INDEPENDENT AUDITORS REPORT
TO THE MEMBERS OF
Palm Jewels Ltd.
Report on the Financial Statements
We have audited the accompanying financial statements of Palm Jewels Ltd. whichcomprise the Balance Sheet as at 31 March 2018 the Statement of Profit and Loss for theyear ended and a summary of significant accounting policies and other explanatoryinformation.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
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 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 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 financial control relevant to the Companyspreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Companys Directors as well as evaluating the overallpresentation 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 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 2018; b) in the case of the Statement of Profit and Loss of the profit for the yearended on that date; and c) in the case of the Cash Flow Statement of the cash flows forthe year ended on that date.
Our opinion is not modified in respect of these matters.
Report on other Legal and Regulatory Requirements As required by section 143(3) of theAct we report that: a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit. b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books. c) the Balance Sheet theStatement of Profit and Loss and Cash Flow Statement dealt with by this Report are inagreement with the books of account. d) In our opinion the aforesaid financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014. e) On the basis of written representationsreceived from the directors as on 31 March 2018 taken on record by the Board ofDirectors none of the directors is disqualified as on 31 March 2018 from beingappointed as a director in terms of Section 164(2) of the Act. f) With respect to theother matters included in the Auditors Report and to our best of our information andaccording to the explanations given to us :
i. The Company does not have any pending litigations which would impact its financialposition. ii. The Company did not have any long-term contracts including derivativescontracts for which there were any material foreseeable losses. iii. There were no amountswhich required to be transferred to the Investor Education and Protection Fund by theCompany .
| ||FOR A.K.SHAH & ASSOCIATES |
| ||Chartered Accountants |
| ||Firm Reg. No. 109478W |
|Place: Ahmedabad. || |
|Dated: 30.05.2018 ||(Ajit K. Shah) |
| ||Proprietor |
| ||Membership No. 44602 |
Annexure to the Auditors Report
The Annexure referred to in our report to the members of Palm Jewels Limited. (theCompanys) for the year Ended on 31/03/2018. We report that:
|Sr. || ||Auditors |
|No. ||Particulars || |
| || ||Remarks |
|(i) ||(a) whether the company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets; ||Yes. |
| ||(b) whether these fixed assets have been physically verified by the management at reasonable intervals; ||Yes. |
| ||whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of account; ||No Material Discrepancies. |
| ||(c) whether the title deeds of immovable properties are held in the name of the company. If not provide the details thereof; ||Yes. |
|(ii) ||(a) whether physical verification of inventory has been conducted at reasonable intervals by the management ||Yes. |
| ||(b) whether any material discrepancies were noticed on physical verification and if so whether the same have been properly dealt with in the books of account; ||No Material Discrepancies. |
|(iii) ||whether the company has granted any loans secured or unsecured to companies firms or other parties covered in the register maintained under section 189 of the Companies Act. If so ||No |
| ||(a) whether the Terms and conditions of the grant of such loans are not prejudicial to the companys interest; ||N.A. |
| ||(b) whether schedule of repayment of principal amount and payment of interest has been stipulated and whether the repayments and receipts are regular; and ||N.A. |
| ||(c) if overdue amount is more than ninety days whether reasonable steps have been taken by the company for recovery of the principal and interest; ||N.A. |
|(iv) ||In respect of loans investments guarantees and security whether provision of section 185 and 186 of time Companies Act 2013 have been compiles with. If not provide the detail thereof. ||Yes. |
|(v) ||in case the company has accepted deposits whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act2013 and the rules framed there under where applicable have been complied with? If not the nature of contraventions should be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not? ||Yes |
|(vi) ||where maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act whether such accounts and records have been made and maintained; ||Not Specified By C.G. |
|(vii) ||(a) whether the company regular in depositing undisputed statutory dues including provident fund employees state insurance income-tax sales- tax wealth tax service tax duty of customs duty of excise value added tax cess and any other statutory dues with the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated by the auditor. ||Yes Regular Deposited. |
| ||(b) in case dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not constitute a dispute). ||No. |
|(viii) ||whether the company has defaulted in repayment of dues to a financial institution or bank or debenture holders? If yes the period and amount of default to be reported; ||Not Defaulted. |
|(ix) ||Whether moneys raised by initial public offer or further public offer (including debt instruments) and term loans were applied for the purpose for which those are raised. If not the details together with delay or default and subsequent rectification if any as may be applicable be reported ; ||N.A. |
|(x) ||Whether any fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year; If yes the nature and the amount involved is to be indicated ||No. |
|(xi) ||Whether managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provision of section 197 read with schedule V to the companies Act? If not state the amount involved and steps taken by the company for securing refund of the same ||Yes. |
|(xii) ||Whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1: 20 to meet out the liability and whether the Nidhi Company is maintaining ten per cent unencumbered term deposit as specified in the Nidhi Rules 2014 to meet out the liability ||N.A. |
|(xiii) ||Whether all the transaction with the related parties are in compliance with section 177 and 188 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards ||Yes. |
|(xiv) ||Whether the company has made any preferential allotment or private placements of share or fully or partly convertible debentures during the year under review and if so as to whether the requirement of section 42 of the Companies Act 2013 have been compiles with and the amount raised have been used for the purpose for which the funds were raised. If not provided the details in respect of the amount involved and nature of non- compliance ||No. |
|(xv) ||Whether the company has entered into any non-cash transactions with directors or persons connected with him and if so whether the provision of section 192 of Companies Act 2013 have been compiled with; ||No. |
|(xvi) ||Whether the company is required to be registered under section 45-IA of the Reserve Bank Of India Act 1934 and if so whether the registration has been obtained ||No. |
| ||For A. K. SHAH & ASSOCIATES |
| ||Chartered Accountants |
| ||(Firms Reg. No.: 109478W) |
|Place : Ahmedabad || |
|Date : 30.05.2018 || |
| ||(Ajit K. Shah) |
| ||Proprietor |
| ||Membership number: 044602 |