To the Members of Bharat Bhushan Finance & Commodity Brokers Limited Report on the
Audit of the Financial Statements Opinion
We have audited the accompanying Financial Statements of Bharat Bhushan Finance
& Commodity Brokers Limited ("the Company"), which comprise the balance
sheet as at 31st March 2023, the statement of profit and loss (including other
comprehensive income), statement of cash flows and the statement of changes in equity for
the year then ended, and notes to the Financial Statements, including a summary of the
significant accounting policies and other explanatory information
(hereinafter referred to as "the Financial Statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Financial Statements give the information required by the
Companies Act, 2013, as amended (the "Act") in the manner so required and give a
true and fair view in conformity with the accounting principles generally accepted in
India, of the state of affairs of the Company as at 31st March 2023, its profit
including other comprehensive income, its cash flows and changes in equity for the year
ended on that date.
Basis of Opinion
We conducted our audit of the Financial Statements in accordance with the Standards on
Auditing (SAs), as specified under section
143(10) of the Act. Our responsibilities under those SAs are further described in the
Auditors Responsibilities for the Audit of the 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 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 Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion
on the Financial Statements.
Key Audit Matters
We have determined that there are no key audit matter to communicate in our report.
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 Directors report to be included in the Companys Annual report,
but does not include the 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.
Managements Responsibility for the 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 Financial
Statements that give a true and fair view of the financial position, financial
performance including other comprehensive income, cash flows and changes in equity of the
Company in accordance with the accounting principles generally accepted in India,
including the Indian Accounting
Standards (Ind AS) specified under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 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 accuracy and completeness of the accounting records, relevant to
the preparation and presentation of the Financial Statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error. In preparing
the Financial Statements, the 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 the Board of
Directors either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so. Those 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 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 financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also: ? Identify and
assess the risks of material misstatement of the financialstatements, 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 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
financialcontrols 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 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. ? Evaluate the overall presentation,
structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements We consider quantitative
materiality and qualitative maybeinfluenced. factors in (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 financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings,
includinganysignificantdeficiencies 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 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 ("the Order")
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act, 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 ‘A a statement on the matters specified in the paragraph
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 other comprehensive
income), the Cash Flow Statementand the statement of changes in equity dealt with by this
Report are in agreement with the books of account; (d) In our opinion, the aforesaid
financial statements comply with the Indian Accounting Standards (Ind AS) 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) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to Annexure
‘B. Our report expresses an unmodified opinion on the adequacy and operating
effectiveness of the Companys internal financial controls over financial reporting.
(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 did not have any pending litigations which would impact its financial position ii.
The Company did not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses during the year ended 31st March, 2023 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") the like on behalf of theUltimateBeneficiaries;
(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 to or in any other person or entity, including foreign entity ("Funding
Parties"), 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 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. The Board of Directors of the Company
have proposed final dividend for the year which is subject to the approval of the members
at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance
with section 123 of the Act, as applicable. vi. Proviso to rule 3(1) of the Companies
(Accounts) Rules, 2014 for maintaining books of accounts using accounting software which
has a feature of recording audit trail (edit log) facility is applicable to the company
with effect from 01.04.2023, and accordingly, reporting under Rule 11(g) of Companies
(Audit and Auditors) Rules, 2014 is not applicable for the financial year ended 31st
March, 2023.
(h) With respect to the matter to be included in the Auditors Report under section
197(16):
The Company has not paid any managerial remuneration for the year ended 31st March,
2023 to its directors.
For G C AGARWAL & ASSOCIATeS Chartered Accountants Firm Registration No.: 017851N
Sd/-PLACe : New Delhi (G C AGARWAL) DATeD : 24.05.2023 Partner UDIN: 23083820BGYOLe3883
(Membership No. 083820)
Annexure – A to the Auditors Report
The annxexure referred to in Independent Auditors Report to the members of Bharat
Bhushan Finance & Commodity Brokers Limited provideanyguarantee,security on the
financial statements for the year ended on 31st March, 2023, We Report
that: 1. a. (A) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of Property, Plant and Equipment. The Company
does not have any right of use assets.
