To The Board of Directors of SANWARIA CONSUMER LIMITED
1. We have audited the accompanying Statement of Standalone Financial Results ofSANWARIA CONSUMER LIMITED ("the Company") for the year ending 31stmarch 2020 (the Statement") being submitted by the Company pursuant to therequirement of Regulation 33 of SEBI (Listing Obligation and Disclosure requirements)Regulations 2015 as modified by the circular no. CIR/FAC/62/2016 dated July 5 2016.
2. This Statement which is the responsibility of Company's management andapproved by The Board of Directors has been compiled from the related StandaloneFinancial statements which has been prepared in accordance with the Indian AccountingStandards prescribed under Section 133 of The Companies Act 2013 read with relevant rulesissued thereunder (Ind AS') and other accounting principles generally accepted inIndia. Our responsibility is to express our opinion on the Statements based on our auditof such Standalone Financial statements.
3. We conducted our audit in accordance with the Standards on Auditing issued bythe Institute of Chartered Accountants of India. Those standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the statement is free from material misstatements. An audit involvesperforming procedure to obtain audit evidence about the amounts and disclosures in theStatement. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the Statement whether due to fraud orerror. In making those risk assessments the auditor considers internal control relevantto the Company's preparation and the fair presentation of the Statement in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on the effectiveness of the Company's internal control . An auditalso includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the management as well as evaluatingthe overall presentation of the Statement.
We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion.
4. In our opinion and to best of our information and according to theexplanations given to us the Statement: (i) is presented in accordance with therequirement of regulation 33 of SEBI (Listing Obligation and Disclosure requirements)Regulations 2015 as modified by the circular no. CIR/FAC/62/2016 dated July 5 2016 and(ii) gives a true and fair view in conformity with the aforesaid Indian AccountingStandards and other accounting principles generally accepted in India of the Net Loss andthe total Comprehensive income and other financial information of the Company for the yearended 31st March 2020.
5. The Statement includes the results for the quarter ended 31stMarch 2020 being the balancing figure between audited figures in respect of the fullfinancial year and the published year to date figures upto third quarter of the currentfinancial year which were subject to limited reviewed by us.
6. One creditor Mr. Kishor Ramniklal unadikat sole proprietor of M\s ShaktiClearing Agency has filed company petition under section 9 of The Insolvency andBankruptcy Code 2016 read with the rule 6 of The Insolvency and Bankruptcy Rules 2016 toinitiate Corporate Insolvency Resolution process against the Company before the NCLT andthe said application has been admitted by the Authority wide no. (MP) CP (IB) No. 7 / 9 /NCLT / AHM / 2019 at 29th of May 2020 and NCLT has appointed Mr. Rajiv Goyal asInsolvency Resolution Professional (IRP).
For PRAMOD K SHARMA & CO.
CA PRAMOD SHARMA
M. No.: 076883; FRN: 007857C
To THE MEMBERS OF SANWARIA CONSUMER LIMITED
Report on the Audit of the standalone financial statements
1. We have audited the accompanying standalone financial statements of SanwariaConsumer Limited (the Company') which comprise the Balance Sheet as at 31stMarch 2020 the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 (the Act') in the manner so requiredand give a true and fair view subject to observations given in Schedule "A" inconformity with the accounting principles generally accepted in India including IndianAccounting Standards (Ind AS') specified under Section 133 of the Act of the stateof affairs (financial position) of the Company as at 31 March 2020 and its profit(financial performance including other comprehensive income) its cash flows and thechanges in equity for the year ended on that date.
Basis for opinion
e) We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI') togetherwith the ethical requirements that are relevant to our audit of the financial statementsunder the provisions of the Act and the rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.
i. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.
ii. One creditor Mr. Kishor Ramniklal unadikat sole proprietor of M\s Shakti ClearingAgency has filed company petition under section 9 of The Insolvency and Bankruptcy Code2016 read with the rule 6 of The Insolvency and Bankruptcy Rules 2016 to initiateCorporate Insolvency Resolution process against the Company before the NCLT and the saidapplication has been admitted by the Authority wide no. (MP) CP (IB) No. 7 / 9 / NCLT /AHM / 2019 at 29th of May 2020 and NCLT has appointed Mr. Rajiv Goyal asInsolvency Resolution Professional (IRP).
