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Cipla

BSE: 500087|NSE: CIPLA|ISIN: INE059A01026|SECTOR: Pharmaceuticals
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Auditor's Report (Cipla) Year End : Mar '19

Report on the standalone financial statements

Opinion

1. We have audited the accompanying standalone financial statements of Cipla Limited (‘the Company’), which comprise the Balance Sheet as at 31st March, 2019, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.

2. 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 including Indian Accounting Standards (‘Ind AS’) specified under Section 133 of the Act, of the state of affairs (financial position) of the Company as at 31st March, 2019, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditor’s 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 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.

Key Audit Matters

4. Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the standalone financial statements for the financial year ended 31st March, 2019 (‘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.

5. We have determined the matters described below to be the key audit matters to be communicated in our report.

Key audit matter

How our audit addressed the key audit matter

DPCO matters:

The Company operates in an industry which

Our audit of DPCO matters included, but was not limited to, the following procedures:

is regulated by authorities such as National

a) Obtained an understanding of the management’s

Pharmaceutical Pricing Authority, Government of

process for updating the status of the legal case,

India (NPPA), The Food and Drug Administration,

assessment of accounting treatment in accordance

United States of America (USFDA) and other

with Ind AS 37, and for measurement of amounts

regulators in respective countries, which increases inherent compliance and litigation risks. There are

involved.

number of legal and regulatory cases, of which the

b) Evaluated the design and tested the operating

most significant is a litigation under Drugs (Prices

effectiveness of key controls around above

Control) Orders Act (DPCO) as disclosed in Note 39B to the standalone financial statements, relating to overcharging of certain drugs under the DPCO.

process.

According to NPPA’s public disclosure, the total

c) Inspected correspondence with the Company’s

demand against the Company aggregates to

external legal counsel in order to corroborate our

RS.2,655.09 crore as at 31st March, 2019, of which:

understanding of these matters, accompanied by

discussions with both internal and external legal

a) RS.2,457.47 crore relates to matters pending at

counsels. Tested the objectivity and competence

Honourable Bombay High Court, wherein the

of such management experts involved.

Company has deposited RS.175.08 crore being

50% of the total demand of RS.350.15 crore as at 1st

d) Obtained direct confirmation from the external

August, 2003 under protest pursuant to direction

legal counsel handling DPCO matters with respect

of Honourable Supreme Court of India; and

to the legal determination of the liability arising

from such litigation, and assessment of resulting

b) RS.197.62 crore relates to other matters, wherein

provision recognised and disclosures to be made

based on facts and legal advice, the Company

in the financial statements in accordance with

has recorded a charge of RS.8.08 crore (including

requirements of Ind AS 37. Evaluated the response

interest) during the year ended 31st March, 2019

received from the legal counsel to ensure that the

and carries a total provision of RS.98.49 crore

conclusions reached are supported by sufficient

(including interest) as at 31st March, 2019.

legal rationale.

The amounts involved are material and the

e) Assessed the appropriateness of methods used,

application of accounting principles as given under

and the reliability of underlying data for the

Ind AS 37, Provisions, Contingent Liabilities and

underlying calculations made for quantifying

Contingent Assets, in order to determine the amount

the amounts involved. Tested the arithmetical

to be recognised as a liability or to be disclosed as a

accuracy of such calculations.

contingent liability, is inherently subjective, and needs

careful evaluation and judgement to be applied by

f) Evaluated the Company’s disclosures for accuracy

the management. Key judgements are also made

and adequacy regarding the significant litigations

by the management in estimating the amount of

of the Company.

liabilities, provisions and/or contingent liabilities

related to aforementioned litigation.

Based on the audit procedures performed, the

judgements made by management were reasonable

Considering the materiality and the inherent

and disclosures made in respect of these matters

subjectivity which involves significant management

were appropriate in the context of the standalone

judgement in predicting the outcome of the matter

financial statements taken as a whole.

and estimating the potential impact on cash flows in

case of unfavourable outcome, DPCO matters have

been considered to be a key audit matter for the

current period audit.

