To the Members of
M/s. G M Breweries Limited
Report on the Standalone Financial Statements
We have audited the standalone financial statements of G M Breweries Limited ("theCompany") which comprise the balance sheet as at 31st March 2022 and the statementof Profit and Loss (including other comprehensive income) statement of changes in equityand statement of cash flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as the "standalone financial statements")
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby The Companies Act 2013 ("The Act") in the manner so required and give a trueand fair view in conformity with the Indian accounting standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("INDAS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2022 and profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013.Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India ("ICAI") together with theindependent requirement that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the rules made there under and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion on standalone financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
Information other than standalone financial statements and Auditors report thereon
The company's Board of Directors are responsible for the preparation of the otherinformation. The other information comprises of the other information included in themanagement discussion and analysis Boards report including annexure to Boards ReportCorporate Governance and Shareholders information but does not include the standalonefinancial statements and our auditors report thereon.
Our opinion on standalone financial statements does not cover the other information andwe do not express any form of assurance or conclusion thereon.
In connection with our audit of the standalone financial statement our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statement or other informationobtained during the course of our audit or otherwise appear to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate implementationand maintenance of accounting policies; making judgments and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
The Board of Directors are responsible for overseeing the Company's financial reportingprocess.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the standalone financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the standalone financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the standalone financialstatements.
We communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.
From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the standalone financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2020 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the "Annexure A" a statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
As required by Section 143(3) of the Act we report that:
We have sought and obtained all the information and explanations which to thebest of our knowledge and belief were necessary for the purposes of our audit.
In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
The Balance Sheet the Statement of Profit and Loss including othercomprehensive income the statement of change in equity and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
As per the management representation we report
no funds have been advanced or loaned or invested by the company to or in anyother person(s) or entities including foreign entities ("Intermediaries") withthe understanding that the intermediary shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner by or on behalf of thecompany (Ultimate Beneficiaries) or provide any guarantee security or the like on behalfof ultimate beneficiaries.
no funds have been received by the company from any person(s) or entitiesincluding foreign entities ("Funding Parties") with the understanding that suchcompany shall whether directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever by or on behalf of the funding party (ultimatebeneficiaries) or provide guarantee security or the like on behalf of the Ultimatebeneficiaries.
Based on the audit procedures performed we report that nothing has come to ournotice that has caused us to believe that the representations given under sub-clause (i)and (ii) by the management contain any material misstatement.
In our opinion Company has complied with section 123 of the Companies Act2013with respect to dividend declared/paid during the year.
On the basis of the written representations received from the directors as on31st March 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31 st March 2022 from being appointed as a director in terms ofSection 164 (2) of the Act.
With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".
With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.
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 our opinionand to the best of our information and according to the explanations given to us:
The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements.
The Company has made provision as required under the applicable law oraccounting standards for material foreseeable losses if any on long-term contractsincluding derivative contracts.
There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
G M Breweries Limited
"Annexure A" to the Independent Auditors' Report
Referred to in paragraph 1 under the heading Report on Other Legal &Regulatory Requirement' of our report of even date to the standalone Ind AS financialstatements of the Company for the year ended March 31st 2022:
We report that:
i) . Property Plant and Equipment :
The company has maintained proper records showing full particulars includingquantitative details and situation of its Property Plant and Equipment.
As explained to us Property Plant and Equipment have been physically verifiedby the management at reasonable intervals; no material discrepancies were noticed on suchverification.
The title deeds of immovable properties are held in the name of the company.
ii) . Inventory :
As explained to us inventories have been physically verified during the year by themanagement at reasonable intervals.
No material discrepancy of 10% or more in the aggregate for each class of inventorywere noticed was noticed on physical verification of stocks by the management as comparedto book records.
