To the Members of
Usha Martin Limited
REPORT ON THE AUDIT OF THE STANDALONE IND AS FINANCIAL STATEMENTS
We have audited the accompanying standalone Ind AS financial statements of Usha MartinLimited ("the Company") which comprise the Balance sheet as at 31stMarch 2021 the Statement of Profit and Loss including the statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and notes to the standalone Ind AS financial statements including asummary 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 Ind AS financial statements give the informationrequired by the Companies Act 2013 as amended ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31stMarch 2021 its profit including other comprehensive income its cash flows and thechanges in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements' section ofour 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 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 Ind AS financial statements.
Emphasis of Matter
We draw attention to Note 39(a) regarding attachment of certain parcels of land atRanchi used by the Company's wire rope business under Prevention of Money Laundering Act2002 (PMLA) in connection with export and domestic sale of iron ore fines in prior yearsaggregating Rs. 19037 lakhs allegedly in contravention of terms of the mining leasegranted to the Company for the iron ore mines. Pending final outcome of the appeal filedby the Company before the Appellate Tribunal PMLA and also the orders of the Hon'ble HighCourt of Patna setting aside the proceedings against the Company and granting the libertyto Directorate of Enforcement (ED) to file a complaint before an appropriate Court havingadequate jurisdiction as mentioned in the said Note no adjustment to these standalone IndAS financial statements in this regard have been considered necessary by the management.
Further as explained in note 39(b) a First Information Report (FIR) has been filed byCentral Bureau of Investigation (CBI) against the Company its Managing Director andcertain Other Officers under the Prevention of Corruption Act 1988 and the Indian PenalCode 1860 for allegedly trying to influence ongoing CBI investigation pertaining to theproceedings mentioned in note 39(a). The matter is currently under investigation and theCompany intends to take such legal measures as necessary based on the outcome of theongoing investigation.
Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements for the financialyear ended 31st March 2021. These matters were addressed in the context of ouraudit of the standalone Ind AS financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. For each matter belowour description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the standalone Ind AS financial statementssection of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the standalone Ind AS financial statements. The results of ouraudit procedures including the procedures performed to address the matters below providethe basis for our audit opinion on the accompanying standalone Ind AS financialstatements.
|Key audit matters ||How our audit addressed the key audit matter |
|Revenue recognition (as described in Note 2A(d) and Note 20 of the standalone Ind AS financial statements) || |
|For the year ended 31st March 2021 the Company has recognized revenue from operations of Rs. 134560 lakhs. Revenue from contract with customers (hereinafter referred to as Revenue') is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company is entitled to in exchange for those goods or services. ||Our audit procedures included the following: |
|The timing of revenue recognition is relevant to the reported performance of the Company. The management considers revenue as a key measure for evaluation of performance. The risk is therefore that revenue is not recognized in accordance with Ind AS 115 Revenue from contracts with customers' and accordingly it was determined to be a key audit matter. || Assessed the Company's revenue recognition accounting policies in line with Ind AS 115 ("Revenue from contracts with customers"). |
| || Obtained an understanding of revenue process including testing the design and operating effectiveness of controls related to revenue recognition. |
| || Performed procedures for a sample of revenue transactions at year end to assess whether they were recognized at the correct period by corroborating terms of sales arrangement and date of revenue recognition to third party support such as bills of lading lorry receipt etc. |
| || Compared revenue with historical trends and where appropriate conducted further enquiries and testing to corroborate unusual variances noted. |
| || Assessed disclosures in financial statements in respect of revenue as specified in Ind AS 115 |
|Provisions and Contingencies (as described in Note 2A(n) Note 15 and Note 30C of the standalone Ind AS financial statements) || |
|The Company has accrued liabilities of Rs. 3015 lakhs as shown in Note 15 and disclosed in Note 30C contingent liabilities of Rs. 39806 lakhs as at 31st March 2021. ||Our audit procedures included the following: |
|Claims and exposures relating to litigation have been identified as a key audit matter due to the complexities involved in these matters timescales involved for resolution and the potential financial impact of these on the standalone Ind AS financial statements. Further significant management judgement is involved in assessing the exposure of each case and thus a risk that such cases may not be adequately provided for or disclosed. || Obtained listing of all disputes pending before various judicial or relevant tax/ regulatory authorities. |
|Accordingly it has been considered as a key audit matter. || Enquired and discussed the above listing with Head of Legal and Heads of relevant Functions to assess the completeness and management position with regard to the probability of unfavorable outcome of disputes and provision recognised towards matter under disputes. |
| || Engaged with our relevant inhouse tax specialists for taxation matters under dispute to assess management's position of outcome of significant cases and provisions recognised. Assessed the objectivity and competence of the in-house and external specialists. |
| || Reviewed opinions obtained by the management from relevant external legal experts to assess management's position of outcome of significant matters under dispute and provisions recognized. |
| || Assessed the relevant disclosures made within the standalone Ind AS financial statements as per the requirements of relevant accounting standards. |
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and AnalysisBoard's report including Annexures to Board's Report but does not include the standaloneInd AS financial statements and our auditor's report thereon.
