To the Members of
M/s. G M Breweries Limited
Report on the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of G M Breweries
Limited ("the Company"), which comprise the balance sheet as at 31st March 2023,
and the statement of Profit and Loss (including other comprehensive income), statement of
changes in equity and statement of cash flows 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 "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 as at March 31, 2023, and its profit, total
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013.
Our responsibilities under those Standards are further described in the Auditor’s
Responsibilities for the Audit of the Standalone 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 independent requirement that are relevant to our audit of the standalone
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 standalone 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. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Information other than standalone financial statements and Auditors report thereon
The company’s Board of Directors are responsible for the other information. The
other information comprises of the information included in the management discussion and
analysis, Boards report including annexure to Boards Report, Corporate Governance and
Shareholders information, but does not include the standalone financial statements and our
auditor’s report thereon.
Our opinion on standalone financial statements does not cover the other information and
we do not express any form of assurance or conclusion thereon.
In connection with our audit of the standalone financial statement, our responsibility
is to read the other information and in doing so, consider whether the other information
is materially inconsistent with the standalone financial statement or our knowledge
obtained during the course of our audit or otherwise appear 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.
Management’s Responsibility for the Standalone Financial Statements
The Company’s 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 standalone financial statements that give a true and fair view of the financial
position, financial performance, changes in equity and cash flows of the Company in
accordance with the accounting principles generally accepted in India, including the Ind
AS specified under Section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules,2015, as amended. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding
of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate 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 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 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 scepticism throughout the audit. We also:
• 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 financial 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 system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by the management.
• Conclude on the appropriateness of 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 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 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 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.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the standalone financial statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our
audit work and in evaluating the results of our work; and (ii) to evaluate the effect of
any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, 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 standalone financial statements
of the current period and are therefore the 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
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 Companies Act, 2013, we give in the "Annexure A" 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
of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive
Income), the Statement of Changes in Equity, the Statement of Cash Flows and notes to the
standalone financial statements 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, read with Rule 7 of the Companies (Indian
Accounting Standards) Rules, 2014 as amended;
e) As per the management representation we report,
• no funds have been advanced or loaned or invested by the company to or in any
other person(s) or entities, including foreign entities ("Intermediaries"), with
the understanding that the intermediary shall whether directly or indirectly lend or
invest in other persons or entities identified in any manner by or on behalf of the
company (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf
of ultimate beneficiaries.
• no funds have been received by the company from any person(s) or entities
including foreign entities ("Funding Parties") with the understanding that such
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 guarantee, security or the like on behalf of the Ultimate
beneficiaries.
• Based on the audit procedures performed, we report that nothing has come to our
notice that has caused us to believe that the representations given under sub-clause (i)
and (ii) by the management contain any material mis-statement.
f) In our opinion Company has complied with section 123 of the Companies Act, 2013 with
respect to dividend declared/ paid during the year.
g) 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.
h) 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".
i) With respect to the other matters to be included in the Auditor’s Report in
accordance with the requirements of section 197(16) of the Act, as amended: In our opinion
and to the best of our information and according to the explanations given to us, the
remuneration paid by the Company to its directors during the year is in accordance with
the provisions of section 197 of the Act.
j) 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 has disclosed the impact of pending litigations on its financial
position in its standalone financial statements.
ii. The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
For and on behalf of
V. P. Mehta & Co.
Chartered Accountants
Firm Regn.No:106326W
Vipul P. Mehta
Proprietor
M. No.035722
Mumbai
April 6th, 2023
UDIN: 23035722BGUPRJ6109
G M Breweries Limited
"Annexure A" to the Independent Auditors’ Report
Referred to in paragraph 1 under the heading ‘Report on Other Legal &
Regulatory Requirement’ of our report of even date to the standalone Ind AS financial
statements of the Company for the year ended March 31st, 2023:
We report that:
i) . Property, Plant and Equipment:
a. The company has maintained proper records showing full particulars, including
quantitative details and situation of its Property, Plant and Equipment.
b. As explained to us, Property, Plant and Equipment have been physically verified by
the management at reasonable intervals; no material discrepancies were noticed on such
verification.
c. The title deeds of immovable properties are held in the name of the company.
ii) . Inventory:
As explained to us, inventories have been physically verified during the year by the
management at reasonable intervals. No material discrepancy of 10% or more in the
aggregate for each class of inventory were noticed was noticed on physical verification of
stocks by the management as compared to book records.
