Sika Interplant Systems Ltd.
|BSE: 523606||Sector: Engineering|
|NSE: N.A.||ISIN Code: INE438E01016|
|BSE 00:00 | 07 Feb||672.80||
|NSE 05:30 | 01 Jan||Sika Interplant Systems Ltd|
|Mkt Cap.(Rs cr)||285|
|Mkt Cap.(Rs cr)||285.27|
Sika Interplant Systems Ltd. (SIKAINTERPLANT) - Auditors Report
Company auditors report
TO THE MEMBERS OF M/s. SIKA INTERPLANT SYSTEMS LIMITED
Report on the Audit of the Standalone Financial Statements
We have audited the standalone financial statements of M/s. SIKAINTERPLANT SYSTEMS LIMITED (hereinafter referred to as "the Company") whichcomprise the standalone balance sheet as at 31st March 2022 and the standalone statementof profit and loss (including other comprehensive income) standalone statement of changesin equity and standalone statement of cash flows for the year then ended and notes to thestandalone financial statements including a summary of the significant accountingpolicies and other explanatory information (hereinafter referred to as "thestandalone financial statements").
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 ("Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March 2022and its Profit and other comprehensive income changes in equity and its cash flows forthe year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accounta nts ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion on the standalonefinancial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.
> Revenue Recognition
> Provisions for taxation litigation and other significantprovisions
> Assessment of contingent liabilities relating to litigationswarranty claims and Bank guarantees issued.
Information other than the Consolidated Financial Statements andAuditor's Report thereon
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the AnnualReport but does not include the financial statements and our auditor's report thereon.The Company's annual report is expected to be made available to us after the date of thisauditor's report.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.
Management's Responsibility for the Standalone Financial Statements
The Company's Management and Board of Directors are responsible for thematters stated in Section 134(5) of the Act with respect to the preparation of thesestandalone financial statements that give a true and fair view of the state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) changes in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards(lnd AS)specified under Section 133 of the Act.This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
In preparing the standalone financial statements management and Boardof Directors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the Board of Directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing thecompany's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
a. Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
b. 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 Companies Act 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
c. Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
d. 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 standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.
e. Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factor in
(i) Planning the scope of our audit work and in evaluating the resultsof our work; and
(ii) To evaluate the effect of any identified misstatements in thefinancial statements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit a nd 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 standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
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 the "Annexure A" 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 purpose of our audit;
b. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;
c. The standalone balance sheet the standalone statement of profit andloss (including other comprehensive income) the standalone statement of changes in equityand the standalone statement of cash flows dealt with by this Report are in agreement withthe books of account.
d. In our opinion the aforesaid financial statements comply with theAccounting Standards specified under section 133 of the Companies Act 2013.
e. On the basis of written representations received from the directorsas on March 31st 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31st 2022 from being appointed as adirector in terms of section 164 (2) of the Act;
f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B";
g. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
(i) The Company has disclosed the impact of pending litigations as at31 March 2022 on its financial position in its standalone financial statements;
(ii) The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;
(iii) There has been no amounts which were required to be transferredto the Investor Education and Protection Fund by the Company;
(iv) I. The Management has represented that to the best of itsknowledge and belief other than as disclosed in the notes to accounts no funds have beenadvanced or loaned or invested (either from borrowed funds or share premium or any othersources or kind of funds) by the Company to or in any other persons or entities includingforeign entities ("Intermediaries") with the understanding whether recorded inwriting or otherwise that the Intermediary shall :
a. Directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever by or on behalf of the Company ("UltimateBeneficiaries") or
b. Provide any guarantee security or the like on behalf of theUltimate Beneficiaries.
II. The management has represented that to the best of its knowledgeand belief no funds have been received by the Company from any persons or entitiesincluding foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the Company shall :
a. Directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever by or on behalf of the Funding party ("UltimateBeneficiaries").
b. Provide any guarantee security or the like on behalf of theUltimate Beneficiaries.
III. Based on the audit procedures carried out by us that we haveconsidered reasonable and appropriate in the circumstances nothing has come to our noticethat has caused us to believe that the representations under sub-clause (I) and (II)contain any material misstatement.
3. In our opinion and according to the information and explanationsprovided to us no dividend was declared or paid during the year by the Company as persection 123 of the Companies Act 2013.
4. With respect to the matter to be included in the Auditor's reportunder section 197(16) of the Act in our opinion and according to the information andexplanation given to us the remuneration paid during the year by the Company to itsdirectors is in accordance with the provisions of Section 197 of the Act.
Annexure A to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to themembers of the Company on the standalone financial statements for the year ended 31stMarch 2022 we report that:
i) Property Plant and Equipment
a) Maintenance of Records
(B) The Company has maintained proper records showing full particularsof Intangible assets.
b) Property Plant and Equipment have been physically verified by themanagement at reasonable intervals; Which in our opinion is reasonable having regard tothe size of the Company and the nature of its assets.
