The Members of LASER DIAMONDS LTD
1. I have audited the attached balance sheet of LASER DIAMONDS LTD as at 31stMarch 2015 the profit and loss account and also the cash flow statement for the yearended on that date annexed thereto. These financial statements are the responsibility ofthe company's management. My responsibility is to express an opinion on these financialstatements based on my audit.
2. I have conducted my audit in accordance with the auditing standards generallyaccepted in India. Those Standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining on a test basis evidence supporting theamounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management as well asevaluating the overall financial statement presentation. I believe that my audit providesa reasonable basis formy opinion.
3. As required by the Companies (Auditor's report) order 2003 issued by the CentralGovernment of India in terms of sub-section (4A) of section 227 of the Companies Act1956 we enclose in the Annexure a statement on the matters specified in paragraphs 4 and5 of the said order.
Further to my comments in the Annexure referred to above I report that:
4. i) I have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of my audit.
ii) In my opinion proper books of account as required by law have been kept by thecompany so far as appears from my examination of those books.
III) The balance sheet profit and loss account and cash flow statement dealt with bythis report are in agreement with the books of account.
IV) In my opinion the balance sheet profit and loss account and cash flow statementdealt with by this report comply with the accounting standards referred to in sub-section(3C) of section 211 of the Companies Act 1956.
V) On the basis of written representation received from the directors as on 31st March2015 and taken on record by the Board of Directors I report that none of the directorsare disqualified as on 31st March 2015 from being appointed as a director in terms ofclause (g) of sub-section (1) of section 274 of Companies Act 1956;
VI) In my opinion and to the best of my information and according to the explanationsgiven to me the said accounts give the information required by the Companies Act 1956in 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 31stMarch 2015
b) In the case of profit and loss account of the loss for the year ended on that date;and In the case of the Cash Flow Statement of the Cash Flows for the year ended on thatdate.
|Date: 24.08.2015 || |
|Place: Chennai ||(BHARAT KUMAR N. JAIN) |
| ||Chartered Accountant |
| ||376 Mint Street 2nd Floor |
| ||Chennai-600 079 [M. No.027891] |
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 3 of our report of even date.
1) (a) On the basis of examination of the records of the company I report that thecompany has maintained proper records showing full particulars including quantitativedetails and situation of fixed assets.
(b) The Company has maintained proper records showing full particulars includingquantitative details and situation off fixed assets. All fixed assets have not beenphysically verified by the management during the year but there is a regular programme. ofverification which in our opinion is reasonable having regard to the size of the Companyand the nature of its assets. As informed no material discrepancies were noticed on suchverification. The Company has disposed off building used as Registered office. However inour opinion this will not affect going concern concept.
2) a) Inventory as on 31.03.2015 is Rs.NIL [P Y. 7051350.00] Physical verificationof Inventories has taken during the year by management. In current year stock has beensold at lower price because diamonds were found to be CVD (Chemical Vapor Deposition)Diamonds. Which are man made diamonds and not natural diamonds which even expert cannotdifferentiate.
b) In my opinion and according to the information and explanation given to me theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of business.
c) On the basis of examination of the records of the inventory and according toinformation and explanations given to me the company is maintaining proper records ofinventory.
3) The company has taken loans being unsecured to the tune of Rs.5.34 Lakhs from oneParty during the year and the total loans outstanding as at 31.03.2015 is Rs.5.34 Lakhsfrom companies firms or other parties covered in the register maintained under section301 of the Companies Act 1956.
4) In my opinion and according to the information and explanations given to me thereare adequate internal control procedures commensurate with the size of the company and thenature of its business with regard to purchase of inventory and with regard to the sale ofgoods. During the course of our audit I have not observed any continuing failure tocorrect major weaknesses in internal controls.
5) In my opinion and according to the information and explanations given to me thereare no transactions made in pursuance of contracts or arrangements entered in the registermaintained under section 301 of the Companies Act 1956 .
6) In my opinion and according to the information and explanations given to me thecompany has not accepted any deposit from Public.
7) In my opinion the company has an internal audit system commensurate with the sizeand nature of its business.
8) The Industry in which Company's business is involved is not prescribed u/s 210(1)(d) for maintenance of cost records.
9) (a) As per the information and explanations given to me and records of the companythe company is regular in depositing with appropriate authorities undisputed statutorydues including income tax sales tax excise duty cess and other material statutory duesapplicable to it. No wealth tax and custom duty is payable by company.
(b) According to the information and explanations given to me and records of thecompany no undisputed amounts payable in respect of income tax wealth tax sales taxcustoms duty excise duty and cess were in arrears as at 31.03.15 for a period of morethan six months from the date they
c) According to the information and explanations given to me there are no dues ofsales tax income tax customs duty wealth tax excise duty and cess which have not beendeposited on account of any dispute.
10) The company has accumulated losses at the end of the financial year. The Companyhas incurred Cash Losses during the financial year covered by the audit and in theimmediately preceding financial year.
11) In my opinion and according to the information and explanations given to me thecompany has not defaulted in repayment of dues to a financial institution bank ordebenture holders.
12) As per records of the company the company has not granted any loans and advanceson the basis of security by way of pledge of shares debentures and other securities.
13) In my opinion the company is not a chit fund or a nidhi mutual benefitfund/society. Therefore the provisions of clause 4 (xiii) of the Companies (Auditor'sReport) Order 2003 are not applicable to the Company.
14) In my opinon the company is not dealing in or trading in shares securitiesdebentures and other investments. Accordingly the provisions of clause 4 (xiv) of theCompanies (Auditor1 Report) Order 2003 are not applicable to the Company.
15) As per the records of the company the company has not given guarantees for loanstaken by other from banks or financial institutions.
16) As per records of the company the company has not raised any term loan.
17) According to the information and explanations given to me and on an overallexamination of the balance sheet of the company we report that the no funds raised onshort-term basis have been used for long-term investment. No long-term funds have beenused to finance short-term assets except permanent working capital.
18) According to the information and explanations given to me and as per records of thecompany the company has not made preferential allotment of shares to parties andcompanies covered in the register maintained under section 301 of the Act.
19) According to the information and explanations given to me during the periodcovered by my audit report the company had not issued any debentures during the year.
20) During the course of my examination of books of accounts carried out in accordancewith generally accepted practices in India I have neither come across any incidence offraud on or by the company nor have we been informed of any such case by the management.
|Date: 24.08.2015 ||(BHARAT KUMAR N.JAIN) |
|Place: Chennai ||Chartered Accountant |
| ||376 Mint Street 2nd Floor |
| ||Chennai-600 079 [M. No.027891] |