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Sunraj Diamond Exports Ltd.

BSE: 523425 Sector: Consumer
NSE: N.A. ISIN Code: INE459D01014
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NSE 05:30 | 01 Jan Sunraj Diamond Exports Ltd
OPEN 4.92
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VOLUME 10
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52-Week low 2.53
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Buy Price 0.00
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Sell Price 0.00
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OPEN 4.92
CLOSE 4.92
VOLUME 10
52-Week high 4.92
52-Week low 2.53
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sunraj Diamond Exports Ltd. (SUNRAJDIAMOND) - Auditors Report

Company auditors report

To the Members of SUNRAJ DIAMOND EXPORTS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Sunraj DiamondExports Limited ("the Company") which comprise the Balance Sheet as at March31 2017 and the Statement of Profit and Loss and Cash Flow Statement for the periodended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial position andfinancial performance 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.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

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 have conducted our audit in accordance with the Standards on Auditing specifiedunder section 143(10) of the Act. These standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement An audit involves performingprocedures to obtain audit evidence about the amounts and disclosures in the financialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalcontrol relevant to the Company's preparation of the financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner 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 2017;

b) in the case of the Profit and Loss Account of the loss for the period ended on thatdate; and

c) in the case of the Cash Flow Statement of the cash flows for the period ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required under the Companies (Auditors' Report) Order 2017 issued by the CompanyLaw Board in terms with section 143(11) of the Companies Act 2013 we give in theAnnexure A a statement on the matters specified in the paragraph 3 and 4 of the saidOrder.

2. As required u/s. 143(3) of the Companies' Act 2013 we report that:

a) we have sought and obtained all the information and explanations which to the bestofour knowledge and belief were necessary for the purpose of our audit;

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 Statement of Profit and Loss and Cash Flow Statement dealt withby 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 the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e) On the basis of the written representations received from the directors as on 01stApril 2016 and taken on record by the Board of Directors none of the director isdisqualified as on 01st April 2016 from being appointed as 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 the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

g) 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 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 1(g) to the financial statements;

ii. The Company did not have any material foreseeable losses on long-term contractsincluding derivative contracts.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management - Refer Note toAccounts.

For Bhupendra Shroff & Co.
Chartered Accountants
FRN: 101458W
B. N. Shroff
Mumbai Partner
Date: 29th May 2017. Membership No. 5039

"Annexure A" to the Independent Auditors' Report

Referred to in paragraph 1 under the heading 'Report on Other Legal & RegulatoryRequirement' of our report of even date to the standalone financial statements of theCompany for the year ended March 31 2017:

1. Fixed Assets

(a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.

(c) The Company does not own any immovable property hence the clause of the titledeeds in respect of immovable properties in the name of the Company is not applicable

2. Inventories

(a) As explained to us inventories have been physically verified during the year bythe management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.

(c) In our opinion and on the basis of our examination of the records the Company isgenerally maintaining proper records of its inventories. No material discrepancy wasnoticed on physical verification of stocks by the management as compared to book records.

3. Loans and Advances granted/taken from certain entities

According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms or other parties listed in the register maintained underSection 189 of the Companies Act 2013. Consequently the provisions of clauses (a) (b)and (c) of the order are not applicable to the Company.

4. Loan to Directors and investment by Company

In our opinion and according to the information and explanations given to us theCompany has not granted any loan investment guarantee and security. Hence provision ofsection 185 and 186 of the Companies Act 2013 is not required to be complied with.

5. Public Deposits

The Company has not accepted any deposits as defined u/s. 2(31) of the Companies Act2013 therefore the issue of the Company following the directives issued by the ReserveBank of India and provision of section 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the rules framed there under are not applicable. Because there isno contravention by the Company the nature of contravention in not reported. The CompanyLaw Board or National Company Law Tribunal or Reserve Bank of India or any court or anytribunal has not passed any order or directive there for the issue of its compliance isnot applicable.

6. Cost Records

As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the company.

7. Statutory Dues

(a) According to the records of the company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees' State InsuranceIncome-tax Sales-tax Wealth Tax Service Tax Custom Duty Excise Duty cess to theextent applicable and any other statutory dues have generally been regularly depositedwith the appropriate authorities. According to the information and explanations given tous there were no outstanding statutory dues as on 31st of March 2017 for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us there is no amountspayable in respect of income tax wealth tax service tax sales tax customs duty andexcise duty which have not been deposited on account of any disputes except the following:

Nature of Tax Liability Amount (Rs.) Nature of Dispute / Forum Where the dispute is pending
Income Tax A.Y. 2008-09 28070 ITAT Appeal
Income Tax A.Y. 2011-12 526130 ITAT Appeal
Income Tax A.Y. 2013-14 11712740 CIT Appeal
Income Tax A.Y. 2014-15 2780755 CIT Appeal

(c) The Company is not required to transfer any amount to investor education andprotection fund in accordance with the relevant provisions of the Companies Act 2013 andrules made there under hence clause (vii)(c) is not applicable.

8. Dues to Financial Institutions Banks and Debenture holders

Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto a financial institution bank or debentureholders. The Company has not taken any loaneither from financial institutions or from the government and has not issued anydebentures.

9. Utilization of IPO and further Public Offer

According to the information and explanations given to us the Company has not raisedmoney either by means of Initial Public Offer (IPO) or further public offer (includingdebt instruments). Hence clause 3(ix) will not be applicable to the company and hence notcommented upon.

10. Frauds Noticed

Based on the audit procedures performed and the information and explanations given tous we report that no fraud on or by the Company has been noticed or reported during theyear nor have we been informed of such case by the management.

11. Approval of Managerial Remuneration

According to the information and explanations given to us the Company has paidmanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act 2013.

12. Nidhi Company

Based on our audit procedures and on the information and explanations given by themanagement the Company is not a Nidhi Company. Hence clause 3(xii) of the Order is notapplicable.

13. Related Party Transactions

According to the information and explanations given to us the Company has compliedwith sections 177 and 188 of Companies Act 2013 and details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

14. Private Placement or Preferential Issues

According to the information and explanations given to us the Company has made privateplacement of shares during the year under review. The company has complied with therequirements of Section 42 of the Companies Act 2013 and the amount raised has been usedfor the purposes for the purposes for which the funds were raised.

15. Non - Cash Transactions

According to the information and explanations given to us the Company has not enteredinto any non-cash transactions with directors or persons connected with him. Hence clause3(xv) of the order is not applicable.

16. Register under RBI Act 1934

The Company is not required to register under section 45-IA of the Reserve Bank ofIndia Act 1934.

For Bhupendra Shroff & Co.
Chartered Accountants
FRN: 101458W
B. N. Shroff
Mumbai Partner
Date: 29th May 2017. Membership No. 5039

"Annexure B" to the Independent Auditor's Report of even date on theStandalone Financial Statements of Sunraj Diamond Exports Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SunrajDiamond Exports Limited ("the Company") as of March 31 2017 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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 Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' 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 on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively 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 auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material 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 control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Bhupendra Shroff & Co.
Chartered Accountants
FRN: 101458W
B. N. Shroff
Mumbai Partner
Date: 29th May 2017. Membership No. 5039