To the Members of Speciality Restaurants Limited
Report on the Audit of the Standalone Ind AS Financial Statements
We have audited the standalone Ind AS financial statements of Speciality RestaurantsLimited ("the Company") which comprise the Balance Sheet as at March 31 2021the Statement of Profit and Loss including the statement of other comprehensive incomethe Statement of Cash Flow and the Statement of Changes in Equity for the year then endedand notes to the standalone Ind AS financial statements including a summary ofsignificant 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 statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended ("Ind AS") and other accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2021 its loss includingother comprehensive income its cash flows and the changes in equity and for the yearended on that date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those SAs are further described in the 'Auditor's Responsibilitiesfor the Audit of the Standalone Ind AS Financial Statements' section of our report. We areindependent of the Company in accordance with the 'Code of Ethics' issued by the Instituteof Chartered Accountants of India (ICAI) together with the ethical requirements that arerelevant to our audit of the financial statements under the provisions of the Act and theRules made there under and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence obtained by us is sufficient and appropriate to provide a basis for ouraudit opinion on the standalone Ind AS financial statements.
Emphasis of matter
We draw attention to Note 37 to the standalone Ind AS financial statements whichdescribes the possible effect of uncertainties relating to COVID-19 pandemic on theCompany's financial performance and impact on the carrying value of its assets as at March31 2021 as assessed by the Management.
Our opinion is not modified in respect of the above matters.
Key Audit Matters
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 standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|Key audit matters ||How our audit addressed the key audit matter |
|Revenue recognition - Refer Note 19 to the standalone Ind AS financial statements || |
|The Company recognizes revenue when the control of goods being sold is transferred to the customer. The Company's revenue relates to restaurant and confectionary sales and services to customers. ||We have carried out following audit procedure: |
|Due to high level of transaction across various units situated across India there exists a risk of misstatement of the timing and amount of revenue recognized to achieve specific performance targets or expectations. || Assessed the appropriateness of the accounting policy for revenue recognition as per the relevant accounting standards. |
|The Company also has franchisee arrangements and revenue share arrangements for royalty/ fee based on sales. || Evaluated the design and implementation of key internal financial controls and their operating effectiveness with respect to revenue recognition transactions selected on a sample basis. |
|The Company and its external stakeholders focus on revenue as a key performance indicator which could lead to recognition of revenue without meeting the revenue recognition criterion. || Performed substantive testing of sales by selecting samples of sales made at certain restaurants using statistical sampling and tested the underlying documentation including kitchen order tickets. |
|In view of the above we have identified revenue recognition as a key audit matter. || Reviewed the reconciliation of revenue recorded for the year with collections through cash credit card and aggregators as applicable to confirm that revenue recorded is supported by collections. |
| || Perused selected samples of key contracts with aggregators and franchisees to understand the terms and conditions particularly relating to revenue share royalty & fee payments. |
| || Evaluated whether the disclosures included in the notes to the standalone Ind AS financial statements are in conformity with the applicable standard. |
|Going Concern (Refer Note 37 to Standalone Ind AS Financial Statements) ||We have carried out following audit procedure |
|The Company operates restaurants mainly in metro cities of India and all restaurants of the Company were nonoperational during the COVID-19 Lockdown Phase-I. || Obtained an understanding of controls instituted by the Management to assess going concern assumptions and tested the effectiveness of the Management controls. |
|The Company has assessed the potential impact of COVID-19 on the carrying value of assets business plan renegotiation of lease arrangements and future cash flow projections and evaluated various scenario for assessment of Going Concern. || Testing of Management's assumptions on the appropriateness of the going concern assumption and reasonableness of the assumptions used focusing in particular the business plans projections liquidity Management recoverability and impairment of assets of the Company. |
|This has been considered as key audit matter as there are uncertainties which have been analyzed by the Company however since the situations are continuously evolving the impact assessed may be different from the estimates. || Analyzed Management's report to gain an understanding of the inputs and processes supporting the cash flow projections prepared for the purpose of going concern assessment. |
| || Assessed the appropriateness of the related disclosures in the notes to standalone Ind AS financial statements. |
|Impairment of assets (Exceptional Item) (Refer Note 38 to Standalone Ind AS Financial Statements) || |
|Due to COVID -19 the Company has decided to shut down certain restaurants terminated lease arrangements and evaluated change of business plans. ||We have carried out following audit procedure |
