Page 181 - Kolte Patil AR 2019-20

the internal financial controls system over financial reporting of the OPINION
Parent, its subsidiary companies, which are companies incorporated In our opinion to the best of our information and according to
in India. the explanations given to us and based on the consideration of
the reports of the other auditors referred to in the Other Matters
MEANING OF INTERNAL FINANCIAL CONTROLS paragraph below, the Parent and its subsidiary companies, which
OVER FINANCIAL REPORTING are companies incorporated in India, have, in all material respects, an
A company’s internal financial control over financial reporting is a adequate internal financial controls system over financial reporting
process designed to provide reasonable assurance regarding the and such internal financial controls over financial reporting were
reliability of financial reporting and the preparation of financial operating effectively as at March 31, 2020, based on the criteria for
statements for external purposes in accordance with generally internal financial control over financial reporting established by the
accepted accounting principles. A company’s internal financial respective companies considering the essential components of
control over financial reporting includes those policies and internal control stated in the Guidance Note on Audit of Internal
procedures that (1) pertain to the maintenance of records that, in Financial Controls Over Financial Reporting issued by the Institute
reasonable detail, accurately and fairly reflect the transactions and of Chartered Accountants of India.
dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit OTHER MATTERS
preparation of financial statements in accordance with generally Our aforesaid report under Section 143(3)(i) of the Act on the
accepted accounting principles, and that receipts and expenditures of adequacy and operating effectiveness of the internal financial
the company are being made only in accordance with authorisations controls over financial reporting insofar as it relates 5 subsidiary
of management and directors of the company; and (3) provide companies, which are companies incorporated in India, is based
reasonable assurance regarding prevention or timely detection of solely on the corresponding reports of the auditors of such
unauthorised acquisition, use, or disposition of the company’s assets companies incorporated in India.
that could have a material effect on the financial statements.
Our opinion is not modified in respect of the above matters.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL
CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over For DELOITTE HASKINS & SELLS LLP
financial reporting, including the possibility of collusion or improper Chartered Accountants
management override of controls, material misstatements due to (Firm‘s Registration No.117366W/W-100018)
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 Saira Nainar
financial control over financial reporting may become inadequate (Partner)
because of changes in conditions, or that the degree of compliance Place: Mumbai (Membership No. 040081)
with the policies or procedures may deteriorate. Date: 23 June 2020 (UDIN: 20040081AAAABA2698)

Annual Report 2019-20 | 179