To the Members of TCPL Packaging Limited
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying Standalone Financial Statements of TCPL PackagingLimited ("the Company") which comprise of the Balance Sheet as at March 312022 the Statement of Profit and Loss including the Statement of Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and notes to the Financial Statements including a summary of significantaccounting 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 Financial Statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2022 its profit including othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate.
Basis for Opinion
We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements' section of ourreport. We are independent of the Company in accordance with the Code of Ethics'issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the Financial Statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the Standalone Financial Statements.
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 for the Financial yearended March 31 2022. These matters were addressed in the context of our audit of theStandalone Financial Statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. For each matter below our description ofhow our audit addressed the matter is provided in that context. We have determined thematters described below to be the key audit matters to be communicated in our report. Wehave fulfilled the responsibilities described in the Auditor's responsibilities for theaudit of the Standalone Financial Statements section of our report including in relationto these matters. Accordingly our audit included the performance of procedures designedto respond to our assessment of the risks of material misstatement of the StandaloneFinancial Statements. The results of our audit procedures including the proceduresperformed to address the matters below provide the basis for our audit opinion on theaccompanying Standalone Financial Statements.
|Key audit matters ||How our audit addressed the key audit matter |
|Revenue recognition || |
|Revenue is recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods to a customer. The revenue recognition occurs at a point in time when the control of the goods is transferred to the customer. ||As part of our audit procedures we: |
| ||Read the Company's accounting policy for revenue recognition and assessed compliance with the requirements of Ind AS 115. |
| ||Evaluated the design tested the implementation and operating effectiveness of the Company's internal controls including general IT controls and key IT application controls over recognition of revenue. |
|We focused on this area as a key audit matter as the value is significant and there exists a risk of revenue being recognized before the control is transferred. ||On a sample basis tested supporting documentation for sales transactions which included sales invoices customer contracts and shipping documents. |
| ||Tested revenue samples focused on sales recorded immediately before the year-end obtained evidence as regards timing of revenue recognition based on terms and conditions of sales contracts and delivery documents. |
| ||Assessed disclosures in Financial Statements in respect of revenue as specified in Ind AS 115. |
|Inventory Valuation (Refer note no. 9 of Financial Statements) || |
|The Company's total inventory is Rs. 17441.06 lakhs as at 31st March 2022 aggregates to 39.08% of the total current assets. The Company has seven production units manufacturing different types of packaging products. The raw material requirement varies at each unit basis the type of printing to be done. Significant judgments and management estimates are required for allocation of direct and indirect costs considering the uniqueness of each plant for finished goods as well as for raw material and stores. ||The procedures performed includes: |
| ||Obtained an understanding of management's process and evaluated design and tested operating effectiveness of controls around maintenance of inventory records and process of valuations. |
| ||Assessed the appropriateness of methodology and valuation models used for allocation / apportionment of costs. |
| ||Verified on sample basis process of loading of costs over raw material and stores inventory |
| ||Verification on sample basis process of allocating direct and indirect costs over finished goods inventory. |
|Since significant estimates / judgment are involved in determining the costs this is considered as Key Matter. ||Assessed the physical controls over inventory. |
| ||Assessed the reasonableness of assumptions used. |
| ||Assessing the adequacy of disclosures done in the financials. |
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors are responsible for the other information. The otherinformation comprises the information included in the Annual report but does not includethe Standalone Financial Statements and our auditor's report thereon.
Our opinion on the Standalone Financial Statements does not cover the other informationand we do not express any form of assurance thereon. In connection with our audit of theStandalone Financial Statements our responsibility is to read the other information andin doing so consider whether the other information is materially inconsistent with theFinancial Statements or our knowledge obtained in the 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 Financial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under section 133 of the Act read with [theCompanies (Indian Accounting Standards) Rules 2015 as amended]. 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 the 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 Standalone FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the Standalone 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.
Those charged with governance are also responsible for overseeing the Company'sfinancial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial 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 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 FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls 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 Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation. Materiality is the magnitude of misstatements in the Standalone FinancialStatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the Standalone Financial Statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the Standalone FinancialStatements.
