REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of
GOLKUNDA DIAMONDS & JEWELLERY LIMITED ('the Company'), which comprise
the Balance Sheet as at 31st March, 2015, the Profit and Loss
Statement, the Cash Flow Statement for the year then ended, and a
summary of significant accounting policies and other explanatory
information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated
in section 134 (5) of the Companies Act, 2013 (hereinafter referred to
as "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 in accordance with
the 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 maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error, which have been used for
the purpose of preparation of the financial statements by the Directors
of the Company, as aforesaid.
AUDITORS' RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by Section143(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 relating
to preparation of the aforesaid financial statements have been kept 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
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards 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 of the Company as on 31st March, 2015, taken on record by the
Board of Directors, none of the directors is disqualified as on 31st
March, 2015, from being appointed as a director in terms of Section 164
(2) of the Act.
(f) 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 financial statements as referred to in Note
26 of the financial statements.
(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.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the year ended
on 31st March 2015. We report that:
(1) In Respect of its fixed assets:
(a) The company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) The fixed assets of the company have been physically verified by
the management at reasonable intervals. No material discrepancies
between the book records and the physical inventory have been noticed.
(2) In respect of its inventories:
(a) As explained to us the inventory has been physically verified by
the management at reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
(3) According to the information and explanation given to us, the
company has not granted any loans secured or unsecured to companies,
firms or other parties covered in the register maintained under section
189 of the Companies Act. Accordingly, clauses 3 (iii) (a) and 3(iii)
(b) of the Order are not applicable.
(4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
(5) According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (v) of paragraph 3 of the CARO 2015 are not
applicable to the Company.
(6) We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Records and Audit) Rules, 2014
prescribed by the Central Government under Section 148(1)(d) of the
Companies Act, 2013 and are of the opinion that, prima facie , the
prescribed accounts and cost records have been maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
(7) In respect of statutory dues:
(a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, the company is generally regular in depositing the
undisputed statutory dues including provident fund, employees' state
insurance, income-tax, sales-tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax, cess and any other statutory
dues as applicable with the appropriate authorities.
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, excise duty, sales tax, customs
duty and cess were in arrears, as at 31st March, 2015 for the period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no material dues of wealth tax, income tax, duty of customs and
cess which have not been deposited with the appropriate authorities on
account of any dispute. However, according to the information and
explanations given to us, the particulars of dues of sales tax, excise
duty, service tax and value added tax as at 31st March, 2015 which have
not been deposited on account of any dispute, are given below:
Name of the Nature of Dues Amounts Assessment Forum where
Statute involved
Rs. Year to
which the dispute is
pending
amount
relates
2,71,070 2009-10 C.I.T.(A), Mumbai
The Income
Tax Act. Income Tax
2,25,150 2011-12 C.I.T.(A), Mumbai
(c) According to the information and explanations given to us, there
were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company in accordance with the
relevant provisions of the Companies Act, 1956 (1 of 1956) and rules
made there under. Accordingly, clause 3 (vii) (c) of the Order is not
applicable.
(8) The company does not have accumulated losses at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
(9) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to bank.
(10) In our opinion and according to the information and explanations
given to us, the company has not given any guarantees for loans taken
by others from banks or financial institutions.
(11) The Company has not raised new term loans during the year. The
term loan outstanding at the beginning of the year has been applied for
the purposes for which it was raised.
(12) In our opinion and according to the information and explanations
given to us, no fraud by the company and no material fraud on the
Company has been noticed or reported during the year.
For MOTILAL & ASSOCIATES
Chartered Accountants
(FRNo.106584W)
C.A. MUKESH P. MODY
(Partner)
(Membership No. 42975)
Mumbai, 28th May, 2015
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