Standalone Ind AS Financial Statements for the year ended 31st March 2021
To the Members of GCM Commodity & Derivatives Limited Report on the Audit of theStandalone Ind AS Financial Statements Opinion
We have audited the accompanying financial statements of GCM COMMODITY &DERIVATIVES LIMITED (CIN L74999WB2005PLC102819) (the Company) which comprisethe Balance Sheet as at March 31 2021 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 ouropinion and to the best of our information and according to the explanations given to usthe aforesaid financial statements give the information required by the Companies Act2013 (the Act) in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards prescribed under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended (IndAS) and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 the profit and total comprehensive profitchanges in equity and its cash flows for the year ended on that date.
Basis for opinion
We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Companies Act 2013. Ourresponsibilities 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.
Emphasis of Matter
We draw attention to Note 32 to the accompanying financial statements which describemanagement's assessment of uncertainty relating to the effects of the COVID-19 pandemic onthe Company's operations. Due to COVID-19 pandemic and the lockdown and other restrictionsimposed by the Government and local administration the audit processes were carried outbased on the necessary records made available by the Management through digital medium.Our opinion is not modified in respect of this matter.
Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in Board's Report including Annexures toBoard's Report Shareholder's Information but does not include the financial statementsand our auditor's report thereon. Our opinion on the financial statements does not coverthe other information and we do not express any form of assurance conclusion thereon. Inconnection with our audit of the financial statements our responsibility is to read theother information and in doing so consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained during the course ofour audit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information; weare required to report that fact. We have 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 stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of financial position financial performance including othercomprehensive income changes in equity and cash flows of the Company in accordance withthe 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 thatgive a true and fair view and are free from material misstatement whether due to fraud orerror. 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 theCompany's financial reporting process.
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.Based on the circumstances and facts of the audit and entity there aren't key auditmatters to be communicated in our report.
Auditor's Responsibilities for the Audit of the Standalone 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 weexercise professional judgment and maintain professional scepticism throughout the audit.We also:
Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control. Obtain anunderstanding of internal financial controls relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch 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 going concern basis ofaccounting 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern. Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements. We communicate with those chargedwith governance regarding among other matters the planned scope and timing of the auditand significant audit findings including any significant deficiencies in internal controlthat we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication
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 Act we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act based on our audit we report that : a) Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit. b) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books. c) The Balance Sheet the Statement of Profitand Loss including Other Comprehensive Income Statement of Changes in Equity and theStatement of Cash Flow dealt with by this Report are in agreement with the relevant booksof account. d) In our opinion the aforesaid standalone financial statements comply withthe 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 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164 (2) of the Act. f) With respect to the adequacy of the internal financialcontrols over financial reporting of the Company with reference to these standalone Ind ASfinancial statements and the operating effectiveness of such controls refer to ourseparate Report in Annexure B to this report; g) With respect to the othermatters to be included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 as amended in our opinion and to the best of ourinformation and according to the explanations given to us: i. The Company does not haveany pending litigation which would impact its financial position in its financialstatements ii. The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses under the applicable law oraccounting standards; iii. There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company.
For Maheshwari & Co.
ICAI Registration No. 105834W
Membership No. 144734
Date: June 17 2021
Annexure A to the Independent Auditors' Report
(Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' section of our report to the Members of GCM Commodity & DerivativesLimited of even date)
i. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. Fixed assets have been verified by themanagement in accordance with a phased program of verification which in our opinion isreasonable having regard to the size of the Company and the nature of its assets thoughall the assets were not verified by the management during the year. No materialdiscrepancies were noticed on such verification. According to information and explanationsgiven to us and on the basis of our examination of the records of the company title deedsof immovable properties are held in the name of the Company. ii. The Company is primarilyengaged in Derivatives Broking and Securities Trading and Investing activities.
