To the Members of Uniphos Enterprises Limited Report on the Audit
of the Financial Statements Opini?n
We have audited the financial statements of Llniphos Enterprises
Limited (the "Company") which comprise the balance sheet as at 31 March 2024,
and the statement of profit and loss (including other comprehensive income), statement of
changes in equity and statement of cash flows for the year then ended, and notes to the
financial statements, including material 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 ("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 state of affairs of the Company as at 31 March 2024, and its profit and
other comprehensive loss, 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
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 together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Act and the Rules thereunder, and we have
fulfilled our other ethical 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 financial statements.
Key Audit Matter
Key audit matters are those matters that, In our professional
judgment, were of most 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.
Key audit matter
Impairment of investments
See Note 2.1(g) to financial statements
The key audit matter |
How the matter was addressed in our audit |
As dicslosed in Note 4 to the financial
statements, the Company has investments in equity shares. |
Our procedures included the following: |
For investments in quoted shares, the fair values are based on
the valuation of the underlying assets, which consist of quoted equity securities. |
We assesed the fair value measurement accounting
policy and evaluated compliance with the requrements of Ind AS. |
For investments in unquoted equity shares, the Company compares
the carrying value of these shares with their respective recoverable amount. The inputs to
the independent valuer for impairment testing include : |
We assessed the design and implementation and
tested the operating effectiveness of the Companys relevant key financial controls around
the fair valuation of investment through Profit and Loss and Other Comprehensive Income. |
Future cashflows and growth rate; and |
Our audit procedures performed on the valuation of
the quoted equity shares includes verifying the latest available quoted price of the
equity shares on the stock exchange as on the reporting date to ascertain the accuracy of
their fair value. |
Discount rate applied to the projected cash flows |
Our audit procedures performed on the valuation of the unquoted
shares includes the verification of valuation reports which is based on the
projections/cash flow forecasts, discount rates, expected growth rates and terminal growth
rates. |
The significance of value of investments in equity
shares and impairment if any resulted in this being a key audit matter. |
We evaluated the accounting and disclosure of investment in the
financial statements of the Company |
The Companys Management and Board of Directors are responsible
for the other information. The other information comprises the information included in the
annual report, but does not include the financial statements and auditors report thereon.
The annual report is expected to be made available to us after the date of this auditors
report.
Our opinion on the financial statements does not cover the other
information and we will 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 identified above when it becomes available
and, in doing so, consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit, or otherwise appears to
be materially misstated.
When we read the annual report, if we conclude that there is a
material misstatement therein, we are required to communicate the matter to those charged
with governance and take necessary actions, as applicable under the relevant laws and
regulations.
Managements and Board of Directors/Board of
Trustees Responsibilities for the 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 financial statements that give a true and fair view of the state of affairs, profit/
loss and 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 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, the Management and Board
of Directors are 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 the Board of Directors either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is 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 ?nfluence 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 control
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 with reference
to financial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting
policies used and the reasonableness of accounting estimates and related disclosures made
by the Management and Board of Directors.
Conclude on the appropriateness of the
Management and Board of Directors use of the going concern basis of accounting in
preparation of financial statements 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 financia! statements represent the underlying
transactions and events in a manner that achieves fair presentation.
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 most 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
1. As required by the Companies (Auditors Report) Order, 2020
("the Order") issued by the Central Government of India in terms of Section
143(11) 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 A. 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
purposes 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, the statement of profit and
loss (including other comprehensive income), the statement of changes in equity and the
statement of cash flows dealt with by this Report are in agreement with the books of
account.
d. In our opinion, the aforesaid financial
statements comply with the Ind AS specified under Section 133 of the Act,
e. On the basis of the written representations
received from the directors as on 01 April 2024 taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2024 from being appointed as a
director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal
financial controls with reference to financial statements of the Company and the operating
effectiveness of such controls, refer to our separate Report in "Annexure B".
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:
a. The Company has disclosed the impact of pending
litigations as at 31 March 2024 on its financial position in its financial statements -
Refer Note 25 to the financial statements.
b. The Company did not have any long-term
contracts including derivative contracts for which there were any material foreseeable
losses.
c. There has been no delay in transferring
amounts, required to be transferred, to the Investor Education and Protection Fund by the
Company.
d. (i) The management has represented that,
to the best of its knowledge and belief, as disclosed in the Note
29(4) to the 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 person(s) or entity(ies), including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall 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.
