TO THE MEMBERS OF LYPSA GEMS & JEWELLERY LIMITED
1. Report on the financial statements
We have audited the accompanying financial statements of LYPSA GEMS & JEWELLERYLIMITED which comprise the Balance Sheet as at March 31 2015 the Statement ofProfit and Loss Statement for the year then ended and Cash Flow statement for the yearended on that date and a summary of significant accounting policies and other explanatoryinformation.
2. Management responsibility for the financial statement
The Company's Management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position financial performanceof the Company in accordance with the Accounting Standards notified under the CompaniesAct 1956 (the Act) read with the General Circular 15/2013 dated 13th September 2013 ofthe Ministry of Corporate Affairs in respect of Section 133 of the Companies Act 2013 andin accordance with the accounting principles generally accepted in India. Thisresponsibility includes the design implementation and maintenance of internal controlrelevant to the preparation and presentation of the financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.
3. Auditors responsibility
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are 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 the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error in making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness ofthe Company's internal control. 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the said accounts read together with the Notes from 1- 24 annexed thereongives the information required by the Act in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India
a) In case of the Balance Sheet of the state of the Company's affairs as at 31st March2015
b) In case of the Statement of Profit & Loss Account of the Profit for the yearended on that date.
c) In the case of Cash flow statement of the cash flows for the year ended on thatdate.
5. Report on other legal and regulatory requirements
As required by the Companies (Auditors' Report) Order 2004 issued by the CentralGovernment in terms of sub section (4) of Section 143 of the Companies Act2013 weenclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of thesaid order
6. Further to our comments in the above para on the basis of our audit 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 the company has kept proper books of accounts as required by law sofar as appears from our examination of the books of account;
c. The Balance Sheet Profit and Loss Account and Cash Flow Statement dealt with thisreport are in agreement with the books of Accounts;
d. In our opinion the Balance Sheet Profit and Loss Account and Cash Flow Statementdealt with by this report are prepared in compliance with the accounting standardsreferred to in sub-section (2) of Section 2 ofjhe Companies Act 2013 to the extentapplicable;
e. On the basis of written representation received from the directors and taken onrecord by the Board of Directors none of the director is disqualified as on 31stMarch 2015 from being appointed as director in terms of clause (g) of Section 274(1)of the Companies Act 1956;
For M/s. Doshi Maru & Associates
(Atul B. Doshi)
Dated: 29th May 2015
ANNEXURE TO THE AUDITORS REPORT
The Annexure referred to in our report to the members of LYPSA GEMS & JEWELLERYLIMITED for the year Ended on March 31st 2015. We report that:
|S. No. ||particulars ||Auditors Remark |
| ||(a) whether the company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets; ||The company has maintained fixed assets register showing full particulars including quantitative details and situation of fixed assets. |
| ||(b) whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of account; ||The fixed assets has been physically verified by the management at reasonable intervals. No material discrepancies were noticed on such verification. |
|(ii) ||(a) whether physical verification of inventory has been conducted at reasonable intervals by the management; ||The management has physically verified jinventory of stock of material and frequency of verification is reasonable. |
| ||(b) are the procedures of physical verification of inventory followed by the management reasonable and adequate in relation to the size of the company and the nature of its business. If not the inadequacies in such procedures should be ireported; ||In our opinion the procedure for physical verification of stocks as followed by the management is reasonable and adequate in relation to size of the company and nature of its business. |
| ||(c) whether the company is maintaining proper records of inventory and whether any material discrepancies were noticed on physical verification and if so whether the same have been properly dealt with in the books of account; ||The company is maintaining proper records of inventory. The discrepancies noticed on physical verification were not material and the same have been properly dealt with in the books of accounts. |
|(iii) ||whether the company has granted any loans secured or unsecured to companies firms or other parties covered in the register maintained under section 189 of the Companies Act.If so. ||The company has not granted any loans secured or unsecured to companies firms or other parties covered in the register maintained under section 189 of the Companies Act. |
