Report Standalone Ind AS Financial Statements for the year ended 31stMarch 2022
To the Members of GCM Capital Advisors Limited
Report on the Audit of the Standalone Ind AS Financial Statements
We have audited the accompanying financial statements of GCM CAPITALADVISORS LIMITED (CIN - L74110MH2013PLC243163) ("the Company") which comprisethe Balance Sheet as at March 31 2022 the Statement of Profit and Loss (including OtherComprehensive Income) Statement of Changes in Equity and Statement of Cash Flows ended onthat date and a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as "the financial statements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid 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 ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2022 the profit and totalcomprehensive profit changes in equity and its cash flows for the year ended on thatdate.
Basis for opinion
We conducted our audit of the financial statements in accordance withthe Standards on Auditing (SAs) specified under section 143(10) of the Companies Act2013. Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the Companies Act 2013and the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. Based on the circumstances and facts of the audit and entity there aren'tkey audit matters to be communicated in our report.
Information Other than the Standalone Financial Statements andAuditor's Report Thereon
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in Board's Reportincluding Annexures to Board's Report Shareholder's Information but does not include thefinancial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these financial statementsthat give a true and fair view of financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding 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 that givea true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company'sfinancial reporting process.
Auditor's Responsibilities for the Audit of the Standalone FinancialStatements
Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thefinancial 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 controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)0) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the 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 financial statements.
We communicate with those charged with governance regarding amongother matters 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 wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the 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
1. As required by Section 143(3) of the Act based on our audit wereport that :
a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the relevant books of account.
d) In our opinion the aforesaid standalone financial statements complywith the Ind AS 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 thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company with reference to these standalone Ind AS financialstatements and the operating effectiveness of such controls refer to our separate Reportin "Annexure A" to this report and;
g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its Directors during theyear is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:
i. The Company does not have any pending litigation which would impactits financial position in its financial statements
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses under theapplicable law or accounting standards;
iii. There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that to the best of itsknowledge and belief no funds (which are material either individually or in theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material misstatement.
v. The Company has not paid or declared any dividend during the yearand until the date of report; hence Compliance in accordance with section 123 of the Actis not applicable.
2. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of Section143(11) of the Act we give in the "Annexure- B" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.
An nexure "A" to the Independent Auditors' Report (Referredto in paragraph i(f) under 'Report on Other Legal and Regulatory Requirements' section ofour report to the
Members of GCM Capital Advisors Limited of even date)
Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")
We have audited the internal financial controls over financialreporting of GCM CAPITAL ADVISORS LIMITED ("the
Company") as of 31 March 2022 in conjunction with our audit of thefinancial 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 andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India ("ICAI"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with 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. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgments including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls with reference to Standalone IndAS financial statements
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference toStandalone Ind AS financial statements
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according toexplanation given to us the Company has maintained in all material respects adequateinternal financial controls over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 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.
Annexure "B" to the Independent Auditors' Report
(Referred to in paragraph 2 under 'Report on Other Legal and RegulatoryRequirements' section of our report to the
Members of GCM Capital Advisors Limited of even date)
i. In respect of the Company's Property Plant and Equipment andIntangible Assets:
a) A. The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant and Equipmentand relevant details of right-of-use assets.
B. The Company does not have intangible assets during the yearaccordingly the requirement of clause (i)(B) of paragraph 3 of the Order is not applicableto the Company.
b) The Company has a regular program of physical verification of itsfixed assets by which fixed assets are verified in a phased manner over a year of threeyears. In accordance with this program certain fixed assets were verified during the yearand verification is under process as per the verification plan and no materialdiscrepancies were noticed on such verification. In our opinion the periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets.
c) The Company does not have any immovable properties held in its namedisclosed in the financial statements. Accordingly the requirement of clause (i)(c) ofparagraph 3 of the Order is not applicable to the Company.