|The assessment of the recoverable amount requires significant judgment in particular relating to estimated cash flow projections and discount rates. Due to the level of judgments involved impact of COVID-19 on Hospitality Industry and significance to the Company's financial position this is considered to be a key audit matter. || Analyzed the impact of COVID-19 lockdown on the operations of the Company. |
| || Assessed the internal controls designed for identification of impairment indicators. |
| || Reviewed the procedure for identification and testing impairment assessment. |
| || Evaluated the appropriateness of the Company's judgment regarding identification of assets considered for impairment. |
| || Obtained understanding of the key assumptions considered for assessment of future cash flows and the discounting factor considered. |
| || Assessed the disclosures made in the standalone Ind AS financial statements. |
|Ind AS 116 Leases (Refer Note 4b and Note 29 to Standalone Ind AS Financial Statements) || |
|Ind AS 116 has had a significant impact on the reported assets liabilities and the income statement of the Company. Impact of the Ind AS 116 transition is reliant upon a number of key estimates determining the appropriate discount rates and determination of ShortTerm Leases or Leases with variable terms which are not considered. ||We have carried out following audit procedure |
|There is a risk that the lease data which is used in the calculation of Ind AS 116 transition calculation is incomplete or inaccurate. || Assessed the design and implementation of the key controls relating to the determination of the Ind AS 116 transition impact disclosure. |
|The Company has terminated certain Lease arrangement either on completion of lease terms or unviability of the restaurant due to COVID-19 or otherwise. Reversal of ROU and Lease liability for such leases should be accurate and in compliance with relevant accounting standard. || We read a sample of contracts to assess whether leases have been appropriately identified agreed the inputs used in the quantification to the lease agreements the discount rate applied and performed computation checks. |
|In view of the above this is considered as a key audit matter. || Assessed the accuracy of the lease data by testing the lease data captured by Management for a sample of leases through the inspection of lease documentations. |
| || Tested the completeness of the lease data by reconciling the Company's existing lease commitments to the lease data used in the Ind AS 116. |
| || Verification of the data for recognition of lease liability right of use assets depreciation and interest. |
| || Evaluated whether the disclosures included in the notes to the Standalone Ind AS financial statements are in conformity with the applicable standard. |
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sAnnual report but does not include the standalone Ind AS financial statements and ourauditor's report thereon.
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 connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone Ind AS financialstatements or our knowledge obtained during the course of audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Responsibilities of Management for the standalone Ind AS Financial Statements
The Company's Management and Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone Ind ASfinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Ind AS. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.
In preparing the standalone Ind AS financial statements the Management is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless Management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
Those charged with governance are also responsible for overseeing the Company'sfinancial reporting 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 todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing 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 reasonablenessof accounting estimates and related disclosures made by Management.
Conclude on the appropriateness of Management's use of the going concern basisof accounting 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 standalone Ind AS financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of the standalone IndAS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the standalone Ind AS financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the standalone Ind AS financial statementsmay be influenced. We consider quantitative materiality and qualitative factors in
(i) planning the scope of our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in the standalone Ind ASfinancial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our 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 of the standalone Ind AS financialstatements for the financial year ended March 31 2021 and are therefore the key auditmatters. We describe these 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 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 Statement of Cash Flow and Statement of Changes in Equityand dealt 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 and takenon record by the Board of Directors none of the directors is disqualified as on March 312021 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls 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 B" to this report;
(g) With respect to the matter to be included in the Auditors' Report under Section197(16) of the Act in our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of Section 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:
i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements. Refer Note 26 to the standaloneInd AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company
Annexure - A to the Independent Auditor's Report
(Referred to in paragraph 1 with the heading 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)
We report that:
i. In respect of its property plant and equipment:
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.
