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Swarnsarita Gems Ltd.

BSE: 526365 Sector: Consumer
NSE: N.A. ISIN Code: INE967A01012
BSE LIVE 19:40 | 19 Oct 17.55 -0.55
(-3.04%)
OPEN

20.20

HIGH

20.20

LOW

17.15

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 20.20
PREVIOUS CLOSE 18.10
VOLUME 20710
52-Week high 28.05
52-Week low 15.40
P/E 12.27
Mkt Cap.(Rs cr) 37
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 20.20
CLOSE 18.10
VOLUME 20710
52-Week high 28.05
52-Week low 15.40
P/E 12.27
Mkt Cap.(Rs cr) 37
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Swarnsarita Gems Ltd. (SWARNSARITAGEMS) - Auditors Report

Company auditors report

To

THE MEMBERS OF SWARNSARITA GEMS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of SWARNSARITA GEMSLIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss the cash flow statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.

Management’s Responsibility for the Standalone 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)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 internalfinancial controls 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.

Auditor’s Responsibility

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 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 standalone 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.

Opinion

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 2016 and its Profit and it’s cash flows for the yearended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors’ Report) Order 2016 ("theOrder") as amended issued by the Central Government of India in terms of sub-section(11) of Section 143 of the Act we give in the "Annexure A" a statementson the matters specified in paragraphs 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 and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss and the cash flow statementdealt with by this Report are in agreement with the books of account.

(d) 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.

(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as at 31st March 2016 from being appointed as a director in termsof Section 164 (2) of the Act.

(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 B".

(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 the explanations given to us:

i. The Company does not have any pending litigations on its financial position in itsfinancial statements.

ii. The Company does not have long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. Following is the instances of delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company:

Date of declaration of dividend Date of Transfer to the Bank Account Due date of funds to be transferred to Investor Education and Protection Actual date of transfer to Investor Education and Protection
07th August 2008 29th July 2008 06th August 2015 The amount is not transferred till the signing of this report
09th September 2008 26th September 2008 08th September 2015

 

For Suresh Anchaliya & Co.
Chartered Accountants
Firm Regn. No. :112492W
Suresh Anchaliya
Place: Mumbai Partner
Date : 28th May 2016 M.No. : 044960

"Annexure A" to the Independent Auditors’ Report

The annexure referred to Independent Auditor’s Report to the members of theCompany on the standalone financial statements for the year ended 31st March2016 we report that: (i) (a) The company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management during the year ina phased periodical manner designed to cover all the items over a period of three yearswhich in our opinion is reasonable having regard to the size of the company and nature ofits business. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies between the booksrecords and the physical fixed assets have been noticed.

(c) The title deeds of immovable properties are held in the name of the company.

(ii) (a) The physical verification of the inventories has been verified by themanagement at regular intervals during the year and no material discrepancies werenoticed.

(iii) During the year the company has granted unsecured loan of Rs 37375700/- to itswholly owned subsidiary company "Swarnsarita Realty Private Limited" whichis the only party covered in the register maintained under Section 189 of theCompanies Act 2013 (‘the Act’).

(a) In our opinion the rate of interest and other term and conditions on which theloans had been granted to the body corporate listed in the register maintained underSection 189 of the Act were not prima facie prejudicial to the interest of thecompany.

(b) The loan granted to the wholly owned subsidiary company "Swarnsarita RealtyPrivate Limited" listed in the registered maintained under Section 189 ofthe Act and the terms of arrangements do not stipulate any repayment schedule and theloans are repayable on demand.

(c) As the loan granted to wholly owned subsidiary company "Swarnsarita RealtyPrivate Limited" is repayable on demand and hence there is no overdueamount.

(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of Section 185 and 186 of the Companies Act2013.

(v) The Company has not accepted any deposits from the public.

(vi) The central government has not prescribed the maintenance of cost records underSection 148(1) of the Act.

(vii) (a) According to the information and explanations given by the management andbased on our examination of the records of the company amounts deducted/accrued in thebooks of account in respect of undisputed statutory dues including provident fund. Incometax sales tax value added tax duty of customs service tax cess and other materialstatutory dues have been regularly deposited during the year by the company with theappropriate authorities. As explained to us the company did not have any dues on accountof employees state insurance and duty of excise.

