Sika Interplant Systems Ltd Auditor Reports

<dhhead>INDEPENDENT AUDITORS’ REPORT</dhhead>

TO THE MEMBERS OF M/s. SIKA INTERPLANT SYSTEMS LIMITED Report on the Audit of the Standalone Financial Statements Opinion

We have audited the standalone financial statements of M/s. SIKA INTERPLANT SYSTEMS LIMITED (hereinafter referred to as ‘the Company”), which comprise the standalone balance sheet as at 31st March 2023, and the standalone statsment of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as “the standalone financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the stats of affairs of the Company as at 31 March 2023, and its Profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditors Responsibilities for the Audit of the Standalone 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 togsther with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thersunder, and we have fulfilled our other sthical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion therson, and we do not provide a separate opinion on these matters.

> Revenue Recognition

The key audit matter	How the matter was addressed in our audit audit procedures include:
Revenue from sale of goods is recognized when control of the Our products being sold is transferred to the customer and when thers are no longer any unfulfilled obligations. The	e performance obligations in the contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms.
e Revenue from sale of services is recognized upon completion of service.	We assessed the appropriateness of the revenues recognition accounting policies by comparing them with applicable accounting standards.
Revenue is measured at fair value of the consideration received or receivable, after deduction of any trade discounts, volume rebates and any taxes or duties collected on behalf of the government such as goods and services tax, efc.	We tested the design, implementation and operating effectiveness of managements general IT controls and key application controls over the Companys IT systems which govern revenue recognition, including access controls, controls over program changes, interfaces between different systems and key manual internal controls over revenue recognition to assess the complstsness of the revenue entries bsing recorded in the general ledger accounting system.
Accumulated experience is used to estimate the provision for e discounts and rebates. Revenue is only recognised to the extent that it is highly probable a significant reversal will not occur. ?	We tested the design, implementation and operating effectiveness of Internal Financial Controls.
There is a risk of revenue bsing overstated dues to fraud, including through manipulation of rebates and discounts, resulting from pressure the management may feel to achieve performance targets at the reporting period end. ? e	We performed substantive testing by selecting samples of revenue transactions recorded during the year by verifying the underlying documents, which included goods dispatch notes, shipping documents and details with respect to percentage of completion of service projects.
	We inspected, on a sample basis, key customer contracts to identify terms and conditions relating to goods acceptance and rebates and assessing the Companys revenue recognition policies with reference to the requirements of the applicable accounting standards.
	We performed cut-off testing for samples of revenues transactions recorded before and after the financial ysar end dats by comparing with relevant underlying documentation, which included goods dispatch notes, shipping documents and details with respect to percentage of completion of service projects, to assess whether the revenues was recognized in the correct period.

 

> Provisions for taxation, litigation and other significant provisions

The key audit matter	How the matter was addressed in our audit audit procedures included:
Accrual for tax and other contingencies requires the	Our Management to make judgements and estimates in relation to the issues and exposures arising from a range of matters
+ relating to direct tax and other eventualities arising in the regular course of business.	We tested the effectiveness of controls around the recognition of provisions.
The key judgement lies in the estimation of provisions where	R they may differ from the future obligations. By nature provision is difficult to estimate and includes many variables. Additionally, depending on timing, there is a risk that costs could be provided inappropriately that are not yst committed. ? . e
We used other subject matter experts to assess the value of material provisions in light of the nature of the exposures. applicable regulations and related correspondence with the authorities.	We examined the assumptions and critical judgements made by management which impacted their estimates of the provisions required, considering judgements previously made by the authorities in the relevant jurisdictions or any relevant opinions given by the Companys advisors and assessing whether there was an indication of management bias.
	We discussed the status in respect of significant provisions with the Companys Management and legal advisors.
	We performed a retrospective review of management judgements relating to accounting estimates included in the financial statsment of the prior year and compared with the outcome.

 

> Assessment of contingent liabilities relating to litigations, warranty claims and Bank guarantees issued.