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 Financial Statementsfor the financial year ended March 31 2022 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 out weight 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 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 ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books; (c) The Balance Sheet the Statement ofProfit and Loss including the Statement of Other Comprehensive Income the Cash FlowStatement and Statement of Changes in Equity dealt with by this Report are in agreementwith the books of account; (d) In our opinion the aforesaid Standalone FinancialStatements comply with the Accounting Standards specified under Section 133 of the Actread 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 312022 from being appointed as a director in terms of Section 164 (2) of the Act; (f) Withrespect to the adequacy of the internal financial controls over financial reporting of theCompany with reference to these Standalone Financial Statements and the operatingeffectiveness of such controls refer to our separate Report in "Annexure B" tothis report; (g) With respect to the matter to be included in the Auditor's Report underSection 197(16) of the Act in our opinion and according to the information andexplanations given to us the remuneration paid by the Company to its directors during thecurrent year is in accordance with the provisions of Section 197 of the Act. (h) Withrespect to the other matters to be included in the Auditor's Report in accordance withRule 11 of the Companies (Audit and Auditors) Rules 2014 as amended in our opinion andto the best of our information and according to the explanations given to us: i. TheCompany has disclosed the impact of pending litigations on its financial position in itsStandalone Financial Statements Refer Note 38 to the Standalone FinancialStatements; ii. The Company has accounted for material foreseeable losses for long-termcontracts including derivative contracts. iii. There has been no delay in transferringamounts required to be transferred to the Investor Education and Protection Fund by theCompany iv. The Management has represented that to the best of its knowledge and belief:a) No funds have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person(s)or entity(ies) including foreign entities ("Intermediaries") with theunderstanding recorded in writing or otherwise that the intermediary shall eitherdirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Company (Ultimate Beneficiaries') orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries. b) Nofunds have been received by the Company from any person(s) or entity(ies) includingforeign entities ("Funding Parties") with the understanding recorded inwriting or otherwise that the Company shall either directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Party ("Ultimate Beneficiaries") or provide any guarantee securityor the like on behalf of the Ultimate Beneficiaries. c) Based on audit procedures asconsidered reasonable and appropriate in the circumstances performed by us we reportthat nothing has come to our notice that has caused us to believe that the representationsas above contain any material mis-statement. v. The final dividend proposed in theprevious year declared and paid during the year by the Company is in accordance withSection 123 of the Act. vi. MCA Vide its notification dated 31.03.2022 has extended therequirement of implementation of audit trail software to financial year commencing on orafter 1st April 2023 accordingly reporting under Rule 11 (g) of Companies (Audit andAuditors) Amendment Rule 2021 is not applicable.
| ||For Singhi & Co. |
| ||Chartered Accountants |
| ||Firm Registration Number: 302049E |
| ||Nikhil Singhi |
| ||Partner |
|Date of issue: 25th May 2022 ||Membership No:061567 |
|Place: Mumbai ||UDIN: 22061657AMORZT2987 |
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 fixed assets: a) (A) The Company hasmaintained proper records showing full particulars including quantitative details andsituation of Property Plant & Equipment a) (B) The Company has maintained properrecords showing full particulars including quantitative details and situation ofIntangible Assets. b) The Property Plant and Equipment have been physically verified bythe management at reasonable intervals. In our opinion the frequency of verification isreasonable having regard to the size of the operations of the Company and no materialdiscrepancies were noticed during the verification. c) According to the information andexplanations given to us and on the basis of our examination title deeds of the immovableproperty as disclosed in schedule of Property Plant & Equipment to the financialstatements are held in the name of the Company. d) The Company has not revalued any of itsProperty Plant and Equipment (including Right of Use assets) or intangible assets duringthe year. e) According to the information and explanations given to us no proceedingshave been initiated or are pending against the company for holding any benami propertyunder the Benami Transactions (Prohibition) Act 1988 (45 of 1988) and rules madethereunder. ii. a) As per the information and explanation given and verification carriedout by us the physical verification of inventories except goods in transit has beenconducted by the management at reasonable intervals. In our opinion the frequency ofverification is reasonable having regard to the size of operations of the Company. As perthe information and explanation provided to us and data verified by us discrepancies of10% or more in aggregate for each class of inventory were not noticed. Discrepancies notedwere have been properly dealt with in the books of accounts. b) As per the information andexplanation given and verification carried out by us the Company had been sanctionedworking capital limits in excess of Rs. Five Crore from Banks on the basis of security ofcurrent asset. Company has filed periodic statements with such banks and values disclosedin such statements are in agreement with books of accounts of the Company iii. a) As perthe information and explanation given and verification carried by us the Company has notgranted any loans to any Companies. Company has provided corporate guarantee and alsoprovided security for loans taken by its subsidiaries. Given below are the details ofguarantee given
