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Swarnsarita Jewels India Ltd.

BSE: 526365 Sector: Consumer
NSE: N.A. ISIN Code: INE967A01012
BSE 00:00 | 07 Dec 23.45 2.45
(11.67%)
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NSE 05:30 | 01 Jan Swarnsarita Jewels India Ltd
OPEN 21.95
PREVIOUS CLOSE 21.00
VOLUME 48273
52-Week high 29.00
52-Week low 9.00
P/E 6.17
Mkt Cap.(Rs cr) 49
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 21.95
CLOSE 21.00
VOLUME 48273
52-Week high 29.00
52-Week low 9.00
P/E 6.17
Mkt Cap.(Rs cr) 49
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Swarnsarita Jewels India Ltd. (SWARNSARITAJEWEL) - Auditors Report

Company auditors report

To

The members of swarnsarita gems limited

Report on audit of the standalone financial statements opinion

We have audited the accompanying standalone ind as financial statements of swarnsaritagems limited ("the company") which comprise the balance sheet as at 31stmarch 2019 the statement of profit and loss (including other comprehensive income) thecash flow statement and the statement of changes in equity for the year then ended and asummary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the companies act 2013 ("the act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in india ofthe state of affairs of the company as at 31 march 2019 and profit (including othercomprehensive income) changes in equity and its cash flows for the year date ended onthat

Basis for opinion

We conducted our audit in accordance with the standards on auditing (sas) specifiedunder section 143(10) of the Act. Our responsibilities under those sas are furtherdescribed in the auditor's responsibilities for the audit of the standalone financialstatements section of our report. We are independent of the company in accordance with thecode of ethics issued by the institute of chartered accountants of india together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the act and the rules there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the code of ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

Key audit matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone ind as financial statements for the financialyear ended march 31 2019. These matters were addressed in the context of our audit of thestandalone ind as financial statements as a whole and in and we do not provide a separateopinion on these matters. For each matter below our description of how our auditaddressed the matter is provided in that context. We have determined the matters describedbelow to be the key audit matters to be communicated in our report.

The key audit matter How was the matter addressed in our audit
Revenue recognition (refer note no. 4 of notes forming part of standalone financial statement)
Accuracy of recognition measurement presentation and Disclosures of revenues Our audit procedures with regard to revenue recognition Included testing controls verification of delivery notes Confirmation from customers verification Of Stock Statements and inventory reconciliations.

We have determined that there are no other key audit matters to communicate in ourreport.

Information other than the standalone financial statements and auditor's report thereon

The company's board of directors is responsible for the other information. The otherinformation comprises the information included in the annual report but does not includethe standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we will not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether such other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

Management's responsibility for the standalone ind as 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 standalone ind as financial statements that give of the financial positionfinancial performance including comprehensive income cash flows and change in equity ofthe company in accordance with the accounting principles generally accepted in indiaincluding the indian accounting Standards specified under section 133 of the act.

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 financialstatements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

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 ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the depend on the auditor's judgment including the assessmentstandalonefinancial of the risks of material misstatement of the standalone financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financialcontrol relevant to the company's preparation of thestandalone financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the company's directors as well as evaluating the overallpresentation of the standalone financial statements.

We believe that the audit evidence we have obtained is sufficientand appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Report on other legal and regulatory requirements

1. As required by the companies (auditors' report) order2016("the order") asamended issued by the central government of india in terms of sub section (11) ofsection143 of the act we give in the "annexure a"a statements on thematters specified in paragraphs 3 and 4 of the order.

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 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 and the cash flow statementdealt with by this report are in agreement with the books of account.

(d) in our opinion the aforesaidstandalonefinancial statements comply with the indianaccounting standards prescribed under section 133 of the act.

(e) on the basis of the written representations received from the directors as on 31stmarch 2019 taken on record by the board of directors none of the directors isdisqualified as at 31st march 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 overfinancialreporting of the company and the operating effectiveness of such controls referto our separate 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. Thecompany does not have any pending litigations on its financial position in its financialstatements. Ii. The company does not have long-term contracts including derivativecontracts for which there were any material foreseeable losses. Iii. There has been nodelay in transferring amounts required to be transferred to the investor education andprotection fund by the company.