Our opinion on the standalone Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.
Responsibilities of Management for the Standalone Ind AS 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 Ind AS financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting 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 Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the standalone Ind AS 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 Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone Ind AS financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of 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 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 IndAS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone Ind AS financialstatements for the financial year ended 31st March 2021 and are therefore thekey audit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest 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 1" a statement on the matters specified inparagraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;
(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;
(c) The Balance Sheet the Statement of Profit and Loss including the Statement ofOther Comprehensive Income the Cash Flow Statement and Statement of Changes in Equitydealt with by this Report are in agreement with the books of account;
(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;
(e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in termsof Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls with reference tothese standalone Ind AS financial statements and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure 2" to this report;
(g) In our opinion the managerial remuneration for the year ended 31stMarch 2021 has been paid / provided by the Company to its directors in accordance withthe provisions of section 197 read with Schedule V to the Act;
(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:
i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements Refer Note 15 and Note 30Cto the standalone Ind AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company
referred to in paragraph 1 of the section on "Report on Other Legal and RegulatoryRequirements" of our report of even date i. (a) The Company has maintained properrecords showing full particulars including quantitative details and situation of propertyplant and equipment.
(b) The property plant and equipment are physically verified by the managementaccording to a phased programme designed to cover all the items over a period of threeyears which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets. Pursuant to the programme a portion of the property plant andequipment were physically verified by the management during the year and no materialdiscrepancies were noticed on such verification.
(c) According to the information and explanations given by the management and auditprocedures performed by us the title deeds of immovable properties are held in the nameof the Company except for: 1. title deeds (four cases) of freehold land with gross and netcarrying amount of Rs. 2155 lakhs and title deeds of two flats (classified asbuilding') with gross and net carrying amount of Rs. 8 lakhs and Rs. 7 lakhsrespectively included in Note 3A(b) on Property Plant and Equipment which are in thename of erstwhile companies that had amalgamated with the Company in prior years. 2. titledeed (one case) of freehold land with gross and net carrying amount of Rs. 29 lakhs andtitle deed of building situated on the freehold land with gross and net carrying amount ofRs. 1 lakh and Rs. 1 lakh respectively included in Note 3A(b) on Property Plant andEquipment in respect of which the conveyance deed is yet to be executed in favour of theCompany. The title deed is under litigation and pending resolution in the concerned TrialCourt as at 31st March 2021.
3. freehold land (six cases) with gross and net carrying amount of Rs. 282 lakhsincluded in Note 35(i)(a) on Assets held for sale which are in the process of beingtransferred to in the name of the Company through necessary legal proceedings beforeconcerned Trial Court.