|Particulars ||Guarantee (Rs. Crore) ||Security (Rs. crore) |
|Aggregate amount provided to subsidiaries ||46.07 ||9.04 |
|Balance outstanding in respect of subsidiaries. ||46.07 ||9.04 |
b) Such guarantee provided is not prejudicial to the interest of the Company. c) As thecompany has not given any loan clause related 3 (iii) (c) (d) (e) and (f) of the orderis not applicable iv. As per the information and explanation provided and verificationcarried out by us the Company has complied with requirement of section 185 and 186 of theAct with respect to investments made and guarantee / securities provided. Company has notgiven any loan during the year. v. As per the information and explanation given andverification carried out by us the Company has not accepted any deposits from the publicor amount which are deemed to be deposits within the meaning of sections 73 to 76 of theAct and the Companies (Acceptance of Deposits) rules 2014 (as amended). vi. As per theinformation and explanation given and verification carried out by us maintenance of CostRecord is not mandated by the Government of India U/s 148 (1) of the Act for the businessactivities carried out by the Company. vii. According to the information and explanationsgiven to us and the records of the Company examined by us: a) The Company has beengenerally regular in depositing amounts deducted/accrued in the books of accounts inrespect of undisputed statutory dues including Goods & Service Tax Provident FundEmployees' State Insurance Investor Education and Protection Fund Income tax Sales TaxService Tax duty of customs duty of excise value added tax cess and any otherstatutory dues as applicable. b) No undisputed amount payable in respect of abovereferred act is outstanding as at 31st March 2022 for a period of more than six monthsfrom the date they became payable. c) There are no dues of acts referred above which havenot been deposited with the appropriate authorities on account of any dispute except asmentioned below:
|Name of the Statue ||Period to which the amount relates ||Forum where dispute is pending ||Amount in dispute (In Lacs) |
|Central Excise Act 1944 Excise duty and penalty ||F.Y. 1996-97 F.Y. 2007-08 ||Commissioner Central GST Commissionerate and CESTAT ||76.43 |
|Income Tax Act 1961 ||F.Y. 2016-17 ||Commissioner Appeal ||809.93 (net of deposit of Rs. 140 lakhs) |
viii. According to the information and explanations given to us there are notransactions which have not been recorded in the books of account but have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (43 of 1961). ix. a) According to the information and explanations given tous the Company has not defaulted in the repayment of loans or borrowings or in thepayment of interest thereon to any lender. b) Basis the information and explanationprovided to us the Company has not been declared a willful defaulter by any bank orfinancial institution or other lender. c) According to the information and explanationsgiven to us and to the best of our knowledge and belief in our opinion term loansavailed by the Company were applied during the year for the purpose for which the loanswere obtained other than temporary deployment pending application of proceeds. d) On anoverall examination of the financial statements of the Company funds raised on short-termbasis do not seem to have been utilised during the year for long-term purposes. e) As perthe information and explanation provided to us the Company has not taken funds from anyentity or person on account of or to meet the obligations of its subsidiaries. x. a)According to the information and explanations given to us and based on our examination ofthe records of the Company the Company did not raise any money by way of initialpublic offer or further public offer (including debt instruments) during the year.b) The Company has not made any preferential allotment or private placement of shares orconvertible debentures during the year accordingly the clause is not applicable to theCompany. xi. a) To the best of our knowledge and according to the information andexplanations given to us no material fraud by the Company or on the Company hasbeen noticed or reported during the course of our audit. b) We have not filed any reportin form ADT 4 as prescribed under rule 13 of Companies (Audit and Auditors) Rule 2014 withCentral Government during the year. c) According to the information and explanations givento us there are no whistle blower complaints received by the company during the year.xii. The Company is not a Nidhi Company and hence reporting under paragraph 3(xii) of theOrder is not applicable to the Company. xiii. According to the information andexplanations given by the management transactions with the related parties are incompliance with section 177 and 188 of the Act where applicable and the details have beendisclosed in the notes to the Ind AS financial statements as required by the applicableaccounting standards. xiv. a) In our opinion the company has an adequate internal auditsystem commensurate with the size and nature of its business. b) We have taken intoconsideration the internal audit reports for the period under audit issued to the Companytill date for determining the nature timing and extent of audit procedures.
