The Members of
Triveni Engineering & Industries Limited
REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
We have audited the Standalone financial statements of TRIVENI ENGINEERING &INDUSTRIES LIMITED ("the Company") which comprise the Standalone Balance Sheetas at 31 March 2019 and the Standalone Statement of Profit and Loss (including othercomprehensive income) Standalone Statement of Changes in Equity and Standalone Statementof Cash Flows for the year then ended and notes to the Standalone financial statementsincluding a summary of significant 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 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 31 March 2019 and profit (including othercomprehensive income) changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone financialstatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the Standalone financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.
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 whole and in forming our opinion thereon and we do not provide a separateopinion on these matters.
|Sr. No. ||Key Audit Matters ||Auditor's Response |
|1 ||Net Realizable Value of Sugar: ||Our audit procedures included the following: |
| ||Finished goods inventory are valued at lower of cost and net realizable value (estimated selling price less estimated cost to sell). || Assessing the appropriateness of Company's accounting policy for valuation of sugar inventories and compliance to the policy with the requirements of applicable accounting standards (Ind AS 2 "Inventories"); |
| ||We identified valuation of sugar as a key audit matter as it involves significant management judgement in determination of net realisable value of sugar. || Obtaining an understanding of internal controls over valuation of sugar inventories and testing on a sample basis their design implementation and operating effectiveness; |
| ||The total value of finished goods of sugar as at 31 March 2019 is Rs. 195486.84 lakhs. (Refer Note no. 1(l)(i) of the standalone financial statements for the accounting policy on valuation of finished goods) || Obtaining an understanding and assessing reasonableness of the management's determination of net realizable value (NRV) and applicable government notification defining minimum selling price monthly quota provision for estimated cost for inventory produced for Minimum Indicative Exports Quota (MIEQ) costs necessary to make the sales and their basis and other relevant aspects. |
| || || Compared the actual realization at the year end and subsequent realization to assess the reasonableness of the net realisable value that was estimated and considered by the management. |
| || || Compared the cost of the finished goods with the estimated net realisable value and checked to ensure finished goods were recorded at net realisable value where the cost was higher than the net realisable value. |
|2 ||Recognition of Subsidies: ||Our audit procedures included the following: |
| ||We identified Recognition of subsidy as the key audit matter as it involves significant management judgement. || Obtaining policy from the Company defining the management perspective and basis for recognition of Government subsidies in the books of accounts. |
| ||The area of management judgement includes management risk assessment with respect to recognition of subsidies based on substantive compliance of the conditions and reasonable certainty of receipt of subsidy. || Obtaining an understanding of internal controls over recognition and recoverability of subsidy claims and testing on a sample basis their design implementation and operating effectiveness. |
| || || Considered the relevant circulars/notification issued by various authorities. |
| ||(Refer Note no. 2(a)(iii) of the standalone financial statements) || Evaluated the management's assessment regarding the reasonable certainty for complying with the relevant conditions as specified in circulars/notification issued by various authorities. |
|3 ||Appropriateness of cost to complete the project: ||Our audit procedures included the following: |
| ||The Company recognizes revenue from construction contracts on percentage of completion method as specified in Indian || Obtaining an understanding of internal controls over estimation of cost of completion of projects and testing on a sample basis their design implementation and operating effectiveness. |
| ||Accounting Standards (Ind AS) 115- Revenue from Contract with Customers. (Refer Accounting policy Note no. 1(b)(iii)) || Agreed the total project revenue estimates to contracts with customers. |
| ||We identified this matter as a Key Audit matter as it involves significant judgement by the management in estimation of cost to complete the project and any variation may have consequential impact on revenue. || Obtained computation of estimated costs to complete and the percentage of project completion and verified the same against the contracts on sample basis and also checked arithmetic accuracy of the same. |
| || || Performed the walkthrough procedure and verified the invoices purchase orders etc. for actual cost incurred till the year end. |
| || || Compared the management estimates revised during the year with the estimate made in earlier years and obtained reasons/ approval for such revision. |
Information other than the Standalone financial statements and Auditor's Report thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report Director'sReport Corporate Governance report and Shareholder's Information 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 conclusion thereon.
In connection with our audit of the Standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
Management's Responsibility for 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 changesin equity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian accounting Standards (Ind AS) specifiedunder section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Standalone financial statements that give a true and fair view and arefree from material misstatement whether due 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 Board of Directors are also responsible for overseeing the company's financialreporting 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 scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the Standalonefinancial 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 companyhas adequate internal financial controls system in place and the operating effectivenessof such 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 financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the Standalonefinancial statements including the disclosures and whether the Standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the Standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the Standalone financial 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 financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe 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 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the Act we report that:
a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.
b) I n 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 Standalone Balance Sheet the Standalone Statement of Profit and Loss (includingOther Comprehensive Income) Standalone Statement of Changes in Equity and the StandaloneStatement of Cash Flows dealt with by this Report are in agreement with the books ofaccount.
d) In our opinion the aforesaid Standalone financial statements comply with the IndianAccounting Standards (Ind AS) specified under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31March 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2019 from being appointed as a director in terms of section164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".
g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of 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 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at 31 March 2019 onits financial position in its Standalone financial statements - Refer Note no. 45 to theStandalone financial statements.
