Page 237 - BCML AR 2019-20

BALRAMPUR CHINI MILLS LIMITED

We believe that the audit evidence we have obtained and the Opinion
audit evidence obtained by the other auditors of the associate In our opinion, the Company, its associates, which are companies
companies, which are companies incorporated in India, in terms of incorporated in India, have, in all material respects, an adequate
their reports referred to in the Other Matters paragraph below, is internal financial controls system with reference to financial
sufficient and appropriate to provide a basis for our audit opinion statements and such internal financial controls with reference to
on the Company’s internal financial controls system with reference financial statements were operating effectively as at 31st March,
to financial reporting. 2020, based on the internal control with reference to financial
Meaning of Internal Financial Controls with reference to statements criteria established by the Company considering the
Financial Reporting essential components of internal control stated in the Guidance
A company’s internal financial control with reference to financial Note on Audit of Internal Financial Controls Over Financial Reporting
statements is a process designed to provide reasonable assurance issued by the Institute of Chartered Accountants of India.
regarding the reliability of financial reporting and the preparation Other Matters
of financial statements for external purposes in accordance with Our aforesaid reports under section 143(3)(i) of the Act on the
generally accepted accounting principles. A company’s internal
financial control with reference to financial statements includes adequacy and operating effectiveness of the internal financial
those policies and procedures that (1) pertain to the maintenance controls with reference to financial statements in so far as it relates
of records that, in reasonable detail, accurately and fairly reflect to two associates, which are companies incorporated in India, is
the transactions and dispositions of the assets of the company; based on the corresponding standalone reports of the auditors’, as
(2) provide reasonable assurance that transactions are recorded applicable, of such companies incorporated in India.
as necessary to permit preparation of financial statements in For Lodha & Co
accordance with generally accepted accounting principles, and that Chartered Accountants
receipts and expenditures of the company are being made only in Firm’s ICAI Registration No.:301051E
accordance with authorisations of management and directors of
the company; and (3) provide reasonable assurance regarding sd/-
prevention or timely detection of unauthorised acquisition, use, or Place of signature : Kolkata R. P. Singh
disposition of the company’s assets that could have a material effect Partner
on the financial statements. Date: 23rd June, 2020 Membership No: 052438
UDIN :20052438AAAABB7864
Inherent Limitations of Internal Financial Controls with
reference to Financial Reporting
Because of the inherent limitations of internal financial controls
with reference to financial statements, 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
with reference to financial statements to future periods are subject
to the risk that the internal financial control with reference to
financial statements may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.

Annual Report 2019-20 | 235