For suresh anchaliya & co.
Chartered accountants
Firm regn. No. :112492w
Suresh anchaliya
Date : 29/05/2019 Partner
Place: mumbai M.no. : 044960

"annexure a" to the independent auditors' report

The annexure referred to independent auditor's report to the members of the company onthe standalone financial statements for the year ended 31st march 2019 we report that:(i)

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

(b) the fixed assets have been physically verified by the management during the year ina phased periodical manner designed to cover all the items over a period of three yearswhich in our opinion is reasonable having regard to the size of the company and nature ofits business. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies between the booksrecords and the physical fixed assets have been noticed.

(c) the title deeds of immovable properties are held in the name of the company.

(ii) (a) the physical verification of the inventories has been verified by themanagement at regular intervals during the year and no material discrepancies werenoticed.

(iii) during the year the company has granted unsecured loan of र 95.56 lakhs toits wholly owned subsidiary company "swarnsarita realty private limited" whichis the only party covered in the register maintained under section 189 of the companiesact 2013 (‘the act').

(a) in our opinion the rate of interest and other term and conditions on which theloans had been granted to the body corporate listed in the register maintained undersection 189 of the act were not prima facie prejudicial to the interest of the company.

(b) the loan granted to the wholly owned subsidiary company "swarnsarita realtyprivate limited" listed in the registered maintained under section 189 of the act andthe terms of arrangements do not stipulate any repayment schedule hence the loans arerepayable on demand.

(c) as the loan granted to wholly owned subsidiary company "swarnsarita realtyprivate limited" is repayable on demand hence there is no overdue amount.

(iv) in our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the companies act2013.

(v) the company has not accepted any deposits from the public.

(vi) the central government has not prescribed the maintenance of cost records undersection 148(1) of the act.

(vii) (a) according to the information and explanations given by the management andbased on our examination of the records of the company amounts deducted/accrued in thebooks of account in respect of undisputed statutory dues including provident fund. Incometax sales tax value added tax duty of customs service tax cess and other materialstatutory dues have been regularly deposited during the year by the company with theappropriate authorities. As explained to us the company did not have any dues on accountof employees state insurance and duty of excise. according to information and explanationsgiven to us no undisputed amounts payable in respect of provident funds income taxsales tax value added tax duty of customs service tax cess and other materialstatutory dues were in arrear as at 31st march 2019 for a period of more than six monthsfrom the date they become payable.

(b) according to information and explanations given to us there are no material duesof taxes which have not been deposited with the appropriate authorities on account of anydispute.

(viii)in our opinion and according to the information and explanations given to us thecompany has not defaulted in the repayment of dues to financial institutions governmentand banks.

(ix) the company did not raise moneys by way of initial public offer or further publicoffer including debt instruments and term loans during the year. Accordingly paragraph 3(ix) is not applicable.

(x) according to information and explanations given to us no material fraud by thecompany or on the company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) according to the information and explanations given by the management and based onour examination of the records the company has paid/provided for managerial remunerationin accordance with the requisite approvals mandated by the provisions of section 197 readwith schedule v to the companies act.

(xii) in our opinion the company is not a nidhi company. Therefore the provisions ofclause 4 (xii) of the order are not applicable to the company.

(xiii)according to the information and explanations given by the management and basedon our examination of the records of the company transactions with the related partiesare in compliance with section 177 and 188 of companies act 2013 and the details havebeen disclosed in the standalone ind as financial statements as required by the applicableaccounting standards.

(xiv)according to the information and explanations given by the management and based onour examination of the records the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review.

(xv) according to the information and explanations given by the management and based onour examination of the records the company has not entered into any non-cash transactionswith directors or persons connected with him. Accordingly the paragraph 3 (xv) of theorder is not applicable (xvi)the company is not required to be registered under section 45ia of the reserve bank of india act 1934.

For suresh anchaliya & co.
Chartered accountants
Firm regn. No. :112492w
Suresh anchaliya
Date : 29/05/2019 Partner
Place: mumbai M.no. : 044960

"annexure b" to the independent auditor's report of even date on thestandalone financial statements of swarnasarita gems 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 swarnsaritagems limited ("the company") as of march 31 2019 in conjunction with our auditof the standalone 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 internalcontrols over financial reporting criteria established by the company considering theessential components of internal control stated in the guidance note on audit of internalfinancial controls over financial reporting issued by the institute of charteredaccountant on

India (‘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.

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 established and maintained and if suchcontrols 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 reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the 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 reportingcontrols system over financial

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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at march 31 2019 based oninternal controlsoverfinancialreporting 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 charteredaccountant on india (‘icai').

For suresh anchaliya & co.
Chartered accountants
Firm regn. No. :112492w
Suresh anchaliya
Date : 29/05/2019 Partner
Place: mumbai M.no. : 044960

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