To The Members of M/s BRONZE INFRA-TECH LIMITED Disclaimer of Opinion
We were engaged to audit the financial statements of Bronze Infra Tech Limited
("the Company") which comprise the Balance Sheet as at March 31, 2022, the
Statement of Profit and Loss (including the Other Comprehensive Income)for the year ended
at March 31, 2022, the Cash Flow Statement and the Statement of changes in Equity for the
year then ended, and notes to the financial statements, including summary of significant
accounting policies and other explanatory information.
We do not express an opinion on the accompanying financial statements of the entity.
Because of the significance of the matters described in the Basis for Disclaimer of
Opinion section of our report, we have not been able to obtain sufficient appropriate
audit evidence to provide a basis for an audit opinion on these financial statements.
Basis for Disclaimer of Opinion
1. We Refer to Note 2 of the Ind AS Financial Statements with regards to Loans advanced
by the company outstanding as on March 31, 2022. We were unable to obtain confirmations
with respect to advances made to the tune of Rs 15,78,36,090 out of the total advances of
Rs 19,77,65,759. The management of the company did arrange some confirmations through
electronic media (through email) but those were not sufficient appropriate audit evidence.
2. We Refer to Note 3 of the Ind AS Financial Statements with regards to Sundry debtors
outstanding as on March 31,2022. We were unable to obtain confirmations from the debtors
with respect to their receivables outstanding to the tune of Rs 24,44,12,600 out of the
total advances of Rs 25,83,48,709. The management of the company did share some signed
confirmations received from the debtors, but we are unable to place our reliance on those
because those do not mention the name of the authorized signatory, the designation of the
sender, and other necessary details. As Alternative audit procedures, we had asked the
management to share the sale contracts/agreements entered into with the vendors/debtors,
but the management has not shared those till date of signing of the report.
3. We Refer to Note 8 of the Ind AS Financial Statements with regards to Loans taken by
the company outstanding as on March 31, 2022. We were unable to obtain confirmations with
respect to advances taken to the tune of Rs 2,62,01,000 out of the total loans taken of Rs
2,87,47,176. The management of the company did arrange some confirmations through
electronic media (through email) but those were not sufficient appropriate audit evidence.
4. We Refer to Note 10 of the Ind AS Financial Statements with regards to Sundry
creditors outstanding as on March 31,2022. We were unable to obtain confirmations from the
creditors with respect to their payables outstanding to the tune of Rs 38,18,21,162 which
account for 100% of the trade payables. The management of the company did share some
signed confirmations received from the debtors, but we are unable to place our reliance on
those because those do not mention the name of the authorized signatory, the designation
of the sender, and other necessary details. As Alternative audit procedures, we had asked
the management to share the sale contracts/agreements entered into with the
vendors/creditors, but the management has not shared those till date of signing of the
report.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these financial statements that give a true and fair view of the financial position,
financial performance, and cash flows of the company inaccordance with accounting
principles generally accepted in India, including the Accounting Standards specified under
section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes the 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 the 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 control, 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
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the company or to cease operations, or has no realistic
alternative but to do so. The Board of Directors are also responsible for overseeing the
Companys Financial Reporting Process.
Auditors 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 auditors report that 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 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 statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
1. 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 from one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
2. 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
Companies Act,2013, we are also responsible for expressing our opinion on whether the
company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
4. 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 disclosure 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.
5. Evaluate the overall presentation, structure and content of the financial
statements, including the disclosure, and whether the financial statements represent the
underlying transactions and events in the manner that achieve fair presentation.
We communicate with those charged 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 the key audit matters. We describe these matter or when
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, 2016 ("the Order")
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act, we give a statement on the matters Specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
c. The Balance Sheet & Statement of Profit and Loss 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 specified under specified rules.
e. On the basis of written representations received from the directors, taken on record
by the Board of Directors, none of the directors is disqualified as on 31 March 2021, 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". 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 included in the Auditors Report and to our best
of our information and accounting 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 derivatives
contracts for which there were any material foreseeable losses.
iii. There were no amounts which required to be transferred to the Investor Education
and Protection Fund by the Company.
ANNEXURE ‘A TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph (1) under the heading ‘Report on the Legal and
Regulatory Requirements of our Report of even date)
Reports on Companies (Auditors Report) Order, 2020(‘the Order) issued by the
Central Government in terms of Section 143(11) of the Companies Act, 2013 (‘the Act)
of BRONZE INFRA-TECH LIMITED for the Year Ended 31st March, 2022:
1. In respect of Fixed assets:
The clause relating to Property Plant and equipment is not applicable to the company as
the company is not in possession of any fixed assets.
