<dhhead>INDEPENDENT
AUDITORS REPORT</dhhead>
To,
The
Members of
BAHETI
RECYCLING INDUSTRIES LIMITED
(Formerly
known as: Baheti Metal & Ferro Alloys Pvt Ltd)
Ahmedabad
Opinion
We
have audited the financial statements of BAHETI RECYCLING INDUSTRIES LIMITED (The Company) which comprise the Balance
Sheet as at 31st March, 2023, the statement of Profit and Loss and the Cash Flow Statement
for the year ended on 31st March, 2023, and notes to the financial statements,
including a summary of significant accounting policies and other explanatory information.
In
our opinion and to the best of our information and according to the explanations given to
us, the aforesaid Financial Statements give the information required by the Companies Act,
2013 as amended ("the act) in the manner so required
and give a true and fair view in conformity with the Accounting Standards prescribed under
section 133 of the Act read with Companies (Accounting Standards) Rules, 2015, as amended
("AS) and other accounting
principles generally accepted in India, of the state of affairs of the Company as at March
31, 2023, and profit/loss
account and its cash flows for the year ended on that date.
Basis
of Opinion
We
conducted our Audit of the Financial Statements in accordance with the Standards on
Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under
those Standards are further described in the Auditors
Responsibilities for the Audit of the Financial Statements section of our report. We
are independent of the Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India (ICAI) together with the ethical
requirements that are relevant to our audit of the Financial Statements under the
provisions of the Act and the Rules made there under, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the ICAIs Code of
Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to
provide a basis for our audit opinion on the Financial Statements.
Key
Audit Matters
Key
audit matters are those matters that, in our professional judgment, were of utmost
significance in our audit of the Financial Statements of the current period. These matters
were addressed in the context of our audit of the Financial Statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
For matter below, our 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 be communicated
in our report. We have fulfilled the responsibilities described in the Auditors
responsibilities for the audit of the Financial Statements section of our report,
including in relation to these matters. Accordingly, our audit included the performance to
these procedures designed to respond to our assessment of the risk of the material
misstatement of the Financial Statements.
The
results of our audit procedures, including the procedures performed to address the matters
below, provide the basis for our audit opinion on the accompanying Financial Statements.
Key
Audit Matters |
How
the matter was addressed in our audit |
|
Revenue
Recognition |
In
view of the significance of the matter we applied the following audit procedures in this
area, among other procedures, to obtain sufficient appropriate audit evidence: |
|
Revenue
from sale of goods is recognized when control of the products being sold is transferred to
the customer and when there are no other unfulfilled obligations. The performance
obligations in the contracts are fulfilled at the time of dispatch, delivery or upon
formal customer acceptance depending on customer terms. |
||
1.
We assessed the appropriateness of the revenue recognition accounting policies and its
compliances with applicable Accounting Standards. We read the contracts with customer,
distributors, franchisees etc. to determine appropriateness of revenue recognition. |
||
We
identified revenue recognition as a key audit matter because the Company and its external
stakeholders focus on revenue as a key performance indicator. This could create an
incentive for revenue to be overstated or recognized before control has been transferred. |
||
2.
We evaluated the design of key internal financial controls and operating effectiveness of
the relevant key controls with respect to revenue recognition on selected transactions. |
Information
Other than the Financial Statements and Auditors Report Thereon
The
Companys Board of Directors are responsible for the other information. The other
information comprises the information included in the Management Discussion and Analysis,
Boards Report including Annexures to Boards Report, Business Responsibility
Report and Shareholder Information, but does not include the Financial Statements and our
auditors report thereon.
Our
opinion on the Financial Statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In
connection with our audit of the Financial Statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially
inconsistent with the Financial Statements or our knowledge obtained during the course of
our audit or otherwise appears to be materially misstated.
When
we read the other information identified above, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to those charged with
governance.
Management
and Board of Directors Responsibility for the Financial Statements
The
Companys Board of Directors are responsible for the matters stated in section 134(5)
of the Companies Act, 2013 ("the
Act) with respect to
preparation of these Financial Statements that give a true and fair view of the financial
position, financial performance including cash flows in accordance with the Accounting
principles generally accepted in India, including the Accounting Standards specified under
section 133 of the act, read with companies (Accounting Standards) Rules, 2015, as
amended. This responsibility also includes the maintenance of adequate accounting records
in accordance with the provisions of the act for safeguarding the assets of the company
and for preventing and detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgment and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal
control that were operating effectively for ensuring the accuracy and completeness of
accounting records, relevant to preparation of Financial Statements that give a true and
fair view and are free from material misstatement, whether due to fraud or error.