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. a) The Company is not required to be registered undersection 45-IA of the Reserve Bank of India Act 1934. Accordingly paragraph 3 (xvi) of theOrder is not applicable to the Company. b) As per the information and explanation providedand verification carried out by us The Company has not carried out any non-banking orhousing finance activities accordingly the clause no. 3(xvi)(a) of the Order is notapplicable. c) The Company is not a Core Investment Company (CIC) as defined in theregulations made by the Reserve Bank of India and hence reporting under paragraph 3(xvi)(c) of the Order is not applicable to the Company. d) According to the informationand explanations given to us there is no CIC in the Group. xvii. According to theinformation and explanations given to us and based on our examination of the records ofthe Company the Company has not incurred any cash losses during the financial yearcovered by our audit and the immediately preceding financial year. xviii. There has notbeen any resignation of Statutory Auditor and accordingly the clause is not applicable tothe Company. xix. 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 undrawn bank facilities available otherinformation accompanying the financial statements our knowledge of the Board of Directorsand management plans and based on our examination of the evidence supporting theassumptions nothing has come to our attention which causes us to believe that anymaterial uncertainty exists as on the date of the audit report that The Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the company as and when they falldue. xx. a) The Company has fully spent the required amount towards Corporate SocialResponsibility (CSR) and there is no unspent CSR amount on account of ongoing projects orother than ongoing projects for the year requiring a transfer to a Fund specified inSchedule VII to the Companies Act or special account in compliance with the provision ofsub-section (6) of section 135 of the said Act. b) According to the information andexplanations given to us no amount is remaining unspent under sub-section (5) of section135 of the Companies Act pursuant to any ongoing project which is required to betransferred to special account in compliance with the provision of sub-section (6) ofsection 135 of the said Act. xxi. There are no qualification or adverse remark by therespective auditors in the Companies (Auditor's Report) Order ("CARO") report ofthe companies included in the consolidated financial statement of the Company
| ||For Singhi & Co. |
| ||Chartered Accountants |
| ||Firm Registration number : 302049E |
| ||Nikhil Singhi |
| ||Partner |
|Date of issue: 25th May 2022 ||Membership no: 061567 |
|Place : Mumbai ||UDIN: 22061657AMORZT2987 |
Annexure - B to the Independent Auditor's Report
(Referred to in paragraph 2 (f) with the heading Report on Other Legal andRegulatory Requirements' section of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (the Act')
1. We have audited the internal financial controls over financial reporting of TCPLPackaging Limited (the Company') as of 31st March 2022 in conjunction with our auditof the Financial Statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.
3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the Guidance Note') and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system 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 and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6. Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial Statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial Statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe 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 and such internal financial controlsover financial reporting were operating effectively as at March 31 2022 based on theinternal control over financial reporting 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 |
| ||Nikhil Singhi |
| ||Partner |
|Date of issue: 25th May 2022 ||Membership no: 061567 |
|Place: Mumbai ||UDIN: 22061657AMORZT2987 |