To the Members of
Ramkrishna Forgings Limited
RepoRt on the audit oF the standaLone ind as FinanciaL statements opinion
We have audited the accompanying standalone Ind AS financial statements of RamkrishnaForgings Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2020 the Statement of Profit and Loss including the statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and notes to the standalone Ind AS financial statements including asummary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial give the information required bythe Companies Act 2013 as amended ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2020 its profit othercomprehensive loss its cash flows and the changes in equity for the year ended on thatdate.
Basis for opinion
We conducted our audit of the standalone Ind AS financial statements 143(10) of theAct. Our responsibilitiesunder those Standards are further described in theAuditor's Responsibilities for the Audit of the standalone Ind AS FinancialStatements' section of our report. We are independent of the Company in accordance withthe Code of Ethics' issued by the Institute of Chartered Accountants of Indiatogether with the ethical requirements that are relevant to our audit of the financialstatements under the provisions of the Act and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone Ind AS financial statements.
Emphasis of Matter
We draw attention to Note 48 to the standalone financial statements which describesthe uncertainties on the Company's operations and results as assessed by management. Theactual results may differ from such estimates depending on future developments. Ouropinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS statements for the financial year endedMarch 31 2020. These matters were addressed in the context of our audit of the standaloneInd AS statements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. For each matter below our description of how our auditaddressed the matter is provided in that context. We have determined the matters describedbelow to be the key audit matters to be communicated in our report. We have fulfilled theresponsibilities described in the Auditor's responsibilities for the audit of thestandalone Ind AS financial statements section of our report including in relation tothese matters. Accordingly our audit included the performance of procedures designed torespond to our assessment of the risks of material misstatement of the standalone Ind ASfinancial statements. The results of our audit procedures including the proceduresperformed to address the matters below provide the basis for our audit opinion on theaccompanying standalone Ind AS financial statements.
|Key audit matters ||How our audit addressed the key audit matter |
|(a) Revenue recognition (as described in Note 2.3(d) of the standalone Ind AS financial statements) ||Our audit procedures included the following: ? ConsideredCompany'srevenuerecognition policy and its compliance in terms of Ind AS 115 Revenue from contracts with customers'. |
|Revenue is recognised when control of the goods are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. During the year ended March 31 2020 the Company has recognised revenue amounting to Rs. 54891.99 lacs and Rs. 43438.79 lacs from domestic and export sales respectively. Terms of sales arrangements including the timing of transfer of control delivery specifications including incoterms in case of exports timing of recognition of sales require significant judgment in determining revenues. The risk is therefore that revenue may not get recognised in the correctperiod. e satisfied. ar recognitions ||? Assessed the design and tested the operating effectiveness of internal controlsrelatedtorevenuerecognition. |
|Accordingly due to the significant risk associated with revenue recognition in accordance with terms of Ind AS 115 Revenue from contracts with customers' it has been determined to be a key audit matter in our audit of the standalone Ind AS financial statements. ||? Tested samples of individual sales transaction and traced to sales invoices sales orders (received from customers) and other related documents. |
| ||Further in respect of the samples tested checkedrecognition of revenue in accordance with the incoterms / when the conditions for revenue |
|Accordingly due to the significant risk associated with revenue recognition in accordance with terms of Ind AS 115 Revenue from contracts with customers' it has been determined to be a key audit matter in our audit of the standalone Ind AS financial statements. ||? Selected sample of sales transactions made pre- and post-year end agreed the period of revenue recognition to underlying documents. |
| ||? Performed procedures to identify any unusual trends of revenue recognition. |
| ||? Assessed the relevant disclosures made within the standalone Ind AS financial statements. |
|mpairment assessment of property plant and equipment (as described in Note 48 of the standalone Ind AS financial statements) ||Our audit procedures included the following: |
|As at March 31 2020 the carrying value of property plant and equipment (PPE) were Rs. 115731.81 lacs. In view of the uncertainty on account of COVID-19 pandemic impairment indicators were identified that gave rise to a risk that PPE may be impaired. ||Assessed the design and tested the operating controls related to impairment of PPE |
|Consequently impairment assessment was performed for PPE. ||Assessed the Company's valuation methodology and assumptions based on current economic and market conditions including effects of COVID-19 pandemic applied in determining the recoverable amount including valuation report used by the Company for determining the fair value (recoverable amount') of the PPE. forecasts including discount rates expected growth rates and terminal growth rates used. and |
