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Shubhlaxmi Jewel Art Ltd.

BSE: 535125 Sector: Others
NSE: SHUBHLAXMI ISIN Code: INE01Z401013
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Shubhlaxmi Jewel Art Ltd. (SHUBHLAXMI) - Auditors Report

Company auditors report

To

The Members of

SHUBHLAXMIIEWEL ART LIMITED

Report on the Audit of the Financial Statements

Qualified Opinion

We have audited the accompanying financial statements of Shubhlaxmi Jewel Art Limited("the Company") which comprise the Balance Sheet as at 31st March2022 the statement of profit and loss and the statement of cash flows for the year thenended and notes to the financial statements including a summary of the significantaccounting 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 except for the effects of the matters described in the Basis for QualifiedOpinion paragraph below the aforesaid financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at 31st March 2022 and ofthe profit and its cash flows for the year ended on that date.

Basis for Qualified Opinion

* Attention is invited to Note No. 21 regarding physical verification and valuationof the inventory and inadequate audit evidences in respect thereof. The impact on theprofit for the year if any is not ascertainable.

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under Section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor s Responsibilities for 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 ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion on the financial 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 financial statements as a whole and inour forming our opinion thereon and we do not provide a separate opinion on thesematters.

We have determined the matters described below to be the key audit matters tocommunicate in our report.

Revenue recognition

Revenue is measured net of discounts incentives rebates etc. earned by the customerson the Company's sales. Due to competitive business environment discounts incentives andrebates to be recognized based on sales made during the year is material.

Auditor's response:

Our audit approach was a combination of test of internal controls and substantiveprocedures including assessing the appropriateness of the Company's revenue recognitionaccounting policies and testing thereof; evaluating the integrity of the generalinformation and control environment and testing the operating effectiveness of keycontrols.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board'sReport including Annexures to Board's Report Shareholder's Information but does notinclude the financial statements and 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 the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. If based on the workwe have performed we conclude that there is material misstatement of this otherinformation we are required to report that fact 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 Section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of tire 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.

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 concerns and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor s report that includes our opinion. Reasonable assurance is highlevel of assurance but is not a guarantee that audit conducted In accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatements 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 for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of the internalcontrol.

• 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 on whether theCompany' has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertainty'exists related to events or conditions that may cast significant doubt on the Company'sability to continue as going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport

However future events or conditions may cause the Company to cease to continue as agoing concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosure and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From fee matters communicated wife those charged wife governance we determine thosematters feat were of most significance in the audit of financial statements of the currentperiod and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation preclude public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because fee adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1 As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India terms of sub-section (11) of section 143 of theAct we give in the Annexure -

A. a statement on the matters specified in clause 3 and 4 of the Order to the extentapplicable.

2. As required by section 143(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 fee purpose of our audit except forinformation on inventories as stated in note no. 23;

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 and the Cash Flow Statementdealt wife 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 fee Act read with Rule 7 of the Companies(Accounts) Rules 2015;

e) On the basis of written representations received from the directors as on 31stMarch 2022 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in termssection 164(2) of the Act;

f) With respect to the adequacy of internal financial controls over financial reportingof the Company and operating effectiveness of such controls our separate report inannexure - B may be referred;

g) Remuneration paid by the Company to its directors during the year- isin accordance with the provisions of section 197 read wife schedule V of the Act

h) 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 explanation 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 derivatives contractsfor which there were any material foreseeable losses;

iii. There were no amounts required to be transferred to the Investor Education andProtection Fund by the Company.

iv. a. The Management has represented that to the best of its knowledge and beliefother than as disclosed in the notes to the accounts no funds have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentities ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

b. The Management has represented that to the best of its knowledge and belief otherthan as disclosed in the notes to the accounts no funds have been received by the Companyfrom any person or entity including foreign entities ("Funding Parties") withthe understanding whether recorded in writing or otherwise that the Company shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security' or the like on behalf of theUltimate Beneficiaries;

c. Based on such audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (a) and (b) above contain any material misstatement.

v. Since the Company has not declared or paid any' dividend during the year thequestion of commenting on whether dividend declared or paid is in accordance with Section123 of the Companies Act 2013 does not arise.

For SANGHAVI & COMPANY
Chartered Accountants
FRN: 109099W
Mumbai MANOJ GANATRA
30th May 2022 Partner
Membership No. 043485
UDIN: 22043485A JWGBZ5554

ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

On the basis of such checks as we considered appropriate and in terms of informationand explanations given to us we state that:

1 In respect of property plant and equipment:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

The Company does not have any intangible assets.

b. Property plant and equipment were physically verified by the management atreasonable intervals in a phased manner in accordance with a programme of physicalverification. No material discrepancies were noticed on such verification.

c. The title deeds of immovable properties (other than properties where the Company isthe lessee and the lease agreements are duly executed in favour of the lessee) disclosedin the financial statements included under property plant and equipment are held in thename of the Company.

d. The Company has not revalued any of its property plant and equipment or intangibleassets during the year.

e. There are no proceedings initiated or are pending against the Company for holdingany benami property under the Benami Transactions (Prohibition) Act 1988 as amended andRules made thereunder.