During any point of time of the year the company has not been sanctioned any workingcapital limits from banks or financial institutions on the basis of security of currentassets.
iii) . Loans Guarantee and Advances given:
According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms Limited Liability Partnerships or other parties listed inthe register maintained under Section 189 of the Companies Act 2013. Consequently theprovisions of clauses iii (a) (b) and (c)of the order are not applicable to the Company.
iv) . Loans Guarantee and Advances to Director of Company:
During the year the company has not provided any loans guarantees advances andsecurities to the director of the company and the company is compliant provisions ofsection 185 and 186 of the Companies Act 2013.
v) . Deposits:
The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.
vi) . Maintenance of costing records:
As per information & explanation given by the management maintenance of costrecords has not been specified by the Central Government under sub-section (1) of section148 of the Companies Act 2013.
vii) . Deposit of statutory liabilities:
According to the records of the company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees' State InsuranceIncome-tax Gst Sales-tax Service Tax Goods and Service tax Custom Duty Excise Dutyvalue added tax cess and any other statutory dues to the extent applicable havegenerally been regularly deposited with the appropriate authorities. According to theinformation and explanations given to us there were no outstanding statutory dues as on31st March2022 for a period of more than six months from the date they became payable.
According to the information and explanations given to us there is no amountpayable in respect of income tax gst service tax sales tax customs duty excise dutyvalue added tax and cess whichever applicable which have not been deposited on account ofany disputes.
viii) . Surrendered or disclosed as income in the tax assessments:
The Company does not have any transactions to be recorded in the books of account thathas been surrendered or disclosed as income during the year in the tax assessments underthe Income Tax Act 1961 (43 of 1961).
ix) . Default in repayment of borrowings:
In our opinion and according to the information and explanations given by themanagement we are of the opinion that the Company does not have any dues to a financialinstitution bank Government or debenture holders.
x) . Funds raised and utilisation:
Based on our audit procedures and according to the information given by the managementthe company has not raised any money by way of initial public offer or further publicoffer (including debt instruments) or taken any term loan during the year.
The company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year under review.
xi) . Fraud and whistle-blower complaints:
According to the information and explanations given to us we report that no fraud bythe company or any fraud on the Company by its officers or employees has been noticed orreported during the year.
xii) . Nidhi Company:
The company is not a Nidhi Company. Therefore clause (xii) of the order is notapplicable to the company.
xiii) . Related Party Transactions:
According to the information and explanations given to us all transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013wherever applicable and the details have been disclosed in the Financial Statements etc.as required by the applicable accounting standards.
xiv) . Internal Audit:
The company does have an internal audit system commensurate with the size and nature ofits business. Reports of the Internal Auditors for the period under audit were consideredby the statutory auditor.
xv) . Non Cash Transactions:
The company has not entered into non-cash transactions with directors or personsconnected with him.
xvi) . Registration under RBI act:
The company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.
xvii) . Cash Losses:
The company has not incurred cash losses in the financial year and in the immediatelypreceding financial year
xviii) . Resignation of Statutory Auditors:
There has been no instance of any resignation of the statutory auditors occurred duringthe year.
xix) . Material uncertainty on meeting liabilities:
No material uncertainty exists as on the date of the audit report that company iscapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of 1 year from the balance sheet date
xx) . Transfer to fund specified under Schedule VII of Companies Act 2013
In respect of other than ongoing projects the company has not transferred unspentamount to a Fund specified in Schedule VII to the Companies Act within a period of sixmonths of the expiry of the financial year in compliance with second proviso tosub-section (5) of section 135 of the said Act;
xxi). This clause is not applicable to the company.
TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE IND AS FINANCIALSTATEMENTS OF G. M. BREWERIES LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting ofG.M.BREWERIES LIMITED ("the Company") as of March 31 2022 in conjunction withour audit of the standalone Ind AS financial statements of the Company for the year endedon 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 the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our 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 control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for my /our audit opinion on the Company's internal financial controls system overfinancial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes 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 transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance 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 controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our 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 2022 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 Priti V.Mehta & Company Chartered Accountants |
|Firms Registration No.129568W |
|Priti V.Mehta Proprietor |
|Membership No. 130514 |
|Mumbai April 12th 2022 |
|UDIN : 22130514AGVZWU6950 |