The key audit matter	How the matter was addressed in our audit
The Company is periodically subject to challengss/scrutiny on the matters relating to direct tax. Further, potential exposures may also arise from general legal proceedings in course of business.	Our audit procedures included:
Assessment of contingent liabilities disclosure requires Management to make judgements and estimates in relation to the issues and exposures. Whether the liability is inherently uncertain, the amounts involved are potentially significant and application of accounting standards to determine the amount, if any, to be provided as liability, is inherently subjective.	We tested the effectiveness of controls around the recording and reassessment of contingent liabilities. .
	We discussed the status and potential exposures in respect of significant litigation and claims with the Companys management including their views on the likely outcome of each litigation and claim and the magnitude of potential exposure and sighted any relevant opinions given by the Companys advisors.
	We assessed the svent occurring after the reporting period and the adequacy of disclosures made.
	Refer Note 32 to the Financial Staternents

 

Information other than the Consolidated Financial Statements and Auditors Report thereon

The Companys Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report but does not include the financial statements and our auditors report thereon. The Company’s annual report is expscted to be made available to us after the dats of this auditors report.

Our opinion on the standalone financial statsments 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 standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that thers is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Management’s Responsibility for the Standalone Financial Statements

The Companys Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs (financial position), profit or loss {financial performance including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards(Ind AS) specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a frus and fair view and are free from material misstaternent, whether due to fraud or error.

In preparing the standalone financial statsments, management and Board of Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors sither intends to liquidate the Company or to cease operations, or has no realistic alternative butto do so.

The Board of Directors are also responsible for oversesing the company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone 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 guarantees that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatermnents 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 standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

a. 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 appropriats 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.

b. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i} of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate intsrnal financial controls system in place and the operating effectiveness of such controls.

c. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

d. 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 standalone 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 ceases to continue as a going concem.

e. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Matsriality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowlsdgsable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factor in

{i} Planning the scope of our audit work and in evaluating the results of our work; and

(ii) To evaluate the sffsct 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 intsmal 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 govemance, we determine those matters that were of most significance in the audit of the standalone financial statsments 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

1. 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 Act, we give in the “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by section 143(3) of the Act, we report that:

a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

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.

The standalone balance sheet, the standalone statsment of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account.

In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Companies Act, 2013.

On the basis of written representations received from the directors as on March 31% 2023, taken on record by the Board of Directors, none of the directors is disqualified as on March 3112023, from being appointed as a director in terms of section 164 (2) of the Act;

With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexurs B”;

With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

{i} The Company has disclosed the impact of pending litigations as at 31 March 2023 on its financial position in its standalone financial statements;

(iy The Company did not have any long-tsrm contracts including derivative contracts for which there were any material foreseeable losses;

{iii} There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

I. The Management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to accounts, 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 :

a. 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

b. Provide any guarantes, security or the like on behalf of the Ultimate Beneficiaries.

Il. The management has represented, that, to the best of its knowledge and belief, no funds have been recsived by the Company from any persons or entities, including forsign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall :

a. 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”).

b. Provide any guarantse, security or the like on behalf of the Ultimate Beneficiaries.

lll. Based on the audit procedurss carried out by us, that we have considersd reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub- clause (lI) and {ll} contain any material misstatement.

The dividend declared or paid during the year by the Company is in compliance with Section 123 of the Act.

With respect to the matter to be included in the Auditors report under section 197(16) of the Act, in our opinion and according to the information and explanation given to us, the remuneration paid during the year by the Company to its directors is in accordance with the provisions of Section 197 of the Act.

For B N Subramanya & Co., Chartered Accountants Firm Reg. No. 004142S

Girish Hoysala Partner

Membership No. 220210 UDIN: 23220210BGWJJI5434 Place: Bengaluru Date: 17th May 2023

Annexure A to the Independent Auditors’ Report

The Annexure referred to in our Independent Auditors’ Report to the members of the Company on the standalone financial statements for the year ended 31% March 2023, we report that:

i) Property, Plant and Equipment a) Maintenance of Records

{A} The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, plant and squipment.

{B)} The Company has maintained proper records showing full particulars of Intangible assets.

b) Property, Plant and Equipment have been physically verified by the management at reasonable intervals, Which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets.

Pursuant to the program, certain property, plant and equipment were physically verified by the management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the tile deeds of immovable properties (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessees) disclosed in the standalone financial statements are held in the name of the Company.

d) 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 revalued its Property, Plant and Equipment (including Right-of-use assets) or Intangible assets or both during the year.

8) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no proceedings initiated or are pending against the Company for holding any Benami Property Transactions Act, 1988 and rules mads thereunder. Accordingly, paragraph 3(i}(e) of the Order is not applicable. ii) Inventory a) The inventories were physically verified during the year by the Management at reasonable intervals. In our opinion and according to the information and explanations given to us, the coverage and procedure of such verification by the Management is appropriate, having regard to the size of the Company and the naturs of its operations. No discrepancies in excess of 10% or more in aggregate for each class of inventories were noticed on such physical verification of inventories when compared with books of account. b) According to the information and explanations given to us, at any point of time of the year, the Company has not been sanctioned any working capital limits in excess of five crore rupees, in aggregats, from banks or financial institutions on the basis of security of current assets at any point of time during the year. Accordingly, paragraph 3(ii}{b) of the Order is not applicable.

iii) Investment in or guarantee or granted loans or advances in nature of loans.

The Company has made investments in, provided guarantee or security and granted loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties during the year, in respsct of which:

A The Company has provided loans, during the year and details of which are given below:

Number of parties	Maximum Amount Involved during the year	Amount as at 31.03.2023
2	Rs. 1,19,72,331/-	Rs. 1,19,72,331/-

 

B. According to the information and explanations given to us and based on the audit procedures conducted by us, The Company has not provided any loans or advances and guarantses or securities to parties other than Subsidiaries, Associates and Joint Ventures.

a} According to the information and explanations given to us and based on the audit procedures conducted by us, we are of the opinion that the terms and conditions of the loans given are, prima facie, not prejudicial to the Companys interest.

b} According to the information and explanations given to us and based on the audit procedures performed by us, there is no stipulation of schedule of repayment of principal and payment of intsrest on loans granted by the company. We are, therefore, unable to make specific comment on the regularity of repayment of principal and payment of interest.

c} According to the information and explanations given to us and based on the audit procedure performed by us, thers is no stipulation of schedule of repayment of principal and payment of interest on loans given by the company. We are, therefore unable to comment whether an amount is overdue and whether any reasonable steps fought to have been taken by the company for recovery of principal and interest.

d} According to the information and explanations given to us and based on the audit procedure performed by us, thers is no stipulation of schedule of repayment of principle or payment of interest, accordingly we are unable to comment whether a particular loan is overdue. However, based on our examination of records, no renswal, extension, or fresh loans were granted to setle the overdue of exiting loans given to same parties.

e) In our opinion and according to the information and explanations given to us and based on the audit procedures conducted by us, the company has granted following loans and advances in the naturs of loans either repayable on demand or without specifying any terms or period of repayment.

Parties	Promoters	Related Parties
Aggregate amount if loans/advances in nature of loans
Agreement does not specify any terms or period of repayment	-	Rs. 1,19,72,331/-
TOTAL	-	Rs. 1,19,72,331/-
Percentage of loans/advances in nature of loans to the total loans	-	100%

 

Loans/Investments/Guarantees/Security

According to the information and explanations given to us and on the basis of our examination of the records, The Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of loans granted, investments made and guarantses and securities provided, as applicable.

Acceptance of Deposits

The Company has not accepted any deposits or amounts which are deemed to be deposits from the public within the meaning of the directives issued by the Reserve Bank of India, provisions of Section 73 to 76 of the Act, any other relevant provisions of the Act and the relevant rules framed thereunder.

Cost records

The maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013 for the business activities carried out by the Company. Hencs, reporting under clause (vi) of the Order is not applicable to the Company.

Statutory Dues

According to the records of the Company, Company is regular in depositing with appropriate authorities Undisputed statutory dues including provident fund, employee’s state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, Goods and Services tax, cess and other material statutory duss applicable to it.

According to the records of the Company, there are no dues of Income tax or Sales tax or Service tax or Goods and Services tax or duty of customs or duty of excise or value added tax or any other material statutory dues which have not been deposited on account of any dispute.

Surrender or disclosure of transactions not disclosed in books of accounts.

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 account, in the tax assessments under the Income-tax Act, 1961 as income during the year.

iv) Repayment of Loans

a} In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or other borrowings or in the payment of intersst therson to any lender. b} According to the information and explanations given to us and on the basis of our audit procedures, we report that the company has not been declared willful defaulter by any bank or financial institution or government or any government authority. c} In our opinion and according to the information and explanations given to us, the company has utilized the money obtained by way of term loans during the year for the purposes for which it was obtained, except for temporary deployment of surplus funds. 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 no funds raised on short-term basis have been used 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, we report that the company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures. f} According to the information and explanations given to us and procedures performed by us, we report that the company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies.