Pursuant to the program certain property plant and equipment werephysically verified by the management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties (other than immovable properties where the Company is the lessee and the leaseagreements are duly executed in favour of the lessee) disclosed in the standalonefinancial statements are held in the name of the Company.
d) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not revalued itsProperty Plant and Equipment (including Right-of-use assets) or Intangible assets or bothduring the year.
e) According to the information and explanations given to us and on thebasis of our examination of the records of the Company there are no proceedings initiatedor are pending against the Company for holding any Benami Property Transactions Act 1988and rules made thereunder. Accordingly paragraph 3(i)(e) of the Order is not applicable.
a) The inventories were physically verified during the year by theManagement at reasonable intervals. In our opinion and according to the information andexplanations given to us the coverage and procedure of such verification by theManagement is appropriate having regard to the size of the Company and the nature of itsoperations. No discrepancies in excess of 10% or more in aggregate for each class ofinventories were noticed on such physical verification of inventories when compared withbooks of account.
b) According to the information and explanations given to us at anypoint of time of the year the Company has not been sanctio ned any working capital limitsin excess of five crore rupees in aggregate from banks or financial institutions on thebasis of security of current assets at any point of time during the year. Accordinglyparagraph 3(ii)(b) of the Order is not applicable.
iii) Investment in or guarantee or granted loans or advances in natureof loans.
The Company has made investments in provided guarantee or security andgranted loans or advances in the nature of loans secured or unsecured to companiesfirms Limited Liability Partnerships or any other parties during the year in respect ofwhich:
A. The Company has provided loans during the year and details of whichare given below:
B. According to the information and explanations given to us and basedon the audit procedures conducted by us The Company has provided any loans or advancesand guarantees or securities to parties other than Subsidiaries Associates and JointVentures.
b) According to the information and explanations given to us and basedon the audit procedures conducted by us we are of the opinion that the terms andconditions of the loans given are prima facie not prejudicial to the Company's interest.
c) According to the information and explanations given to us and basedon the audit procedures performed by us there is no stipulation of schedule of repaymentof principal and payment of interest on loans granted by the company. We are thereforeunable to make specific comment on the regularity of repayment of principal and payment ofinterest.
d) According to the information and explanations given to us and basedon the audit procedure performed by us there is no stipulation of schedule of repaymentof principal and payment of interest on loans given by the company. We are thereforeunable to comment whether an amount is overdue and whether any reasonable steps /ought tohave been taken by the company for recovery of principal and interest.
e) According to the information and explanations given to us and basedon the audit procedure performed by us there is no stipulation of schedule of repaymentof principle or payment of interest accordingly we are unable to comment whether aparticular loan is overdue. However based on our examination of records no renewalextension or fresh loans were granted to settle the overdue of exiting loans given tosame parties.
f) In our opinion and according to the information and explanationsgiven to us and based on the audit procedures conducted by us the company has grantedfollowing loans and advances in the nature of loans either repayable on demand or withoutspecifying any terms or period of repayment.
According to the information and explanations given to us and on thebasis of our examination of the records The Company has complied with the provisions ofSections 185 and 186 of the Companies Act 2013 in respect of loans granted investmentsmade and guarantees and securities provided as applicable.
v) Acceptance of Deposits
The Company has not accepted any deposits or amounts which are deemedto be deposits from the public within the meaning of the directives issued by the ReserveBank of India provisions of Section 73 to 76 of the Act any other relevant provisions ofthe Act and the relevant rules framed thereunder.
vi) Cost records
The maintenance of cost records has not been specified by the CentralGovernment under sub-section (1) of section 148 of the Companies Act 2013 for thebusiness activities carried out by the Company. Hence reporting under clause (vi) of theOrder is not applicable to the Company.
vii) Statutory Dues
a) According to the records of the Company Company is regular indepositing with appropriate authorities Undisputed statutory dues including providentfund employee's state insurance income tax sales tax service tax duty of customsduty of excise value added tax Goods and Services tax cess and other material statutorydues applicable to it.
b) According to the records of the Company there are no dues of Incometax or Sales tax or Service tax or Goods and Services tax or duty of customs or duty ofexcise or value added tax or any other material statutory dues which have not beendeposited on account of any dispute.
viii) Surrender or disclosure of transactions not disclosed in books ofaccounts
According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not surrendered ordisclosed any transactions previously unrecorded as income in the books of account inthe tax assessments under the Income-tax Act 1961 as income during the year.
ix) Repayment of Loans
a) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in the repayment of loans or other borrowingsor in the payment of interest thereon to any lender.
b) According to the information and explanations given to us and on thebasis of our audit procedures we report that the company has not been declared willfuldefaulter by any bank or financial institution or government or any government authority.
c) In our opinion and according to the information and explanationsgiven to us the company has utilized the money obtained by way of term loans during theyear for the purposes for which they were obtained except for temporary deployment ofsurplus funds.