(ii) The management has represented that, to the best of its
knowledge and belief, as disclosed in the Note 37 to the 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 directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Parties ("Ultimate Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries,
(iii) Based, on the audit procedures performed
that have been considered reasonable and appropriate co c;,. in the Circumstances,
nothing has come to our notice that has caused us to believe that the representations
under sub-clause (i) and (ii) of Rule 11 (e), as provided under (i) and (ii) above,
contain arty material misstatement.
e. As stated in Note 12A to the financial
statements, the Board of Directors of the Company has proposed final dividend for the year
which is subject to the approval of the members at the ensuing Annual General Meeting. The
dividend declared is in accordance with Section 123 of the Act to the extent it applies to
declaration of dividend.
f. Based on our examination which included test
checks, the Company has used an accounting software for maintaining its books of account
which has a feature of recording audit trail (edit log) facility and the same has operated
throughout the year for all relevant transactions recorded in the software. Further,
during the course of our audit, we did not come across any instance of audit trail feature
being tampered with.
C. 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 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. The remuneration paid to
any director is not in excess of the limit laid down under Section 197 of the Act. The
Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of
the Act which are required to be commented upon by us.
For B S R & Co. LLP |
|
Chartered Accountants |
|
Firms Registration No.:101248W/W-100022 |
|
Bhavesh Dhupelia |
|
Partner |
|
Place: Mumbai |
Membership No.: 042070 |
Date: 28 May 2024 |
ICAI UDIN: 24042070BKCQVT1494 |
Annexure A to the Independent Auditors Report on
the Financial Statements of Uniphos Enterprises Limited for the year ended 31 March 2024
(Referred to in paragraph 1 under Report on Other
Legal and Regulatory Requirements section of our report of even date)
(1) (a) (A) The Company has maintained proper
records showing full particulars, including quantitative
details and situation of Property, Plant and Equipment.
(B) The Company does not have intangibles as at 31 March 2024
(1) (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 a regular programme of physical verification of its Property,
Plant and Equipment by which all property, plant and equipment are verified every year. In
accordance with this programme, all property, plant and equipment were verified
during the year. In our opinion, this periodicity of physical verification is reasonable
having regard to the size of the Company and the nature of its assets. No 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 title
deeds of immovable properties (other than immovable properties where the Company is the
lessee and the leases agreements are duly executed in favour of the lessee) disclosed in
the financial statements are held in the name of the Company, except for the following
which are not held in the name of the Company:
(Amoun in Rs. lakhs)
Description of property |
Gross carrying value |
Held in the name of |
Whether promoter, director or their relative or
employee |
Period held- indicate range, where appropriate |
Reason for not being held in the name of the
Company. Also indicate if in dispute |
Land at vavilala, Telangana |
ALIGN=right
style=margin-top:3.0pt;margin-right:0in;
margin-bottom:3.0pt;margin-left:0in;text-align:right>369.74 |
Advanta India Limited (Which is merged with UPL
Limited) |
No |
Date of acquisition: 31 October, 2006 |
The Company is in process of registering the title
deed in its name |
(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.
(e) 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 pending against the Company for holding any benami property
under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
(ii) (a) The Company did not have any inventories during the year
and accordingly para 3 (ii) (a) of the order is not applicable to the Company.
(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 been sanctioned any working capital limits in excess of five crore rupees in
aggregate from banks and financial institutions on the basis of security of current
assets at any point of time of the year. Accordingly, clause 3(ii)(b) of the Order is not
applicable to the Company.
(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 not made any investments, provided guarantee or security or
granted any loans or advances in the nature of loans, secured or unsecured, to companies,
firms, limited liability partnerships or any other parties during the year. Accordingly,
provisions of clauses 3(iii)(a) to 3(iii)(f) of the Order are not applicable to the
Company.
(iv) 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 given any loans, or provided any guarantee or security as specified under Section
185 and 186 of the Companies Act, 2013 ("the Act"). In respect of the
investments made by the Company, in our opinion the provisions of Section 186 of the Act
have been complied with.
(v) The Company has not accepted any deposits or
amounts which are deemed to be deposits from the public. Accordingly, clause 3(v) of the
Order is not applicable.
(vi) According to the information and explanations
given to us, the Central Government has not prescribed the maintenance of cost records
under Section 148(1) of the Act for the products sold by it. Accordingly, clause 3(vi) of
the Order is not applicable.
(vii) (a) The Company does not have liability in
respect of Service tax, Duty of excise, Sales tax and Value added tax
during the year since effective 1 July 2017, these statutory dues has been subsumed into
GST.
According to the information and explanations given to us and on
the basis of our examination of the records of the Company, in our opinion amounts
deducted / accrued in the books of account in respect of undisputed statutory dues
including Goods and Service Tax, Income-Tax and other statutory dues have generally been regularly deposited with the
appropriate authorities, though there have been slight delays in a few cases of TDS. As
explained to us the Company did not have any dues on account of Provident Fund, Employee
State Insurance Corporation, Duty of Custom or Cess.
