You are here » Home » Companies » Company Overview » National Standard (India) Ltd

National Standard (India) Ltd.

BSE: 504882 Sector: Infrastructure
NSE: N.A. ISIN Code: INE166R01015
BSE 15:40 | 07 Dec 4334.00 -45.95
(-1.05%)
OPEN

4380.00

HIGH

4495.05

LOW

4332.95

NSE 05:30 | 01 Jan National Standard (India) Ltd
OPEN 4380.00
PREVIOUS CLOSE 4379.95
VOLUME 139
52-Week high 14984.45
52-Week low 3745.65
P/E 560.67
Mkt Cap.(Rs cr) 8,668
Buy Price 4350.00
Buy Qty 2.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4380.00
CLOSE 4379.95
VOLUME 139
52-Week high 14984.45
52-Week low 3745.65
P/E 560.67
Mkt Cap.(Rs cr) 8,668
Buy Price 4350.00
Buy Qty 2.00
Sell Price 0.00
Sell Qty 0.00

National Standard (India) Ltd. (NATIONALSTANDAR) - Auditors Report

Company auditors report

<dhhead>INDEPENDENT AUDITOR’S REPORT</dhhead>

To the Members of National Standard (India) Limited Report on the Auditof the Financial Statements Opinion

We have audited the financial statements of National Standard (India)Limited ("the Company") which comprise the Balance Sheet as at March 31 2022and the Statement of Pro t and Loss Statement of Changes in Equity and Statement of CashFlows for the year then ended and notes to the financial statements including a summaryof significant 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 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 Indian Accounting Standards prescribed under section133 of the Act read with Companies (Indian Accounting Standards) Rules 2015 as amendedand other accounting principles generally accepted in India of the state of affairs ofthe Company as at March 31 2022 and profit changes in equity and its cash flows for theyear

 

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor’s Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

 

Key Audit Matters

We have determined that there are no key audit matters to communicatein our report.

 

Information Other than the Financial Statements and Auditor’sReport Thereon

The Company’s Board of Directors is responsible for the otherinformation. The other information comprises the Director’s report but does notinclude the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

 

Responsibilities of Management and Those Charged with Governance forthe 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 financialstatements that give a true and fair view of the financial position financialperformance changes of the Company in accordance with the accounting principles generallyaccepted in India including in equity and cash flows the Accounting Standards specifiedunder section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal

financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statement that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the financial statements the Board of Directors 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 the Board of Directors either intends to liquidate the Companyor to cease operations 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 Audit of the FinancialStatements

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 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.

We give in "Annexure A" a detailed description ofAuditor’s responsibilities for Audit of the Financial Statements.

 

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 we give in "Annexure B" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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 havebeen kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Pro t and Loss the Statementof Changes in Equity and the Statement of

Cash Flow dealt with by this Report are in agreement with the books ofaccount.

(d) In our opinion the aforesaid financial statements comply with theIndian Accounting Standard specified under

Section 133 of the Act.

(e) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the

Board of Directors none of the directors are disqualified as on March31 2022 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 controlswith reference to financial statements of the Company and the operating effectiveness ofsuch controls refer to our separate Report in "Annexure C".

(g) 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 our opinion and to the best of our information and according to theexplanations given to us: i. The Company has disclosed the impact of pendinglitigationsonits financial position in its financial statements Refer Note 30(b) to thefinancial statements;

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

iv. a. The Management has represented that to the best of it’sknowledge and belief 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 directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the Company("Ultimate Bene ciaries") or provide any guarantee security or the like onbehalf of the Ultimate Bene ciaries.

b. The Management has represented that to the best of it’sknowledge and belief no funds have been received by the Company from any person / entityincluding foreign entities with the understanding whether recorded in writing orotherwise as on the date of this audit report that the company has directly orindirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Funding Party ("Ultimate Bene ciaries") orprovide any guarantee security or the like on behalf of the Ultimate Bene ciaries;

c. Based on our audit procedures which we have considered reasonableand appropriate in the circumstances and according to the information and explanationsprovided to us by the Management in this regard nothing has come to our notice that hascaused us to believe that the representations made by the Management under sub-clause (1)and (2) above contain any material misstatement.

v. The Company has neither declared nor paid any dividend during theyear.