Recoverability of investments in subsidiaries:

Our audit included, but was not limited to, the

following procedures:

The Company has investments in subsidiaries of

RS.3,803.61 crore being carried at cost in accordance

a) Obtained an understanding of the management’s

with Ind AS 27, Separate Financial Statements. The

process for identification of impairment indicators,

Company assesses the recoverable amount of each

and tested the design and operating effectiveness

investment when impairment indicators exist by

of internal controls over such identification and

comparing the fair value and carrying amount of the

impairment measurement through fair valuation of

investment as on the reporting date. Refer note 5 to

each of the identified investments.

the standalone financial statements.

Management’s assessment whether there are

b) Involved auditor’s experts to assess the

impairment indicators and determination of the

appropriateness of the valuation methodologies

recoverable amounts of the identified investments including the most appropriate valuation method

used by the management.

to use discounted cash flow requires estimation and

c) Reconciled the cash flows to the business plans

judgement around the underlying business plans

approved by the respective Board of Directors of

and assumptions used in valuation methods. The key

the identified investee companies.

assumptions used in management’s assessment of

d) Evaluated and challenged management’s

the recoverable amounts include, but are not limited

assumptions such as implied growth rates during

to, projections of future cash flows, growth rates,

explicit period, terminal growth rate, targeted

discount rates. Changes to these assumptions could

savings and discount rate for their appropriateness

lead to material changes in estimated recoverable

based on our understanding of the business of

amounts, resulting in either impairment or reversals

the respective investee companies, past results

of impairment taken in prior years.

and external factors such as industry trends and

Considering the materiality of amounts involved, and

forecasts.

the inherent subjectivity involved in estimating future

e) Obtained and evaluated sensitivity analysis

cash flows which required significant management

performed by the management on key assumptions

judgement, assessment of impairment losses to be

of implied growth rates during explicit period,

recognised, if any, on the carrying value of identified investments has been considered to be a key audit

terminal growth rate and discount rate.

matter for the current period audit.

f) Tested the mathematical accuracy of the management computations with regard to cash flows and sensitivity analysis.

g) Performed independent sensitivity analysis of aforesaid key assumptions to assess the effect of reasonably possible variations on the current estimated recoverable amount for each of the identified investments to evaluate sufficiency of headroom between recoverable value and carrying amounts.

h) Evaluated the adequacy of disclosures given in the standalone financial statements, including disclosure of significant assumptions, judgements and sensitivity analysis performed, in accordance with applicable accounting standards.

Based on the audit procedures performed, we determined that the carrying values of investments in subsidiaries are appropriate in the context of the standalone financial statements taken as a whole.

Information other than the Financial Statements and Auditor’s Report thereon

6. The Company’s 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 auditor’s 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 in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management for the Standalone Financial Statements

7. The Company’s Board of Directors is 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 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 judgements 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.

8. In preparing the financial statements, management is 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 management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

9. Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

10. 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 auditor’s 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 Standards on Auditing 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.

11. As part of an audit in accordance with Standards on Auditing, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

o 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.

o Obtain an understanding of internal 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 explaining our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

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

o Conclude on the appropriateness of management’s 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 Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s 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 auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

o 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.

12. 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.

13. 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.

14. 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 auditor’s 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

15. As required by Section 197(16) of the Act, we report that the Company has paid remuneration to its directors during the year in accordance with the provisions of and limits laid down under Section 197 read with Schedule V to the Act.

16. As required by the Companies (Auditor’s Report) Order, 2016 (‘the Order’) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order.

17. Further to our comments in Annexure I, 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;

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 standalone financial statements dealt with by this report are in agreement with the books of account;

d) In our opinion, the aforesaid standalone financial statements comply with Ind AS specified under Section 133 of the Act;

e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2019 from being appointed as a director in terms of Section 164(2) of the Act;

f) We have also audited the internal financial controls over financial reporting (IFCoFR) of the Company as on 31st March, 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date and our report dated 22nd May, 2019 as per Annexure II expressed unmodified opinion;

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

i. The Company, as detailed in Note 39 to the standalone financial statements, has disclosed the impact of pending litigations on its financial position as at 31st March, 2019;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31st March, 2019;

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31st March, 2019;

iv. The disclosure requirements relating to holdings as well as dealings in specified bank notes were applicable for the period from 8th November, 2016 to 30th December, 2016, which are not relevant to these standalone financial statements. Hence, reporting under this clause is not applicable.