d) The Company has not revalued any of its Property Plant andEquipment (including right-of-use assets) and intangible assets during the year.
e) No proceedings have been initiated during the year or are pendingagainst the Company as at March 31 2022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made thereunder
ii. a) The inventory of shares & securities are held in DematAccount. It has been reconciled and verified during the year by the management. In ouropinion the frequency of verification of inventory followed by the management isreasonable and adequate in relation to size of the company and nature of its business.
b) According to information and explanations given to us The Companyhas not been availed any working capital limits in excess of f 5 crore in aggregate atany points of time during the year from banks or financial institutions on the basis ofsecurity of current assets. Consequently the requirement of clause (ii) (b) of paragraph3 of the Order is not applicable to the Company.
iii. The Company has not made investments in companies firms LimitedLiability Partnerships and granted unsecured loans to other parties during the year. inrespect of which:
a) During the year the company has provided loans or provided advancesin the nature of loans or stood guarantee or provided security to any other entitydetails of which are stated in clause (B) below;
A. The aggregate amount during the year and balance outstanding at thebalance sheet date with respect to such loans or advances and guarantees or security tosubsidiaries joint ventures and associates;
B. The aggregate amount during the year and balance outstanding at thebalance sheet date with respect to such loans or advances and guarantees or security toparties other than subsidiaries joint ventures and associates;
|Particulars ||Amount (Rs.) |
|Aggregate amount granted during the year - Others ||5.16 Crore |
|Balance outstanding as at balance sheet date - Others ||5.54 Crore |
b) In our opinion the investments made and the terms and conditions ofthe grant of loans during the year are prima facie not prejudicial to the Company'sinterest.
c) In respect of loans granted by the Company the schedule ofrepayment of principal and payment of interest has been stipulated and the repayments ofprincipal amounts and receipts of interest are generally been regular as per stipulation.
d) In respect of loans granted by the Company there is no overdueamount remaining outstanding as at the balance sheet date.
e) No loan granted by the Company which has fallen due during the yearhas been renewed or extended or fresh loans granted to settle the overdue of existingloans given to the same parties.
f) The Company has not granted any loans or advances in the nature ofloans either repayable on demand or without specifying any terms or period of repaymentduring the year. Hence reporting under clause 3(iii)(f) is not applicable.
iv. According to information and explanations given to us the companyhas complied with the provisions of Section 185 and 186 of the Companies Act 2013 inrespect of grant of loans making investment and providing guarantees and securities asapplicable.
v. According to the information and explanations given to us theCompany has not accepted any deposits within the meaning of Sections 73 to 76 or any otherrelevant provisions of the Companies Act and the rules framed thereunder during the year.Accordingly the provisions of clause (v) of paragraph 3 of the Order are not applicableto the Company.
vi. In our opinion and according to the information and explanationsgiven to us the requirement for maintenance of cost records specified by the CentralGovernment under Section 148(1) of the Companies Act are not applicable to the Companyduring the year.
vii. According to the information and explanations given to us inrespect of statutory and other dues:
a) According to the records of the Company the company has beenregular in depositing undisputed statutory dues including Provident Fund Goods andServices Tax Sales tax Wealth tax Service tax Custom duty Excise duty cess and anyother statutory dues as applicable with appropriate authorities. No undisputed amountspayable in respect of aforesaid statutory dues were outstanding as on the last day of thefinancial year for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us there areno dues of Income-tax or Sales tax or Service tax or Goods and Services tax or duty ofCustoms or duty of Excise or Value added tax which have not been deposited by the Companyon account of disputes except for the following:
|Name of the Statue ||Nature of Dues ||Disputed Amount (Rs. in Lakh) ||Financial Year for which it relates ||Forum where dispute is pending |
|Income Tax Act 1961 ||Income Tax ||1.61 ||2017-18 ||CIT Appeal |
|Income Tax Act 1961 ||Income Tax ||1.01 ||2016-17 ||CIT Appeal |
|Income Tax Act 1961 ||Income Tax ||67.98 ||2015-16 ||CIT Appeal |
|Income Tax Act 1961 ||Income Tax ||18.16 ||2015-16 ||CIT Appeal |
|Income Tax Act 1961 ||Income Tax ||60.24 ||2017-18 ||CIT Appeal |
viii. There were no transactions relating to previously unrecordedincome that have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961).
