To the Members of YASHO INDUSTRIES LIMITED
Report on the Audit of the Standalone FinancialStatements
We have audited the accompanying standalone financial statements ofYasho Industries Limited ("the Company") which comprise the Standalone balancesheet as at 31st March 2022 and the standalone statement of Profit and Loss(including Other Comprehensive Income) the standalone Cash Flows and the StandaloneStatement of changes in Equity for the year then ended and notes to the standalonefinancial statements including a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "Standalone FinancialStatements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone financial statements give theinformation required by the Companies Act2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules2015 as amended ("IND AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022its profit (including other comprehensive income) its cash flows and the changes inequity for the year ended on that date.
BASIS FOR OPINION
We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theCompanies Act 2013. Our responsibilities under those Standards are further described inthe Auditor's Responsibilities for the Audit of the Standalone Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the ICAI'sCode of Ethics. We believe that the audit evidence obtained by us is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.
KEY AUDIT MATTERS
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.
|Key Audit matter ||How our audit addressed the key audit matter: |
| 1. Capital Expenditure The company has incurred capital expenditure towards purchase / construction of tangible property plant and equipment amounting to Rs 5679.51 Lakh during the financial year. ||1. Obtained an understanding of management's process and evaluated design and tested operating effectiveness of controls around measurement of capital expenditure |
2. Assessment of deviations from budgeted expenditure if any and enquiry into reasons thereof.
|Considering that this amount is substantial and errors in measurement can lead to material impact on carrying amount of tangible fixed assets as well as profit for the year we have considered this as a key audit matter. |
|3. We undertook substantive audit procedures to test whether any revenue expenditure is classified as capital expenditure or capital expenditure is classified as revenue expenditure. |
|4. We tested the adherence to Ind AS 16 "Property Plant & Equipment" to verify accuracy of measurement of expenditure and adequacy of disclosures made. |
INFORMATION OTHER THAN THE FINANCIALSTATEMENTS AND AUDITORS' REPORT THEREON
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the consolidated financial statements standalone financial statements and ourauditor's report thereon. Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon. In connectionwith our audit of the standalone financial statements our responsibility is to read theother information and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.
MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONEFINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes of equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian accounting Standards specified undersection 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 IND AS standalone financial statement that give a true and fair viewand are free from material misstatement whether due to fraud or error.
In preparing the 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 foroverseeing the Company's financial reporting process.
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THEFINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the INDAS standalone financial statements as a whole are free from material misstatement whetherdue 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 auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of theIND AS standalone financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting in preparation of standalone financial statements and basedon the audit evidence obtained whether a material uncertainty exists related to events orconditions that may cast significant doubt on the appropriateness of this assumption. Ifwe conclude that a material uncertainty exists we are required to draw attention in ourauditors' report to the related disclosures in the standalone financial statements or ifsuch disclosures are inadequate to modify our opinion. Our conclusions are based on theaudit evidence obtained up to the date of our auditors' report. However future events orconditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors' report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Companies Act 2013 we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
2. (A). As required by Section 143(3) of the Act
we report that:
a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
b. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.
c. The Standalone Balance Sheet the Standalone Statement of Profit andLoss (including other comprehensive income) the Standalone Cash Flow Statement andStandalone Statement of
changes in equity dealt with by this Report are in agreement with thebooks of account.
d. In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.
e. On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directorsnone of the directors is disqualified as on 31st March 2022 from beingappointed as a director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".
(B). With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
a. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements - Refer Note 37 to thestandalone financial statements;
b. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;
c. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.
d. i. The Management has represented that to
the best of its knowledge and belief no funds (which are materialeither individually or in the aggregate) have been advanced or loaned or invested (eitherfrom borrowed funds or share premium or any other sources or kind of funds) by the Companyto or in any other person or entity including foreign entity("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall :
directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Company("Ultimate Beneficiaries")
provide any guarantee security or the like on behalf of theUltimate Beneficiaries;
ii. The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall:
directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries")
provide any guarantee security or the like on behalf of theUltimate Beneficiaries;
iii. Based on the audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder d(i) and d(ii) above contain any material misstatement.
e. The dividend declared or paid during the year by the Company is incompliance with Section 123 of the Act.
(C). With respect to the matter to be included in the Auditor's Reportunder Section 197(16) of the Act:
In our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under Section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) ofthe Act which are required to be commented upon by us.
For V J SHAH & CO
Chartered Accountants Firm Registration No.: 109823W
| ||CHINTAN V SHAH |
| ||Partner |
|Place: Mumbai ||Membership No.164370 |
|Date: 30.04.2022 ||UDIN: 22164370AIEYIF5552 |
Annexure "A" Auditors' Report
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF "REPORTON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF THE INDEPENDENT AUDITOR'S REPORT ONTHE ACCOUNTS OF YASHO INDUSTRIES LIMITED ('THE COMPANY') FOR THE YEAR ENDED 31stMARCH 2022.
