TO THE MEMBERS OF ENBEE TRADE AND FINANCE LIMITED
Opinion
We have audited the accompanying Standalone Financial Statements of Enbee Trade and
Finance Limited ("the Company"), which comprise the standalone Balance Sheet as
at 31st March 2023, and the standalone Statement of Profit and Loss (including other
comprehensive income), standalone Statement of Changes in Equity and standalone statement
of Cash Flows for the year then ended, and notes to the Standalone Financial Statements,
including a summary of the 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") 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 a s at 31st March 2023, and profit and other
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
We conducted our audit of this Interim Standalone Financial Statement in accordance
with the Standards on Auditing ("SAs") 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 Interim Standalone Financial Statement 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
independence requirements that are relevant to our audit of the Interim Standalone
Financial Statement 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 obtained by us is sufficient and
appropriate to provide a basis for our audit opinion.
Key audit matters
We have determined that there are no key audit matters to be communicated in our
report.
Information Other than the Standalone Financial Statements and Auditors Report Thereon
The Companys management and Board of Directors are responsible for the other
information. The other information comprises the information included in the Companys
annual report, but does not include the financial statements and our auditors report
thereon. The other information is expected to be made available to us after the date of
this auditors report.
Our opinion on the Standalone 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 Standalone Financial Statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the Standalone Financial Statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
Managements and Board of Directors Responsibility for the Standalone Financial
Statements
The Companys management and Board of Directors are 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 state of affairs, profit/loss and other
comprehensive income, changes in equity and cash flows 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. 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 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, the Management and Board of Directors
are 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.
Board of Directors is also responsible for overseeing the Companys financial reporting
process.
Auditors Responsibilities for the Audit of the Standalone 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 scepticism throughout the audit. We also:
Auditors Responsibilities for the Audit of the Standalone Financial Statements
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.
• 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 in the standalone financial statements
made by the Management and Board of Directors.
• Conclude on the appropriateness of the Management and Board of Directors 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 Standalone 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 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.
Report on Other Legal and Regulatory Requirements
A. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government in terms of section 143(11) of the Act, we give in the
"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.
B. 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 standalone balance sheet, the standalone statement of profit and loss (including
other comprehensive income), the standalone statement of changes in equity and the
standalone statement of cash flows 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 Ind AS
specified under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st
March 2023 taken on record by the Board of Directors, none of the directors are
disqualified as on 31st March 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 with reference to
financial statements of the Company and the operating effectiveness of such controls,
refer to our separate Report in "Annexure B".
C. 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 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.
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. The company has not declared or paid dividend during the year.
vi. 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 AUDITORS REPORT
(Annexure referred to in paragraph 1 under the heading of "report on other Legal
and Regulatory Requirements" of our report of even date to the members of Enbee Trade
and Finance Limited on the accounts for the year ended 31st March, 2023)
i. In respect of the 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.
B. According to the information and explanations given to us and the records of the
Company examined by us, the Company does not have any Intangible assets and accordingly,
reporting under this Clause is not applicable.
b. The Property, Plant and Equipment are physically verified by the Management
according to a phased programme designed to cover all the items over a period of three
years which, in our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. Pursuant to the programme, a portion of the Property, Plant and
Equipment has been physically verified by the Management during the year and no material
discrepancies have been noticed on such verification.
c. According to the information and explanations given to us and the records of the
Company examined by us, the Company does not own any immovable properties (Refer Note 6 to
the financial statements). Therefore, the provisions of clause 3(i)(c) of the Order are
not applicable to the Company.
d. The Company has not revalued its Property, Plant and Equipment during the year.
Consequently, the question of our commenting on whether the revaluation is based on the
valuation by a Registered Valuer, or specifying the amount of change, if the change is 10%
or more in the aggregate of the net carrying value of each class of Property, Plant and
Equipment or intangible assets does not arise.
e. Based on the information and explanations furnished to us, no proceedings have been
initiated on the Company for holding benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder, and therefore the question
of our commenting on whether the Company has appropriately disclosed the details in its
financial statements does not arise.
ii. In respect of Companys Inventories:
a. The Company is in the business of rendering services and, consequently, does not
hold any inventory. Therefore, the provisions of clause 3(ii) of the Order are not
applicable to the Company.
b. During the year, the Company has not been sanctioned working capital limits in
excess of Rs. 5 crores, in aggregate from banks and financial institutions and
accordingly, the question of our commenting on whether the quarterly returns or statements
are in agreement with the unaudited books of account of the Company does not arise.
iii. During the year, the Company has not made investments or provided any guarantee or
security to any other entity during the year.
a. Companys principal business is to give loans. Therefore, the provisions of clause
3(iii)(a) of the Order are not applicable to the Company.
b. In respect of the aforesaid loans in nature of the loan, the terms and conditions
under which such loans were granted are not prejudicial to the Companys interest. The
company has not made Investments.
c. In respect of the aforesaid loans/advances in nature of loans, the schedule of
repayment of principal and payment of interest has been stipulated, and the parties are
repaying the principal amounts, as stipulated, and are also regular in payment of interest
as applicable except in respect of non-performing loans.
d. In respect of the following loans/advances in nature of loans, the total amount
overdue for more than ninety days as at March 31, 2023 is Rs. 28.20 lakhs. In such
instances, in our opinion, reasonable steps have been taken by the Company for the
recovery of the principal amounts and interest thereon.
