Page 174 - Tata_Chemicals_yearly-reports-2019-20

Annexure B to the Independent Auditors’ report on

the Standalone Financial Statements of Tata Chemicals

Limited for the year ended March 31, 2020

Report on the Internal Financial Controls with Auditors’ Responsibility
reference to the Aforesaid Standalone Financial Our responsibility is to express an opinion on the Company’s
Statements under Clause (i) of Sub-Section 3 of internal financial controls with reference to Standalone Financial
Section 143 of the Companies Act, 2013 Statements based on our audit. We conducted our audit in
(Referred to in paragraph 1(A) (f) under ‘Report on Other Legal and accordance with the Guidance Note and the Standards on
Regulatory Requirements’ section of our report of even date) Auditing, prescribed under Section 143(10) of the Act, to the
extent applicable to an audit of internal financial controls with
Opinion reference to Standalone Financial Statements. Those Standards
We have audited the internal financial controls with reference to and the Guidance Note require that we comply with ethical
Standalone Financial Statements of Tata Chemicals Limited (“the requirements and plan and perform the audit to obtain reasonable
Company”) as of March 31, 2020 in conjunction with our audit of assurance about whether adequate internal financial controls with
the Standalone Financial Statements of the Company for the year reference to Standalone Financial Statements were established
ended on that date. and maintained and whether such controls operated effectively in
all material respects.
In our opinion, the Company has, in all material respects, adequate
internal financial controls with reference to Standalone Financial Our audit involves performing procedures to obtain audit evidence
Statements and such internal financial controls were operating about the adequacy of the internal financial controls with reference
effectively as at March 31, 2020, based on the internal financial to Standalone Financial Statements and their operating effectiveness.
controls with reference to Standalone Financial Statements Our audit of internal financial controls with reference to Standalone
criteria established by the Company considering the essential Financial Statements included obtaining an understanding of
components of internal control stated in the Guidance Note on such internal financial controls, assessing the risk that a material
Audit of Internal Financial Controls Over Financial Reporting issued weakness exists, and testing and evaluating the design and
by the Institute of Chartered Accountants of India (the “Guidance operating effectiveness of internal control based on the assessed
Note”). risk. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of
Management’s Responsibility for Internal the Standalone Financial Statements, whether due to fraud or error.
Financial Controls

The Company’s management and the Board of Directors are We believe that the audit evidence we have obtained is sufficient
responsible for establishing and maintaining internal financial and appropriate to provide a basis for our audit opinion on the
controls based on the internal financial controls with reference Company’s internal financial controls with reference to Standalone
to Standalone Financial Statements criteria established by the Financial Statements.
Company considering the essential components of internal
control stated in the Guidance Note. These responsibilities include Meaning of Internal Financial Controls with
the design, implementation and maintenance of adequate internal Reference to Standalone Financial Statements
financial controls that were operating effectively for ensuring the A company’s internal financial controls with reference to
orderly and efficient conduct of its business, including adherence Standalone Financial Statements is a process designed to provide
to Company’s policies, the safeguarding of its assets, the prevention reasonable assurance regarding the reliability of financial reporting
and detection of frauds and errors, the accuracy and completeness and the preparation of Standalone Financial Statements for external
of the accounting records, and the timely preparation of reliable purposes in accordance with generally accepted accounting
financial information, as required under the Companies Act, 2013 principles. A company’s internal financial controls with reference
(hereinafter referred to as “the Act”). to Standalone Financial Statements include those policies and

172 I INTEGRATED ANNuAL REPORT 2019-20