1. a. A. The company has maintained proper
records showing full particulars including quantitative details andsituation of Property Plant and Equipment.
B. The company has maintained proper
records showing full particulars of Intangible Assets.
b. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has a regularprogramme of physical verification of its Property Plant and Equipment by which allproperty plant and equipment are verified in a phased manner. In accordance with thisprogramme certain property plant and equipment were verified during the year. In ouropinion this periodicity of physical verification is reasonable having regard to the sizeof the Company and the nature of its assets. No material discrepancies were noticed onsuch verification.
c. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the company.
d. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the company has not revalued itsProperty Plant & Equipment and Intangible Assets during the year.
e. According to the information and explanations given to us and on thebasis of our examination of the records of the Company no proceedings are initiated orare pending against the Company for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.
2. In respect of Inventories:
a. As explained to us the inventory has been physically verified bythe management at regular intervals during the year. In our opinion and according to theinformation and explanations
given to us the coverage and procedure of such verification by theManagement is appropriate having regard to the size of the Company and the nature of itsoperations. No discrepancies of 10% or more in the aggregate for each class of inventorieswere noticed on such physical verification of inventories when compared with books ofaccount.
b. During the year the Company has been sanctioned working capitallimits in excess of Rs 5 crores in aggregate from banks on the basis of security ofcurrent assets. The Company has filed quarterly returns or statements with such bankswhich are in agreement with the books of account other than those as set out in Note No.45 to the Financial Statements.
3. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has made investmentsin and granted advances in the nature of loans secured or unsecured to companies duringthe year. In accordance with clause 3(iii)
a. Based on the audit procedures carried on by us and as per theinformation and explanations given to us the Company has provided loans to entity asbelow:
|Particulars ||Loans |
| ||(Rs In Lakhs) |
|Aggregate amount during the year ended 31st March 2022 Subsidiaries ||42.26 |
| Others ||- |
|Balance outstanding as at the balance sheet date - 31st March 2022 || |
| Subsidiaries ||42.26 |
| Others ||- |
b. According to the information and explanations given to us and basedon the audit procedures conducted by us in our opinion the investments made and the termsand conditions of the grant of secured or unsecured loans are prima facie notprejudicial to the interest of the Company.
c. According to the information and explanations given to us and on thebasis of our examination of the records of the Company in the case of secured orunsecured loans given the repayment of principal and payment of interest has not beenstipulated. We are therefore unable to
make specific comments on the regularity of repayment of principal andpayment of interest.
d. According to the information and explanations given to us and on thebasis of our examination of the records of the Company there is no overdue amount formore than ninety days in respect of secured or unsecured loans given.
e. According to the information and explanations given to us and on thebasis of our examination of the records of the Company there is no loan granted which hasfallen due during the year which has been renewed or extended or fresh loans granted tosettle the overdues of existing loans given to same parties.
f. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has granted loans tosubsidiaries repayable on demand details of which are mentioned hereunder:
|Parties ||Promoters ||Related Party (Subsidiary) |
|Aggregate amount of loan/ advances in nature of loans || ||42.26 lakhs |
|- Repayable on demand (A) ||- ||42.26 lakhs |
|- Agreement does not specify any terms of period of repayment (B) || || |
|Total (A + B) ||- ||42.26 lakhs |
|Percentage of loans/advances in nature of loans to the total loans || ||100% |
4. According to the information and explanations given to us and on thebasis of our examination of records of the Company the Company has not provided anyguarantee or security as specified under Sections 185 and 186 of the Act. In respect ofthe investments made and loans given by the Company in our opinion the provisions ofSections 185 and 186 of the Act have been complied with.
5. The Company has not accepted any deposits or amounts which aredeemed to be deposits from the public. Accordingly clause 3(v) of the Order is notapplicable to the Company.
6. We have broadly reviewed the cost records maintained by the companypursuant to the Rules made by the Central Government for the maintenance of cost recordsunder sub section (1) of section 148 of the Companies Act and are of the opinion thatprima facie the prescribed cost records have been made and maintained as per thedocumentary evidence provided by the management. We have however not made a detailedexamination of the records with a view to determining whether they are accurate orcomplete.
7. In respect of statutory dues:
a. According to the information & explanation given to us thecompany was generally regular in depositing dues in respect of Employees Provident FundEmployees State Insurance Fund Income Tax (including TDS) GST and other statutory dueswith the appropriate authority during the year.
b. According to records examined by us and the information andexplanation given to us there are no undisputed amounts due in respect of income taxsales tax GST excise duty Employees Provident Fund Employees State Insurance Fund andother statutory dues at the end of the year.
However the following dues have not been deposited by the Company onaccount of disputes:
|Nature of the Statute ||Nature of Dues ||Forum where dispute is pending ||Period to which the amount relates ||Amount |
|The Customs Act 1962 ||Custom Duty ||CESTAT ||F.Y. 2014-15 ||17536407/- |
|The Customs Act 1962 ||IGST ||Commissioner of Customs ||FY 2017-18 & FY 2018-19 ||82226562/- |
8. According to the information and explanations given to us and on thebasis of our examination of records of the Company there were no transactions relating topreviously unrecorded income that were surrendered or disclosed as income in the taxassessments under the Income Tax Act 1961 (43 of 1961) during the year.