(Rs in lakhs)
| No. of Cases |
Principal Amount Overdue |
Interest Overdue |
Total Overdue |
| 1 |
Nil |
28.20 |
28.20 |
e. Companys principal business is to give loans. Therefore, the provisions of clause
3(iii)(e) of the Order are not applicable to the Company.
f. There were no loans/advances in nature of loans which were granted during the year
to promoters/related parties.
iv. The Company has not granted any loans to the parties covered under Sections 185 and
Company is an NBFC, hence provisions of Section 186 are not applicable. Therefore, the
reporting under clause 3(iv) of the Order are not applicable to the Company.
v. The Company has not accepted any deposits or amounts which are deemed to be deposits
from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules
framed there under to the extent notified.
vi. The Central Government of India has not specified the maintenance of cost records
under sub-section (1) of Section 148 of the Act for any of the products of the Company.
vii. In respect of Companys Statutory Dues:
a. According to the information and explanations given to us and the records of the
Company examined by us, in our opinion, the Company is regular in depositing the
undisputed statutory dues, including provident fund, employees state insurance, income
tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess, goods
and services tax and other material statutory dues, as applicable, with the appropriate
authorities except for following:
As on balance sheet date, the company has not paid following statutory dues for more
than 6 months
| Particulars |
Amount |
| TDS |
21,85,265 |
| Total |
21,85,265 |
b. According to the information and explanations given to us and the records of the
Company examined by us, there are no statutory dues referred to in sub-clause (a) which
have not been deposited on account of any dispute.
viii. According to the information and explanations given to us and the records of the
Company examined by us, there is no income surrendered or disclosed as income during the
year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in
the books of account.
ix. a. According to the records of the Company examined by us and the information and
explanation given to us, the Company has not defaulted in repayment of loans or other
borrowings or in the payment of interest to any lender as at the balance sheet date.
b. According to the information and explanations given to us and on the basis of our
audit procedures, we report that the Company has not been declared Wilful Defaulter by any
bank or financial institution or government or any government authority.
c. In our opinion, and according to the information and explanations given to us, the
term loan obtained from person other than banks or financial institution have been applied
for the purposes for which they were obtained.
d. According to the information and explanations given to us, the company has not
raised short term loans. Therefore, the reporting under clause 3(ix)(d) of the Order is
not applicable to the Company.
e. According to the information and explanations given to us and on an overall
examination of the financial statements of the Company, we report that the Company has not
taken any funds from any entity or person on account of or to meet the obligations of its
subsidiaries, associates or joint ventures.
f. According to the information and explanations given to us and procedures performed
by us, we report that the Company has not raised loans during the year on the pledge of
securities held in its subsidiaries, joint ventures or associate companies.
x. a. The Company has not raised any money by way of initial public offer or further
public offer (including debt instruments) during the year. Accordingly, the reporting
under clause 3(x)(a) of the Order is not applicable to the Company.
b. The Company has not made any preferential allotment or private placement of shares
or fully or partially or optionally convertible debentures during the year. Accordingly,
the reporting under clause 3(x)(b) of the Order is not applicable to the Company.
xi. a. During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanations given to us, we have neither come across any
instance of material fraud by the Company or on the Company, noticed or reported during
the year, nor have we been informed of any such case by the Management.
b. During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanations given to us, a report under Section 143(12)
of the Act, in Form ADT-4, was not required to be filed. Accordingly, the reporting under
clause 3(xi)(b) of the Order is not applicable to the Company.
c. During the course of our examination of the books and records of the Company carried
out in accordance with the generally accepted auditing practices in India, and according
to the information and explanations given to us, and as represented to us by the
management, no whistle-blower complaints have been received during the year by the
Company. Accordingly, the reporting under clause 3(xi)(c) of the Order is not applicable
to the Company.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable
to it, the reporting under clause 3(xii) of the Order is not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with
the provisions of Sections 177 and 188 of the Act. The details of such related party
transactions have been disclosed in the financial statements under note no 25 as required
under Indian Accounting Standard 24 "Related Party Disclosures" specified under
Section 133 of the Act.
xiv. a. In our opinion and according to the information and explanation given to us,
the Company has an internal audit system commensurate with the size and nature of its
business.
b. The reports of the Internal Auditor for the period under audit have been considered
by us.
xv. The Company has not entered into any non-cash transactions with its directors or
persons connected with him. Accordingly, the reporting under clause 3(xv) of the Order is
not applicable to the Company.
xvi. a. The Company is required to and has been registered under Section 45-IA of the
Reserve Bank of India Act, 1934.
b. The Company has conducted non-banking financial activities during the year and the
Company holds a valid Certificate of Registration from the Reserve Bank of India as per
the Reserve Bank of India Act, 1934.
c. The Company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India. Accordingly, the reporting under clause 3(xvi)(c) of
the Order is not applicable to the Company.
d. Based on the information and explanations provided by the management of the Company,
the Group does not have any CICs, which are part of the Group. We have not, however,
separately evaluated whether the information provided by the management is accurate and
complete. Accordingly, the reporting under clause 3(xvi)(d) of the Order is not applicable
to the Company.
xvii. The Company has not incurred any cash losses in the financial year or in the
immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors during the year and
accordingly the reporting under clause (xviii) is not applicable.
xix. According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dates of realisation 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. In our opinion and according to information and explanation given to us, corporate
social responsibility as per section 135(5) of Companies Act,2013 is not applicable.
Accordingly, the reporting under clause 3(xx)(a) and (b) of the Order is not applicable to
the Company.
xxi. The reporting under clause 3(xxi) of the Order is not applicable in respect of
audit of Standalone Financial Statements. Accordingly, no comment in respect of the said
clause has been included in this report
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