| ||(a) whether receipt of the principal amount and interest are also regular; and ||As the company has not granted loans this clause is Not Applicable. |
| ||(b) if overdue amount is more than rupees one lakh whether reasonable steps have been taken by the company for recovery jof the principal and interest; ||As the company has not granted loans this clause is Not Applicable. |
|(iv) ||Is there an adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. Whether there is a continuing failure to correct major weaknesses in internal control system. ||According to the information given to us and in our opinion there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase and sale of goods and services and fixed assets. During the course of our audit we have not observed any continuing failure to correct major weakness in internal control system. |
|(v) ||In case the company has accepted deposits whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under where applicable have been complied with If not the nature of contraventions should be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not? where maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Actwhether such accounts and records have been made and maintained; ||In our opinion and according to the information and explanations given to us we are of the opinion that company has not accepted :any deposits during the year in contravention to provisions of section 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under. According to the information given to us the maintenance of cost records to the company has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act. In our opinion the accounts and records have been made and maintained accordingly. The company has carried out Cost Audit for the FY 2013-14. |
|(vii) ||(a) is the company regular in depositing undisputed statutory dues including provident fund employees' state insurance income-tax sales-tax wealth tax service taxduty of customs duty of excise value added tax cess and any other statutory dues with the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated by the auditor. ||As informed to us there are no undisputed amounts payable in respect statutory dues including provident fund employees' state insurance income-tax sales-tax wealth tax lervice tax duty of customs duty of excise value added tax cess and any other statutory dues with the appropriate authorities except unclaimed dividend for F Y 2009-10 of Rs. 7.50 Lacs for F Y 2010-11 of Rs. 8.27Lacs for F Y 2011-12 of Rs. 5.62 Lacs for F Y 2012-13 of Rs. 5.83 Lacs and for F Y 2013-14 of Rs. 15.50 Lacs as at the last date of financial year that were outstanding for a period of more than six months from the date they became payable. |
| ||(b) in case dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not constitute a dispute). ||As there are no outstanding undisputed statutory dues this clause is not applicable. |
| ||(c) whether the amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act 1956 (1 of 1956) and rules made thereunder has been transferred to such fund within time. ||As per the information provided to us the company is not required to transfer any amount to investor education and protection fund in accordance with the relevant provisions of the Companies Act 1956 (1 of 1956) and rules made thereunder. |
|(viii) ||whether in case of a company which has been registered for a period not less than five years its accumulated losses at the end of the financial year are not less than fifty per cent of its net worth and whether it has incurred cash losses in such financial year and in the immediately preceding financial year; ||As on March 31st 2015 the company does not have accumulated losses. The company has not incurred cash losses during the financial year covered by our audit as well as during the immediately preceding financial year. |
|(ix) ||whether the company has defaulted in repayment of dues to a financial institution or bank or debenture holders? If yes the period and amount of default to be reported; ||On the basis of the records examined by us and the information and; explanations given to us the company has not defaulted in repayment of dues to a financial institution or Bank. |
|(x) ||whether the company has given any guarantee for loans taken by others from bank or financial institutions the terms and conditions whereof are prejudicial to the interest of the company; ||As informed to us the company has not given any guarantee for loans taken by others from bank of financial institutions. |
|(xi) ||whether term loans were applied for the purpose for which the loans were obtained; ||According o t the information and explanations given to us and on overall examination of the Balance sheet of the company we report that term loans were: applied for the purpose for which the loans were obtained. |
|(xii) ||whether any fraud on or by the company has been noticed or reported during the year; If yes the nature and the amount involved is to be indicated. ||According to the information and explanations given to us no fraud on or by the company has been noticed or reported during the year under audit. |
For M/s. Doshi Maru & Associates
(Atul B. Doshi)
Place :- Mumbai
Date:- 29th May 2015