The Members of
TINNARUBBERAND INFRASTRUCTURE LIMITED
No. 6 Sultanpur (Mandi Road)
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of TINNA RUBBER AND INFRASTRUCTURE LIMITED (the Company) which comprise the Balance Sheet as at March 31 2019 and the Statement of Profit and Loss (including other comprehensive income) the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended and a summary of significant accounting policies and other explanatory information (hereinafter referred to as Ind AS Financial Statements).
In our opinion and to the best of our information and according to the explanation given to us except for the effects of the matter described in the basis of Qualified Opinion section of our report the aforesaid standalone Ind AS financial statements give the information required by the Companies Act 2013 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 312019 net loss and total comprehensive income changes in equity and its cash flows for the year ended on that date.
Basis for Qualified Opinion
a) The Company has not provided interest amounting to Rs. 4.04 lakhs for the year ended March 31 2019 as required under the provisions of Section 16 of Micro Small and Medium Enterprise Development Act 2006 in respect of delayed payments to suppliers covered under the said Act. Consequently the net loss and total comprehensive income for the year ended March 31 2019 is understated to that extent.
b) The Company has incurred marketing promotion expenses and other expenses amounting to Rs 80.43 lakhs which has been amortised over a period a three years as is more appropriately referred in note no. 33(10) of the accompanying financial statements. The same is not in accordance with provisions of Ind AS 38 Intangible Assets (para 69). Consequently the net loss and total comprehensive income for the year ended 31st March 2019 is understated by Rs 53.62 lakhs and other non-current assets and other current assets are overstated by Rs. 26.81 lakhs each.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Ind AS Financial Statements section of our report. 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 ethical requirements that are relevant to our audit of the Ind AS financial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion
Emphasis of Matter
We draw attention to Note No. 33(2) of accompanying statements in relation to accounting of financial guarantee provided by the Company in respect of borrowings availed by one of its associate and other group companies based in India and disclosure of the same as contingent liability and is more fully described therein. Our report is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance 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 financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
|Key Audit Matter||Auditor's Response|
|1.||Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 Revenue from Contracts with Customers (new revenue accounting standard)||Principal Audit Procedures We assessed the Company's process to identify the impact of adoption of the new revenue accounting standard.|
Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
|The application of the new revenue accounting standard involves certain key judgments relating to identification of distinct|| Evaluated the design of internal controls relating to implementation of the new revenue accounting standard.|
|performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognized over a period. Additionally new revenue accounting standard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date.|| Selected a sample of continuing and new contracts and tested the operating effectiveness of the internal control relating to identification of the distinct performance obligations and determination of transaction price. We carried out a combination of procedures involving enquiry and observation reperformance and inspection of evidence in respect of operation of these controls.|
Tested the relevant information technology systems' access and change management controls relating to contracts and related information used in recording and disclosing revenue in accordance with the new revenue accounting standard.
| Selected a sample of continuing and new contract and performed the following procedures:|
| Read analyzed and identified the distinct performance obligations in these contracts.|
| Compared these performance obligations with that identified and recorded by the Company.|
| Considered the terms of the contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration.|
| Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings.|
|2.||Evaluation of uncertain tax positions||PrincipalAudit Procedures|
Obtained details of completed
|The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome ofthese disputes.|
Refer Note no. 32(A)(c) and to the Standalone Financial Statements
|tax assessments and demands for the year ended March 31 2019 from management. We involved our internal experts to challenge the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. Our internal experts also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions. Additionally we considered the effect of new information in respect of uncertain tax positions as at April 1 2018 to evaluate whether any change was required to management's position on these uncertainties.|
|3.||Taxation Significant judgments are required in determining provision of income taxes both current and deferred as well as the assessment of provision for uncertain tax position including estimates of interest and penalties where appropriate.|
The effective tax rate for the Company is 26%
|We evaluated the design and implementation of controls in respect of provision for current tax and the recognition and recoverability of deferred tax assets.|
We discussed with management the adequate implementation of policies and control regarding current and deferred tax.