Information other than the Financial Statement and Auditor's Report thereo
1. The Company's Board of Directors is responsible for the other information.The other information comprises the information included in the Annual Report but doesnot include the financial statements and our auditor's report thereon. Our opinion on thefinancial statements does not cover the other information and we do not express any formof assurance conclusion thereon. In connection with our audit of the financial statementsour responsibility 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 for the standalonefinancial statements
2. The Company's Board of Directors is responsible for the matters stated inSection 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view subject to observations given in Schedule"A" of the state of affairs (financial position) profit or loss (financialperformance including other comprehensive income) changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Ind AS specified under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view subject to observations given in Schedule "A" and arefree from material misstatement whether due to fraud or error.
3. In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
4. Board of Directors is also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the financial statements
3. Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance withStandards on Auditing 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.
6. As part of an audit in accordance with Standards on Auditing we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
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) ofthe Act we are also responsible for explaining our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by 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 financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
7. We communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
8. 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.
9. From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
As required by Section 197(16) of the Act we report that the Company has paidremuneration to its directors during the year in accordance with the provisions of andlimits laid down under Section 197 read with Schedule V to the Act.
8. As required by the Companies (Auditor's Report) Order 2016 (theOrder') issued by the Central Government of India in terms of Section 143(11) of theAct we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4of the Order.
Further to our comments in Annexure B as required by Section 143(3) of the Act wereport that:
9. 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;
10. in our opinion proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books;
11. the standalone financial statements dealt with by this report are in agreement withthe books of account;
12. in our opinion the aforesaid standalone financial statements comply with Ind ASspecified under Section 133 of the Act;
13. on the basis of the written representations received from the directors and takenon record by the Board of Directors none of the directors is disqualified as on 31 March2020 from being appointed as a director in terms of Section 164(2) of the Act;
14. we have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as on 31st March 2020 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date and ourreport as per Annexure C expressed an unmodified opinion;
15. 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 the standalone financial statements;
the Company has made provision as required under the applicable law or Ind AS formaterial foreseeable losses if any on long-term contracts including derivativecontracts;
there has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended 31 March 2020;
iv. The disclosure requirements relating to holdings as well as dealings in specifiedbank notes were applicable for the period from 8 November 2016 to 30 December 2016 whichare not relevant to these standalone financial statements. Hence reporting under thisclause is not applicable.
For PRAMOD K SHARMA & CO.
CA PRAMOD SHARMA
M. No.: 076883; FRN: 007857C
ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE TO THE MEMBERS OF SANWARIACONSUMER LIMITED ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020
Based on the audit procedures performed for the purpose of Audit we have found someobservation which individually or collectivity were not material for modifying our opinionbut should be consider while taking decision on the basis of Report. Details arefollowing:
1. In the following cases we noticed that Interest income & Misc. Incomehave been booked against the opening balance shown at the year end not only for thecurrent period but also the previous period. But there is no certainty of recognition ofincome from those debtors hence as per Indian Accounting Standard IND AS 18 itshould not be considered as income of current financial period:
|Sr. No. Name of Parties ||Amount shown as Interest Income |
|1 Thai hind Agriculture International Co. Ltd. Thailand ||2818.65 Lakhs |
|2 Bengani Foods Product India Pvt. Ltd ||938.88 Lakhs |
|3 V.P. Kuhan Foods and Feeds Pvt. Ltd. ||92.15 Lakhs |
|4 Rajveer Proteins ||6.09 Lakhs |
|5 United India Assurance Co. Ltd. ||4744.12 Lakhs |
2. We have observed the Company was under dispute with United India AssuranceCo. Ltd. the Case is still pending with the Court even Company have shown claim Incomeunder miscellaneous income of Rs. 10825.50 Lakhs which was not allowed as per IndianAccounting Standard IND AS 18 hence it should not be considered as income ofcurrent financial period.
