THE MEMBERS OF GOLKUNDA DIAMONDS & JEWELLERY LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of GOLKUNDA DIAMONDS &JEWELLERY LIMITED (the Company) which comprise the Balance Sheet as at 31stMarch 2017 the Profit and Loss Statement the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.
MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companys Board of Directors is responsible for the matters stated in section134 (5) of the Companies Act 2013 (hereinafter referred to as "the Act") withrespect to the preparation of these financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error which have been used for the purposeof preparation of the financial statements by the Directors of the Company as aforesaid.
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 theauditors 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 Companyspreparation 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 Companys 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin 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 March31 2017; b) in the case of the Statement of Profit and Loss of the profit of the Companyfor the year ended on that date; and c) in the case of the Cash Flow Statement of thecash flows of the Company for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.
2. As required by Section143(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 relating to preparationof the aforesaid financial statements have been kept so far as it appears from ourexamination 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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;
(e) On the basis of the written representations received from the directors of theCompany as on 31st March 2017 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2017 from being appointed as a director interms of 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 Auditors 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 has no pending litigations as referred to in Note 24 of the financialstatements.
(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
| ||For MOTILAL &ASSOCIATES |
| ||Chartered Accountants |
| ||(FRNo.106584W) |
| ||CA M.P.MODY |
| ||Partner |
|Mumbai 30th May 2017 ||Membership No 042975 |
TO THE INDEPENDENT AUDITORS REPORT
The Annexure A referred to in our Independent Auditors Report to the members ofthe Company on the financial statements for the year ended on 31st March 2017. We reportthat:
(1) In Respect of its fixed assets:
(a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets of the company have been physically verified by the management atreasonable intervals. No material discrepancies between the book records and the physicalinventory have been noticed.
(c) All the title deeds of immovable properties are held in the name of the company.
(2) In respect of its inventories:
(a) As explained to us the inventory has been physically verified by the management atreasonable intervals.
(b) On the basis of our examination of the inventory records in our opinion thecompany is maintaining proper records of inventory. The discrepancies noticed on physicalverification of inventory as compared to book records were not material.
(3) According to the information and explanation given to us the company has notgranted unsecured loan to Companies Firms Limited Liability Partnerships or otherparties covered in the register maintained under section 189 of the Companies Act.Accordingly clauses 3 (iii) (a) and 3(iii) (b) of the Order are not applicable.
(4) In Our opinion and according to the information and explanations given to us duringthe course of the audit the company has not entered in any transaction that attract theprovisions of section 185 and 186 of the Companies Act 2013.
(5) According to the information and explanations given to us the Company has notaccepted any deposits from public.
Therefore the provisions of clause (v) of the paragraph 3 of the CARO 2016 are notapplicable to the Company.
(6) In respect of statutory dues:
(a) According to the information and explanations given to us and according to thebooks and records as produced and examined by us in our opinion the company is generallyregular in depositing the undisputed statutory dues including provident fundemployees state insurance income-tax sales-tax wealth tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues as applicablewith the appropriate authorities.
According to the information and explanations given to us no undisputed amounts payablein respect of provident fund employees state insurance income-tax service-taxexcise duty sales tax customs duty and cess were in arrears as at 31st March 2017 forthe period of more than six months from the date they became payable.
(b) According to the information and explanations given to us there are no materialdues as at 31st March 2017 of Income Tax wealth tax duty of customs and cess which havenot been deposited with the appropriate authorities on account of any dispute.
(7) Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment of duesto financial institution and banks.
(8) According to the information and explanations given to us the Company has notraised term loan during the year.
(9) During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the company noticed or reported during the year nor have webeen informed of such case by the management.
(10) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the provisions of section 197 read with Schedule V to the Companies Act.
(11) The Company is not a Nidhi Company hence the provisions of the Nidhi Company andthe Nidhi Rules 2014 is not applicable to the company.
(12) In our opinion and according to the information and explanations given to us alltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards;
(13) Company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year under review thus requirement ofsection 42 of the Companies Act 2013 is not applicable to the company.
(14) In our opinion and according to the information and explanations given to usCompany has not entered into any non-cash transactions with directors or persons connectedwith him. Thus the provisions of section 192 of Companies Act 2013 are not applicable tothe company;
(15) In our opinion and according to the information and explanations given tousCompany is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.
| ||For MOTILAL & ASSOCIATES |
| ||Chartered Accountants |
| ||(FRNo.106584W) |
| ||CA M.P.MODY |
| ||Partner |
|Mumbai 30th May 2017 ||Membership No 042975 |
TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OFGOLKUNDA DIAMONDS & JEWELLERY 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 GOLKUNDADIAMONDS & JEWELLERY LIMITED ("the Company") as of March 31 2017 inconjunction with our audit of the financial statements of the Company for the year endedon that date.
Managements Responsibility for Internal Financial Controls
The Companys 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to companys policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Companys 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 auditors judgment 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 Companys internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys 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 companys 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 authorisations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the companys 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 control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
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 on theinternal control 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 CharteredAccountants of India.
| ||For Motilal & Associates |
| ||Chartered Accountants |
| ||(FRNo. 106584W) |
| ||CA Mukesh P. Mody |
|Place: Mumbai ||Partner |
|Date: 30th May 2017 ||Membership No. 042975 |