Scribd
Upload
53 views

Annexure A

1) The auditor was engaged to audit the internal financial controls over financial reporting of SRI LAKSHMI PRABHA ENGINEERING INDUSTRIES PRIVATE LIMITED as of March 31, 2022. 2) Management is responsible for establishing and maintaining adequate internal financial controls while the auditor's responsibility is to express an opinion on the adequacy of these controls. 3) Based on their audit procedures, the auditor issued an unqualified opinion that the Company maintained adequate internal financial controls over financial reporting as of March 31, 2022 based on criteria established by the Company.

Uploaded by

cagarapatigopi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
53 views

Annexure A

1) The auditor was engaged to audit the internal financial controls over financial reporting of SRI LAKSHMI PRABHA ENGINEERING INDUSTRIES PRIVATE LIMITED as of March 31, 2022. 2) Management is responsible for establishing and maintaining adequate internal financial controls while the auditor's responsibility is to express an opinion on the adequacy of these controls. 3) Based on their audit procedures, the auditor issued an unqualified opinion that the Company maintained adequate internal financial controls over financial reporting as of March 31, 2022 based on criteria established by the Company.

Uploaded by

cagarapatigopi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Annexure “A” to the Independent Auditor’s Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section
of our report to the Members of Seva Resources Private Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting 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 SRI LAKSHMI PRABHA
ENGINEERING INDUSTRIES PRIVATE LIMITED (the “Company”) as of March 31, 2022 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 Management of the Company 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 Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India (the “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 company’s 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.

Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over
financial reporting of the Company 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”) issued by the ICAI and the Standards on Auditing prescribed under Section 143(10) of the
Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 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 auditor’s 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 Company’s internal financial controls system over financial
reporting.

Meaning of Internal Financial Controls Over Financial Reporting


A company’s 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
company’s internal financial control over financial reporting includes those policies and procedures
that
1.Pertaining 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 company's 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, 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 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, to the best of our information and according to the explanations given to us, 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, 2022, based on the criteria for internal financial control over financial reporting
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 ICAI.

For NIRANJAN RAO & CO.


Chartered Accountants
(FRN. 002467S)

Gopi Garapati
Partner
(M. No. 242732)
UDIN:
Place: Visakhapatnam
Date:

You might also like