(B) The company does not have intangible assets. b. As explained to us, the management
during the year has physically verified the Property, Plant and Equipment 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. The Company does not have any immovable property. d. The Company has not
revalued any of its Property, Plant and Equipment during the year. e. There are no
proceedings initiated or are pending against the Company for holding any Benami property
under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
2. a. As explained to us, inventories (Investments) have been physically verified by
the management at reasonable intervals during the year. As explained to us the
discrepancies noticed on physical verification of inventory as compared to the book
records were not material. b. No working capital limit has been sanctioned and availed by
the Company. Hence, the reporting requirement of para 3(ii) (b) of the order is not
applicable to the Company.
3. a. Since the principal business of the Company is to give loans, the reporting
requirement of para 3(iii)(a) is not applicable. b. During the year the investments made
are not prejudicial to the Companys interest. During the year, the Company has not given
any loan or not provided any guarantee. c. The company has not provided any loans or
advances in the nature of loans or advances during the year. Accordingly, the requirement
to report on clause 3(iii)(c)& 3(iii)(d) of the Order are not applicable to the
Company. d. Since the principle business of the Company is to give loans, the reporting
requirement of para 3(iii)(e) 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 to companies, firms, Limited Liability Partnerships or any
other parties.
Accordingly, the requirement to report on clause 3(iii)(f) of the Order is not
applicable to the Company.
4. In our opinion and according to the information and explanations given to us, the
company has complied with the provision of section
185 and 186 of the Act, with respect to the investment made, to the extent applicable
to the Company. As per the information and explanation given to us, the Company has not
given any loan nor given any guarantee or provided any security in connection with a loan
to any other body corporate or person.
5. The Company has neither accepted any deposits from the public nor accepted any
amount which are deemed to be deposits within the meaning of Sections 73 to 76 of the Act
and the rules made thereunder, to the extent applicable. Accordingly, the requirement to
report on clause 3(v) of the Order is not applicable to the Company.
6. The nature of the companys business/activities is such that maintenance of Cost
Records under section 148(1) of the Companies Act, 2013 is not applicable to the company.
7. a. According to the records of the Company, undisputed statutory dues including
Goods and Service Tax, Provident Fund, Employees State Insurance, Income Tax,Customs
Duty, Excise Duty, Value added tax, Cess and other statutory dues to the extent and as
applicable to the company have been generally regularly deposited by the company during
the year with the appropriate authorities. However, there are some delays in few cases and
also non deposit of advance tax instalments.According to the information andin Form ADT-4
as explanations given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at 31st March, 2023 for a period of more than six
months from the date of becoming payable. b. According to the records of the Company,
there are no disputed statutory dues that have not been deposited on account of matters
pending before appropriate authorities.
8. According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not surrendered or disclosed
any transactions, previously unrecorded as income in the books of account, in the tax
assessments under the Income-tax Act, 1961 as income during the year. Hence, the para
3(viii) of the order is not applicable to the Company. 9. a) The company has not taken any
loan or other borrowings from any lender. Hence, the para 3(ix)(a) of the order is not
applicable to the Company. b) The Company has not been declared wilful defaulter by any
bank or financial institution or government or any government authority. c) The Company
has not taken any term loan during the year and there are no outstanding term loans at the
beginning of the year. Hence, reporting under clause 3(ix)(c) of the Order is not
applicable to the Company. d) The Company has not raised any loans on short-term basis
have been used for long-term purposes by the Company. e) The Company does not have any
subsidiary, associate or joint ventures. Hence, reporting under clause 3(ix)(e) of the
Order is not applicable to the Company. f) On the basis of books and records examined by
us and as explained to us, the Company has not raised any loan during the year. Hence,
reporting under clause 3(ix)(f) of the Order is not applicable to the Company.