3. As required by The Companies (Amendment) Act 2017 in our opinionaccording to information explanations given to us the remuneration paid by the Companyto its directors is within the limits prescribed under Section 197 of the Act and therules thereunder.

For M S K A & Associates
Chartered Accountants
ICAI Firm Registration No. 105047W
Bhavik L. Shah
Partner
Membership No. 122071
UDIN: 22122071AHLOTI4880
Place: Mumbai
Date: April 14 2022

 

ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT ON EVEN DATE ON THEFINANCIAL STATEMENTS OF NATIONAL STANDARD (INDIA) LIMITED

Auditor’s Responsibilities for the Audit of the FinancialStatements

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 the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit 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 internal financial controls with reference to financial statements in placeand 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 theCompany 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.

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 wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our 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 for 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.

For M S K A & Associates
Chartered Accountants
ICAI Firm Registration No. 105047W
Bhavik L. Shah
Partner
Membership No.122071
UDIN: 22122071AHLOTI4880
Place: Mumbai
Date: April 14 2022

 

ANNEXURE B TO INDEPENDENT AUDITORS’ REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF NATIONAL STANDARD (INDIA) LIMITED FOR THE YEAR ENDED MARCH 312022

[Referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements’ in the Independent Auditors’ Report]

i. (a) A. The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant and Equipment.

B. The Company has maintained proper records showing full particularsof intangible assets.

(b) All the Property Plant and Equipment have not been physically veried by the management during the year but there is a regular programme of veri cationwhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. No material discrepancies were noticed on such veri cation.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties (other than properties where the Company is the lessee and the lease agreementsare duly executed in favour of the lessee) as disclosed in the financial statements areheld in the name of the Company.

(d) According to the information and explanations given to us theCompany has not revalued its property plant and Equipment (including Right of Use assets)and its intangible assets. Accordingly the requirements under clause 3(i) (d) of theOrder are not applicable to the Company.

(e) According to the information and explanations given to us noproceeding has been initiated or pending against the Company for holding benami propertyunder the Benami Transactions (Prohibition) Act 1988 and rules made thereunder.Accordingly the provisions stated in clause 3(i)(e) of the Order are not applicable tothe Company.

ii. (a) The inventory has been physically veri ed during the year bythe management. In our opinion the frequency of veri cation coverage & procedure ofsuch veri cation is reasonable and appropriate.

(b) According to the information and explanations provided to us theCompany has not been sanctioned working capital limits. Accordingly the requirementsunder clause 3(ii)(b) of the Order is not applicable to the Company.

iii. (a) According to the information explanation provided to usduring the year the Company has provided loans or provided advances in the nature ofloans or given guarantee or provided security to any other entity.

(A) The details of such loans or advances and guarantees or security tosubsidiaries Joint Ventures and Associates are as follows: - NIL

AND

(B) The details of such loans or advances and guarantees or security toparties other than subsidiary joint ventures and associates are as follows:

Guarantees

Security

Loans

Advances

( In Lakhs)

( In Lakhs)

( In Lakhs)

( In Lakhs)

Aggregate amount granted/provided during the year
-Others

-

-

15521.48

-

Balance Outstanding as at balance sheet date in respect of above cases
-Others

-

-

18867.24

-

 

(b) According to the information and explanations given to us and basedon the audit procedures performed by us we are of the opinion that the terms andconditions in relation to investments made guarantee provided security given and grantof all loans and advances in the nature of loans during the year are not prejudicial tothe interest of the Company.

(c) In case of the loans and advances in the nature of loan scheduleof repayment of principal and payment of interest have been stipulated and the borrowershave been regular in the payment of the principal and interest.

(d) There are no amounts overdue for more than ninety days in respectof the loan granted to Company/ Firm/ LLP/ Other Parties.

(e) According to the information and explanations provided to us thereis no loan or advance in the nature of loan granted falling due during the year which hasbeen renewed or extended or fresh loans granted to settle the overdues of existing loansgiven to same parties. Hence the requirements under clause 3(iii)(e) of the Order are notapplicable to the Company.

(f) According to the information explanation provided to us theCompany has granted loans/advances in the nature of loans repayable on demand as at March31 2022. The details of the same are as follows:

All Parties ( In Lakhs)

Promoters ( In Lakhs) Related Parties ( In Lakhs)
Aggregate amount of loans/ advances in nature of loans
- Repayable on demand (A)

3070.55

- -
- Agreement does not specify any
terms or period of repayment (B)

-

- -
Total (A+B)

3070.55

- -
Percentage of loans/ advances in nature of loans to the total loans

16.27%

 

iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct in respect of loans investments guarantees and security made.

