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Gemstone Investments Ltd.

BSE: 531137 Sector: Financials
NSE: N.A. ISIN Code: INE503D01027
BSE LIVE 11:52 | 04 Sep Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 0.75
PREVIOUS CLOSE 0.78
VOLUME 50000
52-Week high 0.82
52-Week low 0.32
P/E 18.75
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.78
Sell Qty 100.00
OPEN 0.75
CLOSE 0.78
VOLUME 50000
52-Week high 0.82
52-Week low 0.32
P/E 18.75
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.78
Sell Qty 100.00

Gemstone Investments Ltd. (GEMSTONEINVEST) - Auditors Report

Company auditors report

To

The Members of Gemstone Investments Limited

Report on Financial Statements

We have audited the accompanying financial statements of Gemstone Investments Ltdwhich comprise the Balance Sheet as at March 31 2015 and the Statement of Profit andLoss and Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information.

Management’s Responsibility for the financial statements

Management is responsible for the matter stated in section 134(5) of the companies Act2013 ("the Act") with respect to preparation of these financial statements thatgive a true and fair view of the financial position financial performance and cash flowsof the Company in accordance with the Accounting Standards specified undersection133 ofthe Act read with rule 7 of the companies(Accounts) Rules2014. This responsibilityincludes the design implementation and maintenance of internal control relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. Subject to the matters discussed in this report we conducted our audit inaccordance with the Standards on Auditing issued by the Institute of Chartered Accountantsof India. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Company’s preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating 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.

Companies (Auditor’s Report) Order 2015 (CARO)

As required by the Companies (Auditor’s Report) Order 2015 (CARO) issued by theCentral Government in terms of sub Section (11) of section 143 the Companies Act 2013("the Act") we give in the Annexure a statement on the matters specified inparagraphs 4 and 5 of the said Order which is subject to the matters discussed in thisreport.

Basis of Opinion

We draw our attention to the following matters:

1. The balance of the loans and advances are subject to confirmation andreconciliation.

2. The company has not stipulated any term for payment of interest and repayment ofloans at the time of sanctioning the loan but the company follows the practice ofproviding interest at the year end.

3. One bank account with the HDFC bank is being freedged by the investigation wing ofthe Income Tax Department in the year 2013-14 for the inquiries in respect of some othercompanies.

4. During the year the company has classified unquoted investment worth Rs. 429.00 lacsas Current investment and has disposed of them at the book value during the year and hascollected Rs. 310.00 lacs during the year and balance amount of Rs. 119.00 lacs arereceivables which is shown as current investment in the balance sheet.

5. The company has not complied with the bank’s circular DNDS/(PD) CC No.200/03-10001/2010-11 dated 17/09/2010 for all the NBFC being credit institution arerequired to become member of at least one credit information company.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required subject to the our comments in paragraph 1 to 5 in basis of opinionabove give a true and fair view in conformity with the accounting principles generallyaccepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2015;

b) in the case of the Profit and Loss Account of the profit for the year ended on thatdate; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate

Report on other legal and regulatory requirements

1. As required by the Companies (Auditor’s Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act subject t o the our comments in paragraph1 to 5 in basis of opinion above we report that:

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 properbooks of account as required by law have been kept by the Company so far as appears fromour examination of those books

c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d) In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under section 133 of the Actread with Rule 7 of the companies (Account) Rules 2014.

e) Since the company has not filled the annual return with registrar of companies forlast three years the company has made defaults under section 164(2) of the company Act2013.

f) Since the Central Government has not issued any notification as to the rate at whichthe cess is to be paid under section 441A of the Companies Act 1956 nor has it issued anyRules under the said section prescribing the manner in which such cess is to be paid nocess is due and payable by the Company.

For N R Gala & Associates
Chartered Accountants
FRN No.: 131744W
Sd/-
Navin Gala
(Proprietor)
Membership No.:040640
Place: Mumbai
Date: 29/05/2015

The Annexure referred to in paragraph 1 of the Our Report of even date to the membersof Gemstone Investments Ltd on the accounts of the company for the year ended 31st March2015.

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

1. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.

2. According to information and explanation given to us the company is Non BankingFinance Company which does not carry any inventory.

3. (a) According to the information and explanations given to us and on the basis ofour examination of the books of account the Company has not granted any loans secured orunsecured to companies firms or other parties listed in the register maintained underSection 189 of the Companies Act 2013 during the year. However the outstanding balance ason 31/03/2015 is of Rs.20 lacs( previous year 20 lacs) to M/S Asian Comtrade Pvt Ltd acompany listed in the register maintained under Section 189 of the Companies Act 2013.

(b) We have been informed that the company is holding 24.48 % of the shares of M/SAsian Comtrade Pvt. Ltd. The loan does not carry any interest. The loan is granted tocompany for its working Capital to carry business which is in the interest of The Company.

(c) The Outstanding balance of loan to M/S Asian Comtrade Pvt Ltd is of Rs. 20 Lacs ason 31/03/2015.

(d) There are no Overdue amount exceeding Rs.1.00 Lacs

(e) The company has not taken any loans secured or unsecured from companies firms orother parties listed in the Register maintained under Section 189 of the Act.

4. In our opinion and according to the information and explanations given to us thereis generally an adequate internal control procedure commensurate with the size of thecompany and the nature of its business for the purchase of fixed assets and payment forexpenses. However the company doesn’t have adequate internal control system forsanctioning and review of loans and advances.

5. The Company has not accepted any deposits from the public covered under Section 73and 76 of the Companies Act 2013 and rules framed there under and hence the provisions ofthe clause of 4(vi) of the Companies (Auditor's Report) Order 2015 (as amended ) are notapplicable to the company.

6. As per information & explanation given by the management maintenance of costrecords has not been prescribed by the Central Government under section 148(1) of the Act.

7. (a) According to the records of the company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees’ State InsuranceIncome-tax Sales-tax Wealth Tax Service Tax Custom Duty Excise Duty cess to theextent applicable and any other statutory dues have generally been regularly depositedwith the appropriate authorities. According to the information and explanations given tous there were no outstanding statutory dues as on 31st of March 2015 for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us except income tax of Rs.7.96 lacs (Asst year 2012-13) no undisputed amount amounts payable in respect of incometax wealth tax service tax sales tax customs duty and excise duty and cess were inarrears as at March 2015 for a period of more than six months from the date they becamepayable.

(c) There are no amounts which were required to be transferred to the investoreducation and protection fund by the company in accordance with the relevant provision ofthe Companies Act 1956 (1 of 1956) and the rules made there under.

8. The Company does not have any accumulated loss and has not incurred cash loss duringthe financialyear covered by our audit and in the immediately preceding financial year.

9. Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto a financial institution bank or debenture holders.

10. According to the information and explanations given to us the Company has notgiven any guarantees for loan taken by others from a bank or financial institution.

11. Based on our audit procedures and on the information given by the management wereport that the company has not raised any term loans during the year.

12. Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year nor have we been informed of such case by the management.

For N R Gala & Associates
Chartered Accountants
FRN No.: 131744W
Sd/-
Navin Gala
(Proprietor)
Membership No.:040640
Place: Mumbai
Date: 29/05/2015