9. a. In our opinion and according to the information and explanationsgiven to us the Company has not
defaulted in the repayment of loans or other borrowings or in thepayment of interest thereon to any lender during the year.
b. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not been declareda wilful defaulter by any bank or financial institution or government or governmentauthority
c. In our opinion and according to the information and explanationsgiven to us the term loans have been applied on an overall basis for the purposes forwhich they were obtained.
d. On an overall examination of the financial statements of theCompany the Company has not taken any funds raised on short-term basis have prima facienot been used during the year for long term purposes by the Company.
e. According to the information and explanations given to us and on anoverall examination of the standalone financial statements of the Company we report thatthe Company has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries associates or joint ventures. Accordingly clause 3(ix)(e)of the order is not applicable.
f. According to the information and explanations given to us andprocedures performed by us we report that the Company has not raised loans during theyear on the pledge of securities held in its subsidiaries as defined under the CompaniesAct 2013. Accordingly clause 3(ix) (f) of the Order is not applicable.
10. a. The Company has not raised any moneys by
way of initial public offer or further public offer (including debtinstruments). Accordingly clause 3(x)(a) of the Order is not applicable.
b. With respect to funds raised by way of preferentialallotment/private placement of shares the provisions of Section 42 and 62 of CompaniesAct 2013 have been complied with and the funds have been utilised for the purpose forwhich they were raised.
11. a. Based on examination of the books and
records of the Company and according to the information andexplanations given to us considering the principles of materiality outlined in Standardson Auditing we report that no fraud by the Company or on the Company has been noticed orreported during the course of the audit.
b. According to the information and explanations given to us no reportunder sub-section (12) of Section 143 of the Companies Act 2013
has been filed by the auditors in Form ADT-4 as prescribed under Rule13 of Companies (Audit and Auditors) Rules 2014 with the Central Government.
c. According to the information and explanations given to us therewere no whistle blower complaints received by the Company during the year and up to thedate of this report.
12. 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.
13. In our opinion and according to the information and explanationsgiven to us the Company is in compliance with Section 177 and 188 of the Companies Actwhere applicable for all transactions with the related parties and the details of relatedparty transactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.
14. a. Based on information and explanations
provided to us and our audit procedures in our opinion the Companyhas an internal audit system commensurate with the size and nature of its business.
b. We have considered the internal audit reports of the Company issuedtill date for the period under audit.
15. In our opinion during the year the Company has not entered into anynon-cash transactions with any of its directors or directors of its holding companysubsidiary company or persons connected with such directors and hence provisions ofSection 192 of the Companies Act 2013 are not applicable to the Company.
16. The Company is not required to be registered under Section 45-IA ofthe Reserve Bank of India Act 1934. Hence reporting under clause (xvi)(a) (b) (c) and(d) of the Order is not applicable.
17. The Company has not incurred cash losses during the financial yearcovered by our audit and the immediately preceding financial year.
18. There has been no resignation of the statutory auditors of theCompany during the year.
19. On the basis of the financial ratios ageing and expected dates ofrealization of financial assets and payment of financial liabilities other informationaccompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examination
of the evidence supporting the assumptions nothing has come to ourattention which causes us to believe that any material uncertainty exists as on the dateof the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date.
20. The Company has fully spent the required amount towards CorporateSocial Responsibility (CSR) and there are no unspent CSR amount for the year requiring atransfer to a Fund specified in Schedule VII
to the Companies Act or special account in compliance with theprovision of Sub-section (6) of Section 135 of the said Act. Accordingly reporting underclause (xx) of the Order is not applicable for the year.
For V J SHAH & CO
Chartered Accountants Firm Registration No.: 109823W
| ||CHINTAN V SHAH |
| ||Partner |
|Place: Mumbai ||Membership No.164370 |
|Date: 30.04.2022 ||UDIN: 22164370AIEYIF5552 |
Annexure "B" Auditors' Report
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDERCLAUSE (I) OF SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT 2013 ("THEACT").
We have audited the internal financial controls over financialreporting of Yasho Industries Limited ("the Company") as of March 31 2022 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2022 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIALCONTROLS
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing deemed to be prescribed under section 143(10) ofthe Act to the extent applicable to an audit of internal financial controls bothapplicable to an audit of internal financial controls and both issued by the ICAI. ThoseStandards and the Guidance Note
require that we comply with ethical requirements and plan and performthe 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVERFINANCIAL REPORTING
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that
a) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
b) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and
c) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes
in conditions or that the degree of compliance with the policies orprocedures may deteriorate.
| ||For V J SHAH & CO Chartered Accountants Firm Registration No.: 109823W |
|Place: Mumbai Date: 30.04.2022 ||CHINTAN V SHAH Partner Membership No.164370 UDIN: 22164370AIEYIF5552 |