In
preparing the Financial Statements, management is responsible for assessing the Companys
ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless management either
intends to liquidate the Company or to cease operations, or has no realistic alternative
but to do so.
The
Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors
Responsibilities for the Audit of the Financial Statements
Our
objectives are to obtain reasonable assurance about whether the Financial Statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditors report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with SAs will
always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
these Financial Statements.
As
part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also: -
Identify and assess the risks of material misstatement of the Financial Statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls system in place and the operating effectiveness of
such controls. (Annexure B is our Report on Internal Financial Control).
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures
in the 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 auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
Evaluate the overall presentation, structure and content of the Financial Statements,
including the disclosures, and whether the Financial Statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Materiality
is the magnitude of misstatements in the Financial Statements that, individually or in
aggregate, makes it probable that the economic decisions of a reasonably knowledgeable
user of the Financial Statements may be influenced. We consider quantitative materiality
and qualitative factors in (i) planning the scope of our audit work and in evaluating the
results of our work; and (ii) to evaluate the effect of any identified misstatements in
the Financial Statements.
We
communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We
also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From
the matters communicated with those charged with governance, we determine those matters
that were of utmost significance in the audit of the Financial Statements of the current
period and are therefore the key audit matters. We describe these matters in our auditors
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Report
on other Legal and Regulatory Requirements
As
required by the Companies (Auditors 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 a statement on the
matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
As
required by section 143(3) of the Act, we further report that:
a)
We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit;
b)
In our opinion proper books of account as required by law have been kept by the Company so
far as it appears from our examination of those books;
c)
The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this
Report are in agreement with the books of account;
d)
In our opinion, the aforesaid Financial Statements comply with the Accounting Standards
referred under section 133 of the Act, read with Companies (Accounting Standards) Rules,
2015, as amended;
e)
On the basis of written representations received from directors as on March 31,2023, and taken on record by the
Board of Directors, none of the director is disqualified as on March 31,2023, from being appointed as a
director in terms of sub-section (2) of section 164 of the Act.
f)
We have also audited the internal financial controls over financial reporting of the
Company as on March 31, 2023 in conjunction with our audit of the Financial Statements of
the Company for the year ended on that date, as per Annexure B, expressed unmodified
opinion;
g)
In our opinion and according to the information and explanations given to us, the
remuneration paid by the Company to its directors during the current year is in accordance
with the provisions of Section 197 of the Act.
h)
In our opinion and to the best of our information and according to the explanations given
to us, we report as under with respect to other matters to be included in the Auditors
Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:
i)
The Company has disclosed the impact of pending litigations on its financial positions in
its financial statements- Refer Note 29 and 33 to the financial statement;
ii)
The Company does not have any long-term contracts including derivative contracts for which
there were any material foreseeable loss thereon does arise.
iii)
There was no amount which was required to be transferred to the Investor Education and
Protection Fund by the Company.
(iv)
(a)Management has represented to us that, to the best of its knowledge and belief, as
disclosed in the notes to financial statements, no funds have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries), with the understanding,
whether recorded in writing or otherwise, that the Intermediary
shall,
whether, directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries) or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries;
(b)
Management has represented to us that, to the best of its knowledge and belief, as
disclosed in the notes to financial statements, no funds have been received by the Company
from any person(s) or entity(ies), including foreign entities ("Funding Parties), with the understanding,
whether recorded in writing or otherwise, that the Company shall, whether, directly or
indirectly, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries) or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries;
(c)
Based on our audit procedure performed that have been considered reasonable and
appropriate in the circumstances, nothing has come to our attention that cause us to
believe that the representation given by the management under sub clause (a) & (b) of
(iv) contain any material misstatement.
(d)
The company has not declared or paid any dividend during the year in contravention of the
provisions of section 123 of the Companies Act, 2013.
(v)
Proviso to Rule 3(1) of the Companies (Accounts) Rules,2014 for maintaining books of
account using accounting software which has a feature of recording audit trail (edit log)
facility is applicable to the Company with effect from April 1,2023,and
accordingly,reporting under rule 11(g) of companies (Audit and Auditors) Rules,2014 is not
applicable for the financial year endend March 31,2023.