b) As explained to us the property plant and equipment have been physically verifiedby Management at reasonable interval under a phase programme of verification and nomaterial discrepancies have been noticed on such verification. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of Companyand nature of its assets.
c) According to the information and explanations given to us and on the basis of ourexamination of the registered sale deed in case of free hold land we report that titledeeds comprising all the immovable properties of land which are freehold are held in thename of the Company as at the balance sheet date. In respect of leasehold land buildingbeing constructed thereon and disclosed as right of use assets are in name of the Company.
ii. As explained to us the physical verification of inventories has been conducted bythe Management at reasonable intervals during the year. The discrepancies noticed onphysical verification of inventories as compared to books records were not material andhave been properly dealt in the books of accounts.
iii. According to the information and explanations given to us the Company had grantedloans in the previous years to a Company covered in the register maintained under section189 of the Act.
At the time of the grant of the loan the terms and conditions of such loanswere in our opinion prima facie not prejudicial to the Company's interest.
Repayment of interest has not been regular. Principal of ' 76.73 Million andinterest of ' 7.34 Million is outstanding for more than 90 days. On account of continuinglosses incurred by the borrowing company the entire amount of the loan and interest hadbeen provided as doubtful and charged to the Statement of Profit and Loss.
iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provision of Section 185 and 186 of the Act in respect ofgrant of loans and investments made. The Company has not provided any guarantee andsecurities.
v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of provisions ofsections 73 to 76 of the Act and the Companies (Acceptance of Deposits) rules 2014 (asamended).
vi. Having regards to the nature of the Company's business/ activities we are of theopinion that maintenance of cost accounting records has not been prescribed.
vii. According to the information and explanations given to us and the records of theCompany examined by us:
a) The Company has been generally regular in depositing amounts deducted/accrued in thebooks of accounts in respect of undisputed statutory dues including Provident FundEmployees' State Insurance Investor Education and Protection Fund Income tax CustomDuty cess and other statutory dues as applicable except for some delay in case ofpayment of Tax Deducted at Source and Goods & Service Tax.
b) No undisputed amount payable in respect of Provident Fund Investor Education andProtection Fund Employees' State Insurance Income Tax Sales Tax Service Tax CustomsDuty Excise Duty Cess Goods & Service Tax and other material statutory dues isoutstanding as at March 31 2021 for a period of more than six months from the date theybecame payable except as mentioned below.
|Name of the Statue ||Period to which the amount relates ||Amount unpaid (Rs In Millions) |
|Goods and Service Tax Act 2017 ||2017-18 ||2.74 |
|Goods and Service Tax Act 2017 ||2018-19 ||3.21 |
|Goods and Service Tax Act 2017 ||2019-20 ||0.79 |
c) There are no dues of Income tax sales tax Wealth tax Service tax Customs dutyExcise duty and Cess Goods & Service Tax which have not been deposited with theappropriate authorities on account of any dispute except as mentioned below:
|Name of the Statue ||Nature of Dues ||Period to which the amount relates ||Forum where dispute is pending ||Amount in dispute (Rs In Millions) |
|Income Tax Act 1961 ||Income Tax ||2011-12 ||Commissioner of Income Tax ||0.92 |
|Bombay Sales Tax Act 1959 ||Sales Tax ||1999-00 ||Sales Tax Appellate Tribunal ||0.11 |
|Telangana Value Added Tax Act 2005 ||Value Added Tax ||2016-18 ||Additional Commissioner of Sales Tax ||0.81 |
|Central Sales Tax Act 1956 ||Sales Tax ||2008-10 ||Deputy Commissioner of Sales Tax (Appeal) ||6.98 |
|Central Sales Tax Act 1956 ||Sales Tax ||2011-13 ||Appellate Tribunal ||15.46 |
|Central Sales Tax Act 1956 ||Sales Tax ||2013-16 ||Joint Commissioner of Sales Tax (Appeal) ||26.85 |
|Maharashtra Value Added Tax 2002 ||Value Added Tax ||2008-10 ||Deputy Commissioner of Sales Tax (Appeal) ||1.16 |
|Maharashtra Value Added Tax 2002 ||Value Added Tax ||2011-13 ||Appellate Tribunal ||12.44 |
|Maharashtra Value Added Tax 2002 ||Value Added Tax ||2013-16 ||Joint Commissioner of Sales Tax (Appeal) ||36.19 |
|Andhra Pradesh VAT Act 2005 ||Value Added Tax ||2012-16 ||Appellate Deputy Commissioner ||1.89 |
|Finance Act 1994 ||Service Tax ||2012-18 ||Commissioner Service Tax ||195.62 |
viii Based on our examination of the records of the Company the Company has not takenany loans or borrowings from financial institutions and government. The Company hadneither any outstanding debenture at the beginning of the year nor has it issued anydebenture during the year. Accordingly paragraph 3 (viii) of the Order is not applicableto the Company.