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses on long-term contracts including long termderivative contracts.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv. The reporting on the disclosures relating to Specified Bank Notes is not applicableto the Company for the year ended 31 March 2019.
For S.S. KOTHARI MEHTA & COMPANY
Chartered Accountants Firm Registration No. 000756N
| ||Yogesh K. Gupta |
|Place: Noida ||Partner |
|Date: May 21 2019 ||Membership No.: 093214 |
Annexure A" to the Independent Auditors' Report
The Annexure as referred in paragraph (1) Report on Other Legal and RegulatoryRequirements of our Independent Auditors' Report to the members of TRIVENI ENGINEERING& INDUSTRIES LIMITED on the standalone financial statements for the year ended 31March 2019 we report that:
i. (a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assetswhich in our opinion is reasonable having regard to the size of the Company and thenature of its fixed assets. In accordance with this program all major items of fixedassets were physically verified by the management during the year and no materialdiscrepancies were noticed on such verification as compared to the books of accounts.
(c) According to the information and explanation given to us and on the basis ofexamination of title deeds / sale deeds / transfer deeds / conveyance deeds / possessionletters / allotment letters and other relevant records evidencing title/ possessionprovided and legal opinion obtained by the Company we report that the title deeds of theimmovable properties are held in the name of the Company as at the balance sheet dateexcept for 3 cases having gross book value of Rs. 13.13 lakhs in respect of freehold landas disclosed in Note no. 3 on Property Plant & Equipment and 35 cases having grossbook value of Rs. 381.47 lakhs in respect of freehold land disclosed in Note no. 4 onInvestment Property to the Standalone financial statements where the title deeds are notheld in the name of the Company.
ii. The physical verification of the inventory has been conducted at reasonableintervals by the management during the year. As far as we could ascertain and according toinformation and explanations given to us no material discrepancies were noticed betweenthe physical stock and the book records.
iii. According the information and explanations given to us the Company has grantedloans to two body corporates covered in the register maintained under section 189 of theCompanies Act 2013 in respect of which:
(a) I n our opinion the rate of interest and other terms and conditions on which theloans had been granted to body corporates covered in the register maintained
under Section 189 of the Act were not prima facie prejudicial to the interest of theCompany.
(b) In respect of aforesaid loans repayment of principal and payment of interest hasbeen stipulated and principal is not due for repayment and payment of interest have beenregular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the year-end.
iv. According to the information and explanations given to us the Company has notprovided any security as specified under section 185 and 186 of the Companies Act 2013.The Company has complied with the provisions of section 186 of the Companies Act 2013with regards to investments made loans granted and guarantee provided.
v. According to the information and explanations given to us the Company has notaccepted any deposits from the public within the meaning of sections 73 to 76 of theCompanies Act 2013 and the rules framed there under. Accordingly the provisions ofclause 3 (v) of the Order are not applicable to the Company.
vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules prescribed by the Central Government of India for the maintenance of costrecords under sub-section 1 of section 148 of the Companies Act 2013 and are of theopinion that prima facie the prescribed records and accounts have been made andmaintained. However we have not carried out a detailed examination of such records with aview to determining whether they are accurate or complete.
vii. (a) According to the information and explanations given
to us and on the basis of examination of the records of the Company the Company isgenerally regular in depositing undisputed statutory dues including provident fundemployees' state insurance sales- tax income tax service tax custom duty excise dutyvalue added tax goods and services tax and other material statutory dues with theappropriate authorities to the extent applicable.
(b) According to the information and explanations given to us and on the basis ofexamination of the records of the Company there are no undisputed aforesaid statutory duespayable as at 31 March 2019 for a period of more than six months from the date they becamepayable.
