To the Members of
Brilliant Portfolios Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of Brilliant Portfolios Limited,
(the company ) which comprise the Balance sheet as at March 31, 2023, and the Statement of
Profit and Loss, the Cash Flows 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
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 ( the Act ) 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, the profits, its cash flow and the changes in equity for
the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on
Auditing (SAs) specified under section 143(10) of the Act (SAs). Our responsibilities
under those Standards are further described in the Auditor s Responsibility 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 (ICAI) together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Act and the Rules made there under, and
we have fulfilled our other ethical responsibilities in accordance with these requirements
and the ICAI s 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
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. We based on
the work we have performed, determined that there are no key audit matters to communicate
in our report.
Information Other than the Financial Statements and Auditor s Report Thereon
The Company s Board of Directors are responsible for the other information. The other
information comprises the information included in the Management Discussion &
Analysis, Board s Report including annexure thereto, but does not include the financial
statements and our auditor s 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 Management & Those Charged with Governance for the Financial
Statements
The Company s Board of Directors are 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, cash flows and
changes in equity 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 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 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, management is responsible for assessing the
Company s 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 company s financial
reporting process.
Auditor s Responsibilities 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 auditor s 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 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 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 with reference to financial statements 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 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 Company s
ability to continue as a going concern. 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 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 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.
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 financial statements of the
current period and are therefore key audit matters. We describe these matters in our
auditor s 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 (Auditor s Report) Order, 2020 ( the Order ), issued by
the Central Government of India in terms of sub-section (11) of section 143 of the Act, we
give in Annexure A a statement on the matters specified in paragraphs 3 and 4 of the
Order.
2. As required by section 197(16) of the Act in our opinion and according to the
information and explanations given to us, the managerial remuneration for the year ended
31 March 2023 has been paid / provided by the Company to its directors in accordance with
the provisions of section 197 read with schedule V to the Act.
3. As required by Section 143(3) of the Act, based on our audit 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, Cash Flow Statement and
Statement of Changes in Equity dealt with by this Report are in agreement with the
relevant books of account.
d) In our opinion, the aforesaid financial statements comply with the Ind AS specified
under Section 133 of the Act.
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 our
separate Report in Annexure B to this report.
Our report expresses an unmodified opinion on the adequacy and operating effectiveness
of the Company s internal financial controls with reference to financial statements
g) With respect to the other matters to be included in the Auditor s 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 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.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
4. a) The management has represented that, to the best of its knowledge and belief, no
funds 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 persons
or entities, including foreign entities ( 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 have been received by the company from any persons or entities, including foreign
entities ( 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; and
c) Based on the audit procedures that were 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 (a) and (b) contain any material misstatement.
5. Since the Company has not declared or paid any dividend during the year, the
question of commenting on whether dividend declared or paid is in accordance with Section
123 of the Companies Act, 2013 does not arise.
6. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company with effect from April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March 31, 2023.
Annexure A to the Independent Auditors Report of even date on the financial statements
of Brilliant Portfolios Limited
The Annexure referred to in paragraph 1 under Report on Other Legal and Regulatory
Requirements section of Independent Auditors Report to the members of the Company on the
financial statements for the year ended March 31, 2023:
In terms of the information and explanations sought by us and given by the Company and
the books of account and records examined by us in the normal course of audit, and to the
best of our knowledge and belief, we report that:
i) a) (A) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment and right of use
assets including quantitative details and situation of these assets.
(B) No intangible assets are held by the Company.
b) The Company has a regular program of physical verification of Property, Plant and
Equipment which is, in our opinion, reasonable having regard to the size of the Company
and the nature of its assets. In accordance with this program, certain Property, Plant and
Equipment have been physically verified by the management during the year and no material
discrepancies have been noticed on such verification.
c) No immovable properties are owned by the Company.
d) According to the information and explanations given to us and the records examined
by us, the Company has not revalued its Property, Plant and Equipment during the year.
e) According to the information and explanations given to us, no proceedings have been
initiated or are pending against the company for holding any benami property under the
Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) and rules made
thereunder. Accordingly, the provisions of Clause 3(i) (e) of the order is no applicable.
ii) a) As explained to us, shares are held as stock in trade which is treated as
inventories and the Company has a regular program of physical verification of inventory
which is, in our opinion, reasonable having regard to the size of the Company and the
nature of its assets. In accordance with this program, inventory have been physically
verified by the management during the year and no material discrepancies have been noticed
on such verification.
b) According to the information and explanations given to us and the records examined
by us, during the year, the Company has not been sanctioned any working capital limits in
excess of five crore rupees, in aggregate at any point of time during the year, from banks
or financial institutions on the basis of security of current assets. Accordingly, the
provisions of clause 3(ii)(b) of the Order are not applicable.
iii) a) The principle business of Company is to give loans. Accordingly, the provision
of clause 3(iii)(a) of the Order are not applicable.