For:
Wadhawan & Co.
Chartered
Accountants
FRN:
- 129455W
Sd/-
CA
Ajit A Wadhawan
(Partner)
M.
No. 032886
UDIN: 23032886BGWVIV7140
Date:
30th May, 2023
Place:
Ahmedabad
ANNEXURE-A
TO THE INDEPENDENT AUDITORS REPORT
With
reference to the Annexure A referred to in our report to the members of the Company
BAHETI
RECYCLING INDUSTRIES LTD.
for the year ended 31st
March, 2023, we report the
following: -
i.
(a)A. The company has maintained proper records showing full particulars including
quantitative
details and situation of Property, Plant and Equipment on the basis of available
information.
B.
The Company has Nil Intangible Assets, hence reporting under this clause is not
applicable.
(b)
The company has program of verification to cover all the items of Property, Plant and
Equipment in a proper manner, which in our opinion is reasonable with regard to size of
company and nature of assets of company. According to information and explanation given to
us, no material discrepancies were noticed during such verification.
(c)
According to the information and explanations given to us and the records examined by us,
title deeds in respect of immovable properties disclosed as Property, Plant &
Equipment (other than properties where the company is the lessee and the lease agreements
are duly executed in favour of the lessee) in the financial statements are in the name of
company.
g=EN-US
style=font-size:10.0pt;mso-bidi-font-size:12.0pt;
font-family:Arial;mso-bidi-font-family:"Microsoft Sans Serif">(d)
According to information and explanation given to us and the books of accounts and records
examined by us, the company has not revalued its Property, Plant and Equipment during the
year.
(e)
According to information & explanations and representation given to us by the
management, no proceedings have been initiated or are pending against Company for holding
any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made
thereunder.
ii.
(a) As per the information given to us and on basis of records examined, in our opinion,
physical
verification of inventories has been conducted by the management at regular intervals and
having regard to the size and nature of its inventory, the coverage and procedures of the
verification by the management is appropriate. In respect of the stock lying with the
third party, the same has been substantially confirmed by Management. As explained to us
and on the basis of the records examined by us, the value of the discrepancies noticed on
physical verification by management did not exceed 10% or more in aggregate of each class
of inventory.
(b)
According to the information and explanations given to us, the Company has been sanctioned
working capital limits in excess of Rs. 5 crores, in aggregate, from banks or financial
institutions on the basis of security of current assets. In our opinion and according to
the information and explanations given to us, the quarterly returns or statements
comprising stock statements filed by the Company with such banks or financial institutions
are in agreement with the unaudited books of account of the Company of the respective
quarters.
iii.
According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has granted advances to its
employees and other parties. However, the Company has not provided any security or granted
any advances in the nature of loans, secured or unsecured, to companies, firms, limited
liability partnership. The Company has not made any investments, given guarantees or
granted any loans, secured or unsecured, to companies, firms, limited liability
partnership and other parties.
(a)
Based on the audit procedures carried out by us and as per the information and explanation
given to us, the Company has not provided loans hence reporting under clause 3(iii)(a) of
the Order is not applicable.
(b)
According to the information and explanation given to us, and according to audit
procedures performed by us, No Loan have been granted to employees and other party during
the year are, hence reporting under clause 3(iii)(b) of the Order is not applicable.
(c)
According to the information and explanation given to us and on the basis of the
examination of the records of the Company, Since No Loans have been granted, hence
reporting under clause 3(iii)(c) of the Order is not applicable.
(d)
According to the information and explanations given to us and on the basis of our
examination of the records of the Company, Since No Loans have been granted, hence
reporting under clause 3(iii)(d) of the Order is not applicable. Further, the Company has
not given any advances in the nature of loans to any party during the year.
(e)
According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there is no loan or advance in the nature of
loan granted falling due during the year, which has been renewed or extended or fresh
loans granted to settle the overdues of existing loans given to same parties.
(f)
According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not granted any loans or
advances in the nature of loans either repayable on demand or without specifying any terms
or period of repayment. Hence reporting under clause 3(iii)(f) of the Order is not
applicable.
iv.
According to information and explanation given to us, the company has not granted any
loans or provided and guarantees or security to the parties covered u/s 185 of the Act.