We examined the procedure in place for the current and deferred tax calculation for completeness and valuation and audited the related tax computation and estimates in the light of our knowledge of the tax circumstances. Our work was conducted with our tax specialist.
We performed the assessment of the material components impacting the tax expenses balance and exposures. We reviewed and challenged the information reported by components with the support of our own tax specialist where appropriate.
In respect ofdeferred tax assets and liabilities we assess the appropriateness of management's assumptions and estimates to support deferred tax assets for tax losses carried forward and related disclosures in financial statements. Based on the procedure performed above we obtained sufficient audit evidence to corroborate management's estimates regarding current and deferred tax balances.
Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report but does not include the Ind AS financial statements and our auditor's report thereon. The Annual Report is expected to be made available to us after the date of this Auditor's Report. Our opinion on the Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Ind AS financial statements our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a material misstatement of this other information we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charges with Governance for the Standalone Ind AS Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 (the Act) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view ofthe financial position financial performance including other comprehensive income cash flows and changes in equity of the company of the Company in accordance with accounting principles generally accepted in India including the Indian Accounting Standards specified under Section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014 and the Companies (Indian Accounting Standards) Rules 2015.This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of theInd AS financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error.
In preparing the Ind AS financial statements the board of directors is responsible for the assessing the Company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the company's financial reporting process.
Auditor's Responsibility for the Audit of Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether theInd AS financial statements as a whole are free from material misstatement whether due 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 audit conducted in accordance with S As will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these Ind AS financial statements.
As part of an audit in accordance with SAs we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone Ind AS financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit in order to design 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 has adequate internal financial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the standalone Ind AS 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's report. However future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of the standalone Ind AS financial statements including the disclosures and whether the standalone Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone Ind AS financial statements that individually or in aggregate makes it probable that the economic decisions of a reasonably knowledgeable user of the Ind AS financial statements may 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 Ind AS financial statements.
We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the standalone Ind AS financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits 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 of the Companies Act 2013 we give in the Annexure 'A'a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable.
2. As required by Section 143(3) ofthe Act we report that:
(a) We have sought and obtained all the information and explanations which to the best of 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 the Company so far as it appears from our examination of those books.
(c) The Balance Sheet and the Statement of Profit and Loss including the Statement of Other Comprehensive Income the Cash Flow Statement and the Statement of Changes in Equity 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 with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 and the Companies (Indian Accounting Standards) Rules 2015 as amended.
(e) On the basis of the written representations received from the directors as on 31st March 2019 taken on record by the Board of Directors none of the directors is disqualified as on 31st March 2019 from being appointed as a director in terms of Section 164 (2) ofthe Act.
(f) With respect to the adequacy of the internal financial control over financial reporting of the Company and the operating effectiveness of such controls refer to our separate report in Annexure B to this report
(g) In our opinion and the best of our information and according to the explanations give to us the remuneration paid by the company to its directors during the year is in accordance with the provision of section 197 ofthe Act.
(h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements.
(ii) The Company has made provision as required under the applicable law or accounting standards for material foreseeable losses if any on long-term contracts including derivative contracts
(iii) There were no amount which were required to be transferred to the Investor Education and Protection Fund by the Company.
|For V.R. Bansals & Associates|
|Firm Registration No. 016534N|
|Membership No. 093591|
ANNEXURE-A REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS OF OUR REPORT OF EVEN DATE
Re: TINNA RUBBER AND INFRASTRUCTURE LIMITED (the Company)
1. a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b. The Company has a phased periodical programme of physical verification of all fixed assets which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies have been noticed on such verification.
c. As per explanation given to us the title deeds of immovable properties are held in the name of the Company.
2. As per explanations given to us inventories have been physically verified by the management at reasonable intervals. In our opinion the frequency of the verification is reasonable and no material discrepancies have been noticed on physical verification of stocks as compared to book records.