Annexure I

Based on the audit procedures performed for the purpose of reporting a true and fair view on the standalone financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, and to the best of our knowledge and belief, we report that:

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.

(b) The Company has a regular program of physical verification of its property, plant and equipment under which property, plant and equipment are verified in a phased manner over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this program, certain property, plant and equipment were verified during the year and no material discrepancies were noticed on such verification.

(c) The title deeds of all the immovable properties (which are included under the head ‘property, plant and equipment’) are held in the name of the Company.

(ii) In our opinion, the management has conducted physical verification of inventory at reasonable intervals during the year, except for goods-in-transit and stocks lying with third parties. For stocks lying with third parties at the year-end, written confirmations have been obtained by the management. No material discrepancies were noticed on the aforesaid verification, discrepancies noticed on such verification have been properly dealt with in the books of account.

(iii) The Company has granted interest free unsecured loans to one company covered in the register maintained under Section 189 of the Act; and with respect to the same:

(a) In our opinion the terms and conditions of grant of such loans are not, prima facie, prejudicial to the Company’s interest.

(b) The schedule of repayment of principal has been stipulated and the receipts of the principal amount are regular;

(c) There is no overdue amount in respect of loans granted to such company.

(iv) In our opinion, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of loans, investments, guarantees and security.

(v) In our opinion, the Company has not accepted any deposits within the meaning 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) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (1) of Section 148 of the Act in respect of Company’s products/services and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

(vii) (a) The Company is regular in depositing undisputed statutory dues including provident fund, employees’ state insurance, income-tax, goods and service tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, to the appropriate authorities. Further, no undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more than six months from the date they become payable.

(b) There are no dues in respect of sales-tax, service tax and duty of customs, that have not been deposited with the appropriate authorities on account of any dispute. The dues outstanding in respect of income-tax, duty of excise, goods and service tax and value added tax on account of any dispute, are as follows:

Statement of Disputed Dues

Name of the statute

Nature of dues

Amount (in Rs. crores)

Amount paid under Protest (in Rs. crores)

Period to which the amount relates

Forum where dispute is pending

Income Tax Act, 1961

Income tax

185.51

123.70

2008-09 2009-10 2013-14 and 2015-16

CIT Appeals

Income Tax Act, 1961

Income tax

61.33

61.33

2014-15

ITAT

The Central Excise Act, 1944

Excise duty

3.96

0.17

2015-16 to 2016-17

Additional Commissioner

The Central Excise Act, 1944

Excise duty

1.03

0.03

2011-12 to 2017-18

Assistant Commissioner

The Central Excise Act, 1944

Excise duty

1.58

-

1999-00 to 2003-04

CESTAT (EZB)

The Central Excise Act, 1944

Excise duty

6.90

1.31

2010-11 to 2013-14

CESTAT (EZB)

The Central Excise Act, 1944

Excise duty

23.32

1.44

2007-08 to 2013-14

CESTAT (SZB)

The Central Excise Act, 1944

Excise duty

42.21

1.83

2014-15 to 2015-16

CESTAT (SZB)

The Central Excise Act, 1944

Excise duty

18.28

0.40

2000-01 to 2005-06

CESTAT (WZB)

The Central Excise Act, 1944

Excise duty

56.50

2.48

2007-08 to 2015-16

CESTAT (WZB)

The Central Excise Act, 1944

Excise duty

8.43

0.49

2007-08 to 2014-15

Commissioner (Appeals)