ix. a) The Company has not defaulted in repayment of loans or otherborrowings or in the payment of interest thereon from any lender.
b) The Company has not been declared willful defaulter by any bank orfinancial institution or government or any government authority.
c) Term loans were applied for the purpose for which the loans wereobtained.
d) On an overall examination of the financial statements of theCompany funds raised on short-term basis have prima facie not been used during the yearfor long-term purposes by the Company.
e) On an overall examination of the financial statements of theCompany the Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries.
f) The Company has not raised any loans during the year and hencereporting on clause 3(ix)(f) of the Order is not applicable.
x. a) According to the information and explanations given to us TheCompany has not raised moneys by way of initial public offer of equity shares during theyear. In our opinion the end use of the money raised is as per the terms and conditionsstated in the offer document.
b) During the year the company has not made preferential allotment orprivate placement of shares.
xi. a) No fraud by the Company and no material fraud on the Company hasbeen noticed or reported during the year.
b) No report under sub-section (12) of section 143 of the Companies Acthas been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)Rules 2014 with the Central Government during the year and upto the date of this report.
c) We have taken into consideration the whistle blower complaintsreceived by the Company during the year if any (and upto the date of this report) whiledetermining the nature timing and extent of our audit procedures.
xii. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company. Accordingly the provisions of clause3(xii) of the Order are not applicable to the Company.
xiii. In our opinion and according to the information and explanationsgiven to us the Company is in compliance with Sections 177 and 188 of the Companies Act2013 where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the financial statements etc. asrequired by the applicable accounting standards.
xiv. a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.
b) We have considered the internal audit reports for the year underaudit issued to the Company during the year and till date in determining the naturetiming and extent of our audit procedures.
xv. In our opinion during the year the Company has not entered into anynon-cash transactions with its Directors or persons connected with its Directors and henceprovisions of section 192 of the Companies Act 2013 are not applicable to the Company.
xvi. a) In our opinion the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause3(xvi)(a) (b) and (c) of the Order is not applicable.
b) In our opinion there is no core investment company within the Group(as defined in the Core Investment Companies (Reserve Bank) Directions 2016) andaccordingly reporting under clause 3(xvi)(b) of the Order is not applicable.
xvii. The Company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors of theCompany during the year. Accordingly clause 3 (xviii) of the Order is not applicable.
xix. On the basis of the financial ratios ageing and expected dates ofrealisation of financial assets and payment of financial liabilities other informationaccompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examination of the evidence supporting the assumptionsnothing has come to our attention which causes us to believe that any materialuncertainty exists as on the date of the audit report indicating that Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the Company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the Company as and when they falldue.
xx. a) There are no unspent amounts towards Corporate SocialResponsibility (CSR) requiring a transfer to a Fund
specified in Schedule VII to the Companies Act in compliance withsecond proviso to sub-section (5) of Section 135 of the said Act. Accordingly reportingunder clause 3(xx)(a) of the Order is not applicable for the year.
b) There are no unspent amounts towards Corporate Social Responsibility(CSR) requiring a transfer to a special account in compliance with provision of subsection (6) of section 135 of the said Act. Accordingly reporting under clause 3(xx)(b)of the Order is not applicable for the year.
|For Maheshwari & Co. |
|Chartered Accountants |
|ICAI Registration No. 105834W |
|Pawan Gattani |
|Membership No. 144734 |
|UDIN: 22144734AJPKOU8569 |
|Date: May 25 2022 |
|Place: Mumbai |