KUSHAL DIAMONDS LIMITED
We have audited the attached Balance Sheet of Kushal Diamonds Limited as at
31st March, 1996 and also the Profit and Loss Account of the Company for
the year ended on that date. annexed thereto, and report that :
1. We have obtained all the information and explanations to the best of our
knowledge and belief were necessary for the purposes of our audit;
2. In our opinion, proper books of account as required by law have been
kept by the company so far as appears from our examination of the books;
3. The balance sheet and profit and loss account dealt with by this report
are in agreement with the books of account;
4. (i) In our opinion and on the basis of information and explanations
given to us Sundry debtors should be considered doubtful to the extent of
Rs. 82,59,656, which have been classified as good in the accounts.
(ii) During the financial year the company has changed the accounting
policy relating foreign currency transactions as referred in note no. 1(vi)
of the notes to accounts. The effect of such change has not been
(iii) As referred in note no. 6 of notes to accounts the company has yet to
receive permission of Reserve Bank of India to written off a sum of Rs.
37,94,945/- (US $ 43073.65).
(iv) The company has not transferred the payment of dividend aggregating to
Rs.1,17,576/- for the financial years 1990-91 & 1991-92 to the General
Reserve Accounts of Central Government in terms of Section 206 of the
Companies Act, 1956.
Subject to above, in our opinion and to the best of our information and
according to the explanations given to us, the accounts together with notes
thereon give the information required by the Companies Act, 1956, in the
manner so required and give a true and fair view :
a) in the case of the balance sheet of the state of affairs of the company
as at 31st March, 1996
b) in the case of the profit and loss account, of the loss for the year
ended on that date.
FOR A. J. BALIYA & ASSOCIATES
PLACE : MUMBAI
DATED : 3RD AUGUST, 1996.