3. Debtors and creditors balances are subject of Confirmation. Closing Balancesof Debtors have certified by the management as provided in management representationletter.
4. In some of the cases we observed that the transactions with the parties werereportedly made through the brokers and the confirmation of the brokers have been providedin this respect.
The practice prevailing in the trade is somewhat different that the brokers are actingon behalf of the parties and issue challans without revealing the actual identity of thebuyer/seller.
The Challans issued to parties by the brokers to whom the supply has been made onbehalf of the company and the invoices were issued by the brokers and not by the company.The supply is made on behalf of the company by the brokers to the parties which is basedon the Challan issued by the broker for which the ownership of goods rest with the companyas per the practice prevailing in the trade viz that the Challans are given by the brokerto the actual party whereas the goods belong to some other party and it contains the nameof the parties to whom the goods have been delivered on behalf of company by the agent andthe modus operandi used in the aforesaid trade is based on "Bill to~ Ship to"Model.
5. We have not physically verified the Stock but the Internal Auditor hasverified the Stock. As per their report there were some variances between stock as perbooks and stock as physically verified which is not material as per our professionaljudgment. Closing stock has been certified by the management as provided in managementrepresentation letter.
6. Financial statements were audited by Forensic Auditor but the Report of suchaudit has not been provided to us for our consideration So we are not in position to makeany comment on findings of the Forensic Auditor.
ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE TO THE MEMBERS OF SANWARIACONSUMER LIMITED ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020
Based on the audit procedures performed for the purpose of reporting a true and fairview subject to observations given in Schedule "A" on the standalone financialstatements of the Company and taking into consideration the information and explanationsgiven to us and the books of account and other records examined by us in the normal courseof audit and to the best of our knowledge and belief we report that:
i. (a) The Company has maintained proper records of Fixed Assets which provided blockwise detail of the Fixed Assets but it should be more descriptive.
(b) As per the information and explanation given to us the Company has a regularprogram of physical verification of its property plant and equipment under whichproperty plant and equipment are verified annually which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. In accordance withthis program property plant and equipment were verified during the year and no materialdiscrepancies were noticed on such verification.
(c) As per the information and explanation given to us the title deeds of all theimmovable properties are held in the name of the Company.
ii. In our opinion and according to the information and explanations given to us the
Company is maintaining proper record of inventory. The discrepancies noticed onverification between physical stocks and the book records were not material and haveproperly dealt with in the books of accounts. No material discrepancies were noticed onthe aforesaid verification.
iii. The Company has granted secured or unsecured loans to companies firms and othersparties covered in the register maintained under Section 189 of the Act; and with respectto the same:
a. In our opinion the terms and conditions of grant of such loans are not prima facieprejudicial to the Company's interest; b. The schedule of repayment of principal andpayment of interest has been stipulated and the repayment/ receipts of the principalamount and the interest are regular;
iv. In our opinion the Company has complied with the provisions of Sections 185 and186 of the Act in respect of loans investments guarantees and security.
v. In our opinion the Company has not accepted any deposits within the meaning of
Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable. vi.We have broadly reviewed the books of account maintained by the Company pursuant to theRules made by the Central Government for the maintenance of cost records under sub-section(1) of Section 148 of the Act in respect of Company's products and services and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.
vii. (a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax goods and services taxservice tax duty of customs duty of excise value added tax cess and other materialstatutory dues as applicable with the appropriate authorities though there has beenslight delay in few cases. Further no undisputed amounts payable in respect thereof wereoutstanding at the year-end for a period of more than six months from the date they becamepayable.