According to information and explanations given to us no undisputed amounts payable inrespect of provident funds income tax sales tax value added tax duty of customsservice tax cess and other material statutory dues were in arrear as at 31stMarch 2016 for a period of more than six months from the date they become payable.

(b) According to information and explanations given to us there are no material duesof taxes which have not been deposited with the appropriate authorities on account of anydispute.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to financial institutionsgovernment and banks.

(ix) The company did not raise moneys by way of initial public offer or further publicoffer including debt instruments and term loans during the year. Accordingly paragraph 3(ix) is not applicable.

(x) According to information and explanations given to us no material fraud by theCompany or on the company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations given by the management and based onour examination of the records the company has paid/provided for managerial remunerationin accordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Companies Act.

(xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

(xiii) According to the information and explanations given by the management and basedon our examination of the records of the company transactions with the related partiesare in compliance with Section 177 and 188 of Companies Act 2013 and the details havebeen disclosed in the Financial Statements as required by the applicable accountingstandards.

(xiv) According to the information and explanations given by the management and basedon our examination of the records the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review.

(xv) According to the information and explanations given by the management and based onour examination of the records the company has not entered into any non-cash transactionswith directors or persons connected with him. Accordingly the paragraph 3 (xv) of theOrder is not applicable.

(xvi) The company is not required to be registered under Section 45 IA of the ReserveBank of India Act 1934.

For Suresh Anchaliya & Co.
Chartered Accountants
Firm Regn. No. :112492W
Suresh Anchaliya
Place: Mumbai Partner
Date : 28th May 2016 M.No. : 044960

"Annexure B" to the Independent Auditor’s Report

Of even date on the Standalone Financial Statements of Swarnasarita Gems limited.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SwarnsaritaGems Limited ("the Company") as of March 31 2016 in conjunction with our auditof the standalone 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 internalcontrols over fianancial reporting criteria established by the company considering theessential components of internal control stated in the guidance note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountant on India (‘ICAI’). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company’s policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies 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 ICAI and deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 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 judgement including the assessment of the risks ofmaterial misstatement 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 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 processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea 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 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.

Opinion

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 31 2016 based oninternal controls 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 CharteredAccountant of India (‘ICAI’).

For Suresh Anchaliya & Co.
Chartered Accountants
Firm Regn. No. :112492W
Suresh Anchaliya
Place: Mumbai Partner
Date : 28th May 2016 M.No. : 044960

Auditor’s Report on Year to Date Results of the Company Pursuant to the Regulation33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015

To Board of Directors of Swarnsarita Gems Limited

We have audited the financial results of Swarnsarita Gems Limited for the year to dateresults for the period 1st April 2015 to 31st March 2016attached herewith being submitted by the company pursuant to the requirement ofRegulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations2015. The year to date financial result has been prepared on the basis of the interimfinancial statements which is the responsibility of the company’s management. Ourresponsibility is to express an opinion on these financial results based on our audit ofsuch interim financial statements which have been prepared in accordance with therecognition and measurement principles laid down in Accounting Standard for InterimFinancial Reporting (AS 25 / Ind AS 34) prescribed under Section 133 of the CompaniesAct 2013 read with relevant rules issued thereunder; or by the Institute of CharteredAccountants of India as applicable and other accounting principles generally accepted inIndia.

We conducted our audit in accordance with the auditing standards generally accepted inIndia. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial results are free of material misstatement(s). Anaudit includes examining on a test basis evidence supporting the amounts disclosed asfinancial results. An audit also includes assessing the accounting principles used andsignificant estimates made by management. We believe that our audit provides a reasonablebasis for our opinion.

In our opinion and to the best of our information and according to the explanationsgiven to us these financial results as well as the year to date results: (i) are presentedin accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 in this regard; and (ii) Give a true and fairview of the net profit and other financial information for the quarter ended 31stMarch 2016 as well as the year to date results for the period from 1st April2015 to 31st March 2016.

For Suresh Anchaliya & Co.
Chartered Accountants
Firm Regn. No. :112492W
Suresh Anchaliya
Place: Mumbai Partner
Date : 28th May 2016 M.No. : 044960