According to the information and explanations given to us and on
the basis of our examination of the records of the Company, no undisputed amounts payable
in respect of Goods and Service Tax, Income- Tax, and other statutory dues were in arrears
as at 31 March 2024 for a period of more than six months from the date they became
payable.
(b) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, statutory dues relating to
Income-Tax which have not been deposited on account of any dispute are as follows:
Name of the statute |
Nature of the dues |
Amount (Rs. in lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Remarks, if any |
Income Tax Act, 1961 |
Income Tax demands |
179.09 |
AY 1994-95, AY 2001-02 |
Income Tax Appellate Tribunal/ Commissioner of
Income Tax (Appeal) |
(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 account, in the tax assessments under the
Income Tax Act, 1961 as income during the year.
(ix) (a) According to the information and
explanations given to us and on the basis of our examination of the records of the
Company, the Company did not have any loans or borrowings from any lender during the year.
Accordingly, clause 3(ix)(a) of the Order is not applicable to the Company.
(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 been declared a wilful defaulter by any bank or financial institution or
government or government authority.
(c) According to information and explanations
given to us by the management, the Company has not obtained any loans during the year.
Accordingly. clause 3(ix)(c) of the Order is not applicable.
(d) According to the information and explanations
given to us and on an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long- term purposes by the
Company.
(e) The Company does not hold any investment in
any subsidiaries, associates or joint ventures (as defined under the Act) during the year
ended 31 March 2024. Accordingly, clause 3(ix)(e) is not applicable.
(f) According to information and explanations
given to us and procedures performed by us, we report that the Company has not raised
loans during the year. Accordingly, clause 3(ix)(f) of the Order is not applicable.
(x) (a) The Company has not raised any moneys by
way of initial public offer or further public offer
(including debt instruments). Accordingly, clause 3(x)(a) of the Order is not applicable.
(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 fully or partly convertible
debentures during the year. Accordingly, clause 3(x)(b) of the Order is not applicable.
(xi) (a) Based on examination of the books and
records of
the Company and according to the
information and explanations given to us, no fraud by the Company or on the Company has
been noticed or reported during the course of the audit.
(b) According to the information and explanations
given to us, no report under sub-section (12) of Section 143 of the Act has been filed by
the auditors in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and
Auditors) Rules, 2014 with the Central Government.
(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, the Company is not a Nidhi Company. Accordingly, clause 3(xii)
of the Order is not applicable.
(xiii) In our opinion and according to the
information and explanations given to us, the transactions with related parties are in
compliance with Section 177 and 188 of the Act, where applicable, and the details of the
related party transactions have been disclosed in the financial statements as required by
the applicable accounting standards.
(xiv) (a) Based on 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) In our opinion and according to the
information and explanations given to us, the Company has not entered into any non-cash
transactions with its directors or persons connected to its directors and hence,
provisions of Section 192 of the Act are not applicable to the Company.
(xvi) (a) The Company is not required to be
registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Accordingly, clause 3(xvi)(a) of the Order is not applicable.
(b) The Company is not required to be registered
under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause 3(xvi)(b)
of the Order is not applicable.
(c) The Company is a Core Investment Company (CIC)
as defined in the regulations made by the Reserve Bank of India. However, the Company is
exempted from registration as CIC and continues to meet the criteria for such exemption.
(d) The Company is not part of any group (as per the provisions
of the Core Investment Companies (Reserve Bank) Directions, 2016 as amended). Accordingly,
the requirements of clause 3(xvi)(d) are not applicable.
(xvii) The Company has not incurred cash losses in
the current and in the immediately preceding financial year.
(xviii) There has been no resignation of the
statutory auditors during the year. Accordingly, clause 3(xviii) of the Order is not
applicable.
(xix) According to the information and
explanations given to us and on the basis of the financial ratios, ageing and expected
dates of realisation of financial assets and payment of financial liabilities, 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 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.
Also refer to the Other Information paragraph of our main audit
report which explains that the other information comprising the information included in
Annual report is expected to be made available to us after the date of this auditors
report.
(xx) The requirements as stipulated by the
provisions of Section 135 are not applicable to the Company. Accordingly, clauses 3(xx)(a)
and 3(xx)(b) of the Order are not applicable.