Similarly maintaining of proper records showing full particulars of intangible asset is
not applicable to the company.
2. a. The company is primarily engaged in supply of manpower; accordingly it does not
hold any physical inventories and hence paragraph 3(ii) of the order relating to inventory
management is not applicable.
b. Company during any point of time of the year, the company has not been sanctioned
working capital limits in excess of five crore rupees, in aggregate, from banks or
financial institutions on the basis of security of current assets.
3. The company during the year the company has provided loans or provided advances in
the nature of loan. The whole amount presented as advance in Balance Sheet refers to such
loans or advances and guarantees or security to parties other than subsidiaries, joint
ventures and associates.
4. The Company has not granted any loan, investments, guarantees and security as per
the provisions of Section 185 and Section 186 of the Companies Act, 2013 during the
period.
5. The company has not accepted any deposits or amounts which are deemed to be
deposits, from the public.
6. Maintenance of cost records has not been specified by the Central Government under
sub-section (1) of Section 148 of the Act in respect of the any activities of the Company.
7. The Company is regular in depositing undisputed statutory dues including Goods &
Service Tax, provident fund, employees state insurance, income tax, goods and service tax,
cess and any other statutory dues with the appropriate authorities and no statutory dues
were in arrears as at 31st March, 2022, however the company has failed to deposit TDS
deducted with the government, for a period of 6 months from the date they become payable.
8. No transactions recorded in the books of account have been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of
1961).
9. No opinion can be formed whether the company has defaulted in repayment of loans or
other borrowings or in the payment of interest thereon to any lender and disclaimer of
opinion for the same has been issued.
10. The company has not raised any monies by way of initial public offer or further
public offer (including debt instruments) or term loans during the period.
11. No fraud by the company or any fraud on the company has been noticed or reported
during the year.
12. The company is not a nidhi company as per Companies Act, 2013.
13. All transactions entered by the company with the related parties are in compliance
with sections 177 and
188 of the Companies Act, 2013 and the details have been disclosed in the financial
statements.
14. The company has no internal audit system commensurate with the size and nature of
its business.
15. The company has not entered into any non-cash transactions with directors or
persons connected with them during the period.
16. The company is not required to be registered under section 45-IA of the Reserve
Bank of India Act.
17. The company has not incurred cash losses in the financial year and in the
immediately preceding financial year.
18. There had not been any resignation of the statutory auditors during the year.
19. The company had not provided enough evidence for the auditor to form an opinion as
to whether no material uncertainty exists as on the date of the audit report and whether
company is 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, hence
disclaimer of opinion has been issued.
|
For PMPK & COMPANY |
|
Chartered Accountants (FRN: 019681N) |
| Date: 22nd June, 2022 |
|
| Place: Thane (Mumbai) |
CA Manikant Vashistha |
| UDIN: 22075198AMEQDE7778 |
Partner (M. No.075198) |
ANNEXURE "B" TO AUDITORS REPORT
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 BRONZE
INFRA-TECH LIMITED ("the Company") as of 31st March, 2022 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 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, issued by ICAI and deemed to be
prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to
an audit of internal financial controls, both 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 were 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 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 authorizations of the
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
Qualified Opinion
According to the information and explanations given to us and based on our audit, the
following material weaknesses have been identified as at March 31, 2022. The Company did
not have an appropriate internal control system for granting Loans, Demand and other loans
given are governed by the Board Policies. Considering the close monitoring of Board no
appraisal, renewal, Policies, Procedure, Committee or documents have been prescribed and
executed.
The Companys internal control system is not commensurate to the size and scale of
operation over purchase and sale of shares and inventory and for expenses incurred.
A ‘material weakness is a deficiency, or a combination of deficiencies, in
internal financial control over financial reporting, such as there is a reasonable
possibility that a material misstatement of the Companys annual or interim financial
statements will not be prevented or detected on a timely basis.
In our opinion, except for the effects/possible effects of the material weakness
described above on the achievement of the objectives of the control criteria, the Company
has maintained, 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 2020, 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. We have considered the material weakness identified and reported above in
determining the nature, timing, and extent of audit tests applied in our audit of the 31st
March, 2020 financial statements of the Company, and the material weakness does not affect
our opinion of the financial statements of the Company. 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 31 March 2022, 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 PMPK & COMPANY |
|
Chartered Accountants (FRN: 019681N) |
| Date: 22nd June, 2022 |
|
| Place: Thane (Mumbai) |
CA Manikant Vashistha |
| UDIN: 22075198AMEQDE7778 |
Partner (M. No.075198) |
+91-9892691696
