To the Members of Brilliant Portfolios Limited
Report on the Financial Statements
I have audited the accompanying financial statements of Brilliant Portfolios Limited(the company') comprising of the Balance Sheet as at 31 March 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the preparation of these financialstatements in terms of requirements of the Companies Act 2013 (hereinafter referred to as"the Act") that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
My responsibility is to express an opinion on these financial statements based on myaudit.
I have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting and auditing standards and matters which are required to beincluded in the audit report.
I conducted my audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other authoritative pronouncements issued by the Instituteof Chartered Accountants of India. Those Standards and pronouncements require that Icomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement. Anaudit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the financial statements.
In my opinion and to the best of my information and according to the explanations givento me the financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India: a) In the case of the Balance Sheet of the state of affairsof the Company as at March 31 2017; b) In the case of the Statement of Profit and Lossof the loss for the year ended on that date; and c) In the case of the Cash FlowStatement of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 and on the basis of such checks of the books and records of theCompany as I considered appropriate and according to the information and explanationsgiven to me I give in the Annexure A a statement on the matters specifiedin the paragraph 3 and 4 of the order.
2. As required by section 143(3) of the Act 2013 I report that :
a) I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief were necessary for the purpose of my audit;
b) In my opinion proper books of account as required by law have been kept by theCompany so far as appears from my examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account;
d) In my opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e) On the basis of the written representations received from the directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms ofSection 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to myseparate Report in Annexure B.
g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in my opinionand to the best of my information and according to the explanations given to me I reportthat:
i) The Company does not have any pending litigations which would impact its financialposition.
ii) The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund.
iv) The company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period 8th November2016 to 30th December 2016. Based on audit procedures and relying on themanagement representation I report that the disclosures are in accordance with books ofaccount maintained by the Company and as produced to me by the Management.
Annexure A to the Independent Auditor's Report
The Annexure referred to in paragraph 1 under the Report on Other Legal andRegulatory Requirements' my report to the members of Brilliant Portfolios Limited(the Company') for the year ended on March 31 2017. I report that:-
i) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The Company has a regular programme of physical verification of fixed assets whichis in my opinion reasonable having regard to the size of the Company and the nature ofits assets. In accordance with this programme certain fixed assets have been physicallyverified by the management during the year and no material discrepancies have been noticedon such verification.
c) No immovable properties are held in the name of the Company.
ii) In respect of inventories:
As explained to me shares are held as stock in trade which is treated as inventoriesand have been verified during the year by the management and no material discrepancy wasnoticed on such verification of stocks by the management as compared to book records.
iii) According to the information and explanation given to me the Company had notgranted loan to any of the companies firms and other parties covered in the registermaintained under section 189 and hence provisions of clause 3(iii) of the aforesaid Orderare not applicable to the Company.
iv) In my opinion and according to the information and explanations given to me theCompany had not granted any loans or provided any guarantee or security to the partiescovered under section 185 or made investment as per provisions of section 186 henceprovisions of clause 3(iv) of the aforesaid Order are not applicable to the Company.
v) In my opinion and according to the information and explanations given to me theCompany has not accepted deposits from the public within the meaning of Sections 73 7475 and 76 of the Act and the Rules framed there under to the extent notified.
vi) On the basis of available information and explanation provided to me maintenanceof cost records under sub-section ( 1) of the Section 148 of the Companies Act 2013 hasnot been prescribed by the government.
vii) (a) According to the records of the Company the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees' state insurance income-tax sales tax wealth tax duty of customs dutyof excise value added tax or cess and other statutory dues applicable to it. As explainedto me the Company did not have any dues on account of employees' state insurance salestax service tax duty of customs duty of excise value added tax cess.
Further there were no undisputed statutory dues were outstanding as at 31.03.2017for a period of more than six months from the date they became payable.
(b) According to the records of the Company and information and explanations given tome no dues of income tax sales tax wealth tax service tax duty of customs duty ofexcise value added tax or cess that have not been deposited on account of any disputes.
viii) According to the information and explanations given to me the company has notaccepted any loans from financial institutions bank and has not issued any debenturesduring the year. Hence paragraph 3(viii) of the Order is not applicable to the Company.
ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the Order is not applicable.
x) During the course of my examination of the books and records of the Company carriedout in accordance with the generally accepted auditing practices in India and accordingto the information and explanations given to me I have neither come across any instanceof material fraud by the Company or on the Company by its officers or employees noticedor reported during the year nor have been informed of any such case by the management.
xi) The Company has paid/provided managerial remuneration in accordance with therequisite approvals mandated by the provision of the Section 197 read with Schedule V ofthe Act.
xii) The Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicable tothe Company and hence provisions of Clause 3(xii) of the aforesaid Order are notapplicable to the Company.
xiii) The Company has entered into the transaction with the related parties incompliance with the provisions of the Section 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Accounting Standard ( AS)18 Related Party Disclosures specified under Section 133of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
xiv) The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under reviewand hence provisionsof Clause 3 ( xiv) of the aforesaid Order are not applicable to the Company.
xv) The Company has not entered into any non-cash transactions with its directors orthe persons connected with him and hence provisions of Clause 3(xv) of the aforesaid Orderare not applicable to the Company
xvi) The Company has obtained registration as required under Section 45-IA of theReserve Bank of India Act 1934
Annexure B to the Independent Auditor's Report
The Annexure referred to in paragraph 2(f) under the Report on Other Legal andRegulatory Requirements' my report to the members of Brilliant Portfolios Limited(the Company') for the year ended on March 31 2017.
Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section143 of the Act
I have audited the internal financial controls over financial reporting of BrilliantPortfolios Limited ("the Company") as of March 31 2017 in conjunction withmy audit of the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin Guidance Note on Audit of Internal Financial Controls over Financial Reporting issuedby the Institute of Chartered Accountants of India ( ICAI). These responsibilitiesincludes design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct ofbusiness including adherence to Company's policies the safeguarding of the assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.
My responsibility is to express an opinion on Company's internal financial controlsover financial reporting based on my audit. I conducted my audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting ( theGuidance Note') and the Standards on Auditing deemed to be prescribed under Section 143(10) of the Act to the extent applicable to an audit of internal financial controls bothapplicable to an audit of internal financial controls and both issued by the ICAI. ThoseStandards and Guidance note require that I comply with ethical requirements and plan andperform audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.
My audit involves performing procedure to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal controls based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company's internal financial control over financial reporting is a process designedto provide a reasonable assurance regarding the reliability of financial reporting andpreparation of financial statements for external purpose in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that:
1. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;
2. Provide reasonable assurance that the transactions are recorded as necessary topermit preparation of financial statements in accordance with the generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and
3. Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial control over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate.
In my opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For Nitin Agrawal & Associates
Firm's registration number 015541C
Membership Number: 412315
Place: New Delhi