Parmarth Ltd. is engaged in manufacturing and holds significant inventory. The management conducts physical verification of inventory at periodic…

(a) As per Clause (ii) of Paragraph 3 of the Companies (Auditor's Report) Order, 2020, the auditor's report shall include a statement on the following matters relating to inventory: (a) whether physical verification of inventory has been conducted at reasonable intervals by the management and whether, in the opinion of the auditor, the coverage and procedure of such verification by the management is appropriate; whether any discrepancies of 10% or more in the aggregate for each class of inventory were noticed and if so, whether they have been properly dealt with in the books of account; (b) whether during any point of time of the year, the company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets; whether the quarterly returns or statements filed by the company with such banks or financial institutions are in agreement with the books of account of the Company, if not, give details;