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 and explanations given to us and on anoverall examination of the financial statements of the company we report that the companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its subsidiaries associates or joint ventures.
f) According to the information and explanations given to us andprocedures performed by us we report that the company has not raised loans during theyear on the pledge of securities held in its subsidiaries joint ventures or associatecompanies.
x) Diversion of Funds
a) In our opinion and according to the information and explanationsgiven to us the Company has not raised money by way of initial public offer or furtherpublic offer during the year. Accordingly clause 3(x) (a) of the Order is not applicable
b) In our opinion and according to the information and explanationsgiven to us the Company has not made any preferential allotment or private placement ofshares or convertible debentures (fully partially or optionally convertible) during theyear. Accordingly clause 3(x) (b) of the Order is not applicable.
xi) Frauds noticed / Detected
a) To the best of our knowledge and according to the information andexplanations given to us no fraud by the Company or no material fraud on the Company byany person has been noticed or reported during the year. Accordingly paragraph 3 (xi) (a)of the Order is not applicable.
b) Since there is no fraud by the company or no material fraud on theCompany by any person has been noticed or reported during the year paragraph 3(xi)(b) ofthe Order is not applicable.
c) To the best of our knowledge and according to the information andexplanations given to us no whistle-blower complaints have been received by the Companyduring the year.
xii) Nidhi Company
The company is not a Nidhi Company and accordingly Paragraph 3(xii) ofthe Order is not applicable.
xiii) Related Party Transactions
According to the information and explanations given to us and on thebasis of our examination of the records of the Company all transactions with the relatedparties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and the details of the transactions have been disclosed in the FinancialStatements as required by the Indian accounting standards and The Companies Act 2013.
xiv) Internal Audit System
a) In our opinion the Company has an adequate internal audit systemscommensurate with the size and the nature of its business
b) We have considered the internal audit reports of the company issuedtill date for the period under audit.
xv) Non-cash transactions
According to the information and explanations given to us and on thebasis of our examination of the records of the Company the company has not entered intoany non-cash transactions with directors or persons connected with its directors and henceprovisions of section 192 of the Companies Act 2013 are not applicable to the Company.Consequently no comment is required under paragraph 3(xv) of the Order.
xvi) Certification for Non-Banking Financial Institution
The company is not a Non-Banking Financial Institution henceregistration under section 45-IA of the Reserve Bank of India Act 1934 is not required.Hence no comment is required under paragraph 3(xvi) of the Order.
xvii) Cash losses
The Company has not incurred cash losses during the financial yearcovered by our audit and the immediately preceding financial year.
xviii) Resignation of Statutory Auditors
There has been no resignation of the statutory auditors of the Companyduring the year. Accordingly no comment is required under paragraph 3(xviii) of theOrder.
xix) Material Uncertainty
According to the information and explanations given to us and on thebasis 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 da te of theaudit report that the Company is not capable of meeting its liabilities indicating thatthe Company is capable of meeting its liabilities existing at the date of Balance Sheet asand when they fall due within a period of one year from the date of balance sheet.
We however state that this is not an assurance as to the futureviability of the Company. We further state that our reporting is based on the facts up tothe date of audit report and we neither give any guarantee nor any assurance that allliabilities falling due within a period of one year from the balance sheet date will getdischarged by the Company as and when they fall due.
xx) Transfer of Unspent Amount
The Company has not fully spent the required amount towards CorporateSocial Responsibility (CSR) and there is unspent CSR amount for the year requiring to betransferred to a Fund specified in Schedule VII to the Companies Act or special account incompliance with the provision of sub-section (6) of section 135 of the said Act.Accordingly the amount of unspent amount is as below.
xxi) Qualification or Adverse remark on consolidated financialstatements
According to the information and explanations given to us there havebeen no qualifications or adverse remarks by the respective auditors in the Companies(Auditor's Report) Order (CARO) reports of the companies included in the consolidatedfinancial statements.
Annexure B to Auditors' report
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of M/s. SIKA INTERPLANT SYSTEMS LIMITED ("the Company") as ofMarch 31st 2022 in conjunction with our audit of the financial statements of the Companyfor the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal c ontrol over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the "Guidance Note on Audit of Internal Financial ControlsOver Financial Reporting" issued by the Institute of Chartered Accountants of In dia.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding o f its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements 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 internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that:
(1) Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
(2) Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and
(3) Provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2022 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the "Guidance Noteon Audit of Internal Financial Controls Over Financial Reporting" issued by theInstitute of Chartered Accountants of India.