To the Members of GOLDIAM INTERNATIONAL LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of GOLDIAM INTERNATIONAL LIMITED("the Company") which comprise the Balance Sheet as at
March 31 2017 and the Statement of Profit and Loss and Cash Flow Statement for theyear then ended and and other a summary of significant explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 ( " The Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of thefinancialposition financial performance and cash flows of the Company in accordance withaccounting principles generally accepted in India including the Accounting Standardsprescribed 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 of 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 internalfinancialcontrols 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 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 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 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 standalone financial statements.
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 of the state of affairs of the Companyas at 31st March 2017 and its profit and its cash flows 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 ( " theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in "Annexure B" a statement onthe matters specified in paragraph 3 and 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 andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; (b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination 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 theaforesaid standalone financial statements comply with the Accounting Standards specifiedunder section 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts)Rules 2014.
(e) On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of section 164 (2) ofthe Companies Act 2013.
(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 A'. Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
(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 explanations given to us : i) Thecompany has disclosed the impact of pending litigations on its financial position in itsfinancial position in its standalone financial statements refer Note 23 (b) to thestandalone financial statements. ii) The Company has made provision as required under theapplicable law or accounting standard for material foreseeable losses on long termcontracts including derivative contracts. iii) There has been no delay in transferringamounts required to be transferred to the
Investor Education and Protection fund by the company.
INDEPENDENTAUDITORS'REPORTONCASHTRANSACTION AS PER MINISTRY OF COMPANY AFFAIRSNOTIFICATION DATED 30th MARCH 2017:
To the Members of GOLDIAM INTERNATIONAL LIMITED
The company has provided requisite disclosures in its standalone financial statementsas to holdings as well as dealings in specified Bank notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with the books ofaccounts maintained by the company . RefertoNote35tothestandalonefinancialstatements
ANNEXURE (A) TO THE INDEPENDENT AUDITOR'S REPORT
[Referred to in paragraph 1 under Report on Other
Legal and Regulatory Requirements' in the Independent
Auditor's Report of even date to the members of
Goldiam International Limited on the standalone financial statements for the year ended31st March 2017]
1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) All fixed assets have beenphysically verified by the management in a phased periodical manner which in our opinionis reasonable having regard to the size of the Company and the nature of its assets.According to the information and explanations given to us no material discrepancies werenoticed on such verification.
(c) As per the information and explanations given to us the immovable properties ownedby the company are held in the name of the company. In respect of immovable property takenon lease and disclosed as fixed assets in standalone financial statements the leaseagreement is in the name of the Company.
2. The Inventories have been physically verified during the year by the management. Inour opinion frequency of verification of inventory is reasonable.
There are no material discrepancies noticed by the management.
3. According to the information and explanations given to us the company has notgranted any loans secured or unsecured to companies firms Limited
Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act. Accordingly the provisions of clause 3(iii) (a) (b)and (c) of the Order are not applicable to the Company and hence not commented upon.
4. As per the information and explanations provided to us there is no loansinvestments guarantees and securities given by the company except guarantee provided towholly owned subsidiary to which provisions of section 185 of the Companies Act 2013 donot apply.
5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the provisions of Section 73to 76 of the Companies Act 2013 and the rules framed there under.
6. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 prescribed by the Central Government undersubsection (1) of Section 148 of the Companies Act 2013 and are of the opinion that primafacie the prescribed cost records have been so made and maintained. We have however notmade a detailed examination of the cost records with a view to determine whether they areaccurate or complete.
7. a) According to the information and explanations given to us and on the basis of theexamination of the books of account the Company has been regular in depositing undisputedstatutory dues including Provident Fund Investor Education and Protection FundEmployees' State Insurance Income-tax Sales- tax Service tax Value Added Tax CustomsDuty Excise Duty and other statutory dues applicable to it with the appropriateauthorities.
b) According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Investor Education and Protection Fund Employees'State Insurance Income tax Sales tax Service tax Customs Duty Excise Duty and otherundisputed statutory dues were outstanding at the year end for a period of more than sixmonths from the date they became payable. According to the records of the Companydisputed Municipal Property Tax together with Penalty not deposited on account of disputeare as follows.
|Name of Statute / Description ||Amount Rs in lakhs ||Period to which the amount relates ||Forum where dispute is pending |
|Property Tax ||136.97 ||1997-98 ||Bombay High Court |
8. 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 loansor borrowings to banks. The Company does not have any borrowings by way debentures.
9. The Company has not raised money by way of initial public offer including debtinstruments during the year and did not have any term loans outstanding during the year.
10. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practice in India andaccording to the information and explanations given by the management we report that nofraud by the Company or any fraud on the Company by its officers or employees has beennoticed or reported during the course of our audit.
11. As per the information and explanations given to us the managerial remuneration hasbeen paid or provided in accordance with the requisite approvals mandated by theprovisions of section 197 read with schedule V of the Companies Act 2013.
12. As per the information and explanations given to us the company is not a NidhiCompany.
13. As per the information and explanations given to us the company all transactionswith the related parties are in compliance with section 177 and 188 of the
Companies Act 2013 where applicable and details have been disclosed in the StandaloneFinancial
Statements etc. as required by the applicable accounting standards.
14. As per the information and explanations given to us the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year review. 15. As per the information and explanations given tous the company has not entered into any non- cash transactions with the directors orpersons connected with him.
16. As per the information and explanations given to us the company is not required toget it registered under section 45-IA of the Reserve Bank of India Act 1934.
ANNEXURE B' TO THE INDEPENDENT AUDITOR'S REPORT
REFERRED TO IN PARAGRAPH 1(F) OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OFGOLDIAM INTERNATIONAL LIMITED: Report on the Internal Financial Controls under Clause (i)of Sub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of GoldiamInternational Limited ("the Company") as of March 31 2017 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
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.
These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to 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 Companies Act 2013.
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 to the extent applicable toan audit of internal financial controls both issued by the Institute of CharteredAccountants of
India. 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our adverse audit opinion on the Company's internal financial controlssystem over financial 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have amaterialeffectonthefinancial . 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.
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 March 312017 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 Pulindra Patel & Co. |
| ||Chartered Accountants |
| ||FRN No. 115187W |
| ||PULINDRA M. PATEL |
|Place: Mumbai ||Proprietor |
|Date: 26th May 2017 ||Membership No. 48991 |