2 In respect of inventories:

a. As informed to us the physical verification of inventory has been conducted atreasonable intervals by the management during the year and in our opinion the coverageand procedure of such verification by Management is appropriate. The discrepancies noticedon physical verification of inventory as compared to book records were not 10% or more inaggregate for each class of inventory (refer note no. 21).

b. During the year the Company has been sanctioned working capital limits in excess ofRs. 5 crores in aggregate from banks on the basis of security of current assets of theCompany. The quarterly returns or statements filed by the Company with such banks aregenerally in agreement with the books of account. A few differences observed are notmaterial.

3 Since the Company has not provided any loans or advances in the nature of loans orstood guarantee or provided security to any other entity the requirement to report underclause 3(iii) of the Order is not applicable.

4 There are no loans investments guarantees or securities in respect of whichprovisions of sections 185 and 186 of the Act are applicable.

5 The Company has not accepted any deposits from public or amounts which are deemed tobe deposits within the meaning of sections 73 to 76 of the Act and rules made thereunderto the extent applicable. Accordingly the requirement to report on clause 3(v) of theOrder is not applicable.

6 The Central Government has not prescribed maintenance of the cost records undersection 148(1) of the Companies Act 2013.

7 In respect of statutory and other dues:

a. The Company has been regular in depositing undisputed statutory dues includinggoods and service tax provident fund employees state insurance income tax cess andother statutory dues to the extent applicable with the appropriate authorities duringthe year. There are no undisputed statutory dues outstanding for a period of more than sixmonths from the date they became payable

b. There are no statutory dues outstanding which have not been deposited on account ofdispute.

8 The Company has not surrendered or disclosed any transactions previously unrecordedin the books of account in the tax assessments under the Income Tax Act 1961 as incomeduring the year

9 a. The Company has not defaulted in repayment of loans or other borrowings or in thepayment of interest thereon to any lender.

b. The Company has not been declared willful defaulter by any bank or financialinstitution or government or any government authority

c. On an overall examination of the financial statements of the Company the term loanshave been applied for the purposes for which they were obtained.

d. On an overall examination of the financial statements of the Company funds raisedon short-term basis have prima facie not been used for long-term purposes by theCompany

e. The Company does not have any subsidiary joint venture or associates. Therequirement to report under clause 3(ix)(e) and (f) of the order is therefore notapplicable.

10 a. The Company has not raised any money during the year by way of initial publicoffer or further public offer (including debt instruments).

b. The Company has complied with provisions of section 42 of the Act in respect of thepreferential allotment of share warrants issued during the year (refer note no. 30) Theamounts so raised have been used for the purposes for which it was raised.

11 a. No fraud by the Company or no fraud on the Company has been noticed or reportedduring the year.

b. No report under sub-section (12) of section 143 of the Act has been filed in FormADT-4 as prescribed under Rule 13 of the Companies (Audit and Auditors) Rules 2014 withthe Central Government during the year and up to the date of this report.

c. The Company has not received any whistle blower complaint during the year and up tothe date of this report.

12 The Company is not a Nidhi Company as per the provisions of the Act. The requirementto report under clause 3 (xii) of the Order is therefore not applicable.

13 Transactions with the related parties are in compliance with Section 177 and 188 ofthe Act wherever applicable and the details have been disclosed in the financialstatements as required by the applicable accounting standards.

14 a. The Company has an internal audit system commensurate with the size and nature ofits business.

b. We have considered the internal audit reports of the Company issued till date forthe period under audit.

15 The Company has not entered into any non-cash transactions with its directors orpersons connected with its directors.

16 a. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

b. The Company has not conducted any non-banking financial or housing financeactivities without obtaining a valid certificate of registration (CoR) from the ReserveBank of India as per the Reserve Bank of India Act 1934.

c. The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India.

d There is no core investment company within the Group (as defined in the CoreInvestment Companies (Reserve Bank) Directions 2016) and accordingly reporting underclause 3(xvi)(d) of the Order is not applicable.

17 The Company has not incurred cash losses in the current and in the immediatelypreceding financial year.

18 There has been no resignation by the statutory auditors of the Company during theyear.

19 According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities other information accompanying the financial statements ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatthe Company is not capable of meeting its liabilities existing at the date of balancesheet as and when they fall due within a period of one year from the balance sheet date.We however state that this is not an assurance as to the future viability of theCompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.

20 The Company is not covered under Section 135(1) of the Act with respect to theapplicability of Corporate Social Responsibility. The requirement to report under clause(xx) of the Order is therefore not applicable.

For SANGHAVI & COMPANY
Chartered Accountants
FRN: 1090WW
Mumbai MANOJ GANATRA
30th May 2022 Partner
Membership No. 043485
UDIN: 22043485AJWGBZ5554

ANNEXURE - B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 (f) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

We have audited the internal financial controls over financial reporting of ShubhlaxmiJewel Art Limited ("the Company") as of 31st March 2022 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's 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 Reporting("the Guidance Note") issued by the Institute of Chartered Accountants of India("the ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing issued by the ICAI and prescribedunder section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance

Note require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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' judgement including the assessment of the risks ofmaterial misstatement of file 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 Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting 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 company's assets that could have amaterial 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 controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

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 31st March 2022based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Noteissued by the ICAI.

For SANGHAVI & COMPANY
Chartered Accountants
FRN: 1090WW
Mumbai MANOJ GANATRA
30th May 2022 Partner
Membership No. 043485
UDIN: 22043485AJWGBZ5554

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