The Company has complied with the provisions of Section 186 of the Act, as applicable, in
respect of investments made.
v.
In our opinion and according to information given to us, the Company has not accepted any
deposits as per the directives issued by the Reserve Bank of India and the provisions of
Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as
amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
vi.
Maintenance of cost records has been specified by the Central Government under sub-section
(1) of section 148 of the Companies Act, 2013 read with Companies (Cost records &
Audit) Rules, 2014. But, details of the cost records have not been produced before
auditors.
vii.
(a) According to the records of the Company examined by us, undisputed statutory
dues
including Goods and Service tax, provident fund, employees state insurance, income
tax, duty of customs, cess and any other material statutory dues have been generally
regularly deposited with appropriate authorities. According to the information and
explanations given to us, there were no undisputed amounts payable in respect of the
aforesaid dues, which were outstanding as on March 31, 2023 for a period of more than six
months from the date they became payable.
viii.
According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not surrendered or disclosed
any transactions, previously unrecorded as income in the books of accounts, in the tax
assessments under the Income-tax Act, 1961 as income during the year. Accordingly, the
provisions of clause 3(viii) of the Order is not applicable to the Company.
ix.
(a) In our opinion and according to the information and explanations given and books
of
accounts and records examined by us, the Company has not defaulted in repayment of loans
or other borrowings or in the payment of interest thereon to any lender.
(b)
In our opinion, and according to the information and explanations given to us, the Company
has not been declared wilful defaulter by any bank or financial institution or government
or any government authority.
(c)
To the best of our knowledge and belief, in our opinion, term loans availed by the Company
were, applied by the Company during the year for the purposes for which the loans were
obtained.
(d)
According to the information and explanations given to us and the procedures performed by
us, and on an overall examination of the financial statements of the Company, we report
that, prima facie, no funds raised on short-term basis have been used during the year for
long-term purposes by the Company.
(e)
According to the information and explanations given to us and on an overall examination of
the financial statements of the Company, it is observed that the Company does not have
associates or joint ventures or Subsidiaries, hence reporting under clause 3(ix)(e) of the
Order is not applicable.
(f)
According to the information and explanations given to us and procedures performed by us,
we report that the Company, it is observed that The Company does not have associates or
joint ventures or Subsidiaries, hence reporting under clause 3(ix)(e) of the Order is not
applicable.
x.
(a) The Company raised money of Rs.
1242.00 Lakhs (Including Security Premium of Rs.
966.00
Lakhs) by way of initial public during the year.
The
Company has used the amount for the purpose for which it has been raised, there is no
deviation regarding the same.
(b)
According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or convertible debentures (fully,
partially
or optionally convertible) during the year. Accordingly, paragraph 3(x)(b) of the Order is
not applicable to the Company
xi.
(a) To the best of our knowledge and belief and according to the information and
explanations
given to us, no fraud by the Company or no material fraud on the Company has been noticed
or reported during the course of our audit.
(b)
According to the information and explanations given to us, no report under subsection 12
of section 143 of the Act has been filed by auditors in Form ADT-4 as prescribed under
Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during
the year and up to the date of this report.
(c)
As represented to us by the management, there are no whistle blower complaints received by
the Company during the year.
xii.
According to the information and explanations given to us, in our opinion, the Company is
not a Nidhi Company as prescribed under Section 406 of the Act. Accordingly, paragraph
3(xii)(a)(b)(c) of the Order are not applicable to the Company
xiii.
In our opinion, all transactions with the related parties are in compliance with section
177 and 188 of the Companies act, 2013 where applicable and the details have been
disclosed in the Standalone financial statements as required by applicable Accounting
Standard 18.
xiv.
(a) Based on the information and explanations provided to us and our audit procedures,
in
our opinion, the Company has an internal audit system commensurate with the size and
nature of its business.
(b)
We have considered the internal audit reports of the Company issued till date for the
period under audit.
xv.
According to the information and explanations given to us and based on our examination of
the records of the Company, the Company has not entered into noncash transactions with
directors or persons connected to its directors and hence, provisions of Section 192 of
the Companies Act, 2013, are not applicable to the Company
xvi.
(a) To the best of our knowledge and as explained, the Company is not required to be
registered
under section 45-IA of the
Reserve Bank of India Act, 1934.
