TO THE MEMBERS OF BAZEL INTERNATIONAL LIMITED
Report on the Audit of the Standalone Financial Results
We have audited the accompanying standalone financial statements of M/S Bazel
International Limited (the Company), which comprise the Balance Sheet as at March
31, 2023, the Statement of Profit and Loss, including the Statement of Other Comprehensive
Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then
ended, and notes to the financial statements, including a summary of significant
accounting policies and other explanatory information (hereinafter referred to as the
“standalone financial statements”).
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Companies Act, 2013 (the Act), as amended in the manner so required and give a
true and fair view in conformity with the Indian Accounting Standards prescribed under
section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015,
as amended, (“Ind AS”) and other accounting principles generally accepted in
India, of the state of affairs of the Company as at March 31, 2023, its profit including
other comprehensive income, its cash flows and the changes in equity for the year ended on
that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditors
responsibilities for the audit of the standalone Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Ethics issued
by the Institute of Chartered Accountants of India together with the ethical requirements
that are relevant to our audit of the standalone financial statements under the provisions
of the Act and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the standalone financial statements.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Management Discussion and Analysis,
Boards Report including Annexures to Boards Report, Business Responsibility Report,
Corporate Governance and Shareholders Information, but does not include the standalone
financial statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibility of Managements for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Act with respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial performance, including
other comprehensive income, changes in equity and cash flows of the Company in accordance
with the Ind AS and other accounting principles generally accepted in India. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding of the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
implementation and maintenance of accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of
the standalone financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of directors are also responsible for overseeing the Companys financial
reporting process. Auditors Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
(a) Identify and assess the risks of material misstatement of the standalone 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.
(b) Obtain an understanding of internal 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 Company has
adequate internal financial controls system in place and the operating effectiveness of
such controls.
(c) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by Management.
(d) Conclude on the appropriateness of Managements 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 Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the 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 auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
(e) Evaluate the overall presentation, structure and content of the standalone
financial statements, including the disclosures, and whether the standalone financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the standalone financial statements
for the financial year ended March 31, 2023 and are therefore the key audit matters. We
describe these matters in our auditors report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 issued by the Central
Government of India in terms of sub-section (11) of Section 143 of the Act (hereinafter
referred to as the “Order”), and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to the information and
explanations given to us, we give in the “Annexure-I” a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept 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 the Statement of
Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity
dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on March
31, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) In our opinion, the company has, in all material respects reasonably adequate
internal financial controls system over financial reporting, keeping in view the size of
the company, and nature if its business. Such Internal financial controls over the
financial reporting were operating effectively as on March 31, 2023, based on the internal
control over financial reporting criteria established by the company considering the
essential components of internal control stated in the Guidance Note “Audit of
Internal Financial Controls Over Financial Reporting “ issued by The institute of
Chartered accountants of India.
(g) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations on its financial position in its
financial statements.
ii. According to the information and explanations provided to us, the Company did not
have any long-term contracts including derivative contracts for which there were any
material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its knowledge and belief,
no funds (which are material either individually or in the aggregate) have been advanced
or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person or entity, including foreign
entity (“Intermediaries”), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the
Company shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement.
v. As per the representation received and to the best of its knowledge and belief, the
company has not declared or paid dividend either final or interim in nature during the
year.
|
For Krishan Rakesh & Co. |
|
Chartered Accountants |
|
Firm Regn No. 009088N |
|
Sd/- |
Place : Delhi |
K.K. GuptA |
Dated : 30-05-2023 |
(Partner) |
UDIN : 23087891BGXMBH2531 |
M.No. 087891 |
ANNEXURE-I TO THE INDEPENDENT AUDITOR S REPORT
(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements
section of our report to the Members of Bazel International Limited of even date)
1. In respect of Companys Property, Plant and Equipment and Intangible Assets
a. (A) The company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment and relevant details
of right of use assets;
(B) The company has maintained proper records showing full particulars of intangible
assets.
b. As explained to us, all the property, plant and equipment have been physically
verified by the management in a phased periodical manner, which in our opinion is
reasonable, having regard to the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification;
c. According to information & explanation given to us, company does not have any
immovable property.
d. The company has not revalued any of its Property, Plant and Equipment (including
Right of Use assets);
e. Further, no proceeding has been initiated or pending against the company for holding
any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder.
2. (a) The Company has no Inventory during the year under Audit hence reporting under
clause
3(ii)(a) of the Order is not applicable.
(b) The company has not been sanctioned working capital limits in excess of 5 crore
rupees during any point of time of the year, from banks or financial institutions on the
basis of security of current assets and hence reporting under clause 3(ii)(b) of the Order
is not applicable.
3. The Company has made investments in, companies, firms, Limited Liability
Partnerships, and granted unsecured loans to other parties, during the year, in respect of
which:
a. The principal business activity of the company is to give loans therefore reporting
under clause 3(iii)(a) of the Order is not applicable.
b. In our opinion, the investments made and the terms and conditions of the grant of
loans, during the year are, prima facie, not prejudicial to the Companys interest.
c. In respect of loans granted by the Company, the schedule of repayment of principal
and payment of interest has been stipulated and the repayments of principal amounts and
receipts of interest are generally been regular as per stipulation.In respect of loans
granted by the Company, the overdue amount remaining outstanding as at the balance sheet
date are as follows:
Total Overdue amount for more than 90 days : 33,16,227/-
According to the information and explanations given to us the company reasonable steps
have been taken by the company for recovery of the principal and interest as mentioned
above.
d. The principal business activity of the company is to give loans therefore reporting
under clause 3(iii)(e) of the Order is not applicable.
e. The Company has not granted any loans or advances in the nature of loans either
repayable on demand or without specifying any terms or period of repayment during the
year. Hence, reporting under clause 3(iii)(f) is not applicable.
