To The Members
M/s Diamant Infrastructure Limited
We have audited the attached Balance Sheet of M/s. Diamant Infrastructure Limited asat 31st March 2015 and also the Profit and loss Account and the Cash Flow Statement ofthe Company for the year ended on that date annexed thereto. These financial statementsare the responsibility of the Company's management. Our responsibility is to express anopinion on these financial statements based on our audit. The Company's Board of Directorsis responsible for the matters in section 134(5) of the Companies Act 2013 with respectto the preparation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of internalfinancial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 there under. We conducted our audit in accordancewith the Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.
During the current financial year company has purchased 74% Shares of M/s GingerBanquets Pvt. Ltd. And till the date of signing of audit report the company has filledwith ROC for stuck off. And also the company holds 50% Shares of M/s Astute diamantconstruction Pvt. Ltd. At the beginning of the current financial year and at the end ofthe current financial year dispose of 50% shares of M/s Astute diamant construction Pvt.Ltd. Therefore consolidation of financial statement of the above two company has not beendone because they are neither subsidiary nor the joint venture or associate as defined inAS-21 AS-23 and AS-27. But in current financial year the company has purchased 51% Sharesof M/s Ginger Infrastructure Pvt. Ltd and therefore consolidation of financial statementof M/s Ginger Infrastructure Pvt. Ltd. has been done and consolidated financial statementhas been prepared as per AS-21 issued by the Institute of Chartered Accountants of India.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India;
a) in the case of the Balance Sheet of the state of affairs of the Company as at March312015;
b) in the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and
c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
2. Further to our comments in the Annexure referred to in paragraph 2 above we reportthat:
a) We have obtained all the information and explanations which to the best of ourknowledge 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 theCompany so far as appears from our examination of those books;
c) The Balance Sheet Profit Loss Account and Cash Flow Statement dealt with by thisreport are in agreement with the books of account;
d) In our opinion the Balance Sheet Profit and Loss Account and Cash Flow Statementsdealt with by this report comply with the mandatory Accounting Standards referred to insection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 exceptfor Accounting Standard 15 "Accounting for Employee Benefits" in respect ofGratuity liability not provided as explained in note 23.13;
e) On the basis of written representations received from the directors and taken onrecord by the Board of Directors in our opinion none of the directors is disqualified ason 31st March 2015 from being appointed as directors in terms of section 164(2) of theCompanies Act 2013 as on that date.
f) The company has a current account in the Syndicate Bank and the closing balance andtransaction which has happened in this account can not be verified due to non availabilityof the account statement with the company.
g) In our opinion and to the best of our information and according to the explanationsgiven to us the said accounts read together with the Significant Accounting Policies andother notes thereon give the information required by the Companies Act 2013 in the mannerso required and present a true and fair view in conformity with the accountingprinciples generally accepted in India:
| ||For Pilla Mathur Manuja & Co. |
|Place : Nagpur ||Chartered Accountants |
|Date : 30th May 2015 ||(FRN: 124471W) |
| ||CA Thakur J. Manuja |
| ||Proprietor |
| ||Membership No: 113940 |
Annexure to the Independent Auditors Report
The Annexure referred to in our report to the members of Diamant Infrastructure Limitedfor the year Ended on 31st March 2015. We report that:
(i) In respect of fixed asset
(a) As explained to us the company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets on the basis ofavailable information;
(b) According to information & explanation given to us fixed assets have beenphysically verified by the management at reasonable intervals; further as per managementno such material discrepancies were noticed on such verification as compared to bookrecord.
(c) During the earlier Financial year the company has claimed the excess depreciationin its books of accounts which were identified and appropriately credit in the Profit& Loss Statement of the current financial year.
(d) And also in the current financial year the company has disposed of its substantialfixed asset but as per the explanation given by the management we come to know that thiswill not affect the going concern of the entity.
(ii) In respect of Inventory
(a) As explained to us Physical verification of inventory of stores spare &consumable has been conducted at reasonable intervals by the management during the year;
(b) In our opinion to the information & explanation given to us the procedures ofphysical verification of inventory followed by the management are reasonable and adequatein relation to the size of the company and the nature of its business.
(c) In our opinion & according to information & explanation given to us thecompany is maintaining proper records of inventory and there were no materialdiscrepancies were noticed on physical verification of inventory as compared to the bookrecords.
(iii) In respect of loans secured or unsecured granted by company to companies firmsor other parties covered in the register maintained under section 189 of the CompaniesAct.
(a) The company has not grant any secured or unsecured loans; to the companies or firmsor other parties covered in the register maintained under section 189 of the CompaniesAct.
(iv) In respect of Internal control system
In our opinion and according to information & explanation given to us the companyhas an adequate internal control system commensurate with the size of the company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods and services. During the course of audit we have observed that the company is notregular in payment of different statutory dues.
(v) In respect of deposits
In our opinion & according to information & explanation given to us thecompany has not accepted deposits as per the directives issued by the Reserve Bank ofIndia and the provisions of sections 73 to 76 or any other relevant provisions of theCompanies Act2013 and the rules framed there under.
(vi) In respect of cost records
According to information & explanation given to us Central Government has notprescribed and company also does not need to maintain of cost records under sub-section(1) of section 148 of the Companies Act2013.
