Engagement Letter for Audit of Internal financial Control over financial reporting for
Financial year 2022-23
To
The Board of Directors
Ganga Acrowools Limited
The objective and scope of the audit
You have requested that we carry out an audit of the internal financial controls over financial reporting of
Ganga Acrowools Limited (the ‘Company’) as at March 31, 2023 in conjunction with our audit of the
financial statements of the Company for the year ended on that date.
We hereby confirm our understanding of the audit engagement by means of this letter. Our audit will be
conducted with the objective of expressing our opinion under Section 143(3)(i) of the Companies Act,
2013 (“2013 Act”) on the adequacy of the internal financial controls system over financial reporting and
the operating effectiveness of such controls as at March 31, 2023 based on the internal control criteria
established by you.
Audit of internal financial controls over financial reporting
We will conduct our audit of the internal financial controls over financial reporting in accordance with the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (“the Guidance Note”)
and the Standards on Auditing issued by the Institute of Chartered Accountants of India (ICAI) and
deemed to be prescribed by the Central Government in accordance with Section 143(10) of the 2013 Act,
to the extent applicable to an audit of internal financial controls over financial reporting. These Guidance
Note and Standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about the adequacy of the internal financial controls system over financial
reporting and their operating effectiveness as at the balance sheet date.
An audit of internal financial controls over financial reporting involves performing procedures to obtain
audit evidence about the adequacy of the internal financial controls system over financial reporting and
their operating effectiveness.
The procedures selected depend on the auditor’s judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
Inherent limitations in an audit of internal financial controls over financial reporting
Because of the inherent limitations of internal financial controls over financial reporting, 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 over financial reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Management’s responsibility
Our audit will be conducted on the basis that management and those charged with governance
acknowledge and understand that they have responsibility:
(a) For establishing and maintaining adequate and effective internal financial controls based on the
Engagement Letter for Audit of Internal financial controls over financial reporting
for the Financial Year 2022-23
internal control over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered Accountants of India for ensuring the orderly and
efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets,
the prevention and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under the Act.
(b) To provide us with:
(i) Access, at all times, to all information, including the books, account, vouchers and other records and
documentation, of the Company, whether kept at the head office of the company or elsewhere, of which
management is aware that is relevant to the preparation of the financial statements such as records,
documentation and other matters;
(ii) All information, such as records and documentation, and other matters that are relevant to our
assessment of internal financial controls;
(iii) Management’s evaluation and assessment of the adequacy and effectiveness of the company's
internal financial controls and all deficiencies, significant deficiencies and material weaknesses in the
design or operations of internal financial controls identified as part of management’s evaluation.
(iv) Additional information that we may request for the purpose of the audit.
(v) Unrestricted access to persons within the entity from whom we determine it necessary to obtain audit
evidence. This includes our entitlement to require from the officers of the Company such information and
explanations as we may think necessary for the performance of our duties as auditor.
(vi) Any communications from regulatory agencies concerning non-compliance with or deficiencies in
financial reporting practices
(vii) Management’s conclusion over the company's internal financial controls based on the control criteria
set above as at the balance sheet date.
(viii) Informing us of significant changes in the design or operation of the Company’s internal financial
controls that occurred during or subsequent to the date being reported on, including proposed changes
being considered.
(c) As part of our audit process, we will request from management, written confirmation concerning
representations made to us in connection with the audit. We also wish to invite your attention to the fact
that our audit process is subject to 'peer review' / ‘quality review’ under the Chartered Accountants Act,
1949 to be conducted by an Independent reviewer. The reviewer may inspect, examine or take abstract of
our working papers during the course of the peer review.
Reporting
Our audit report will be issued pursuant to the requirements of Section 143(3)(i) of the Act. The form and
content of our report may need to be amended in the light of our audit findings.
This letter should be read in conjunction with our letter dated 7 th November 2022 for the audit of the
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Engagement Letter for Audit of Internal financial controls over financial reporting
for the Financial Year 2022-23
standalone financial statements of the Company under the Act.
We look forward to full cooperation from your staff during our audit.
Please sign and return the attached copy of this letter to indicate your acknowledgement of, and
agreement with, the arrangements for our audit of the internal financial controls over financial reporting
including our respective responsibilities.
Yours Faithfully,
(Sanjiv Mohan)
Partner
SCV & Co. LLP
Date: 7th November, 2022
Place: Ludhiana
Acknowledged on behalf of :
M/s. Ganga Acrowools Limited
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