Further as the Company is engaged in the business of providinginfrastructural facilities the provisions of section

186 [except for sub-section (1)] are not applicable to it.

v. In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits from the public within the meaningof Sections 73 74 75 and 76 of the Act and the rules framed there under.

vi. The provisions of sub-section (1) of section 148 of the Act are notapplicable to the Company as the Central

Government of India has not specified the maintenance of cost recordsfor any of the products of the Company.

Accordingly the provisions stated in clause 3 (vi) of the Order arenot applicable to the Company.

vii. (a) According to the information and explanations given to us andthe records of the Company examined by us in our opinion undisputed statutory duesincluding goods and services tax income-tax and any other statutory dues have generallybeen regularly deposited with the appropriate authorities during the year. TheCompany’s operations during the year did not give rise to any liability for valueadded tax service tax excise duty provident fund employees’ state insurancesales-tax duty of custom cess.

Further no undisputed statutory dues were in arrears as at March 312022 for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us andexamination of records of the Company the outstanding dues of income-tax goods andservice tax customs duty cess and any other statutory dues on account of any disputeare as follows:

Name of the statute

Nature of dues

Amount ( In Lakhs)

Amount paid under protest ( In Lakhs)

Period to which the amount relates

Forum where dispute is pending

Income Tax Act 1961

Income Tax (Including Interest)

946.21

248.66

Assessment Year 2014-15

Commissioner of Income Tax (Appeals)

Income Tax Act 1961

Income Tax (Including Interest)

134.10

26.82

Assessment Year 2018-19

Commissioner of Income Tax (Appeals)

MVAT Act 2002

Value Added Tax

75.99

3.30

Assessment Year 2016-17

Joint Commissioner Appeals

Income Tax Act 1961

Penalty u/s 271D & E

56.30

-

Assessment Year 2017-18

Commissioner of Income Tax (Appeals)

Income Tax Act 1961

Penalty u/s 271D & E

0.20

-

Assessment Year 2017-18

Commissioner of Income Tax (Appeals)

 

viii. According to the information and explanations given to us thereare no transactions which are not accounted in the books of account which have beensurrendered or disclosed as income during the year in Tax Assessment of the Company.

Also there are no previously unrecorded income which has been nowrecorded in the books of account. Hence the provision stated in clause 3(viii) of theOrder is not applicable to the Company.

ix. (a) The Company does not have any loans or borrowings and repaymentto lenders during the year. Accordingly the provision stated in clause 3(ix)(a) to (c)and (f) of the Order is not applicable to the Company.

(d) According to the information and explanations given to us and theprocedures performed by us and on an overall examination of the financial statements ofthe Company we report that no funds raised on short-term basis have been used forlong-term purposes by the Company.

(e) According to the information explanation given to us and on anoverall examination of the financial statements of the Company we report that the Companyhas not taken any funds from an any entity or person on account of or to meet theobligations of its subsidiaries associates or joint ventures.

x. (a) The Company did not raise any money by way of initial publicoffer or further public offer (including debt instruments) during the year. Accordinglythe provisions stated in clause 3(x)(a) of the Order are not applicable to the Company.

(b) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully partly or optionallyconvertible debentures during the year. Accordingly the provisions stated in clause3(x)(b) of the Order are not applicable to the Company.

xi. (a) During the course of our audit examination of the books andrecords of the Company carried out in accordance with the generally accepted auditingpractices in India and according to the information and explanations given to us we haveneither come across any instance of material fraud by the Company nor on the Company.

(b) We have not come across of any instance of material fraud by theCompany or on the Company during the course of audit of the financial statement for theyear ended March 31 2022 accordingly the provisions stated in clause 3(xi)

(b) of the Order is not applicable to the Company.

(c) We have taken into consideration the whistle blower complaintsreceived by the Company during the year while determining the nature timing and extent ofaudit procedures.

xii. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company.

Accordingly the provisions stated in clause 3(xii)(a) to (c) of theOrder are 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 financial statements as requiredby the applicable accounting standards.

xiv. (a) In our opinion and based on our examination the Company hasan internal audit system commensurate with the size and nature of its business.

