Page 177 - FBL AR 2019-20

CORPORATE STATUTORY FINANCIAL
OVERVIEW STATEMENTS STATEMENTS

of any evaluation of the internal financial controls over financial for internal financial control over financial reporting established by
reporting to future periods are subject to the risk that the internal the respective companies considering the essential components of
financial control over financial reporting may become inadequate internal control stated in the Guidance Note on Audit of Internal
because of changes in conditions, or that the degree of compliance Financial Controls Over Financial Reporting issued by the Institute of
with the policies or procedures may deteriorate. Chartered Accountants of India, and the Parent’s and its subsidiary
companies, internal financial controls over financial reporting were
Basis for Qualified Opinion operating effectively as of March 31, 2020.
With respect to the Parent, according to the information and
explanations given to us and based on our audit, a material weakness We have considered the material weakness identified and reported
has been identified in the Parent’s internal financial controls over above in determining the nature, timing, and extent of audit tests
financial reporting in respect of the assessment of impairment in applied in our audit of the consolidated financial statements of
the carrying value of (unsecured) inter-corporate deposits including the Company for the year ended March 31, 2020, and the material
interest accrued on such deposits and trade advances, wherein the weakness has affected our opinion on the said consolidated
Parent does not have relevant internal financial controls in place, financial statements of the Company and we have issued a qualified
which could potentially result in recognising these financial assets opinion on the consolidated financial statements.
and other current assets at a value more than its recoverable amount Other Matter
and consequential overstatement of profits and overstatement of Our aforesaid report under Section 143(3)(i) of the Act on the
other equity as at March 31, 2020.
adequacy and operating effectiveness of the internal financial
A ‘material weakness’ is a deficiency, or a combination of deficiencies, controls over financial reporting insofar as it relates to 3 subsidiary
in internal financial control over financial reporting, such that companies, which are companies incorporated in India, is based
there is a reasonable possibility that a material misstatement of solely on the corresponding reports of the auditors of such
the company’s annual or interim financial statements will not be companies incorporated in India.
prevented or detected on a timely basis.
Our opinion is not modified in respect of the above matter.
Qualified Opinion

In our opinion, to the best of our information and according to
the explanations given to us and based on the consideration of For Deloitte Haskins & Sells LLP
the reports of the other auditors referred to in the Other Matter Chartered Accountants
paragraph below, except for the possible effects of the material (Firm’s Registration No. 117366W/W-100018)
weakness described in Basis for Qualified Opinion paragraph above
on the achievement of the objectives of the control criteria, in so far Rajesh K. Hiranandani
as it relates to the Parent, the Parent and its subsidiary companies, Partner
which are companies incorporated in India, have, in all material Place: Mumbai (Membership No. 36920)
respects, maintained adequate internal financial controls system Date: August 28, 2020 (UDIN: 20036920AAAACV9501)
over financial reporting as of March 31, 2020 based on the criteria

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