The Central Excise Act, 1944

Excise duty

0.94

0.04

2009-10 to 2011-12

Deputy Commissioner

The Central Excise Act, 1944

Excise duty

0.17

0.01

2001-02 to 2006-07

Hon’ble Bombay High Court

The Central Excise Act, 1944

Excise duty

0.12

-

2015-16

Joint Commissioner

The Central Excise Act, 1944

Excise duty

0.04

-

2000-01 to 2006-07

Hon’ble Supreme Court

The Central Goods and Service Tax Act, 2017

Central Goods and Service tax (GST)

0.09

2016-17

Superintendent of GST, Mumbai

Bihar Vat Act, 2005

VAT

1.15

2014-15 to 2016-17

Patna Appellate Authority

Goa Vat Act, 2005

VAT

0.12

-

2006-07

Directorate, Goa

Gujarat Vat Act, 2005

VAT

0.38

0.13

2013-14

JCCT -Ahmedabad

Karnataka Vat Act, 2003

VAT

1.00

0.27

2012-13

Karnataka Appellate Authority

Maharashtra Vat Act, 2002

VAT

0.45

0.07

2002-03 to 2013-14

Deputy Commissioner

Rajasthan Vat Act, 2003

VAT

4.35

0.42

2002-03 to 2012-13

Rajasthan Tax Board - Ajmer

Tamil Nadu Vat Act, 2006

VAT

0.26

-

2011-12

Joint Commissioner

Uttar Pradesh Vat Act, 2008

VAT

0.09

0.04

2011-12

Uttar Pradesh Appellate Authority

West Bengal Vat Act, 2003

VAT

2.82

0.26

2001-02 to 2015-16

Tribunal/ Commissioner

(viii) The Company has not defaulted in repayment of loans or borrowings to any bank or financial institution or government during the year. The Company did not have any outstanding debentures during the year.

(ix) The Company did not raise moneys by way of initial public offer or further public offer (including debt instruments) and did not have any term loans outstanding during the year. Accordingly, the provisions of clause 3(ix) of the Order are not applicable.

(x) According to the information and explanation given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the period covered by our audit.

(xi) Managerial remuneration has been paid and provided by the Company in accordance with the requisite approvals mandated by the provisions of Section 197 of the Act read with Schedule V to the Act.

(xii) In our opinion, the Company is not a Nidhi Company. Accordingly, provisions of clause 3(xii) of the Order are not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance with Sections 177 and 188 of Act, where applicable, and the requisite details have been disclosed in the standalone financial statements as required by the applicable Ind AS.

(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures. Accordingly, provision of clause 3(xiv) of the Order are not applicable.

(xv) In our opinion, the Company has not entered into any non-cash transactions with the directors or persons connected with them covered under Section 192 of the Act.

(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.

Annexure II Independent Auditor’s Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 (‘the Act’)

1. In conjunction with our audit of the standalone financial statements of Cipla Limited (‘the Company’) as at and for the year ended 31st March, 2019, we have audited the internal financial controls over financial reporting (‘IFCoFR’) of the Company as at that date.

Management’s Responsibility for Internal Financial Controls

2. The Company’s Board of Directors is responsible for establishing and maintaining internal financial controls based on 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 Control over Financial Reporting (“the Guidance Note”) 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 the Company’s business, including adherence to the 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

3. Our responsibility is to express an opinion on the Company’s IFCoFR based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of IFCoFR, and the Guidance Note issued by the ICAI.

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 IFCoFR were established and maintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the IFCoFR and their operating effectiveness. Our audit of IFCoFR includes obtaining an understanding of IFCoFR, 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 judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

5. 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 IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A company’s IFCoFR 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 IFCoFR include 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised 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

7. Because of the inherent limitations of IFCoFR, 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 IFCoFR to future periods are subject to the risk that the IFCoFR may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion, the Company has, in all material respects, adequate internal financial controls over financial reporting and such controls were operating effectively as at 31st MarcRs.2019, based on 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 Control over Financial Reporting issued by the ICAI.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm’s Registration No.: 001076N/N500013

Ashish Gupta

Partner

Membership No.: 504662

Place: New Delhi

Date: 22nd May, 2019

Source : Dion Global Solutions Limited
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