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Mini Diamonds (India) Ltd.

BSE: 523373 Sector: Consumer
NSE: N.A. ISIN Code: INE281E01010
BSE 14:09 | 24 Jan 10.37 0.19
(1.87%)
OPEN

10.18

HIGH

10.37

LOW

10.18

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 10.18
PREVIOUS CLOSE 10.18
VOLUME 1442
52-Week high 10.81
52-Week low 5.40
P/E 9.69
Mkt Cap.(Rs cr) 4
Buy Price 9.98
Buy Qty 800.00
Sell Price 0.00
Sell Qty 0.00
OPEN 10.18
CLOSE 10.18
VOLUME 1442
52-Week high 10.81
52-Week low 5.40
P/E 9.69
Mkt Cap.(Rs cr) 4
Buy Price 9.98
Buy Qty 800.00
Sell Price 0.00
Sell Qty 0.00

Mini Diamonds (India) Ltd. (MINIDIAMONDSI) - Auditors Report

Company auditors report

To

The Members of

MINI DIAMONDS (INDIA) LIMITED

Report on the Financial Statements

We have audited the attached financial statements of Mini Diamonds (India) Limited("The Company") which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss and Cash Flow Statement for the year ended on that date and asummary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(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 the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these Financial Statements based on ouraudit.

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 thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell 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 on the standalone financial statements.

Basis for Qualified Opinion

The Company has not made provision of it’s obligation under the defined benefitplan viz: Gratuity which constitutes a departure from the Accounting Standard 15"Employee Benefits" referred to in section 133 of the Act.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph the aforesaid financial statements give the information required bythe Act in the manner so required and gives 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 Statement of profit/loss and its cash flows for the yearended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 issued by theCentral Government of India in terms of sub-section (11) of section 143 of the CompaniesAct 2013 we enclose in the Annexure A statement on the matters specified in paragraphs 4and 5 of the order to the extent applicable.

2. As required by Section 143(3) of the Act we report that:

a. We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit.

b. The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this report are in agreement with the books of Account.

c.In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. d.With respect to the adequacy of the internal financialcontrols over financial reporting of the Company and operating effectiveness of suchcontrols refer to our separate report in Annexure B. e.With respect to the other mattersto be included in the Auditor’s Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us. f.Except for the matter described in the basisfor qualified opinion paragraph in our opinion the aforesaid standalone financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014. g.With respect to the othermatters to be included in the Auditor’s Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses. iii. There were no amounts which wererequired to be transferred to the Investor Education and Protection Fund by the Company.iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with the books of accountmaintained by the company and as produced to us by the Management.

For V. A. Parikh &Associates LLP
CharteredAccountants
F. R. No: 112787W/100073
(Nirav R. Parikh)
Place : Mumbai Partner
Date : May 30 2017 Membership No. 121674

ANNEXURE B TO THE INDEPENDENT AUDITORS’ REPORT

Report on the Internal Financial Controls under clause (i) of sub-section 3 of section143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financial reporting of MiniDiamonds (India) Ltd. ("The Company") as of 31st March 2017 in conjunctionwith our audit of standalone financial statements of the company for the year ended onthat 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 (‘ICAI’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under Companies Act 2013.

Auditors’ Responsibility

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 issued by the Institute ofChartered Accountants of India. Those Standards and Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists 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 risks ofmaterial misstatements of the financial statements whether due to fraud or error.

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

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide a reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company’s internal financial controlover financial reporting includes those policies and procedures that: 1) pertain tomaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; 2) provide reasonableassurance that transactions are recorded as necessary to permit preparation to financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 a material effect on the financial 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 overridecontrols 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.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlssystem over financial reporting were operating effectively as at 31st March 2017 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For V. A. Parikh &Associates LLP
CharteredAccountants
F. R. No: 112787W/100073
(Nirav R. Parikh)
Place : Mumbai Partner
Date : May 30 2017 Membership No. 121674

ANNEXURE A TO THE INDEPENDENT AUDITORS’ REPORT Re: MINI DIAMONDS (INDIA) LIMITED

Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements’ section of our report of even date: 1. a) The Company has maintainedproper records showing full particulars including quantitative details and situation offixed assets. b) As explained to us all the assets have been physically verified by theManagement at the end of the accounting year and no material discrepancies were noticed onphysical verification as compared to the book records. c) According to the information andexplanations given to us the title deeds of immovable properties are held in the name ofthe company.

2. As explained to us the Stock of finished goods and raw-materials has beenphysically verified by the management at the end of the accounting. In our opinion andaccording to the information and explanations given to us the frequency of verificationis reasonable and the Company has maintained proper records of inventory. No materialdiscrepancies were noticed on physical verification as compared to the book records.

3. In our opinion and according to the information and explanations given to us theCompany has granted loan unconditional and interest free to a firm and other partiescovered under the provisions of Section 185 and 186 of the Companies Act 2013. The numberof parties involved is one the aggregate loan amount is Rs. 2334600/- maximum amountinvolved is Rs. 2334600/- and yearend balance is Rs. 1054720/-.

4. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of the directivesissued by the Reserve Bank of India and provisions of Section 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and rules framed there under.

5. We have broadly reviewed the cost records maintained by the company pursuant to theCompanies (Cost Accounting Records) Rules 2011 prescribed by the Central Government forthe maintenance of cost records under section 148(1) of the Companies Act 2013 and are ofthe opinion that prima facie the prescribed accounts and records have been maintained. Wehave however not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete.

6. a) According to the records of the Company the Company is generally regular indepositing undisputed statutory dues including Income Tax Sales Tax Customs Duty Cessand other statutory dues with appropriate authorities. According to the information andexplanations given to us following undisputed amounts payable have remained outstandingas at 31st March 2017 for a period more than six months from the date they becamepayable:

Name of the Statute Nature of Dues Amount (Rs.) Month / Financial Year Due Date
Income Tax Act 1961 Self-Assessment Tax 2790000 2015-16 30th September of the previous Financial year

b) According to the records of the Company there were no dues of income tax or salestax or wealth tax or Service tax or duty of customs or duty of excise or value added taxor cess which have not been deposited on account of any dispute.

8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to any Financial Institution or Bank.

9. To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not obtained any term loans.

10. In our opinion and according to the information and explanations given to us nofraud on or by the Company has been reported during the year.

11. The Company has paid managerial remuneration provided in accordance with therequisite approvals mandated by the provisions of section 197 read with schedule V to theCompanies Act.

12. The Clause regarding Nidhi Company has not been applied to our company thereforethe reporting under this clause does not arise.

13. In our opinion and according to the information and explanations given to us theCompany has properly disclosed the all transactions with the related parties are incompliance with Section 177 and 188 of Companies Act 2013 in the Financial Statements asrequired by the applicable accounting standards.

14. In our opinion and according to the information and explanations given to us theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review as per the Provision of Section42 of the Companies Act 2013.

15. In our opinion and according to the information and explanations given to us theCompany has not entered any Non-Cash transaction with the directors or persons connectedwith him as per Provision of Section 192 of the Companies Act 2013.

16. The Company does not require to be registered under Section 45-IA of the ReserveBank of India Act 1934 therefore the reporting under this clause does not arise.

For V. A. Parikh &Associates LLP
CharteredAccountants
F. R. No: 112787W/100073
(Nirav R. Parikh)
Place : Mumbai Partner
Date : May 30 2017 Membership No. 121674