To The Members of The Mini Diamonds (India) Limited
Report on the Audit of the Financial Statements
We have audited the accompanying financial statements of The Mini Diamonds (India)Limited ("the Company") which comprise the Balance Sheet as at March 31 2019the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date and asummary of the significant accounting policies and other explanatory information
(hereinafter referred to as "the 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
Companies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended
("Ind AS") and other accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2019 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.
Basis for opinion
We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilitiesfor the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independencerequirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI'sCode of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.
Key audit matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financialstatements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
Information Other than the Financial Statements and Auditor's Report Thereon TheCompany's Board of Directors is responsible for the preparation of the other information.The other information comprises the information included in the Management Discussion andAnalysis Board's Report including Annexures to Board's
Report and Shareholder's Information but does not include the financial statements andour auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon. In connection with our audit of thefinancial statements our responsibility is to read the other information and in doingso consider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained during the course of our audit or otherwise appearsto be materially misstated. If based on the work we have performed we conclude thatthere is a material misstatement of this other information; we arerequired to report thatfact. We have nothing to report in this regard.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to thepreparation of these financial statements thatgive a true and fair view of the financial position financial performancetotalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting recordsin accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimatesthat are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls thatwereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparationand presentation of the financial statements that givea true and fair view and are free from material misstatementwhether due to fraud orerror. In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
The Board of Directors are responsible for overseeing the Company's financial reportingprocess.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free frommaterial misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonableassurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detecta material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individuallyor in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements. As part of an audit in accordance with SAs we exerciseprofessional judgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than forone resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion onwhether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and relateddisclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the auditevidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt onthe
Company's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required todraw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosuresare inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makesit probable that the economic decisions of a reasonablyknowledgeable user of the financial statements may be influenced. We consider quantitativemateriality and qualitative factors in (i) planning the scope of our audit work and inevaluating theresults of our work; and (ii) to evaluate the effect of any identifiedmisstatements in the financial statements. We communicate with those charged withgovernance regarding among other matters the planned scope and timing of theaudit andsignificant audit findings including any significant deficiencies in internal controlthat we identify during our audit. We also provide those charged with governance with astatement that we have complied with relevant ethical requirementsregarding independenceand to communicate with them all relationships and other matters that may reasonably bethoughtto bear on our independence and where applicable related safeguards. From thematters communicated with those charged with governance we determine those matters thatwere of most significancein the audit of the financial statements of the current periodand are therefore the key audit matters. We describethese matters in our auditor's reportunless law or regulation precludes public disclosure about the matter or when inextremelyrare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequencesof doing so would reasonably be expected tooutweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1) As required by Section 143(3) of the Act based on our audit 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 including OtherComprehensive Income Statement of Changes inEquity and the Statement of Cash Flow dealtwith by this Report are in agreement with the relevant books of account.
d) In our opinion the aforesaid financial statements comply with the Ind ASspecified under Section 133of the Act read with Rule 7 of the Companies (Accounts) Rules2014.
e) On the basis of the written representations received from the directors as onMarch 31 2019 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2019 from being appointed as a director in terms of Section164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and theoperating effectiveness of such controls refer to ourseparate Report in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements ofsection 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to ustheremunerationpaid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.
h) 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 as amended inour opinion and to the best of our information and according tothe explanations given tous :
i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.
ii) The Company has made provision as required under the applicable law oraccounting standards for material foreseeable losses if any on long-term contractsincluding derivative contracts.
iii) There has been no delay in transferring amounts required to be transferredto the Investor Education and Protection Fund by the Company.
2) As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government in terms of Section 143(11) of the Act wegive in "Annexure B" a statement on the matters specified in paragraphs3 and 4of the Order.
For Mittal & ASSOCIATES
Firm Registration number: 106456W
Mukesh Kumar Sharma
Membership number: 134020
Mumbai May 29 2019