v} Diversion of Funds

a} In our opinion and according to the information and explanations given to us, the Company has not raised monsy by way of an initial public offer or further public offer during the year. Accordingly, clause 3(x) {a} of the Order is not applicable. b} In our opinion and according to the information and explanations given to us, the Company has not made any preferential allotment or privates placement of shares or convertible debentures (fully, partially or optionally convertible} during the year. Accordingly, clause 3(x} (b) of the Order is not applicable.

vi} Frauds noticed / Detected.

a} To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by any psrson has been noticed or reported during the year. Accordingly, paragraph 3 (xi} (a) of the Order is not applicable. b} Since there is no fraud by the company or no material fraud on the Company by any person has been noticed or reportsd during the year, paragraph 3(xi}(b} of the Order is not applicable. c} To the best of our knowledge and according to the information and explanations given to us, no whistle-blower complaints have been recsived by the Company during the year.

vii} Nidhi Company

The company is not a Nidhi Company and accordingly, Paragraph 3(xii} of the Order is not applicable.

Related Party Transactions

According to the information and explanations given to us and on the basis of our examination of the records of the Company, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details of the transactions have been disclosed in the Financial Statements as required by the Indian accounting standards and The Companies Act, 2013.

Internal Audit System

In our opinion the Company has an adequats internal audit systems commensurate with the size and the nature of its business We have considered the internal audit reports of the company issued till dats, for the period under audit.

Non-cash transactions

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 entsred into any non-cash transactions with directors or persons connected with its dirsctors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company. Consequently, no comment is required under paragraph 3(xv} of the Order.

Certification for Non-Banking Financial Institution

The company is not a Non-Banking Financial Institution, hencs registration under section 45-1A of the Reserve Bank of India Act, 1934 is not required. Hence, no comment is required under paragraph 3(xvi) of the Order.

Cash losses

The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

Resignation of Statutory Auditors

Theres has been no resignation of the statutory auditors of the Company during the year. Accordingly, no comment is required under paragraph 3(xviii} of the Order.

Material Uncertainty

According to the information and explanations given to us and 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, 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 that the Company is not capable of meeting its liabilities indicating that the Company is capable of meeting its liabilities existing at the date of Balance Shest as and when they fall due within a period of one year from the date of balance sheet.

We, however, stats 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 audit report and we neither give any guarantse nor any assurance that all liabilities falling dus within a period of one year from the balance shest date, will get discharged by the Company as and when they fall due. Transfer of Unspent Amount

The Company has not fully spent the required amount towards Corporate Social Responsibility (CSR) and there is unspent CSR amount for the year requiring to be transferred to a Fund specified in Schedules VII to the Companies Act or special account in compliance with the provision of sub-section (6) of section 135 of the said Act. Accordingly, the amount of unspent amount is as below.

Financial Year	Amount unspent on Corporate Social Responsibility activities “Ongoing Projects”	Amount Transferred to Special Bank account as referred under section 135(6) within 30 days from the end of the Financial Year	Amount Transferred after the due date
2022-23	31,65,808	31,65,808	-

 

Qualification or Adverse remark on consolidated financial statements

According to the information and explanations given to us, there have been no qualifications or adverse remarks by the respective auditors in the Companies {Auditors Report} Order (CARO) reports of the companies included in the consolidated financial statements.

For B N Subramanya & Co., Chartered Accountants Firm Reg.No. 0041428

Girish Hoysala Partner

Membership No.220210

Place: Bengaluru Date: 17*" May 2023

Annexure B to Auditors’ report

Report on the Internal Financial Controls under Clause {i} of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act}

We have audited the internal financial controls over financial reporting of M/s. SIKA INTERPLANT SYSTEMS LIMITED (“the Company”) as of March 31 2023, in conjunction with our audit of the financial statements of the 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 internal financial controls based on, the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the “Guidance Nots on Audit of Internal Financial Controls Over Financial Reporting” issued by the Institute of Chartsred Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and dstection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Companys intemal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”} and the Standards on Auditing, issued by ICAI and desmed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate intemal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statsments, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriates to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control over financial reporting includes those policies and procedures that:

{1} Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company.

{2} Provides 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) Provides reasonable assurance regarding prevention or timely dstsction 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, including the possibility of collusion or improper management override of controls, matsrial misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procsdures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2023, based on the intsrnal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the “Guidance Nots on Audit of Intsrnal Financial Controls Over Financial Reporting” issued by the Institute of Chartered Accountants of India.

For B N Subramanya & Co., Chartered Accountants Firm Reg.No.004142S

Girish Hoysala Partner

Membership No.220210

Place: Bengaluru Date: 17*" May 2023