Page 278 - Tata Chemical Annual Report_2022-2023

Integrated Annual Report 2022-23 01-83 84-192 193-365
Integrated Report Statutory Reports Financial Statements
Consolidated

Annexure B to the Independent Auditor’s Report on the assurance that transactions are recorded as necessary to permit Other Matter
preparation of Consolidated Financial Statements in accordance
Consolidated Financial Statements of Tata Chemicals with generally accepted accounting principles, and that receipts The internal financial controls with reference to financial
statements insofar as it relates to a joint venture company,
and expenditures of the company are being made only in
Limited for the year ended March 31, 2023 accordance with authorisations of management and directors which is a company incorporated in India and included in these
Consolidated Financial Statements, have not been audited either
of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, by us or by other auditor. In our opinion and according to the
information and explanations given to us by the Management,
or disposition of the company's assets that could have a material
Report on the internal financial controls with Auditor’s Responsibility effect on the Consolidated Financial Statements. such unaudited joint venture company is not material to the
reference to the aforesaid Consolidated Financial Our responsibility is to express an opinion on the internal Holding Company.
Statements under Clause (i) of Sub-section 3 of financial controls with reference to financial statements based Inherent Limitations of Internal Financial Controls Our opinion is not modified in respect of this matter.
Section 143 of the Act on our audit. We conducted our audit in accordance with the with Reference to Financial Statements
(Referred to in paragraph 2(A)(f) under ‘Report on Other Legal Guidance Note and the Standards on Auditing, prescribed Because of the inherent limitations of internal financial controls For B S R & Co. LLP
and Regulatory Requirements’ section of our report of even date) under Section 143(10) of the Act, to the extent applicable to an with reference to financial statements, including the possibility Chartered Accountants
audit of internal financial controls with reference to financial of collusion or improper management override of controls, Firm’s Registration
Opinion statements. Those Standards and the Guidance Note require that material misstatements due to error or fraud may occur and not No.:101248W/W-100022

In conjunction with our audit of the Consolidated Financial we comply with ethical requirements and plan and perform the be detected. Also, projections of any evaluation of the internal
Statements of Tata Chemicals Limited (hereinafter referred to audit to obtain reasonable assurance about whether adequate financial controls with reference to financial statements to Vijay Mathur
as “the Holding Company”) as of and for the year ended March internal financial controls with reference to financial statements future periods are subject to the risk that the internal financial
31, 2023, we have audited the internal financial controls with were established and maintained and if such controls operated controls with reference to financial statements may become Partner
reference to financial statements of the Holding Company and effectively in all material respects. inadequate because of changes in conditions, or that the degree Mumbai, Membership No.: 046476
such companies incorporated in India under the Act which are of compliance with the policies or procedures may deteriorate. May 3, 2023 ICAI UDIN:23046476BGYAIC5143
its subsidiary companies, as of that date. Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial controls
In our opinion, the Holding Company and such companies with reference to financial statements and their operating
incorporated in India which are its subsidiary companies, have, effectiveness. Our audit of internal financial controls with reference
in all material respects, adequate internal financial controls with to financial statements included obtaining an understanding of
reference to financial statements and such internal financial internal financial controls with reference to financial statements,
controls were operating effectively as at March 31, 2023, based assessing the risk that a material weakness exists, and testing and
on the internal financial controls with reference to financial evaluating the design and operating effectiveness of internal
statements criteria established by such companies considering control based on the assessed risk. The procedures selected
the essential components of such internal controls stated depend on the auditor’s judgement, including the assessment of
in the Guidance Note on Audit of Internal Financial Controls the risks of material misstatement of the Consolidated Financial
Over Financial Reporting issued by the Institute of Chartered Statements, whether due to fraud or error.
Accountants of India (the “Guidance Note”).
We believe that the audit evidence we have obtained is sufficient
Management’s and Board of Directors’ and appropriate to provide a basis for our audit opinion on the
Responsibilities for Internal Financial Controls internal financial controls with reference to financial statements.
The respective company's Management and the Board of Directors
are responsible for establishing and maintaining internal financial Meaning of Internal Financial Controls with
controls based on the internal financial controls with reference Reference to Financial Statements
to financial statements criteria established by the respective A company's internal financial controls with reference to
companies considering the essential components of internal financial statements is a process designed to provide reasonable
control stated in the Guidance Note. These responsibilities include assurance regarding the reliability of financial reporting and the
the design, implementation and maintenance of adequate internal preparation of Consolidated Financial Statements for external
financial controls that were operating effectively for ensuring the purposes in accordance with generally accepted accounting
orderly and efficient conduct of its business, including adherence principles. A company's internal financial controls with reference
to the respective company's policies, the safeguarding of its assets, to financial statements include those policies and procedures
the prevention and detection of frauds and errors, the accuracy and that (1) pertain to the maintenance of records that, in reasonable
completeness of the accounting records, and the timely preparation detail, accurately and fairly reflect the transactions and
of reliable financial information, as required under the Act. dispositions of the assets of the company; (2) provide reasonable

276 277