(vii) In respect of statutory dues
(a) In our opinion and according to information & explanation given to us companyis not regular in depositing undisputed statutory dues except provident fund income-taxcess with the appropriate authorities. And as per the requirement of the CARO followingare the statutory dues outstanding for the period of more than 6 months till the date ofaudit.
|Nature Of Due || ||Period to which it related |
|TDS on Contract ||963066/- ||June-14 to Nov-14 |
|TDS on Professional Fees ||128922/- ||June-14 to Nov-14 |
|TDS on Salary ||13953/- ||July-14 & Sep-14 |
|CST ||109804/- ||June-14 |
|Service Tax (Reverse Charge) ||352442/- ||Sept-14 |
|Service Tax (Contract) ||358373/- ||June-14 July-14 and Sept-14 |
|TDS on Commission ||3500/- ||Sept-14 |
|TDS on Interest ||795635/- ||June-14 to Nov-14 |
|TDS on Rent ||338/- ||July-14 and Sept-14 |
(b) According to the record of the company and as per information & explanationgiven to us there is no statutory dispute outstanding during the year except thefollowing:
|Nature of Statute ||Nature of Dues || ||Period to which it relates ||Forum where the dispute is pending |
|Chhattisgarh Sales Tax ||Penalty for short payment of sales tax on purchase of fixed asset ||1150000/- ||F.Y : 2008-2009 ||Assistant commissioner of Sales tax Durg Chhatisgardh |
(c) According to information & explanation given to us and on the basis ofexamination of books of accounts we are of the opinion that the amount required to betransferred to investor education and protection fund in accordance with the Section 205Cof the Companies Act 1956 and rules made there under has been transferred to such fundwithin time. The details of which is explained below;.
|Particular ||Period to which it related ||Paid in ||Amount to be Paid ||Amount Paid ||Difference |
|Unpaid Dividend ||F. Y. 2006-07 ||F. Y. 2014-15 ||85537/- ||85537/- ||Nil |
(d) As per the provident fund Act The company is required to deduct employeecontribution towards PF and employer contribution towards PF from the salary of theemployee and the same has to be deposited in the government account. But employee of thecompany is not ready that the company will deduct PF from their Salary. But company isbound to deposit employer contribution towards PF in government account. Therefore thecompany has deposited their contribution towards PF from their own fund (i.e. notseparately deducted from the salary of the employee).
(e) During the current Financial year the search has been conducted by the LBT dept.with respect to the same assessment is going on till the date of audit.
(f) During the current Financial Year company has received a following notice from theIncome Tax (TDS Cell) dept.
|Sr. No. ||Date of Notice ||Subject ||F.Y. to which it relates ||Amount |
|2 ||10-10-2014 ||Outstanding Demand ||2010-11 ||1056900/- |
| || || ||2011-12 ||871310/- |
| || || ||2012-13 ||13588070/- |
| || || ||2013-14 ||150330/- |
| || || ||2014-15 ||140/- |
And we have been informed by the management that the nothing has been done with respectto the above notices which are received during F.Y. 2014-15. The above mentioned dues inaggregate amounting to Rs. 15666750/-.Except in the above dues which amounting to Rs.13588070/- is due to wrong PAN provided by the deductee at the time of filling of theoriginal return. And the same return has been revised by the company and application forthe same has been made to the Income Tax(TDS Cell) dept. to nullify the demand.
(g) Service tax return of the F.Y. 2014-15 2nd half has not been filled bythe company till the date of audit.
(viii) In respect of accumulated losses
The company doesn't have accumulated losses at the end of the financial year. Also ithas not incurred any cash losses in such financial year and in the immediately precedingfinancial year.
(ix) In respect of borrowing & its repayment
In our opinion and according to information & explanation given to us company hasnot defaulted in repayment of dues to a financial institution or bank. However companywas not regular in paying dues to Srei Equipment Finance Pvt. Ltd. as per the repaymentSchedule and the same outstanding amount was paid by the company; as they received salesproceed of fixed asset. As informed to us the above irregularities had happen becausecompany has made a agreement of re-structuring with Srei Equipment Finance Pvt. Ltd.
In the current financial year the closing balance of Srei Equipment Finance Pvt. Ltd.Is not tallying with the books of account and the management has informed that there is adispute of the company going on with Srei Equipment Finance Pvt. Ltd. For this differenceamount and the same will be adjusted in restructure agreement.
The company has obtained a loan from Kotak Mahindra Bank and repayment will be paidthrough the ECS system. But the ECS for the month of November has been returned due toinsufficient fund in the account of the company. And after that payment of the same hasbeen made by the company in the month of December.
And the company has not obtained any borrowing by issue of Debenture.
(x) In respect of guarantee for loans taken by others
According to information & explanation given to us company has not given anyguarantee for loans taken by others from bank or financial institutions.
(xi) In respect of application of term loans
According to information & explanation given to us and on the basis of examinationof books of accounts we are of the opinion that during the current financial year thecompany has not taken any new term loan and the existing term loans were applied for thepurpose for which the loans were obtained.
(xii) In respect of fraud detection
To the best of our knowledge and explanations given to us by the management no fraudin or by the company has been noticed or reported during the year that causes thefinancial statement to be materially misstated.
Date:- 30th May 2015