|The inputs to the impairment testingmodel which have the most significant impact on the recoverable value include projected amortiz Earningsbeforeinteresttaxanddepreciationand (EBITDA) revenue growth rate discount rates terminal growth rate and capital expenditure and sensitivity testing of these Evaluated the assumptions around the key drivers of the cash flow assumptions. ||Involved our valuation experts and tested the data and assumptions used by the management arithmetical accuracy and evaluated the adequacy of headroom available for recoverable value through sensitivity analysis. Discussed potential changes in key drivers as compared to previous year / actual performance with management to evaluate whether the inputs and assumptions used in the cash flow forecasts were suitable. Assessed the disclosures made in the standalone Ind AS financial statements for compliance with the relevant Ind AS requirements. |
|The impairment testing involves significant judgement estimates in assessing the recoverable value therefore it has been considered as key audit matter. || |
|Recognition and recoverability of MAT credit (as described in note 11 and Note 48 of the Standalone Ind AS financial statements) ||Our audit procedures included the following: |
|As at March 31 2020 net deferred tax liability recognised were Rs. 5944.50 lacs which comprises deferred tax asset of Rs. 8020.34 lacs and deferred tax liability of Rs. 13964.84 lacs. The deferred tax assets include MAT credit entitlement ofRs. 7035.14 lacs. ||Evaluated the Company's accounting policies with respect to recognition and recoverability of MAT credits in accordance with Ind AS 12 "Income Taxes". |
|In view of the COVID-19 pandemic the Company has reassessed its futureprojections for recoverability of MAT as at March 31 2020 while assessing the adequacy of taxable income of future years. ||Obtained an understanding of the process and tested the controls over preparation of the taxable profit forecast. |
|The recognition and recovery of MAT credit is a key audit matter as the recoverability of such MAT credit within the allowed time involves significant estimate of financialprojections availability of sufficient taxable income in future periods and significant judgement in the interpretations of tax laws regulations and tax Tested the arithmetical accuracy of the tax computations future positions adopted by the Company. ||Assessed the key assumptions used in the future projections by comparing it to the approved business plan. |
| ||Involved our tax specialists who evaluated the reasonableness of the frame Company's tax positions by comparing it with prior years and past precedents. projections of taxable profits including its correlation with the business plan approved by the Board of Directors. Assessed the disclosures in respect of the deferred tax asset balances including those disclosures related to significant accounting judgements and estimates. |
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in Management Discussion and AnalysisBoard's Report including Annexures to Board's Report and Corporate Governance Report butdoes not include the standalone Ind AS financial statements and our auditor's reportthereon.
Our opinion on the standalone Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon. In connectionwith our audit of the standalone Ind AS financial statements our responsibility is toread the other information and in doing so consider whether such other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.
Responsibilities of Management for the standalone Ind AS Financial Statements
The Company's Board of Directors is responsible for the matters stated in sectionstandalone Ind AS financial statements that give a true and fair view of the financialposition financial performance including other income cash flows and changes in equityof the Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the standalone Ind AS financial statements management is responsible forassessing the Company's ability to continue concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
Those Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone Ind AS financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for 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 the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made management.
Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the standalone Ind ASfinancial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing internal control that we identify during our audit. audit
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit the standalone Ind AS financialstatements for the financial matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
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 ofthe Act we give in the "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;
(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;
(c) The Balance Sheet the Statement of Profit and Loss including the Statement ofOther Comprehensive Income the Cash Flow Statement and Statement of Changes in Equitydealt with by this Report are in agreement with the books of account;
(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;
(e) On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors disqualifie 31 2020 from beingappointedasadirectorintermsofSection 164 (2) of the Act; noneofthedirectors
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these standalone Ind AS financial statementsand the operating effectiveness of such controls refer to our separate Report in"Annexure 2" to this report;
(g) In our opinion the managerial remuneration for the year ended March 31 2020 hasbeen paid / provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act;
(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:
. The Company has disclosed the impact of pending litigations on its financial positionin its standalone Ind AS financial statements Refer Note 35 to the standalone Ind ASfinancial statements;
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For m/s. s.K. naRedi & co.
