To the Members of M/s Brawn Biotech Limited Report on the Ind AS Financial Statement
Opinion
We have audited the financial statements of Brawn Biotech Limited ("the
company"), which comprise the balance sheet as at 31stMarch 2023 and the statement of
profit and loss including the statement of Other Comprehensive Income, statement of cash
flows and statement of changes in equity for the year ended, and notes to the financial
statement, including a summary of significant accounting policies and other explanatory
information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements given the information required
by the Act in the manner so required and given 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 March 31, -2023, and profit & loss, (changes in equity) and its cash flows for
the year ended on that date.
Basic for Opinion
We have conducted our audit in accordance with standards on Auditing (SAs) Specified
under section 143(10) of the Companies Act, 2013.Our responsibilities under those
standards 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 statement under the provisions of the Companies Act, 2013 and the rules there
under, 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 provide a basis for our opinion.
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. These matters
were addressed in the context of our audit of the financial statement as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined that there are no key audit matters to communicate in our report.
Managements Responsibility for the standalone financial statements
The companys Board of Directors is responsible for the matter stated in section 134(5)
of the companies Act, 2013 ("the Act") with respect to the preparation of these
standalone
financial statement that given a true and fair view of the financial position,
financial
performance, changes in equity and cash flow of the company in accordance with the
accounting principles generally accepted in India, including the accounting standards
specified under section 133 of the Act.
This responsibility also includes maintenance of adequate records in accordance with
provisions of the Act for safeguarding of the assets of the company and for preventing and
detecting frauds and other irregularities; section 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 financial statement that given 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
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going the going concern basis of accounting unless
management either intends to liquidate the company or to cease operation, or has no
realist alternative but to do so. The board of directors are also responsible for
overseeing the companys financial reporting process.
Auditors Responsibilities for the Audit of the Financial Statement
Our objectives are to obtain reasonable assurance about whether the financial results
as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor1s 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 aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
these financial results. 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 results,
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 through a separate report on the
complete set of financial statements 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 the Board of Directors.
Conclude on the appropriateness of the 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 financial results 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 results,
including the disclosures, and whether the financial results represent the underlying
transactions and events in a manner that achieves fair presentation.
Report on Other Legal and Regulatory requirements
As required by the Companies (Auditors Report) Order, 2016("the order"),
Issued by the central Government of Indian in items of subsection (11) of section 143
of companies Act, 2013, we give in the Annexure a statement on the matters specified in
paragraphs 3 and 4 of the order, to the extent applicable.
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
our knowledge and belief were necessary for the purpose 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, and the cash flow statement
dealt with by this report are in agreement with the book of account.
d) In our opinion, the aforesaid standalone financial statements comply with the
accounting standard specified under section 133 of the act, read with rule 7 of the
companies (Accounts) Rules 2014.
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 is
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 over financial
reporting of the company and the operating effectiveness of such controls, refer to our
separate report in "Annexure 2".
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.
h) The company has disclosed the impact of pending litigations on its financial
position in its financial statements. -Refer Note 1 to the financial statements.
The company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
There were no amounts which were required to be transferred to the Investor Education
and Protection fund by the company.
For Rajiv Udai and Associates Chartered Accountants
FRN:018764N
Sd/-
Rajeev Jain
Partner
M No: 099767
UDIN: 22099767AJOIMO9983
Place: Delhi
Date: 29-05-2023
(i) (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) The Fixed Assets have been physically verified by the management in a phased
manner, 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 nature of its
business. Pursuant to the program, a portion of the fixed asset has been physically
verified by the management during the year and no material discrepancies between the books
records and the physical fixed assets have been noticed.
(c) According to the information and explanation given to us and on the basis of our
examination of the records of the company, the company did not hold any immovable
property.
(ii) The inventories have been physically verified by the management during the year.
In our opinion, the frequency of verification is reasonable. No material discrepancies
were noticed on such physical verification.