(b)
In our opinion, and according to the information and explanations provided to us and on
the basis of our audit procedures, the Company has not conducted any NonBanking Financial
or Housing Finance activities during the year as per the Reserve bank of India Act 1934.
(c)
In our opinion, and according to the information and explanations provided to us, the
Company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India.
(d)
In our opinion, and according to the information and explanations provided to us, the
Group do not have any Core Investment Company (CIC).
xvii.
The Company has not incurred cash losses in the financial year and in the immediately
preceding financial year. Accordingly, paragraph 3(xvii) of the Order is not applicable to
the Company.
xviii.
There has been no resignation of the statutory auditors during the year. Hence, paragraph
3(xviii) of the Order is not applicable to the Company.
xix.
On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that Company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date. We, however, state that this is not an assurance as to
the future viability of the Company. We further state that our reporting is based on the
facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the Company as and when they fall due.
xx.
The provision of Sec 135 of Companies Act 2013 is not applicable to the company,
accordingly reporting under clause 3(xx)(a) and (b) is not applicable.
xxi.
There is no consolidation of financial statements, accordingly reporting under clause
3(xxi)
is not applicable.
For:
Wadhawan & Co.
Chartered
Accountants
FRN:
- 129455W
Sd/-
CA
Ajit A Wadhawan
(Partner)
M.
No. 032886
UDIN: 23032886BGWVIV7140
Date:
30th May, 2023
Place:
Ahmedabad
ANNEXURE-B
TO THE AUDITORS REPORT
Annexure-B
to the Independent Auditors Report on the Internal Financial Controls under Clause
(i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (the Act)
We
have audited the internal financial controls with reference to financial reporting of M/s
BAHETI RECYCLING INDUSTRIES LIMITED (The Company) as on 31st
March, 2023 in conjunction with our audit of the Financial Statements of the Company for
the year ended on that date.
Managements
Responsibility for Internal Financial Controls
The
Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control financial reporting criteria established
by the Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by
the Institute of Chartered Accountants of India (ICAI). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets,
the prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Act.
Auditors
Responsibility
Our
responsibility is to express an opinion on the Companys internal financial controls over
financial reporting with reference to these Financial Statements based on our audit. We
conducted our audit in accordance with the Guidance Note on Audit of Internal Financial
Controls over Financial Reporting (the Guidance Note) and the
Standards on Auditing as specified under section 143(10) of the Act, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting with reference to these
Financial Statements was established and maintained and if such controls operated
effectively in all material respects.
Our
audit involves performing procedures to obtain audit evidence about the adequacy of the
internal financial controls system over financial reporting with reference to these
Financial Statements and their operating effectiveness. Our audit of internal financial
controls over financial reporting included obtaining an understanding of internal
financial controls over financial reporting with reference to these Financial Statements,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The
procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We
believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the Companys internal financial controls system
over financial reporting with reference to these Financial Statements.
Meaning
of Internal Financial Controls Over Financial Reporting with reference to these Financial
Statements
A
companys internal financial control over financial reporting with reference to these
Financial Statements is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A companys
internal financial control over financial reporting with reference to these Financial
Statements includes those policies and procedures that-
(1)
pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company;
(2)
provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and
(3)
Provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the companys assets that could have a material effect
on the financial statements.
Inherent
Limitations of Internal Financial Controls Over Financial Reporting
Because
of the inherent limitations of internal financial controls over financial reporting with
reference to these Financial Statements, including the possibility of collusion or
improper management override of controls, material misstatements due to error or fraud may
occur and not be detected. Also, projections of any evaluation of the internal financial
controls over financial reporting with reference to these Financial Statements to future
periods are subject to the risk that the internal financial control over financial
reporting may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Opinion
In
our opinion, the Company has, in all material respects, an adequate internal financial
controls system over financial reporting with reference to these Financial Statements and
such internal financial controls over financial reporting with reference to these
Financial Statements were operating effectively as at 31st March 2023, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India. (the "Guidance
Note)
For:
Wadhawan & Co.
Chartered
Accountants
FRN:
- 129455W
Sd/-
CA
Ajit A Wadhawan
(Partner)
M.
No. 032886
UDIN: 23032886BGWVIV7140
Date:
30th May, 2023
Place:
Ahmedabad
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Securities Support WhatsApp Number
+91 9892691696
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.