Chartered Accountants number: ICAIFirmregistration 003333C
Sd/-per Abhijit Bose
Membership No.: 056109 UDIN: 20056109AAAABX3309 Place: Kolkata Date: June 26 2020
For s.R. BatLiBoi & co. LLp
ICAI Firm registration number:301003E/E300005
Sd/-per sanjay Kumar agarwal
Membership No.: 060352 UDIN: 20060352AAAACJ8814 Place: Kolkata Date: June 26 2020 annexuRe1 ReFeRRed to in paRagRaph 1 oF the section on "RepoRt on otheR LegaL and ReguLatoRyRequiRements" oF ouR even RepoRt on the even date on the standaLone ind asF inanciaLstatements oF RamKRishna FoRgings Limited
To the Members of
Ramkrishna Forgings Limited ("the company") i. (a) The Company hasmaintained proper records showing full particulars including quantitative details andsituation of property plant & equipment.
(b) All fixed assets have not been physically verified by the management during theyear but there is a regular programme of verifying them once in three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancieswerenoticed (c) According to the information andexplanations given by the management the title deeds of immovable properties included inproperty plant and equipment are held in the name of the Company. ii. The inventory hasbeen physically verified by the management subsequent to the year end in view of COVID-19pandemic including inventories lying with third parties. In our opinion the frequency ofverification is reasonable. No material discrepancies were noticed on such physicalverification. iii. (a) The Company has granted loan to its wholly owned subsidiary coveredin the register maintained under section 189 of the Companies Act 2013. In our opinionand according to the information and explanations given to us the terms and conditions ofthe grant of such loan is not prejudicial to the Company's interest.
(b) The Company has granted loan to its wholly owned subsidiary covered in the registermaintained under section 189 of the Companies Act 2013. The schedule of repayment ofprincipal and payment of interest has been stipulated for the loan granted and therepayment/ receipts are regular.
(c) There are no amounts of loans granted to companies firms or other parties listedin the register maintained under section 189 of the Companies Act 2013 which are overduefor more than ninety days. iv. In our opinion and according to the information andexplanations given to us the Company has not advanced loans to directors / to a companyin which the Director is interested to which provisions of section 185 of the CompaniesAct 2013 apply and hence not commented upon. In our opinion and according to theinformation and explanations given to us provisions of section 186 of the Companies Act2013 in respect of loans and advances given investments made and guarantees given havebeen complied with by the Company. v. The Company has not accepted any deposits within themeaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules2014 (as amended). Accordingly the provisions of clause 3(v) of the Order are notapplicable. vi. We have broadly reviewed the books of account maintained by the Companypursuant to the rules made by the Central Government for the maintenance of cost recordsunder section 148(1) of the Companies Act 2013 related to the manufacture of theCompany's products and are of the opinion that prima facie the specified accounts andrecords have been made and maintained. We have not however made a detailed examinationof the same. vii.
(a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax duty of custom duty of excise value added tax goodsand service tax cess and other statutory dues applicable to it.
(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax service taxsales-tax duty of custom duty of excise value added tax goods and service tax cessand other statutory dues were outstanding at the year end for a period of more than sixmonths from the date they became payable.