3. The Company has not granted loans secured or unsecured to Companies firms Limited Liability Partnership or other parties covered in the register maintained under section 189 of the Companies Act 2013. Accordingly provisions of clause 3 (a) (b) (c) ofthe Order are not applicable to the Company.
4. In our opinion and according to the information and explanation given to us provisions of section 185 and 186 of the Companies Act 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and advances given investments made and guarantees and securities given have been complied with by the Company. As per explanations given to us by the management the approval to the scheme by the shareholders of the Company under Sections 391 and 394 of the Act accounted for in the Financial Year 2017-18 shall be deemed to have their approval under the provisions of Section 186 and no separate approval from the shareholders shall be required.
5. According to the information and explanation given to us the Company has not accepted any deposits as per the provisions of S ection 73 to 76 or any other relevant provisions ofthe Companies Act and the rules framed thereunder.
6. We have broadly reviewed the cost records maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148 (1) of the Companies Act 2013 related to the manufacture of Rubber and Rubber Product-waste Pairings and Scrap of Rubber and are of the opinion that prima facie the prescribed accounts and cost records have been maintained. We have not however made a detailed examination ofthe same.
7. (a). The Company is generally regular in depositing undisputed statutory dues including Provident Fund Employees' State Insurance Income-Tax Sales-Tax Service tax Duty of Customs Duty of Excise Value Added Tax Goods and Service Tax Cess and any other statutory dues however with delays. Interest on Sales Tax payable amounting to Rs. 10.09 lakhs is in arrears as at 31 st March 2019 concerned for a period of more than six months from the date they becomes payable.
(b). According to the records of the company the dues of income-tax sales tax service tax duty of custom duty of excise xmliia nnna/1 fov nn/i nooAiitvf /T out r rl 1 cv\nta o ro 00 TAllmiro
|S. No.||Name of Statute||Nature of Dues||Amount (Rs. in lakhs )||Financial Year||Forum where dispute is pending|
|1.||Income Tax Act 1961||Income Tax||73.50||2000-2001||High Court of Delhi|
|2.||Income Tax Act 1961||Income Tax||456.12||2013-2014||Income Tax Appellate Tribunal Delhi|
|3.||Income Tax Act 1961||Income Tax||1.86||2009-2010||Income Tax Appellate Tribunal Delhi|
|4.||Income Tax Act 1961||Income Tax||33.71||2006- 2007 2007- 2008 2008- 2009||Commissioner of Income Tax (appeals)|
|5.||Income Tax Act1961||Income Tax||651.61||2013-14||Commissioner of Income Tax (Appeals) Delhi|
|6.||Service Tax||Service Tax (excluding penalties and interest)||50.12||01.04.2008 to 30.06.2012||Hon'ble High Court Allahabad|
|7.||Excise Duty||Excise Duty (excluding interest and penalty)||5.50||2010-2011 to 2011-2012||Customs Excise & Service Tax Appellate Tribunal West Zonal Bench Ahmedabad|
|8.||Excise Duty||Excise Duty (excluding interest and penalty)||97.60||May 2010 to July 2012||Customs Excise & Service Tax Appellate Tribunal West Zonal Bench Ahmedabad|
|9.||Excise Duty||Excise Duty (excluding interest and penalty)||1.45||2011-2012||Commissioner of Central Excise (Appeals) Mumbai|
|10.||Excise Duty||Excise Duty (excluding interest and penalty) & and reversal of CeNVAT credit for input and input services||71.26||2012-13 to 2013-14 (up to December 2014)||Customs Excise & Service Tax Appellate Tribunal West Zonal Bench Chandigarh|
|11.||Excise Duty||Interest and Penalty on Excise Duty Liability||104.00||2012-2013 to 2013-2014 (up to December 2014)||Customs Excise & Service Tax Appellate Tribunal West Zonal bench Chandigarh|
|12.||Excise Duty||Excise Duty & Service Tax Liability (Excluding Interest and penalty on excise Duty & services Tax Liability||92.12||2014-2015||Commissioner (Appeals) Central Tax (C.E & GST)|
|13.||Custom Duty||Countervailing Duty||40.61||2013-2014||Hon'ble High Court of Delhi|
|14.||Custom Duty||Countervailing Duty||110.97||2014-2015||Hon'ble High Court of Delhi|
|15.||Custom Duty||Countervailing Duty||113.22||2015-2016||Hon'ble High Court of Delhi|
|16.||Custom Duty||Countervailing Duty||85.48||2016-2017||Hon'ble High Court of Delhi|