For B S R & Co. LLP |
|
Chartered Accountants |
|
Firms Registration No.:101248W/W-100022 |
|
Bhavesh Dhupelia |
|
Partner |
|
Place: Mumbai |
Membership No.: 042070 |
Date: 28 May 2024 |
ICAI UDIN:24042070BKCQVT1494 |
Annexure B to the Independent Auditors Report on
the financia! statements of Uniphos Enterprises Limited for the year ended 31 March 2024
Report on the internal financial controls with
reference to the aforesaid financial statements under Clause (i) of Sub- section 3 of
Section 143 of the Act
(Referred to in paragraph 2(A)(f) under Report on
Other Legal and Regulatory Requirements section of our report of even date)
We have audited the interna! financial controls with reference to
financia! statements of Uniphos Enterprises Limited ("the Company") as of 31
March 2024 in conjunction with our audit of the financia! statements of the Company for
the year ended on that date.
In our opinion, the Company has, in al! materia! respects,
adequate interna! financia! contro!s with reference to financia! statements and such
interna! financia! contro!s were operating effective!y as at 31 March 2024, based on the
interna! financia! contro!s with reference to financia! statements criteria estab!ished by
the Company considering the essentia! components of interna! contro! stated in the
Guidance Note on Audit of Interna! Financia! Contro!s Over Financia! Reporting issued by
the Institute of Chartered Accountants of India (the "Guidance Note").
Managements and Board of Directors
Responsibilities for Internal Financial Controls
The Companys Management and the Board of Directors are
responsib!e for estab!ishing and maintaining interna! financia! contro!s based on the
interna! financia! contro!s with reference to financia! statements criteria estab!ished by
the Company considering the essentia! components of interna! contro! stated in the
Guidance Note. These responsibilities inc!ude the design, imp!ementation and maintenance
of adequate interna! financia! contro!s that were operating effective!y for ensuring the
orderly and efficient conduct of its business, inc!uding adherence to companys policies,
the safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and comp!eteness of the accounting records, and the time!y preparation of
re!iab!e financia! information, as required under the Act.
Our responsibility is to express an opinion on the Companys
interna! financia! contro!s with reference to financia! statements based on our audit. We
conducted our audit in accordance with the Guidance Note and the Standards on Auditing,
prescribed under Section 143(10) of the Act, to the extent app!icab!e to an audit of
interna! financia! contro!s with reference to financia! statements. Those Standards and the Guidance Note
require that we comp!y with ethica! requirements and p!an and perform the audit to obtain
reasonab!e assurance about whether adequate interna! financia! contro!s with reference to
financia! statements were estab!ished and maintained and if such contro!s operated
effective!y in a!! materia! respects.
Our audit invo!ves performing procedures to obtain audit evidence
about the adequacy of the interna! financia! contro!s with reference to financia!
statements and their operating effectiveness. Our audit of interna! financia! contro!s
with reference to financia! statements i nc! uded obtaining an understanding of interna!
financia! contro!s with reference to financia! statements, assessing the risk that a
materia! weakness exists, and testing and eva!uating the design and operating
effectiveness of interna! contro! based on the assessed risk. The procedures se!ected
depend on the auditors judgement, inc!uding the assessment of the risks of materia!
misstatement of the financia! statements, whether due to fraud or error.
We be!ieve that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the Companys interna!
financia! contro!s with reference to financia! statements.
Meaning of Internal Financial Controls with
Reference to Financial Statements
A companys interna! financia! contro!s with reference to
financia! statements is a process designed to provide reasonab!e assurance regarding the
re!iabi!ity of financia! reporting and the preparation of financia! statements for
externa! purposes in accordance with genera!!y accepted accounting princip!es. A companys
interna! financia! contro!s with reference to financia! statements inc!ude those po!icies
and procedures that (1) pertain to the maintenance of records that, in reasonab!e detai!,
accurate!y and fair!y reflect the transactions and dispositions of the assets of the
company; (2) provide reasonab!e assurance that transactions are recorded as necessary to
permit preparation of financia! statements in accordance with genera!!y accepted
accounting princip!es, and that receipts and expenditures of the company are being made
on!y in accordance with authorisations of management and directors of the company; and (3)
provide reasonab!e assurance regarding prevention or time!y detection of unauthorised
acquisition, use, or disposition of the companys assets that cou!d have a materia! effect
on the financia! statements.
Inherent Limitations of interna! Financial
Controls with Reference to Financial Statements
Because of the inherent limitations of infernal financial
Controls with reference to financia! 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 with reference to financial statements to future periods are subject to the risk
that the internal financial controls with reference to financial statements may become
inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
For B S R & Co. LLP |
|
Chartered Accountants |
|
Firms Registration No.:101248W/W-100022 |
|
Bhavesh Dhupelia |
|
Partner |
|
Place: Mumbai |
Membership No.: 042070 |
Date: 28 May 2024 |
ICAI UDIN:24042070BKCQVT1494 |
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