(c) According to the records of the Company the dues of income-tax sales-tax servicetax duty of custom duty of excise and value added tax on account of any dispute are asfollows:
|name of the statute || |
nature of dues amount (Rs. in lakhs)
|period to which the amount relates ||Forum where the dispute is pending |
|Jharkhand Value Added ||Sales Tax ||25.43 ||F.Y. 2015-16 ||Ranchi High Court |
|Tax Act 2005 ||Sales Tax ||175.95 ||F.Y. 2013-2014 to 2015-16 ||Ranchi High Court |
| ||Sales Tax ||0.90 ||F.Y. 2015-2016 ||Deputy Commissioner of Sales Tax |
|Service Tax under ||Service Tax ||56.55 ||F.Y. 2012-2013 to 2015-2016 ||Commissioner of GST and Central Excise |
|Finance Act 1994 ||Service Tax ||727.65 ||F.Y. 2012-2013 to June 2018 ||Commissioner of GST and Central Excise |
| ||Service Tax ||615.73 ||F.Y. 2009-10 to 2017-18 ||Commissioner of CGST Central Excise and Audit |
|CGST Act 2017 ||Cess (Education ||45.12 ||F.Y. 2017-2018 ||Ranchi High Court |
| ||and Higher || || || |
| ||Education Cess) || || || |
viii. In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowings to afinancial institution or bank during the year. The Company did not had any outstandingloans or borrowing from Government or dues to debenture holders during the year.
ix. In our opinion and according to the information and explanations given by themanagement the Company has utilized the monies raised by way of term loans for thepurposes for which they were raised.
x. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the standalone Ind AS financial and according to the information andexplanations given by the management we report that no fraud by the Company or nomaterial fraud on the Company by the officers and employees of the Company has beennoticed or reported during the year.
xi. According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.
xii. In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.
xiii. Accordingtotheinformation and explanations given by the management transactionswith the related parties are in compliance with section 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the notes to the standalone Ind ASfinancial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully orpartlyconvertibledebentures during the year underreview and hence reporting requirements under clause 3(xiv) are not applicable to theCompany and not commented upon.
xv. According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions withdirectorsorpersonsconnectedwithhimasreferredtoinsection 192 of Companies Act 2013. xvi.According to the information and explanations given to us the provisions of section 45-IAof the Reserve Bank of India Act 1934 are not applicable to the Company.
For m/s. s.K. naRedi & co.
Sd/-per Abhijit Bose
Membership No.: 056109 UDIN: 20056109AAAABX3309 Place: Kolkata Date: June 26 2020
For s.R. BatLiBoi & co. LLp
ICAI Firm registration number:301003E/E300005
Sd/-per sanjay Kumar agarwal
Membership No.: 060352 UDIN: 20060352AAAACJ8814 Place: Kolkata Date: June 26 2020
ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF RAMKRISHNA
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013("theAct")
We have audited the internal financial controls over financial reporting of RamkrishnaForgings Limited ("the Company") as of March 31 2020 inconjunctionwithourauditofthestandalonefinancialstatements of the Company for the yearended on that date.
Management's Responsibility for Internal Financial Controls
The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reportingwith reference to these standalone financial statementsbased on our audit. We conducted our audit in accordance with the Guidance Note on Auditof Internal Financial Controls Over Financial Reporting (the "Guidance Note")and the Standards on Auditing as specified under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls and both issuedby the Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting with reference to these standalone Ind AS financial statements was establishedand maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls over financial reporting with reference to thesestandalone Ind AS financial statements and their operating effectiveness. Our audit ofinternal financial controls financial reporting included obtaining an understanding ofinternal financial controls over financial reporting with reference to these standalonefinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the standalone Ind AS financialstatements whether due to fraud or error. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on theinternal financial controls over financial reporting with reference to these standaloneInd AS financial statements.
Meaning of Internal Financial Controls Over Financial Reporting With Reference to theseFinancial Statements
A company's internal financial control over financial reporting with reference to thesestandalone Ind AS financial statements is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingstandalone Ind AS financial statements includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone Ind AS 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 have amaterial effect on the standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting WithReference to these Standalone Financial Statements
Because of the inherent limitations of internal financial controls over financialreporting with reference to these standalone Ind AS financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referencethese standalone Ind AS financial statements to future periods are subject to the riskthat the internal financial control over financial reporting with reference to thesestandalone Ind AS financial statements may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.
In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these standalone financial statementsand such internal financial controls over financial reporting with reference to thesestandalone Ind AS financial statements were operating effectively as at March 31 2020based on the internal control over financial reporting criteria established by Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.