|17.||Custom Duty||Countervailing Duty||6.14||April 2017 to June 2017||Hon'ble High Court of Delhi|
|18.||Custom Duty||Redemption Fine and Penalty||10.00||1 September 2015 to 31 October 2015||Customs Excise & Service Tax Appellant Tribunal Allahabad|
8. In our opinion and according to the information and explanation given to us the Company has not defaulted in repayment of
dues to financial institutions or banks except as under:
|Name of Bank/ Financial Institution||Amount of Default (Including Interest) (Rs. in lakhs)||Due Date of Instalment||Actual Date of Payment|
|India bulls Commercial Credit Limited||24.69||05-10-2018||12-10-2018|
|India bulls Commercial Credit Limited||24.69||05-11-2018||21-11-2018|
|India bulls Commercial Credit Limited||6.64||05-11-2018||21-11-2018|
|India bulls Commercial Credit Limited||24.69||05-12-2018||07-12-2018|
|India bulls Commercial Credit Limited||6.64||05-12-2018||07-12-2018|
|India bulls Commercial Credit Limited||24.69||05-01-2019||14-01-2019|
|India bulls Commercial Credit Limited||6.64||05-01-2019||14-01-2019|
|India bulls Commercial Credit Limited||24.69||05-02-2019||15-02-2019|
|India bulls Commercial Credit Limited||6.64||05-02-2019||15-02-2019|
|India bulls Commercial Credit Limited||24.69||05-03-2019||18-03-2019|
|India bulls Commercial Credit Limited||6.64||05-03-2019||18-03-2019|
As represented to us by the management the aforesaid delays are due to late presentation of cheques by the lender.
9. Based on the information and explanations given to us by the management the Company has not raised any money by way of initial public offer/ further public offer and debt instruments. In our opinion and as per the information and explanations given to us the monies raised by way of term loan were applied for the purpose for which the said term loans were obtained.
10. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management we report that no fraud by the company or no fraud/ material fraud on the company by the officers and employees of the Company has been noticed or reported during the year.
11. In our opinion and according to the information and explanation given to us the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companie s Act 2013.
12. In our opinion the Company is not a Nidhi Company. Therefore the provisions of this clause of the order are not applicable to the Company and hence not commented upon.
13. As per the information given to us all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards.
14. According to the information and explanations given to us and on an overall examination of the balance sheet the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence reporting requirements under clause 3(14) are not applicable to the company and not commented upon.
15. In our opinion and according to the information and explanations given to us the Company has not entered into any non-cash transaction with directors or persons connected with him.
16. The Company is not required to be registered under sections 45-IA ofthe Reserve Bank of India Act 1934.
|For V.R Bansal& Associates|
|Firm Registration No. 016534N|
|Dated: 29th May 2019|
ANNEXURE - B TO THE AUDITORS' REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (the Act)
To the Members of Tinna Rubber and Infrastructure Limited
We have audited the internal financial controls over financial reporting of TINNA RUBBER AND INFRASTRUCTURE LIMITED (the Company) as of 31st March 2019 in conjunction with our audit of the Standalone financial statements of the Company for the period ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with 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 be prescribed under section 143(10) of the Companies Act 2013 to the extent applicable to an audit of internal financial controls both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that:
1. pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;
2. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorisations ofmanagement and directors ofthe company; and
3. Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition use or disposition of the company's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2019 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
|For V.R. Bansal& Associates|
|Firm Registration No. 016534N|
|Dated: 29 th May 2019||Membership No.093591|