10. a) The Company has not raised any money by way of initial public offer or further
public offer (including debt instruments). Hence, the para 3(x)(a) of the order is not
applicable to the Company. b) According to the information and explanations given to us
and based on our examination of the records of the Company, the Company has not made any
preferential allotment or private placement of shares or fully or convertible debentures
(fully, partly or optionally convertible) during the year. Accordingly, provisions of
clause 3 (x)(b) of the Order is not applicable to the Company. 11. a) In our opinion and
according to the information and explanation given to us, no fraud by the company or on
the Company has been noticed or reported during the course of our audit. b) During the
year no report under sub-section 12 of section
143 of the Act has been filed under Rule 13 of Companies (Audit and Auditors) Rules,
2014 with the Central Government. c) According to the information and explanations given
to us, there were no whistle blower complaints received during the year by the Company.
12. In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the order is not
applicable.
13. According to the information and explanations given to us and based on or
examinations of the records of the Company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act where applicable and details of such
transaction have been disclosed in the financial as required by the applicable accounting
standards. 14. a) In our opinion the company has an adequate internal audit system
commensurate with the size and the nature of its business. b) We have considered, the
internal audit reports for the year under audit, issued to the company during the year and
till date, in determining the nature, timing and extent of our audit procedures.
15. According to the information and explanations given to us and based on our
examination of the record of the Company, the Company has not entered into non-cash
transactions with directors or persons connected with its director. Accordingly, paragraph
3(xv) of the order is not applicable.
16. a) The Company is required to be registered under section 45-IA of the Reserve bank
of India Act, 1934 and such registration has been obtained by the Company. b) The Company
has not conducted any Non-Banking Financial activities without obtaining Certificateof registrationvalid
from the Reserve Bank of India as per the Reserve Bank of India Act, 1934.] c) The Company
is not a Core Investment Company as defined in the regulations made by Reserve Bank of
India.
Accordingly, the requirement to report on clause 3(xvi)(c) of the Order is not
applicable to theCompany. d) There is no Core Investment Company as a part of the Group.
Accordingly, the requirement to report on clause 3(xvi)(d) of the Order is not applicable
to the Company.
17. The Company has not incurred cash losses in the current year and the
immediatelyprecedingfinancialyear.
18. There has been no resignation of the statutory auditor during the year. Hence, the
reporting para 3(xviii) of the order is not applicable to the Company.
19. According to the information and explanations given to us and 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, the our
knowledge of the Board of Directors and Management plans and based on our examination of
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 to 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 and when they fall due. statements 20. The Company is not required to spend
any amount under sub section 5 of Section 135 of the Act. Accordingly, the reporting para
3(xx) of the order is not applicable to the Company.
For G C AGARWAL & ASSOCIATeS Chartered Accountants Firm Registration No.: 017851N
Sd/-PLACe : New Delhi (G C AGARWAL) DATeD : 24.05.2023 Partner UDIN: 23083820BGYOLe3883
(Membership No. 083820)
Annexure – B to the Auditors Report
Report on the Internal Financial Control under clause (i) of sub section 3 of section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial of Bharat Bhushan
Finance & Commodity Brokers Limited ("the Company") as of 31st
March 2023 in conjunction with our audit of the financial statements of the Company for
the year ended on that date
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls 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 on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (‘ICAI). These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to companys policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies
Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, controls, both tothe
extent applicable to an audit of internal financial applicable to an audit of Internal
Financial Controls and, both issued by the Institute of Chartered Accountants of India.
Those Standards and the Guidance Note require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financialreporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks 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 to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles.
A companys internal financial control over financial reporting includes those policies
and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorisations of management and directors of the company; and (3)
provide reasonable assurance regarding prevention or timely detection of unauthorised
acquisition, use, or disposition of the companys assets that could have a material effect
on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31st March 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 on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India.
For G C AGARWAL & ASSOCIATeS
Chartered Accountants
Firm Registration No.: 017851N Sd/-
PLACe : New Delhi
(G C AGARWAL)
DATeD : 24.05.2023 Partner
UDIN: 23083820BGYOLe3883
(Membership No. 083820)
CIN: L67120DL1992PLC049038
+91-9892691696