(b) The dues outstanding in respect of income-tax sales tax duty of customs duty ofexcise and value added tax on account of any dispute are as follows:
|Name of the statute ||Nature of Dues ||Amount (Rs. In Lakhs) ||Period to which the amount relates ||Forum where dispute is pending ||Status |
|Income Tax Act ||Disputed ||7297.33 ||Various Years ||CIT(A)/Tribunal/ High court ||Demand Stayed by department |
|Central Sales Tax Act ||Disputed ||72.08 ||Various Years ||Commercial tax tribunal/ Appellate Authority ||Demand stayed by high court demand pending for grant of exemption and their effect. |
|Madhya Pradesh Entry Tax Act ||Disputed ||932.75 ||Various Years ||Commercial tax tribunal/ Appellate Authority ||Demand stayed by high court demand pending for grant of exemption and their effect. |
|Madhya Pradesh VAT Tax Act ||Disputed ||2575.21 ||Various Years ||Commercial tax tribunal/ Appellate Authority ||Demand stayed by high court demand pending for grant of exemption and their effect. |
|EPFO ||Disputed ||150.22 ||Various Years ||CGIT Jabalpur ||Stay by CGIT |
|Central Excise ||Disputed ||100.26 ||Various Years ||Cestate/ Commissioner (A) ||Stay Being Apply |
|MPIDC ||Disputed ||19.01 ||Various Years ||MPIDC Mandideep ||Stay Being Apply |
|DTIC ||Disputed ||28.77 ||Various Years ||MP Govt. ||Stay Being Apply |
|Municipal Corporation ||Disputed ||3.78 ||Various Years ||Municipal Corporation itarsi ||Stay Being Apply |
|MP Electrical Department ||Disputed ||44.98 ||Various Years ||High Court ||Stay Being Apply |
viii. The Company has made default in repayment of loans or borrowings to financialinstitutions and banks during the year and all CC limits has been withheld by Banks andaccounts have been declared as NPAs. ix. The Company did not raise moneys by way ofinitial public offer or further public offer
(including debt instruments). In our opinion the term loans were applied for thepurposes for which the loans were obtained.
x. As per information and explanation given to us by the management we report that wehave neither come across any instances of fraud by the company or on the Company by itsofficers or employees noticed or reported during the year nor have we been informed ofany such case by the management.
xi. Managerial remuneration has been paid and provided by the Company in accordancewith the requisite approvals mandated by the provisions of Section 197 of the Act readwith Schedule V to the Act.
xii. In our opinion the Company is not a Nidhi Company. Accordingly provisions ofclause
3(xii) of the Order are not applicable.
xiii. In our opinion all transactions with the related parties are in compliance withSections
177 and 188 of Act where applicable and the requisite details have been disclosed inthe financial statements etc. as required by the applicable Ind AS.
xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures. Accordingly provisions ofclause 3(xiv) of the Order are not applicable.
xv. We have noticed that in some cases the Company has entered into non cashtransactions with the relatives of Directors covered under Section 192 of the Act. As perSection 192 of the Act The Company has to take prior approval in the General meeting ofthe Company for such arrangement but the Company has entered into such transactions bypassing resolution in the Board meeting. The Management informed us the Company will getretified these resolutions in ensuing AGM / EGM.
xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.
ANNEXURE C TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE TO THE MEMBERS OF SANWARIACONSUMER LIMITED ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020
Independent Auditor's report on the Internal Financial Controls under Clause (i) ofsubsection 3 of Section 143 of the Companies Act 2013 (the "Act")
1. In conjunction with our audit of the standalone financial statements ofSanwaria Consumer Limited (the "Company") as at and for the year ended 31 March2020 we have audited the internal financial controls over financial reporting of theCompany as of that date.
Management's Responsibility for Internal Financial Controls
2. The Company's Board of Directors is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India (ICAI). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of the Company's business including adherenceto Company's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
3. Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Standards on Auditing issued by the ICAI and deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls over financial reporting and the Guidance Note issued by the ICAI.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial controls over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6. A Company's internal financial controls over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company's internal financial controls overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting.
7. Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that internal financialcontrols over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2020 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note issued by the ICAI.