b) According to the information and explanations given to us and based on the audit
procedures performed by us, we are of the opinion that the terms and conditions of the
grant of all loans and advances are not prejudicial to the company s interest. The company
has not made any investments and not provided / given any guarantee and security. c)
According to the information and explanations given to us and on the basis of our
examination of the records of the Company, in the case of loans given, the repayment of
principal and payment of interest has been stipulated and the repayments or receipts have
been regular.
d) According to the information and explanations given to us and based on the audit
procedures performed by us, there is no overdue amount for more than 90 days in respect of
loans given. e) The Principle business of Company is to give loans. Accordingly, the
provision of clause 3(iii)(e) is not applicable
f) According to the information and explanations given to us and based on the audit
procedures performed by us, 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 except as follows:
(Amount in thousands)
| Particulars |
All Parties |
Promoters |
Related Parties |
| Aggregate amount of loans/ advances in nature of loans |
|
|
|
| - Repayable on Demand(A) |
2,15,000 |
|
|
| Agreement does not specify any terms or period of repayment (B) |
|
|
|
| Total (A+B) |
2,15,000 |
|
|
| Percentage of loans/advances in nature of loans to the total loans |
100% |
|
|
iv) In our opinion and according to the information and explanations given to us, the
Company had not granted any loans or provided any guarantee or security to the parties
covered under section 185 or made investment as per provisions of section 186.
Accordingly, the provisions of clause 3(iv) of the Order is not applicable.
v) The Provisions of the section 73 to 76 and any other relevant provisions of the Act
and the Companies (Acceptance of Deposits) Rules, 2014 (as amended), are not applicable to
the Company being an non-banking financial company registered with the Reserve Bank of
India ( the RBI ) and also the Company has not accepted any deposits from public or there
is no amount which has been considered as deemed depositwithin the meaning of Sections 73
to 76 of the Act. Accordingly, reporting under clause 3(v) of the Order is not applicable
to the company.
vi) On the basis of available information and explanation provided to us, the Central
Government has not prescribed maintenance of cost records under sub-section (1) of section
148 of the Companies Act, 2013 read with Companies (Cost Records and Audit) Amendment
Rules, 2014 dated December 31, 2014 (as amended from time to time) to the current
operations carried out by the Company. Accordingly, the provisions of clause 3(vi) Order
are not applicable.
vii) a) The Company is generally regular in depositing undisputed statutory dues and
other statutory dues applicable to it with the appropriate authorities. Further there were
no undisputed outstanding statutory dues as on the last day of the financial year
concerned for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, there are no dues and
other statutory dues as on 31/03/2023 on account of dispute.
viii) According to the information and explanations given to us and the records
examined by us, there are no unrecorded transactions that have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(43 of 1961). Accordingly, the provisions of clause 3(viii) of the Order are not
applicable.
ix) a) According to the information and explanations given to us, the company has not
defaulted in repayment of loans or other borrowings or in the payment of interest thereon
to any lender during the year.
b) According to the information and explanations given to us and on the basis of our
audit procedures, we report that company has not been declared a willful defaulter by any
bank or financial institution or other lender.
c) The Company has neither taken/repaid any term loans during the year covered by our
audit.
d) According to the information and explanations given to us, and the procedures
performed by us, and on an overall examination of the financial statements of the company,
we report that no funds raised on short-term basis have been used for long-term purposes
by the company.
e) The company has no subsidiaries, associates or joint ventures during the year.
Accordingly, the provisions of clause 3(ix)(e) of the Order are not applicable.
f) The company has no subsidiaries, associates or joint ventures during the year.
Accordingly, the provisions of clause 3(ix)(f) of the Order are not applicable.
x) a) In our opinion and according to the information and explanations given to us, the
Company did not raise moneys by way of initial public offer or further public offer
(including debt instruments) during the year.
Accordingly, the provisions of clause 3(x)(a) of the Order are not applicable.
b) During the year, the company has not made any preferential allotment or private
placement of shares or convertible debentures (fully, partially or optionally
convertible). Accordingly, provisions of clause 3 (x)(b) of the Order are not applicable.
xi) a) As per the information and explanations given to us and as verified by us, there
were no frauds on or by the Company which have not been noticed or reported during the
year.
b) No report under sub-section (12) of section 143 of the Companies Act has been filed
by us in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules,
2014 with the Central Government.
c) As represented to us by the management, there were no whistle blower complaints
received by the Company during the year.
xii) The Company is not a Nidhi Company. Accordingly, provisions of clause 3(xii)(a) to
(c) of the Order are not applicable.
xiii) In our opinion and according to the information and explanations given to us, all
transactions with the related parties are in compliance with Sections 177 and 188 of Act,
where applicable, and the requisite details have been disclosed in the financial
statements, as required by the applicable accounting standards.
xiv) a) According to the information and explanations given to us, the company has an
internal audit system as required under section 138 of the Act, Which is commensurate with
the size and nature of its business.
b) We have considered the reports issued by the Internal Auditors during the year for
the period up to 31st March 2023.
