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Swarnsarita Gems Ltd.

BSE: 526365 Sector: Consumer
NSE: N.A. ISIN Code: INE967A01012
BSE LIVE 15:40 | 18 Dec 19.15 0.15
(0.79%)
OPEN

18.50

HIGH

19.65

LOW

18.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 18.50
PREVIOUS CLOSE 19.00
VOLUME 12439
52-Week high 28.00
52-Week low 15.40
P/E 10.13
Mkt Cap.(Rs cr) 40
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 18.50
CLOSE 19.00
VOLUME 12439
52-Week high 28.00
52-Week low 15.40
P/E 10.13
Mkt Cap.(Rs cr) 40
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 Ind AS financial statements of SWARNSARITAGEMS LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss (including Other Comprehensive Income)the cash flow statement and the statement of Changes in Equity for the year ended and asummary of the significant accounting policies and other explanatory information.

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 of these standalone Ind ASfinancial statements that give a true and fair view of the financial position financialperformance including comprehensive income cash flows and change in equity of the companyin accordance with the accounting principles generally accepted in India including theIndian Accounting

Standards specified under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance 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 there under.

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 ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone

Ind AS financial statements. The procedures selected depend on the auditor's judgmentincluding the assessment of the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thestandalone Ind AS financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the standalone Ind AS 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 Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone

Ind AS financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31stMarch 2017 and its Profit and it's cash flowsand the change in equity for the yearendedon that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")as amended issued by the Central

Government of India in terms of sub section (11) of section 143 of the Act we give inthe "Annexure A" a statements on the matters specified in paragraphs 3and 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 Sheetthe Statement of Profit and Loss and the cash flow statement deal by this Report are inagreement 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 2017 taken on record by the Board of Directors none of the directors isdisqualified as at 31st March 2017 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. TheCompany does nothaveanypendinglitigationsonits position in its financialstatements. ii. The Company does not have long-term contracts including derivativecontracts for which there were any material foreseeable losses. iii. There has been nodelay in transferring amounts required to be transferred to the Investor Education andProtection Fund by the Company: iv. The company has provided requisite disclosure in thestandalone Ins AS financial statements as regards its holding and dealings in SpecifiedBank Notes as defined in the Notification S.O. 3407 (E) dated November

8 2016 of the Ministry of Finance during the period from November 8 2016 to December30 2016. Based on audit procedures performed and the representation provided to us by themanagement we report that the disclosure are in accordance with the books of accountmaintained by the company and as produced by the Management.

For Suresh Anchaliya& Co.
Chartered Accountants
Firm Regn. No. : 112492W
Suresh Anchaliya
Place: Mumbai Partner
Date : 29.05.2017 M.No. : 044960

"Annexure A" to the Independent Auditors' Report

The annexure referred to Independent Auditor's Report to the members of the Company onthe standalone financial statements for the year ended 31st March 2017 wereport that: (i) (a) The company has maintained proper records showing full particularsincluding 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. 52.46 lakhs to itswholly owned subsidiary company "Swarnsarita Realty Private Limited" whichis the only party covered in the register maintained under section 189 of the CompaniesAct 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 the company.

(b) The loan granted to the wholly owned subsidiary company "Swarnsarita RealtyPrivate Limited" listed in the registered maintained under section 189 of the Actand the terms of arrangements do not stipulate any repayment schedule and the loans arerepayable on demand.

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

(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 centralgovernment has not prescribed the maintenance of cost records under section 148(1) of theAct. (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 2017 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 money 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 theinformation and explanations given by the management and based on our examination of therecords of the company transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards. (xiv) Accordingto the information and explanations given by the management and based on our examinationof the records the company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year under 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 : 29.05.2017 M.No. : 044960

"Annexure B" to the Independent Auditor's Report of even date on theStandalone Financial Statements of Swarnsarita 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 2017 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 financial 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 design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the 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 Auditingissued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial 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 control 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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 the transactions and dispositions of theassets of the company; (2) provide reasonable assurance that andfairlyreflect transactionsare recorded as necessary to permit preparation of financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould 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 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 2017 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 on India (‘ICAI').

For Suresh Anchaliya & Co.
Chartered Accountants
Firm Regn. No. : 112492W
Suresh Anchaliya
Place: Mumbai Partner
Date : 29.05.2017 M.No. : 044960