4. title deeds (two cases) of leasehold land with gross and net carrying amount of Rs.5 lakhs and Rs. 3 lakhs respectively included in Note 4 on Right-of-use assets for whichlease deeds are yet to be executed in favour of the Company by concerned authorities.
ii. The inventory has been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification. Inventories lying with third parties have beenconfirmed by them as at 31st March 2021 and no material discrepancies werenoticed in respect of such confirmations.
iii. According to the information and explanations given to us and audit proceduresperformed by us the Company has not granted any loans secured or unsecured to companiesfirms limited liability partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013. Accordingly the provisions of clause3(iii)(a) (b) and (c) of the Order are not applicable to the Company and hence notcommented upon.
iv. In our opinion and according to the information and explanations given to us theCompany has not advanced loans to directors / to a company in which the director isinterested to which provisions of section 185 of the Companies Act 2013 apply and hencenot commented upon. In respect of loans and advances given investments made andguarantees and securities given the Company has complied with the provisions of Section186 of the Companies Act 2013.
v. The Company has not accepted any deposits within the meaning of sections 73 to 76 ofthe Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordinglythe provisions of clause 3(v) of the Order are not applicable and hence not commentedupon.
vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 in respect of manufacture of wire and wire ropeproducts and allied machinery and are of the opinion that prima facie the specifiedaccounts and records have been made and maintained. We have not however made a detailedexamination of the same.
vii. a) Undisputed statutory dues including provident fund employees' state insuranceincome-tax duty of custom goods and service tax cess and other material statutory duesapplicable to the Company have generally been regularly deposited with appropriateauthorities though there has been a slight delay in a few cases of income-tax and goodsand service tax.
b) According to the information and explanations given to us and audit proceduresperformed by us no undisputed amounts payable in respect of provident fund employees'state insurance income-tax duty of custom goods and service tax cess and otherstatutory dues which were outstanding at the year end for a period of more than sixmonths from the date they became payable except as follows:
Statement of arrears of statutory dues outstanding for more than six months
|Name of the Statute ||Nature of the Dues ||Amount (Rs. in lakhs) ||Period to which the amount relates ||Due Date ||Date of Payment |
|Jharkhand Public Demand Recovery Act ||Land revenue ||170 ||April 2018 to September 2020 ||31st March of respective year ||Not yet paid |
c) According to the records of the Company the dues of income-tax sales-tax servicetax duty of custom goods and service tax duty of excise value added tax and cess onaccount of any dispute are as follows:
|Name of the statute ||Nature of dues ||Amount * (Rs. in lakhs) ||Period to which the amount relates ||Forum where the dispute is pending |
|Central and State Sales Tax / Value ||Duty of Central and State Sales ||2492 # ||2004-05 2008-09 2010-11 to 2017-18 ||Sales Tax/Value Added Tax Appellate Tribunal |
|Added Tax Act ||Tax Value Added Tax and Entry tax ||276 ||2015-16 ||Assistant Commissioner Maharashtra |
| || ||11 ||2010-11 ||Additional Commissioner of Commercial Taxes |
| || ||2 ||2010-11 ||Madhya Pradesh High Court |
| || ||115 # ||2013-14 ||Deputy Excise and Taxation Commissioners (Appeal) |
| || ||822 ||2002-03 to 2005-06 ||Ranchi High Court |
| || ||16 ||2003-04 ||Chennai High Court |
|Central Excise Act 1944 ||Duty of excise ||18212 ||2004-05 to 2017-18 ||Central Excise and Service Tax Appellate Tribunal |
| || ||3944 ||2009-10 2012-13 2015-16 2017-18 ||Commissioner of Central Excise (Appeals) |
|Finance Act 1994 ||Service tax ||1857 ||2003-04 to 2006-07 2008-09 2013-14 2014-15 ||Central Excise and Service Tax Appellate Tribunal |
| || ||732 ||2001-02 2016-17 2017-18 ||Commissioner (Appeals) |
| || ||72 ||2004-09 2015-16 to 2017-18 ||Assistant Commissioner Jamshedpur |
| || ||50 ||2004-05 to 2007-08 2013-14 to 2015-16 ||Joint Commissioner of Central Excise |
|Goods & Service Tax Act 2017 ||Goods and Services Tax ||466 ||2017-18 2019-20 ||Joint Commissioner (Appeals) |
| || ||22 ||2018-19 ||Additional Commissioner (Appeals) |
|Customs Act1962 ||Duty of customs ||16 ||1995-96 to 1996-97 1998-99 2000-01 and 2008-09 ||Deputy Commissioner of Customs |
| || ||1072 ||1989-90 1992-93 to 1993-94 2012-13 to 2014-15 ||Central Excise and Service Tax Appellate Tribunal |
| || ||107 ||1989-90 1996-97 2002-03 2014-15 2015-16 ||Assistant Commissioner of Customs |
| || ||7 ||2005-06 ||Commissioner (Appeals) |
|Income Tax Act 1961 ||Income tax ||552 ||Assessment Year 1998-99 ||Ranchi High Court |
| || ||3224 ||Assessment Year 2007-08 to 2010-11 ||Income Tax Appellate Tribunal Ranchi |
| || ||7890 ||Assessment Year 2009-10 to 2017-18 ||Commissioner of Income Tax (Appeals) |
* Net of amounts paid under protest
# Includes demand received by the Company which is disputed along with otherentry tax matters as explained in Note 30C of the standalone Ind AS financial statementsviii. In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowings to banks.The Company did not have any loans or borrowing in respect of a financial institution orto government or dues to debenture holders during the year.