(c) According to the records and information and explanations given to us there are nodues in respect of income tax sales tax service tax goods and services tax duty ofexcise duty of customs or value added tax which have not been deposited on account ofany dispute except as given below:
|Name of Statute ||Nature of Dues ||Period (F.Y.) to which the amount relates ||Amount Demanded (Excluding interest) (' in Lakhs) ||Amount paid (' in Lakhs) ||Forum where dispute is pending |
|The Central Excise Act1944 ||Excise Duty ||1998 to 2004-05 2006-07 to 2010-11 ||116.75 ||13.82 ||High Court |
|The Central Excise Act1944 ||Penalty ||1998 to 2004-05 2006-07 to 2010-11 ||348.86 ||266.00 ||High Court |
|The Central Excise Act1944 ||Excise Duty ||1995-96 to 1996-97 2005-06 2014-1 5 to 2015-16 ||73.16 ||4.11 ||Custom Excise and Service Tax Appellate Tribunal |
|The Central Excise Act1944 ||Penalty ||1995-96 to 1996-97 2005-06 2014-1 5 to 2015-16 ||0.07 ||0.07 ||Custom Excise and Service Tax Appellate Tribunal |
|The Central Excise Act1944 ||Excise Duty ||1995-96 2010-1 1 to 2016-17 & 2017-18 (Q1) ||179.99 ||15.76 ||Commissioner (Appeal) |
|The Central Excise Act1944 ||Penalty ||1995-96 2010-1 1 to 2016-17 & 2017-18 (Q1) ||76.26 ||- ||Commissioner (Appeal) |
|The Finance Act 1994 (Service Tax) ||Service Tax ||2016-17 & 2017-18 ||3.22 ||0.24 ||Commissioner (Appeal) |
|The Finance Act 1994 (Service Tax) ||Penalty ||2016-17 & 2017-18 ||3.22 ||- ||Commissioner (Appeal) |
|The Custom Act 1962 ||Penalty ||2004-05 ||19.93 ||6.19 ||Custom Excise and Service Tax Appellate Tribunal |
|Central Sales Tax Act 1956 & State VAT Act ||Sales Tax ||1993-94 to 1995-96 & 1999-00 & 2010-11 to 2011-12 ||75.45 ||49.04 ||High Court |
|Central Sales Tax Act 1956 & State VAT Act ||Sales Tax ||1998-99 to 2000-01 2009-10 2012-13 & 2013-14 ||262.73 ||96.93 ||Tribunal |
|Central Sales Tax Act 1956 & State VAT Act ||Sales Tax ||1992-93 & 2013-14 to 2015-16 ||245.73 ||60.44 ||Addl/ Joint Commissioner |
|Central Sales Tax Act 1956 & State VAT Act ||Penalty ||1992-93 & 2013-14 to 2015-16 ||127.16 ||- ||Addl/ Joint Commissioner |
|Goods and Service Tax ||GST ||2017-18 & 2018-19 ||0.84 ||0.84 ||Commissioner (Appeal) |
|Goods and Service Tax ||Penalty ||2017-18 & 2018-19 ||0.84 ||0.84 ||Commissioner (Appeal) |
|The Income Tax Act 1961 ||Income Tax ||2002-03 2004-05 200506 2007-08 & 2010-11 ||2766 ||1414 ||Income Tax Appellate Tribunal |
|The UP Sugarcane (Purchase Tax) Act 1961 ||Purchase Tax ||2016-17 ||482.00 ||- ||High Court |
viii. In our opinion on the basis of audit procedures and according to the informationand explanations given to us the Company has not defaulted in repayment of loans orborrowings to any banks financial institutions or government during the year. The Companyhas not issued any debentures.
ix. According to the information and explanations given to us the Company has notraised moneys by way of initial public offer or further public offer (including debtinstruments) during the year. The term loans have been applied for the purpose for whichthey were raised.
x. During the course of our examination of the books and records of the Company carriedout in accordance with the generally accepted auditing practices in India we have neithercome across any instance of fraud by the Company or on the Company by its officers oremployees being noticed or reported during the year nor have we been informed of suchcase by the management.
xi. According to the information and explanations given 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 Companies Act 2013.
xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly clause 3(xii) of the Order is not applicable.
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 section 177 and 188 of the Companies Act 2013 where applicable anddetails of such transactions have been disclosed in the Standalone financial statements asrequired under Indian Accounting Standard (Ind AS) 24 Related Party Disclosures specifiedunder section 133 of the Companies Act 2013.
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 duringthe year. Accordingly clause 3(xiv) of the Order is not applicable.
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 clause 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 clause 3(xvi) of the Order is not applicable.
| ||For S.S. KOTHARI MEHTA & COMPANY |
| ||Chartered Accountants |
| ||Firm Registration No. 000756N |
| ||Yogesh K. Gupta |
|Place: Noida ||Partner |
|Date: May 21 2019 ||Membership No.: 093214 |
"Annexure B" to the Independent Auditor's Report of even date on theStandalone Financial Statements of TRIVENI ENGINEERING & INDUSTRIES LIMITED
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION143 OF THE COMPANIES ACT 2013 ("THE ACT") AS REFERRED TO IN PARAGRAPH 2(F) OFREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS'
We have audited the internal financial controls over financial reporting of TRIVENIENGINEERING & INDUSTRIES LIMITED ("the Company") as of 31 March 2019 inconjunction with our audit of the Standalone financial statements of the Company for theyear ended on that date.
MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
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
A 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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
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.
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 31 March 2019
based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.
| ||For S.S. KOTHARI MEHTA & COMPANY |
| ||Chartered Accountants |
| ||Firm Registration No. 000756N |
| ||Yogesh K. Gupta |
|Place: Noida ||Partner |
|Date: May 21 2019 ||Membership No.: 093214 |