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Garnet International Ltd.

BSE: 512493 Sector: Financials
NSE: N.A. ISIN Code: INE590B01010
BSE LIVE 15:40 | 14 Dec 798.70 -1.30
(-0.16%)
OPEN

800.00

HIGH

810.00

LOW

781.25

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 800.00
PREVIOUS CLOSE 800.00
VOLUME 8296
52-Week high 896.00
52-Week low 345.25
P/E 31.27
Mkt Cap.(Rs cr) 498
Buy Price 0.00
Buy Qty 0.00
Sell Price 798.70
Sell Qty 111.00
OPEN 800.00
CLOSE 800.00
VOLUME 8296
52-Week high 896.00
52-Week low 345.25
P/E 31.27
Mkt Cap.(Rs cr) 498
Buy Price 0.00
Buy Qty 0.00
Sell Price 798.70
Sell Qty 111.00

Garnet International Ltd. (GARNETINTL) - Auditors Report

Company auditors report

To the Members of GARNET INTERNATIONAL LIMITED

Report on the Financial Statements

1. We have audited the accompanying financial statements of Garnet InternationalLimited ("the Company") which comprise the Balance Sheet as at March 312016 the Statement of Profit and Loss Cash Flow Statement for the year then ended asummary of significant accounting policies and other explanatory information which wehave signed under reference to this report.

Management’s Responsibility for the Financial Statements

2. The management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of Companies (Accounts)Rules 2014 as applicable. This responsibility includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and 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 standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under. We conducted our audit inaccordance 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 theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the standalone financial statements. The procedures selected depend onthe auditor’s judgment including the assessment of the risks of materialmisstatement of the standalone financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal financial control relevantto the Company’s preparation of the standalone financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company’s management and Board of Directors as well asevaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

6. 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 31stMarch 2016 and its Profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

7. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in the Annexure A a statement on the matters Specified in paragraphs3 and 4 of the Order.

8. As required by section 143(3) of the Act we further 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 purpose 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 Statement of Profit and Loss and the Cash Flow Statement dealtwith by this report are in agreement with the books of account;

d) In our opinion the aforesaid financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct

f) With respect to adequacy of the internal financial controls over financial reportingof the Company and the operating effectiveness of such controls refer to our separateReport in Annexure B.

g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014:

i. The Company does not have any pending litigations whi ch woul d i mpact itsfinancial position. ii. The Company did not have any long-term contracts includingderivative contracts; as such the question of commenting on any material foreseeablelosses thereon does not arise.

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 delay in transferring such sums does not arise.

For MVK Associates
Chartered Accountants
Firm Registration No. 120222W
Sd/-
CA. Vishnu Garg
Partner
M. No. 045560
Place: Mumbai
Date: May 30 2016

Annexure A referred to in Paragraph 7 of our Report of even date to the members ofGARNET INTERNATIONAL LIMITED on the accounts of the company for the year ended March 312016

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:

i. a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

b) As explained to us these fixed assets have been physically verified by themanagement at regular intervals; as informed to us no material discrepancies were noticedon such verification;

c) The title deeds of immovable properties are held in the name of the company.

ii. The inventory of the company i.e. Shares has been kept in dematerialized form.

Hence question of physically verification by the Management would not arise. Hencethis clause is not applicable.

iii. The company has granted unsecured loans to three (3) companies covered in theregister maintained under section 189 of the Companies Act during the year.

a) In our opinion the terms and conditions on which loans have been granted tocompanies listed in the registers maintained under section 189 of the Companies Act 2013are not prejudicial to the interest of the company.

b) The parties have repaid the principle amounts as stipulated and have been regular inthe payment of the company.

c) There is no overdue amount of loans granted to companies listed in the registersmaintained under section 189 of the Companies Act 2013.

iv. In our opinion and according to information and explanation given to us thecompany has complied with the relevant provisions in respect of loans given and/orinvestments made as per the provisions of section 185 and 186 of the Companies Act 2013.

v. The Company has not accepted any deposits from the public as per the directivesissued by the Reserve Bank of India and under Section 73 to 76 of the Companies Act 2013.