During any point of time of the year, the company has not been sanctioned any working
capital limits from banks or financial institutions on the basis of security of current
assets.
iii) . Loans, Guarantee and Advances given:
According to the information and explanations given to us and on the basis of our
examination of the books of account, the Company has not granted any loans, secured or
unsecured, to companies, firms, Limited Liability Partnerships or other parties listed in
the register maintained under Section 189 of the Companies Act, 2013. Consequently, the
provisions of clauses iii (a), (b) and (c)of the order are not applicable to the Company.
iv) . Loans, Guarantee and Advances to Director of Company:
During the year the company has not provided any loans, guarantees, advances and
securities to the director of the company and the company is compliant provisions of
section 185 and 186 of the Companies Act, 2013.
v) . Deposits:
The Company has not accepted any deposits from the public and hence the directives
issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other
relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with
regard to the deposits accepted from the public are not applicable.
vi) . Maintenance of costing records:
As per information & explanation given by the management, maintenance of cost
records has not been specified by the Central Government under sub-section (1) of section
148 of the Companies Act, 2013.
vii) Deposit of statutory liabilities:
• According to the records of the company, undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees’ State Insurance,
Income-tax, Gst, Sales-tax, Service Tax, Goods and Service tax, Custom Duty, Excise Duty,
value added tax, cess and any other statutory dues to the extent applicable, have
generally been regularly deposited with the appropriate authorities. According to the
information and explanations given to us there were no outstanding statutory dues as on
31st March,2023 for a period of more than six months from the date they became payable.
• According to the information and explanations given to us, there is no amount
payable in respect of income tax, gst, service tax, sales tax, customs duty, excise duty,
value added tax and cess whichever applicable, which have not been deposited on account of
any disputes.
viii) . Surrendered or disclosed as income in the tax assessments:
The Company does not have any transactions to be recorded in the books of account that
has been surrendered or disclosed as income during the year in the tax assessments under
the Income Tax Act, 1961 (43 of 1961).
ix) . Default in repayment of borrowings:
In our opinion and according to the information and explanations given by the
management, we are of the opinion that, the Company does not have any dues to a financial
institution, bank, Government or debenture holders.
x) . Funds raised and utilisation:
Based on our audit procedures and according to the information given by the management,
the company has not raised any money by way of initial public offer or further public
offer (including debt instruments) or taken any term loan during the year.
The company has not made any preferential allotment or private placement of shares or
fully or partly convertible debentures during the year under review.
xi) . Fraud and whistle-blower complaints:
According to the information and explanations given to us, we report that no fraud by
the company or any fraud on the Company by its officers or employees has been noticed or
reported during the year.
xii) . Nidhi Company:
The company is not a Nidhi Company. Therefore, clause (xii) of the order is not
applicable to the company.
xiii) . Related Party Transactions:
According to the information and explanations given to us, all transactions with the
related parties are in compliance with sections 177 and 188 of Companies Act, 2013
wherever applicable and the details have been disclosed in the Financial Statements etc.
as required by the applicable accounting standards.
xiv) . Internal Audit:
The company does have an internal audit system commensurate with the size and nature of
its business. Reports of the Internal Auditors for the period under audit were considered
by the statutory auditor.
xv) . Non Cash Transactions:
The company has not entered into non-cash transactions with directors or persons
connected with him.
xvi) . Registration under RBI act:
The company is not required to be registered under section 45-IA of the Reserve Bank of
India Act, 1934.
xvii) . Cash Losses:
The company has not incurred cash losses in the financial year and in the immediately
preceding financial year
xviii) . Resignation of Statutory Auditors:
There has been no instance of any resignation of the statutory auditors occurred during
the year.
xix) . Material uncertainty on meeting liabilities:
No material uncertainty exists as on the date of the audit report that company is
capable of meeting its liabilities existing at the date of balance sheet as and when they
fall due within a period of 1 year from the balance sheet date
xx) . Transfer to fund specified under Schedule VII of Companies Act, 2013
In respect of other than ongoing projects, the company has not transferred unspent
amount to a Fund specified in Schedule VII to the Companies Act within a period of six
months of the expiry of the financial year in compliance with second proviso to
sub-section (5) of section 135 of the said Act;
xxi) . This clause is not applicable to the company.
For and on behalf of
V. P. Mehta & Co.
Chartered Accountants
Firm Regn.No:106326W
Vipul P. Mehta
Proprietor
M. No.035722
Mumbai April 6th, 2023
UDIN: 23035722BGUPRJ6109
"ANNEXURE B" TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE
STANDALONE IND AS FINANCIAL STATEMENTS OF G. M. BREWERIES LIMITED
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
G.M.BREWERIES LIMITED ("the Company") as of March 31st, 2023 in conjunction with
our audit of the standalone Ind AS financial statements of the Company for the year ended
on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s 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 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 Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s 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 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 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 my /our audit opinion on the Company’s internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company’s 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 company’s internal financial control over
financial reporting includes those policies and procedures that:
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the company’s 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 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 and on behalf of
V. P. Mehta & Co.
Chartered Accountants
Firm Regn.No:106326W
Vipul P. Mehta
Proprietor
M. No.035722
Mumbai April 6th, 2023
UDIN: 23035722BGUPRJ6109.
+91-9892691696
