Page 224 - Hitachi IR 2025

INDEPENDENT AUDITOR’s REPORT
Annexure 2 to the Independent
Auditor’s Report
ANNEXURE 2 TO THE INDEPENDENT AUDITOR’S
REPORT OF EVEN DATE ON THE FINANCIAL
STATEMENTS OF HITACHI ENERGY INDIA LIMITED
REPORT ON THE INTERNAL FINANCIAL CONTROLS
UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION
143 OF THE COMPANIES ACT, 2013 (“THE ACT”)
We have audited the internal financial controls with
reference to financial statements of Hitachi Energy
India Limited (“the Company”) as of March 31, 2025 in
conjunction with our audit of the financial statements of
the Company for the year ended on that date.
reference to these financial statements was established
and maintained and if such controls operated effectively
in all material respects.
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial
controls with reference to these financial statements
and their operating effectiveness. Our audit of internal
financial controls with reference to financial statements
included obtaining an understanding of internal financial
controls with reference to these financial statements,
assessing the risk that a material weakness exists,
and testing and evaluating the design and operating
effectiveness of internal control based on the assessed
risk. 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.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion on the Company’s internal financial controls with
reference to these financial statements.
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL
FINANCIAL CONTROLS
The Company’s Management is responsible for
establishing and maintaining internal financial controls
based on {the 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 (the “Guidance Note”) issued
by the Institute of Chartered Accountants of India
(“ICAI”). These responsibilities include the design,
implementation and maintenance of adequate internal
financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business,
including adherence to the 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
Companies Act, 2013.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express an opinion on the
Company's internal financial controls with reference
to these financial statements based on our audit. We
conducted our audit in accordance with the Guidance
Note and the Standards on Auditing, as specified under
section 143(10) of the Act, to the extent applicable to
an audit of internal financial controls, both issued by
ICAI. Those Standards and the Guidance Note require
that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance
about whether adequate internal financial controls with
MEANING OF INTERNAL FINANCIAL CONTROLS WITH
REFERENCE TO THESE FINANCIAL STATEMENTS
A company's internal financial controls with reference
to financial statements is a process designed to provide
reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements
for external purposes in accordance with generally
accepted accounting principles. A company's internal
financial controls with reference to financial statements
includes those policies and procedures that (1) pertain
to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles,
and that receipts and expenditures of the company are
being made only in accordance with authorisations of
management and directors of the company; and (3)
provide reasonable assurance regarding prevention or
timely detection of unauthorised acquisition, use, or
disposition of the company's assets that could have a
material effect on the financial statements.
222 Hitachi Energy India Limited