Accordingly it does not hold any physical inventories. Thus paragraph 4(ii) of theorder is not applicable to the company. iii. The Company has not granted any loanssecured or unsecured to companies firms or other parties covered in the registermaintained under section 189 of the Companies Act 2013 (the Act'). Therefore theprovisions of Clause 3(iii) (iii)(a) and (iii)(b) of the said Order are not applicable tothe Company. iv. According to information and explanations given to us the Company hasgranted of secured or unsecured loan or provided any guarantee or security as perprovisions of Section 185 of the Act 2013. The Company has complied with the provisions ofSection 186 of the Act with regard to the investments made during the year. v. Accordingto the information and explanations given to us the Company has not accepted any depositswithin the meaning of Sections 73 to 76 or any other relevant provisions of the CompaniesAct and the rules framed thereunder during the year. Accordingly the provisions of clause(v) of paragraph 3 of the Order are not applicable to the Company. vi. In our opinion andaccording to the information and explanations given to us the requirement for maintenanceof cost records specified by the Central Government under Section 148(1) of the CompaniesAct are not applicable to the Company during the year. vii. According to the informationand explanations given to us in respect of statutory and other dues: a) According to therecords of the Company the company has been regular in depositing undisputed statutorydues including Provident Fund Goods and Services Tax Sales tax Wealth tax Service taxCustom duty Excise duty cess and any other statutory dues as applicable withappropriate authorities. No undisputed amounts payable in respect of aforesaid statutorydues were outstanding as on the last day of the financial year for a period of more thansix months from the date they became payable. b) According to the information andexplanations given to us there are no dues of Income-tax or Sales tax or Service tax orGoods and Services tax or duty of Customs or duty of Excise or Value added taxes whichhave not been deposited by the Company on account of disputes. viii. According to theinformation and explanations given to us and on the basis of records examined by us thecompany has not defaulted in repayment if dues to financial institutions banks. ix.According to the information and explanations given to us the Company has not raisedmoneys by way of initial public offer or further public offer (including debt instruments)and the term loans during the year. x. According to the information and explanation givento us we have neither come across any instances of fraud by the Company or any fraud onthe Company by its officers or employees have been noticed or reported during the yearnor have we been informed of any such cases by the management. xi. In our opinion andaccording to the information and explanations given to us provisions of Section 197 readwith Schedule V to the Companies Act 2013 are not applicable to private limited company.Accordingly the provisions of clause 3(xi) of the Order are not applicable to theCompany. xii. In our opinion and according to the information and explanations given tous the Company is not a Nidhi Company. Accordingly the provisions of clause 3(xii) ofthe Order are not applicable to the Company. xiii. In our opinion and according to theinformation and explanations given to us the Company is in compliance with Sections 177and 188 of the Companies Act 2013 where applicable for all transactions with therelated parties and the details of related party transactions have been disclosed in thefinancial statements etc. as required by the applicable accounting standards. xiv.According to the information and explanations given to us and based on our examination ofthe records of the Company the Company has not made preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year. xv.According to the information and explanations given to us the Company has not enteredinto any non-cash transactions with directors or persons connected with him during theyear. xvi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company is no required to be registeredunder Section 45-IA of the Reserve Bank of India Act 1934.
For Maheshwari & Co.
ICAI Registration No. 105834W
Membership No. 144734
Date: June 17 2021
Annexure B to the Independent Auditors' Report
(Referred to in paragraph 2(f) under Report on Other Legal and RegulatoryRequirements' section of our report to the Members of GCM Commodity & DerivativesLimited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (the Act)
We have audited the internal financial controls over financial reporting of GCMCommodity & Derivatives Limited (the Company) as of March 31 2021 inconjunction with our audit of the standalone financial statements of the Company for theyear 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 the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (theGuidance Note) issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the 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 and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls with reference to Standalone Ind AS financialstatements
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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 to Standalone Ind ASfinancial statements
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 to the best of our information and according to explanation given tous the Company has maintained in all material respects adequate internal financialcontrols over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
For Maheshwari & Co.
ICAI Registration No. 105834W
Membership No. 144734
Date: June 17 2021