(iii) According to the information and explanations given to us, the Company has not
granted any loans, secured or unsecured to companies, firms, limited liability
partnerships or other parties covered in the register maintained under section 189 of the
Companies Act, 2013.
(iv) 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 complied with the provision of
Section 185 and 186 of the Companies Act, 2013 with respect to loans and investments made.
(v) The Company has not accepted any deposits from the public during the year.
(vi) As informed to us, the Central Government has not prescribed the maintenance of
cost records under sub-section (1) of section 148 of the Act, in respect of the activities
carried on by the company.
(vii) (a) The Company is generally regular in depositing with the appropriate
authorities
undisputed statutory dues including provident fund, employees state insurance,
income-tax, sales-tax, service tax, customs duty, excise duty, value added tax, GST, cess
and other material statutory dues.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, employees state insurance, income-tax, service tax,
sales-tax, customs duty, excise duty, value added tax, GST, cess and other material
statutory dues were outstanding, at the year end, for a period of more than six months
from the date they became payable.
(c) According to the records of the Company, there is no dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, custom duty, excise duty, value added tax
and cess on account of any dispute.
(viii) In our opinion and according to the information and explanations given by the
management, the Company has not defaulted in repayment of loans or borrowing to banks and
debenture holders.
(ix) Based upon the audit procedures performed and the information and explanations
given by the management, the Company has not raised any money by way of initial public
offer or further public offer or debt instruments and term loan.
(x) Based upon the audit procedures performed for the purpose of reporting the true and
fair view of the financial statements and according to the information and explanations
given by the management, we report that no fraud by the Company or no material fraud on
the Company by the officers and employees of the Company has been noticed or reported
during the year.
(xi) According to the information and explanations given by the management, the
managerial remuneration has been paid / provided in accordance with the requisite
approvals mandated by the provisions of section 197 read with Schedule V to the Companies
Act, 2013.
(xii) The Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of
the order are not applicable to the Company and hence not commented upon.
(xiii) Based on our audit procedures performed for the purpose of reporting the true
and fair view of the financial statements and according to the information and
explanations given by the management, transactions with the related parties are in
compliance with section 177 and 188 of Companies Act, 2013 where applicable and the
details have been disclosed in the notes to the financial statements, as required by the
applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall
examination of the balance sheet, the Company has not made any preferential allotment or
private placement of shares or fully or partly convertible debentures during the year
under review and hence, reporting requirements under clause 3(xiv) are not applicable to
the Company and, not commented upon.
(xv) According to the information and explanations given by the management, the Company
has not entered into any non-cash transactions with directors or persons connected with
him as referred to in section 192 of Companies Act, 2013.
(xvi) According to the information and explanations given to us, the provisions of
section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
(xvii) The Company has not incurred cash losses during the financial year covered by
our audit and the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors of the Company during
the year.
(xix) 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.
For Rajiv Udai and Associates
Chartered Accountants
FRN:018764N
Sd/-
Rajeev Jain
Partner
M.No: 099767
UDIN: 22099767AJOIMO9983
Place: Delhi
Date: 29-05-2023
ANNEXURE 2 REFERRED TO IN PARAGRAPH 2 (f) OF THE SECTION ON "REPORT ON OTHER LEGAL
AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE
Report on the Internal Financial Controls 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 reporting of Brawn
Biotech Limited ("the Company") as of March 31, 2023, in conjunction with our
audit of the standalone 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. 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 the 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 as specified under section
143(10) of the Companies Act, 2013, to the extent 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 financial reporting 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 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 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 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 March 31, 2023, based on the
internal control over financial reporting in COSO 2013 criteria, 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 Rajiv Udai and Associates
Chartered Accountants
FRN:018764N
Sd/-
Rajeev Jain
Partner
M. No: 099767
UDIN: 22099767AJOIMO9983
Place: Delhi
Date: 29-05-2023
Brawn Biotech Limited
CIN: L74899DL1985PLC022468
+91-9892691696