vi. The company is not engaged in the productions of any goods and provision of anyservices. Hence the provisions of section 148(1) of the Act do not apply.

vii. a) According to the information and explanations given to us and based on therecords of the company examined by us in our opinion the company is regular indepositing the undisputed statutory dues including Provident Fund ‘Employees’State Insurance Income-tax Sales-tax Wealth Tax Service Tax Custom Duty Excise Dutyand other material statutory dues as applicable with the appropriate authorities inIndia;

According to the information and explanations given to us no undisputed amountspayable in respect of aforesaid dues were in arrears as at March 31 2016 for a period ofmore than six months from the date they became payable. b) According to the informationand explanations given to us and based on the records of the company examined by us thereare no dues of Income Tax Wealth Tax Service Tax Sales Tax Customs Duty and ExciseDuty which have not been deposited on account of any disputes.

viii. According to the records of the Company the company has not borrowed fromfinancial institutions or banks or Government issues debentures till 31st March2016.

Hence this clause is not applicable.

ix. According to the information and explanations given to us and the records of theCompany examined by us the Company has not raised any money by way of initial publicoffer or further public offer and term loans during the year. Accordingly provisions ofClause 3(ix) of the Order are not applicable to the company.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

xi. The Company has not paid/provided any Managerial remuneration during the year.

Therefore the provisions of Clause 3(xi) of the Order are not applicable to theCompany.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause 3(xii) of the Order are not applicable to the Company.

xiii. In our opinion and as per information and explanations provided to us bymanagement all the transactions with the related parties are in compliance with theprovisions of sections 177 and 188 of Companies Act 2013 where applicable and the detailshave been disclosed in the financial statements as required under Accounting Standard (AS)18 Related Party Disclosures specified under Section 133 of the Act read with rule 7 ofthe Companies (Accounts) Rules 2014.

xiv. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year. Accordingly provisions ofClause 3(xiv) of the Order are not applicable to the company.

xv. According to the records of the Company examined by us and the information andexplanation given to us the company has not entered into any non-cash transactions withits directors or persons connected with him. Accordingly the provisions of Clause 3(xv)of the Order are not applicable to the Company.

xvi. The company is required to be registered under section 45-IA of the Reserve Bankof India Act 1934.But the company has not obtained the registration.

For MVK Associates
Chartered Accountants
Firm Registration No. 120222W
Sd/-
CA. Vishnu Garg
Partner
M. No. 045560
Place: Mumbai
Date: May 30 2016

Annexure B to Independent Auditors’ Report

Referred to in paragraph 8(f) of the Independent Auditors’ Report of even date tothe members of GARNET INTERNATIONAL LIMITED on the financial statements as of andfor the year ended March 31 2016.

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

1. We have audited the internal financial controls over financial reporting of GarnetInternational Limited ("the Company") as of March 31 2016 in conjunction withour audit of the financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

2. The Company’s management is responsible for establishing and maintaininginternal financial controls based on 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financialcontrols which were operating effectively for ensuring the orderly and efficient conductof its business including adherence to the respective company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on the Group’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") issued by the Institute of Chartered Accountants of India(ICAI) and the Standards on Auditing deemed to be prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of internal financial controls and both issued by the ICAI.Those Standards and the Guidance Note require that we comply with the ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial control system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedoperating and understanding of internal financial controls over financial reportingassessing the risk that a material weakness exist 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 risk ofmaterial misstatement of the financial statement whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlsover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

6. A company’s internal financial controls over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance with theGenerally Accepted Accounting Principles. A company’s internal financial controlsover financial reporting includes those policies and procedures that : i. Pertain to themaintenance of records that in reasonable details accurately and fairly reflect thetransaction and dispositions of the assets of the company; ii. Provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with the generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and iii. Provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordispositions of the company’s assets that could have a material effect on thefinancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. 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 period are subject to the risk that the internal financial controlsover financial reporting may become inadequate because of the changes in conditions orthat the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the company has in all material respect an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 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 MVK Associates
Chartered Accountants
Firm Registration Number: 120222W
Sd/-
CA. Vishnu Garg
Partner
Membership No. : 045560
Place : Mumbai
Date : 30th May 2016