ix. In our opinion and according to the information and explanations given to us nomoney has been raised by way of debt instruments. The Company has not raised moneys by wayof initial public offer or further public offer or term loans.
x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year.
xi. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.
xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone Ind AS financial statements as requiredby the applicable Indian accounting standards.
xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures.Accordingly paragraph 3 (xiv) of the Order is not applicable to the Company.
xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly paragraph 3 (xvi) of the Order is not applicable tothe Company.
| ||For Singhi & Co. |
| ||Chartered Accountants |
| ||Firm Registration Number: 302049E |
| ||Milind Agal |
| ||Partner |
|Place: Mumbai ||Membership No: 123314 |
|Date: 23rd June 2021 ||UDIN: 21123314AAAAAG1006 |
Annexure - B to the Independent Auditor's Report
(Referred to in paragraph 2(A)(f) with the heading 'Report on Other Legal andRegulatory Requirements' section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act
2013 ('the Act')
1. We have audited the internal financial controls over financial reporting ofSpeciality Restaurants Limited ('the Company') as at March 31 2021 in conjunction withour audit of the standalone Ind AS financial statements of the Company for the year endedon that date.
Management's Responsibility for Internal Financial Controls
2. The Company's Management and Board of Directors are 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 issued by the Institute of Chartered Accountants of India ('ICAI').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 of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.
3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these standalone Ind AS financialstatements based on our audit. We conducted our audit in accordance with the Guidance Noteon Audit of Internal Financial Controls over Financial Reporting (the 'Guidance Note') andthe Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India.. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlswith reference to standalone Ind AS financial statements were established and maintainedand if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system with respect to standalone Ind AS financialstatements and their operating effectiveness. Our audit of internal financial controlswith respect to standalone Ind AS financial statements included obtaining an understandingof internal financial controls with respect to standalone Ind AS financial statementsassessing 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 standalone Ind AS financial statements whether due to fraudor error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemwith respect to standalone Ind AS financial statements Meaning of Internal FinancialControls Over Financial Reporting with reference to Standalone Ind AS Financial Statements
6. A Company's internal financial control over financial reporting with reference tothese standalone Ind AS financial statements is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation ofstandalone Ind AS financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control with respect tostandalone 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 authorizations' of Management and directors of theCompany; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized 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 Standalone Ind AS Financial Statements
7. 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 with respect to standalone Ind ASfinancial statements 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.
8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting with reference to these standalone IndAS financial statements and such internal financial controls over financial reporting wereoperating effectively as at March 31 2021 based on the internal control with referenceto standalone Ind AS financial statements criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For Singhi & Co. |
| ||Chartered Accountants |
| ||Firm Registration Number: 302049E |
| ||Milind Agal |
| ||Partner |
|Place: Mumbai ||Membership No: 123314 |
|Date: 23rd June 2021 ||UDIN: 21123314AAAAAG1006 |