(b) We have considered internal audit reports issued by internalauditors during our audit.

xv. According to the information and explanations given to us in ouropinion during the year the Company has not entered into non-cash transactions withdirectors or persons connected with its directors and hence provisions of section 192 ofthe Act are not applicable to Company. Accordingly the provisions stated in clause 3(xv)of the Order are not applicable to the Company.

xvi. (a) In our opinion the Company is not required to be registeredunder section 45 IA of the Reserve Bank of India Act 1934 and accordingly the provisionsstated in clause 3(xvi)(a) of the Order are not applicable to the Company.

(b) In our opinion the Company has not conducted any Non-BankingFinancial or Housing Finance activities without any valid Certificate of Registration fromReserve Bank of India. Hence the reporting under clause 3(xvi)(b) of the

Order are not applicable to the Company.

(c) The Company is not a Core Investment Company (CIC) as defined inthe regulations made by Reserve Bank of

India. Hence the reporting under clause 3(xvi)(c) of the Order are notapplicable to the Company.

(d) The Company does not have any CIC as part of its group. Hence theprovisions stated in clause 3(xvi)(d) of the order are not applicable to the Company.

xvii. According to the information explanation provided to us theCompany has not incurred cash losses in the current financial year and in the immediatelypreceding financial year. Hence the provisions stated in clause 3(xvii) of the Order arenot applicable to the Company.

xviii. There has been no resignation of the statutory auditors duringthe year. Hence the provisions stated in clause 3(xviii) of the Order are not applicableto the Company.

xix. According to the information and explanations given to us 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 our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us 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. We further state that our reporting is based on the facts up to the date ofthe audit report and we 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. (a) There are no unspent amounts towards Corporate SocialResponsibility (CSR) on other than ongoing projects requiring a transfer to a Fundspecified in Schedule VII to the Companies Act in compliance with second proviso tosub-section (5) of Section 135 of the said Act. Accordingly reporting under clause3(xx)(a) of the Order is not applicable for the year.

(b) There are no unspent amounts towards Corporate SocialResponsibility (CSR) on ongoing projects requiring a transfer to a special accounts incompliance with provision of sub section (6) of section 135 of the said Act.

Accordingly reporting under clause 3(xx)(b) of the Order is notapplicable for the year.

For M S K A & Associates
Chartered Accountants
ICAI Firm Registration No. 105047W
Bhavik Shah
Partner
Membership No. 122071
UDIN: 22122071AHLOTI4880
Place: Mumbai
Date: April 14 2022

 

ANNEXURE C TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF NATIONAL STANDARD (INDIA) LIMITED

[Referred to in paragraph 2(f) under ‘Report on Other Legal andRegulatory Requirements’ in the Independent Auditors’

Report of even date to the Members of National Standard (India) Limitedon the Financial Statements for the year ended

March 31 2022]

 

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

Opinion

We have audited the internal financial controls with reference tofinancial statements of National Standard (India) Limited ("the Company") as ofMarch 31 2022 in conjunction with our audit of the financial statements of the Companyfor the year ended on that date.

In our opinion the Company has in all material respects adequateinternal financial controls with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 31 2022 based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI) (the"Guidance Note").

 

Management’s Responsibility for Internal Financial Controls

The Company’s Management is responsible for establishing andmaintaining internal financial controls based on the internal control with reference tofinancial statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

 

Auditors’ Responsibility

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 Guidance Note and the Standards on Auditingissued by

ICAI and deemed to be prescribed under section 143(10) of the Act tothe extent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlswith reference to financial statements was established and maintained and if such controlsoperated effectively in all material respects

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor’sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud 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 internalfinancial controls with reference to financial statements.

 

Meaning of Internal Financial Controls With reference to FinancialStatements

A Company’s internal financial control with reference to financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A Company’s internalfinancial control with reference to financial statements includes those policies andprocedures 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 as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company’s assets that could have a materialeffect on the financial statements.

 

Inherent Limitations of Internal Financial Controls With reference tofinancial statements

Because of the inherent limitations of internal financial controls withreference 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 control with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

For M S K A & Associates
Chartered Accountants
ICAI Firm Registration No. 105047W
Bhavik L. Shah
Partner
Membership No.122071
UDIN: 22122071AHLOTI4880
Place: Mumbai
Date: April 14 2022

 

.