xv) In our opinion and according to the information and explanations given to us, the
Company has not entered into any non-cash transactions with the directors or persons
connected with them and accordingly provisions of Section 192 of the Act are not
applicable to the company.
xvi) a) The Company has obtained registration under Section 45-IA of the Reserve Bank
of India Act, 1934.
b) During the year, the company has not conducted any Non-Banking Financial activities
without a valid Certificate of Registration (CoR) from the Reserve Bank of India as per
the Reserve Bank of India Act,
1934. Further, Company has not conducted any Housing Finance activities and is not
required to obtain CoR for such activities from the RBI
c) The company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India and hence reporting under Clause 3(xvi)(c) of the Order
is not applicable to the Company.
d) The company is not part of any group and is not a Core Investment Company (CIC) as
defined in the regulations made by the Reserve Bank of India. Accordingly, provisions of
clause 3(xvi)(d) of the order are not applicable.
xvii) According to the information and explanations given to us, the Company has
neither incurred any cash losses in the financial nor in the immediately preceding
financial year.
xviii) There has been resignation of the statutory auditors during the year as per the
Guidelines for Appointment of Statutory Central Auditors (SCAs)/Statutory Auditors (SAs)
of Commercial Banks (excluding RRBs), UCBs and NBFCs (including HFCs)issued by RBI dated
27.04.2021 and based on the information and explanations given to us by the management and
the response to our communication with the outgoing auditors, there have been no issues,
objections or concerns raised by the outgoing auditor.
xix) 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, 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 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.
xx) The Company is not required to spent any expenditure by way of corporate social
responsibilities u/s 135 of the Companies Act, 2013. Accordingly the provisions of the
clause 3 (xx) (a) & (b) of the order are not applicable to the Company.
xxi) The reporting under clause (xxi) is not applicable in respect of audit of
standalone financial statements of the Company. Accordingly, no comment has been included
in respect of said clause under this report.
Annexure B to the Independent Auditors Report of even date on the financial statements
of Brilliant Portfolios Limited
(Referred to in paragraph 3(f) under the Report on Other Legal and Regulatory
Requirements section of our report of even date)
Report on the Internal Financial Controls with reference to financial statements under
Clause (i) of SubSection 3 of Section 143 of the Act
We have audited the internal financial controls with reference to financial statements
of Brilliant Portfolios Limited ( the Company ) as of March 31, 2023 in conjunction with
our audit of the financial statements of the Company for the year ended on that date.
Management s Responsibility for Internal Financial Controls
The Board of Directors of the Company are responsible for establishing and maintaining
internal financial controls with reference to financial statements based on the internal
control over financial reporting criteria established by the Company considering the
essential components of internal control stated in Guidance Note on Audit of Internal
Financial Controls over Financial Reporting issued by the Institute of Chartered
Accountants of India (the Guidance Note ). These responsibilities includes 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 Company s 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 Act.
Auditors Responsibility
Our responsibility is to express an opinion on Company s internal financial controls
with reference to financial statements 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 )issued by the ICAI and the Standards on Auditing prescribed
under Section 143(10) of the Act, to the extent applicable to an audit of internal
financial controls with reference to financial statements. Those Standards and Guidance
note require that we comply with ethical requirements and plan and perform 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 procedure to obtain audit evidence about the adequacy of
the internal financial controls with reference to financial statements and their operating
effectiveness. Our audit of internal financial controls with reference to financial
statements included obtaining an understanding of internal financial controls with
reference to financial statements, assessing the risk that a material weakness exists, and
testing and evaluating the design and operating effectiveness of internal controls based
on the assessed risk. The procedures selected depend on the auditor s judgement, 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 Company s internal financial controls with
reference to financial statements.
Meaning of Internal Financial Controls with reference to financial statements
A Company s internal financial control with reference to financial statements is a
process designed to provide a reasonable assurance regarding the reliability of financial
reporting and preparation of financial statements for external purpose in accordance with
generally accepted accounting principles. A Company s internal financial control with
reference to financial statements 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 the transactions are recorded as necessary to
permit preparation of financial statements in accordance with the generally accepted
accounting principles, and that receipts and expenditures of the Company are being made
only in accordance with authorizations of management and directors of the Company; and
3. Provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the Company s assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to financial
statements
Because of the inherent limitations of internal financial controls with reference to
financial statement, 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 control with
reference to financial statements to future periods are subject to the risk that the
internal financial control with reference to financial statements 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, to the best of our information and according to the explanations given
to us, the Company has, in all material respects, an adequate internal financial controls
with reference to financial statements and such internal financial controls with reference
to standalone financial statements were operating effectively as at March 31, 2023, based
on the criteria for internal financial control with reference to financial statements
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 ICAI.
| For Sanjeev Bhargava & Associates |
| Chartered Accountants |
| Firm Regn No.: 003724N |
| V K. Gupta |
| ( Partner) |
| M. No. 081647 |
| UDIN 23081647BGUOYX7765 |
| Place: New Delhi |
| Date: 22.05.2023 |
+91-9892691696
