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Alka Diamond Industries Ltd.

BSE: 531581 Sector: Consumer
NSE: N.A. ISIN Code: INE963D01015
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NSE 05:30 | 01 Jan Alka Diamond Industries Ltd
OPEN 9.25
PREVIOUS CLOSE 9.25
VOLUME 1000
52-Week high 10.76
52-Week low 8.89
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.25
CLOSE 9.25
VOLUME 1000
52-Week high 10.76
52-Week low 8.89
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Alka Diamond Industries Ltd. (ALKADIAMONDIND) - Auditors Report

Company auditors report

To

The Board of Directors

Alka Diamond Industries Limited

Report on the Financial Statements

We have audited the accompanying financial statement of ALKA DIAMOND INDUSTRIESLIMITED ("the company") which comprise the Balance Sheet as at 31STMARCH 2017 and the statement of Profit & Loss Account and the cash flow statement ofthe Company for the year then ended and a summary of significant accounting policies andother explanatory information.

Management's Responsibility for the Financial Statement.

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (‘the Act') with respect to the preparation andpresentation of these financial statements that give a true and fair view of the financialposition and financial performance of the Company in accordance with the accountingprinciples generally accepted in India under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the StandaloneFinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe Standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe Standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances but not for thepurpose of expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of the accounting policiesused and the reasonableness of the accounting estimates made by the Company's Directorsas well as evaluating the overall presentation of the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the financial position of theCompany as at 31 March 2017 and its Financial including other comprehensive income itscash flows and the changes in equity for the year ended on that date.

Report on other Legal and regulatory Requirements.

1. As required by the Companies (Auditor's Report) Order 2016 (‘the Order')issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Act we give in the Annexure A statement on the matters specified in paragraphs 3 and4 of the Order.

2. As required by section 143 (3) of the Act we repot that:

a. We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books;

c. The balance sheet and the statement of profit and loss dealt with by this Report arein agreement with the books of account;

d. In our opinion the aforesaid Standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with relevant Ruleissued thereunder

e. On the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164 (2) of the Act; and

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure "B"; and

g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any and as required on long-term contractsincluding derivative contracts.

iv. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

v. The company has provided requisite disclosure in the Accounting Standards infinancial statements as regards its holding and dealings in Specified Bank Notes datedNovember 8 2016 of Ministry of Finance during the period from November 8 2016 toDecember 30 2016. Based on audit procedures performed and the representation provided tous by the management we report that the disclosures are in accordance with the books ofaccount maintained by the company and as produced to us by the Management3

For and on behalf of
K.K. Jhunjhunwala & Co.
Chartered Accountants
F. R. No. 111852W
Place: Mumbai
Date: 02.09.2017
Sd/-
K.K. Jhunjhunwala
(Partner)
Membership No. 045154

ANNEXURE A TO THE AUDITOR'S REPORT

Re: ALKA DIAMOND INDUSTRIES LIMITED.

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the Standalone financial statements for the year ended 31 March 2017 we reportthat:

(i) In according to the information and explanation given to us company is not havingany fixed assets and hence clause 3 (i) of the Order is not applicable to the Company.

(ii) The Company is not a trading concern primarily rendering other businessactivities. Accordingly it does not hold any physical inventories. Thus paragraph 3(ii)of the Order is not applicable

(iii) The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the Register maintained under Section 189 of the Act.

(iv) In respect of loans investments guarantees and security the provisions ofsection 185 and 186 of the Companies Act 2013 have been not complied with company.

(v) In our opinion and according to the information and explanation given to us TheCompany has not accepted any deposits during the year and does not have any unclaimeddeposits. Therefore the provisions of the clause 3(v) of the Order are not applicable tothe Company.

(vi) It has been explained to us that the maintenance of cost records has not beenprescribed under section 148(1) of the Act.

(vii) (a) According to the information and explanations given to us no undisputedamounts payable in respect of provident fund income tax sales tax wealth tax servicetax duty of customs value added tax cess and other material statutory dues were inarrears as at 31 March 2017 for a period of more than six months from the date they becamepayable.

(b) According to the information and explanations given to us the disputed statuarydues aggregating to Rs. 1.54 Crores have not been deposited on account of matters pendingbefore appropriate authorities as detailed bellow3

(Rs. in Crore)
Name of Statute Nature of Dues Amount Disputed Amount paid/Ad justed Net amount unpaid Period to which the amount relates Forum where dispute is pending
Income Tax Act 1956 Income Tax and Interest 1.53 - 1.53 A. Y. 2008-09 A. Y. 2009- 10 A. Y. 2010-11 A. Y. 2011-12A. Y. 2012-13 Commissioner of Income Tax (Appeal)- 47 Mumbai
Sales Act 1956 Sales Tax 0.015 - 0.015 A. Y 2003-04 Sales Tax Office Mumbai

(viii) Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion the company has not defaulted in repayment of dues toa financial institution bank Government or dues to debenture holders.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For and on behalf of
K.K. Jhunjhunwala & Co.
Chartered Accountants
F. R. No. 111852W
Place: Mumbai
Date: 02.09.2017
Sd/-
K.K. Jhunjhunwala
(Partner)
Membership No. 045154

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ALKADIAMOND INDUSTRIES LIMITED ("the Company") as of 31 March 2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over financial reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For and on behalf of
K.K. Jhunjhunwala & Co.
Chartered Accountants
F. R. No. 111852W
Place: Mumbai
Date: 02.09.2017
Sd/-
K.K. Jhunjhunwala
(Partner)
Membership No. 045154