Page 132 - KRCL ENglish

a) Sub-ledgers of the Suppliers, Contractors and other parties are not maintained in IT
System. Only the contract wise details of settled transactions are generated in IT
system. Due to this the age wise analysis of the outstanding dues, classication of
Micro and Small Enterprises and details of timely repayment of dues could not be
generated from IT System and manual intervention is involved in this aspects.
b) Consumption of Inventory and Stock lying at the respective storage locations are not
yet maintained in IT Systems and manual records are maintained by the company at
each storage locations. Due to which, the details regarding the Movement Analysis,
Age-wise analysis and purchase of inventories despite having sufcient inventory
balances could not be generated from the IT system and manual intervention is
involved in this aspects.

c) Fixed Asset Register is not maintained in IT System and complete records are
maintained in the excel le. Due to which manual calculations have been carried out
for working of Depreciation amount which involves the manual intervention in this
process.

d) Non-generation of ledgers with no transactions during the current nancial year, while
generating all ledgers in excel workbook.

e) Contractors Bills are maintained Contract wise manually but the report containing the
Contract wise details along with initial history is not generated from the IT System.

However, in respect of the above we do not found any material deviation from the standard
procedures adopted by the company in so far as it relates to the adequacy of the internal
nancial controls over the nancial reporting and there is no material nancial impact. And
we recommend to implement the above procedures through IT systems in order have
better internal nancial controls.

Our opinion is not modied in respect of these matters.

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 nancial controls system
over nancial reporting and such internal nancial controls over nancial reporting were
operating effectively as at March 31, 2020, based on the internal control over nancial
reporting criteria established by the Company considering the essential components of

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