Report on the Consolidated Financial Statements
To The Members of Globus Spirits Limited
Report on the Audit of the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements ofGlobus Spirits Limited ("the Parent"/ "the Holding Company") and itssubsidiaries (the Parent/ Holding Company and its subsidiaries together referred to as"the Group") which comprise the Consolidated Balance Sheet as at 31stMarch 2020 and the Consolidated Statement of Profit and Loss (including OtherComprehensive Income) the Consolidated Statement of Cash Flows and the ConsolidatedStatement of Changes in Equity for the year then ended and a summary of significantaccounting policies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid consolidated financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended (find AS') and other accounting principles generallyaccepted in India of the consolidated state of affairs of the Group as at 31 March 2020and their consolidated profit their consolidated total comprehensive income theirconsolidated cash flows and their consolidated changes in equity for the year ended onthat date.
Basis for Opinion
We conducted our audit of the consolidated financial statements inaccordance with the Standards on Auditing specified under section 143 (10) of the Act(SAs). Our responsibilities under those Standards are further described in the Auditor'sResponsibility for the Audit of the Consolidated Financial Statements section of ourreport. We are independent of the Group in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the consolidated financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the consolidated financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the consolidated financial statements of thecurrent period. We have determined that there are no key audit matters to be communicatedin our report.
Information Other than the Financial Statements and Auditor's ReportThereon
The Parent's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report andShareholder's Information but does not include the consolidated financial statementsstandalone financial statements and our auditor's report thereon.
Our opinion on the consolidated financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the consolidated financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.
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 Consolidated Financial Statements
The Parent's Board of Directors is responsible for
the matters stated in section 134(5) of the Act with respect to thepreparation of these consolidated financial statements that give a true and fair view ofthe consolidated financial position consolidated financial performance including othercomprehensive income consolidated cash flows and consolidated changes in equity of theGroup in accordance with the Ind AS and other accounting principles generally accepted inIndia. The respective Board of Directors of the companies included in the Group areresponsible for maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding the assets of the Group and for preventing anddetecting 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 which have been used for the purpose of preparation of the consolidated financialstatements by the Directors of the Parent as aforesaid.
In preparing the consolidated financial statements the respectiveBoard of Directors of the companies included in the Group are responsible for assessingthe ability of the respective entities to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless the respective Board of Directors either intends to liquidate theirrespective entities or to cease operations or has no realistic alternative but to do so.
The respective Board of Directors of the companies included in theGroup are also responsible for overseeing the financial reporting process of the Group.
Auditor's Responsibility for the Audit of the Consolidated FinancialStatements
Our objectives are to obtain reasonable assurance about whether theconsolidated financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these consolidated 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 the consolidated financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control. |
| ||Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether the Parent has adequate internal financial controls system in place and the operating effectiveness of such controls. |
| ||Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management. |
| ||Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the consolidated 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's report. However future events or conditions may cause the Group and its associates and jointly controlled entities/ joint ventures to cease to continue as a going concern. |
| ||Evaluate the overall presentation structure and content of the consolidated financial statements including the disclosures and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
| ||Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction supervision and performance of the audit of the financial statements of such entities included in the consolidated financial statements of which we are the independent auditors. |
Materiality is the magnitude of misstatements in the consolidatedfinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the consolidated financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the consolidated financialstatements.
We communicate with those charged with governance of the Parent andsuch other entities included in the consolidated financial statements of which we are theindependent auditors regarding among other matters the planned scope and timing of theaudit and significant audit findings including any significant deficiencies in internalcontrol that we identify during our audit.
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 consolidatedfinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Due to COVID-19 related lockdown we were not able to attend theManagement's year end physical verification of inventory. Consequently we have performedalternate procedures to audit the existence of inventory as per the guidance provided inSA 501 "Audit Evidence- Specific Consideration for Selected Items" and haveobtained sufficient appropriate audit evidence to issue our opinion on these ConsolidatedFinancial Results.
Our opinion on the consolidated financial statements is not modified inrespect of the above matter.
Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act based on our audit we reportto the extent applicable 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 our auditof the aforesaid consolidated financial statements.
b) In our opinion proper books of account as required by law relatingto preparation of the aforesaid consolidated financial statements have been kept so far asit appears from our examination of those books returns and the reports of the otherauditors.
c) The Consolidated Balance Sheet the Consolidated Statement of Profitand Loss including Other Comprehensive Income the Consolidated Statement of Cash Flowsand the Consolidated Statement of Changes in Equity dealt with by this Report are inagreement with the relevant books of account maintained for the purpose of preparation ofthe consolidated financial statements.
d) In our opinion the aforesaid consolidated financial statementscomply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from thedirectors of the Parent as on 31st March 2020 taken on record by the Board of Directorsof the Company none of the directors of the Group companies is disqualified as on 31stMarch 2020 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls overfinancial reporting and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A" which is based on the auditors' reports of theParent and subsidiary company incorporated in India. Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of internal financial controls overfinancial reporting for the reasons stated therein.
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 Parent 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 consolidated financial statements disclose the impact of pendinglitigations on the consolidated financial position of the Group. Refer Note 33 to theconsolidated financial statements.
ii) The Group did not have any material foreseeable losses on long-termcontracts including derivative contracts. Refer Note 41 (c) to the consolidated financialstatements.
iii) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Parent and there were noamounts which were to be transferred to the Investor Education and Protection Fund by itssubsidiary company incorporated in India. Refer Note 33 to the consolidated financialstatements.
| ||For Deloitte Haskins & Sells Chartered Accountants (Firm's Registration No. 015125N) |
|Place: New Delhi Date: 16 June 2020 ||Rajesh Kumar Agarwal (Partner) (Membership No. 105546) UDIN: 20105546AAAAABI1748 |
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1(f) under 'Report on Other Legal andRegulatory Requirements' section of our report 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")
In conjunction with our audit of the consolidated financial statementsof the Company as of and for the year ended March 31 2020 we have audited the internalfinancial controls over financial reporting of Globus Spirits Limited (hereinafterreferred to as "the Parent") and its subsidiary companies as of that date.
Management's Responsibility for Internal Financial Controls
The respective Board of Directors of the Parent and its subsidiarycompany are responsible for establishing and maintaining internal financial controls basedon the internal control over financial reporting criteria established by the respectivecompanies considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India (ICAI). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the respective company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the internal financialcontrols over financial reporting of the Parent and its subsidiary company which arecompanies incorporated in India 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the 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.
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 judgement 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 internal financial controlssystem over financial reporting of the Parent and its subsidiary company which arecompanies incorporated in India.
Meaning of Internal Financial Controls Over Financial Reporting
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 Over FinancialReporting
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 to theexplanations given to us the Parent and its subsidiary company which are companiesincorporated in India have in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2020 based on the criteriafor internal financial control over financial reporting established by the respectivecompanies considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.
| ||For Deloitte Haskins & Sells |
| ||Chartered Accountants |
| ||(Firm's Registration No. 015125N) |
| ||Rajesh Kumar Agarwal |
| ||(Partner) |
|Place: New Delhi ||(Membership No. 105546) |
|Date: 16 June 2020 ||UDIN: 20105546AAAAABI1748 |