The members of Diamond Infosystems Ltd.
Report on the Financial Statements
We have audited the accompanying financial statements of Diamond Infosystems Limited('the Company') which comprise the balance sheet as at 31 March 2017 the statement ofprofit and loss and the cash flow statement for the year then ended and a summary ofsignificant 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation 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 maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls 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 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe 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 a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
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 of the state of affairs of the Company as at 31March 2017 and its profit and its cash flows for the year ended on that date subject toour Report as under:
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 ofthe Act we give in the Annexure a statement on the matters specified in the paragraph 3and 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 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 the statement of profit and loss and the cash flow statementdealt with by this Report are in agreement with the books of account;
(d) in our opinion the aforesaid financial statements comply with the AccountingStandards 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 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 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 does not have any pending litigations which would impact its financialposition;
ii. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise;and
iii. There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise.
|For Vijay N. Tewar |
|Chartered Accountants |
|Firm's registration number: 111422W |
|CA Vijay N. Tewar |
|Membership number: 040676 |
|Place: Baroda |
|Date: 30th May2017. |
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the financial statements for the year ended 31 March 2017 we report that:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets however the same has not been updated.
(b) As explained to us fixed assets have been physically verified by the management atregular intervals although no verification report was provided to us hence we are unableto comment on any material discrepancies noticed on such verification.
(ii) (a) As informed to us physical verification of inventory has been conducted bythe management at reasonable intervals during the audit year.
(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of stock followed by the management were foundreasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) In case of maintaining proper records of Inventories we like to comment that sameare maintained properly as per the available records and representation produced beforeus.
(iii) (a) The Company has granted loans secured or unsecured amounting toRs.13168026/- to companies firms or other parties covered in the register maintainedunder section 189 of the Companies Act 2013 ('the Act').
(b) No formal terms and conditions for payment of the principal amount and interest sowe are not in position to give our opinion that installment payments are regular or not.
(c) There is overdue amount is more than Rs.1 Lakh however as stated in the point no(b) above there are no stated terms or condition for the same and hence we are unable tocomment whether repayment of principal and interest was regular or not and reasonablesteps have been taken or not for recovery of the principal and interest.
(iv) In our opinion and according to the information and explanations given to us bythe management there is adequate internal control system commensurate with the size ofthe company and nature of its business with regard to purchase of stores raw materialsincluding components plant and machinery equipment and other assets and for sales ofgoods and services. During the course of our audit we have not observed any continuingfailure to correct major weaknesses in the internal control system.
(v) The Company has not accepted any deposits from the public.
(vi) As informed to us the Central Government has not prescribed the maintenance ofcost records under section 148(1) of the Act.
(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income taxsales tax wealth tax service tax duty of customs value added tax cess and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of employees' state insurance and duty of excise.
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax wealth tax service tax dutyof customs value added tax cess and other material statutory dues were in arrears as at31 March 2017 for a 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 materialdues of wealth tax income tax sales tax service tax duty of customs and cess and valueadded tax which have not been deposited with the appropriate authorities on account of anydispute.
(c) According to the information and explanations given to us there has not been anoccasion in case of the Company during the year under report to transfer any sums to theInvestor Education and Protection Fund.
(viii) The Company does not have any accumulated losses at the end of the financialyear and has not incurred cash losses in the financial year and in the immediatelypreceding financial year.
(ix) The Company has not defaulted in repayment of dues to financial institutionsbanks or debenture holders during the year.
(x) According to the information and explanations given to us the company has notgiven guarantees for loans taken by others from banks and financial institutions.
(xi) No Term loans have been raised by the company and hence this clause does notapply.
(xii) According to the information and explanations given to us no material fraud bythe Company employee has been reported during the course of our audit.
| ||For Vijay N Tewar & Co. |
| ||Chartered Accountants |
| ||CA Vijay N. Tewar |
| ||Proprietor |
|Place: Vadodara ||M. No.40676 |
|Date: 30th May 2017 ||Firm Reg. No :111422W |