4. According to the information and explanations given to us, the company has complied
with section 185 and 186, wherever applicable, of the Companies Act, 2013.
5. According to the information and explanations given to us the company has not
accepted any deposits, in terms of the directives issued by the Reserve Bank of India and
the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act
and the rules framed there under. Hence, reporting under clause 3(v) of the Order is not
applicable.
6. The maintenance of cost records has not been specified by the Central Government
under subsection (1) of section 148 of the Companies Act, 2013 for the business activities
carried out by the Company. Hence, reporting under clause (vi) of the Order is not
applicable to the Company.
7. In respect of the statutory and other dues:
a. As per information and explanations given to us, the company is regular in
depositing undisputed statutory dues including Goods and Services T ax, provident fund,
employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of
excise, value added tax, cess and any other statutory dues with the appropriate
authorities. There are no outstanding statutory dues as at the last day of the financial
year under audit for a period of more than six months from the date they became payable.
b. We, according to information and explanations given to us, there are no any dues
referred to in sub-clause (a) have not been deposited on account of any dispute.
8. According to information and explanations given to us, there were no unrecorded
transactions in the books of account which have to be surrendered or disclosed as income
during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961),
9. Based on our audit procedure and on the basis of information and explanation given
to us by the management we are of the opinion that:
(a) The company has not defaulted in repayment of loans or other borrowings or in the
payment of interest thereon to any lender,
(b) The company has not been declared as willful defaulter by any bank or financial
institution or government and any government authority;
(c) As explained to us, term loans obtained during the year were applied for the
purpose for which that were obtained by the company
(d) The company has not raised funds on short term and hence, reporting under clause
3(ix)(d) of the Order is not applicable.
(e) On an overall examination of the financial statements of the Company, the Company
has not taken any funds from any entity or person on account of or to meet the obligations
of its subsidiaries.
(f) The company has not raised loans during the year and hence reporting on clause
3(ix)(f) of the Order is not applicable
10. (a) The Company has not raised moneys by way of initial public offer or further
public offer
(including debt instruments) during the year and hence reporting under clause 3(x)(a)
of the Order is not applicable.
(b) During the year, the Company has made allotment of 71,07,503 number of Redeemable
Preference Shares for the fund to be raised for the amount of Rs. 7,10,75,030.00/-. The
requirements of
section 42 and section 62 of the Companies Act, 2013 have been complied with and the
funds
raised have been used for the purposes for which the funds were raised.
11. (a) Based upon the audit procedures performed and information and explanations
given by the management, we report that, no fraud by the company or fraud on the company
has been noticed/reported during the course of our audit for the year ended March 31,
2023.
(b) No report under sub-section (12) of section 143 of the Companies Act is required to
be filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and
Auditors) Rules, 2014 with the Central Government.
(c) According the information and explanation given to us no whistle-blower complaints
have been received during the year.
12. The provisions of clause (xii) of the order are not applicable as the company is
not a Nidhi Company as specified in the clause.
13. According to information and explanations given to us and on the basis of our
examination of records of the company, all transactions with the related parties are in
compliance with section 177 and 188 of the Act, where applicable and the details have been
disclosed in the standalone financial statements as required by the applicable accounting
standards.
14. (a) The company has an adequate internal audit system commensurate with the size
and
nature of its business;
(b) The report of the internal auditor for the period under audit has duly been
considered by the
Statutory Auditors.
15. According to information and explanation given to us the company has issued Sweat
Equity Shares to Managing Director (Non-promoter) and the provisions of section 192 of the
Companies Act, 2013 applicable to the Company have been complied with.
16. (a) According to the information and explanations given to us, In view of its
business activities, the company has obtained registration under section 45IA of Reserve
Bank of India Act, 1934.
(b) According to the information and explanations given to us, there is no core
investment company within the Group (as defined in the Core Investment Companies (Reserve
Bank) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is
not applicable.
17. The company has not incurred cash losses during the current financial year and
previous financial year accordingly reporting under clause 3(xvii) of the Order is not
applicable.
18. There is no resignation of statutory auditors received during the year.
19. On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that Company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date. We, however, state that this is not an assurance as to
the future viability of the Company. We further state that our reporting is based on the
facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the Company as and when they fall due.
20. (a) The provision sub-section (5) of section 135 of the Act is not applicable to
company, therefore the company is not required to transfer any amount to the fund
specified in section 135 of the Act.
(b) No Such amount is required to be transfer to special account in compliance of the
provision go sub-section (6) of section 135 of the Act.
|
For Krishan Rakesh & Co. |
|
Chartered Accountants |
|
Firm Regn No. 009088N |
|
Sd/- |
Place : Delhi |
K.K. Gupta |
Dated : 30-05-2023 |
(Partner) |
UDIN : 23087891BGXMBH2531 |
M.No. 087891 |
+91-9892691696