ix. According to the information and explanations given by the management and auditprocedures performed by us the Company has not raised any money by way of initial publicoffer / further public offer / debt instruments and term loans during the year. Thereforereporting under clause (ix) is not applicable to the Company and hence not commented upon.
x. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the standalone Ind AS financial statements and according to the informationand explanations given by the management we report that no fraud by the Company or nomaterial fraud on the Company by the officers and employees of the Company has beennoticed or reported during the year.
xi. According to the information and explanations given by the management and auditprocedures performed by us the managerial remuneration has been paid / provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act 2013.
xii. In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company and hence not commented upon.
xiii. According to the information and explanations given by the management and auditprocedures performed by us transactions with the related parties are in compliance withsections 177 and 188 of the Companies Act 2013 where applicable and the details have beendisclosed in the notes to the standalone Ind AS financial statements as required by theapplicable accounting standards.
xiv. According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review. Accordingly reporting requirements under clause 3(xiv) are not applicableto the Company and hence not commented upon.
xv. According to the information and explanations given by the management and auditprocedures performed by us the Company has not entered into any non-cash transactionswith directors or persons connected with him as referred to in section 192 of CompaniesAct 2013.
xvi. According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company andhence not commented upon.
to the Independent Auditor's Report of even date on the Standalone Ind as FinancialStatements of Usha Martin Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls with reference to standalone Ind ASfinancial statements of Usha Martin Limited ("the Company") as of 31stMarch 2021 in conjunction with our audit of the standalone Ind AS financial statements ofthe Company for the year 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 ("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 the Company's policies the safeguardingof its 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 Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to these standalone Ind AS financial statements based on ouraudit. We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing as specified under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both issued by ICAI. 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 with reference to these standalone Ind AS financial statements wasestablished and maintained and if such controls operated effectively in all materialrespects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to these standalone Ind AS financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to standalone Ind AS financial statements included obtaining anunderstanding of internal financial controls with reference to these standalone Ind ASfinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto 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 withreference to these standalone Ind AS financial statements.
Meaning of Internal Financial Controls With Reference to these Standalone Ind ASFinancial Statements
A company's internal financial controls with reference to standalone Ind AS financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial controls with reference to standalone Ind AS financial statements includes thosepolicies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls With Reference to Standalone Ind ASFinancial Statements
Because of the inherent limitations of internal financial controls with reference tostandalone Ind AS financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone Ind AS financial statements to future periods aresubject to the risk that the internal financial control with reference to standalone IndAS financial statements 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 adequate internal financialcontrols with reference to standalone Ind AS financial statements and such internalfinancial controls with reference to standalone Ind AS financial statements were operatingeffectively as at 31st March 2021 based on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the ICAI.
| ||For S.R. Batliboi & Co. LLP |
| ||Chartered Accountants |
| ||ICAI Firm Registration Number: 301003E/E300005 |
| ||per Bhaswar Sarkar |
| ||Partner |
|Place: Kolkata ||Membership Number: 055596 |
|Date: 20th May 2021 ||UDIN: 21055596AAAABH1918 |