TO THE MEMBERS OF
LYPSA GEMS & JEWELLERY LIMITED
1) Report on the financial statements
We have audited the accompanying financial statements of LYPSA GEMS & JEWELLERYLIMITED which comprise the Balance Sheet as at March 31 2017 the Statement of Profitand Loss for the year then ended Cash Flow Statements and a summary of significantaccounting policies and other explanatory information.
2) Management responsibility for the financial statement
The Companys Board of Directors is responsible for the matters stated in Section134 (5) of the Companies Act 2013 ("The Act") with respect to the preparationof these 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 of the Companies (Accounts) Rules2014 as prescribed by the Institute of Chartered Accountants of India and otheraccounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatements whether due to fraud or error.
3) 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 there under.
We conducted our audit in accordance with the Standards on Auditing under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures 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 control relevant to the Companys preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the Companys internal control. An audit also LYPSA GEMS &JEWELLERY LIMITED includes evaluating the appropriateness of accounting policies usedand the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the said accounts read together with the Notes from 1-24 annexed thereongives the information required by the Act in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India
a) In case of the Balance Sheet of the state of the Companys affairs as at 31stMarch 2017
b) In case of the Statement of Profit & Loss Account of the profit for the yearended on that date and
c) Its cash flows for the year ended on that date
5) Report on other legal and regulatorty requirements
As required by the Companies (Auditors' Report) Order 2004 issued by the CentralGovernment in terms of sub section (4A) of Section 227 of the Companies Act 2013 weenclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of thesaid order
6) Further to our comments in the above Para on the basis of our audit we report that:
a. We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;
b. In our opinion the company has kept proper books of account as required by law sofar as appears from our examination of the books of account;
c. The Balance Sheet and Profit and Loss Account dealt with this report are inagreement with the books of Accounts;
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 written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director interms of Section 164(2) of the Act.
f) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditors Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014:
i. The Company does not have any pending litigations which would impact its financialposition except for outstanding dues of Banks.
ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses
iii. There is Unclaimed Dividend of Rs. 749900/- of F.Y. 2009-10 which is required tobe transferred by the Company to the Investor Education and Protection Fund. The companyhas not transferred the same.
For M/s. Doshi Maru & Associates