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Swarnsarita Jewels India Ltd.

BSE: 526365 Sector: Consumer
NSE: N.A. ISIN Code: INE967A01012
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NSE 05:30 | 01 Jan Swarnsarita Jewels India Ltd
OPEN 20.50
PREVIOUS CLOSE 20.25
VOLUME 1182
52-Week high 32.00
52-Week low 13.10
P/E 5.23
Mkt Cap.(Rs cr) 42
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 20.50
CLOSE 20.25
VOLUME 1182
52-Week high 32.00
52-Week low 13.10
P/E 5.23
Mkt Cap.(Rs cr) 42
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 the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Swarnsarita GemsLimited ("the Company") whichcomprise the standalone Balance Sheet as at March31 2021 the standalone Statement of Profit and Loss (including other comprehensiveincome) standalone statement of changes in equity and the standalone Statement of CashFlows for the year ended on that date and a summary of the significant accountingpolicies and other explanatory information (hereinafter referred to as "thestandalone financial statements").

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 mannerso required and give a trueand fair view in conformity with the Accounting Standards as prescribed under section 133of the Act read with rule 7 of the Companies (Accounts) Rules 2014 and other accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2021 the profit and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Standalone Financial Statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute ofCharteredAccountants of India (ICAI) together with the independence requirements that arerelevant to our audit ofthe standalone financial statements under the provisions of theAct and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve thatthe audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters ('KAM') are those matters that in our professional judgment were ofthe most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have not identified any of such matters that are to be reportedseparately here during the current period.

Information Other than the Standalone 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 inAnnual Report butdoes not include the standalone financial statements and our auditor's reportthereon.

Our opinion on the standalone financial statements does not cover the otherinformationand we do not express any form of assurance conclusionthereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materiallyinconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there isa material misstatementof this other information; we are required to report that fact. We have nothing to reportin thisregard.

Responsibility of Management for the Standalone FinancialStatements

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 standalone financial statementsthat give a true and fair view of the standalone financial position standalone financialperformance standalone profit and other comprehensive income standalone statement ofchanges in equity and standalone cash flows of the Company in accordance with accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud orerror.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern 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 doso.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions ofuserstaken on the basis of these standalone financialstatements.

As part of an audit in accordance with Standards on Auditing we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that issufficient andappropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the auditinorder to designaudit 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 the reasonablenessof accounting estimates and related disclosures made bymanagement.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on theaudit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may causethe Company to cease tocontinue as a goingconcern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achievesfairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significantaudit findings includinganysignificant deficiencies in internal control that we identify during ouraudit.

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 relatedsafeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the 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 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. (A) 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 thosebooks.

c) The standalone balance sheet the standalone statement of profit and loss (includingother comprehensive income) the standalone statement of changes in equity and thestandalone statement of cash flows dealt with by this Report are in agreement with therelevant books ofaccount.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with rule 7 of Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on March312021 takenon record by the Board of Directors none of the directors is disqualifiedason March 31 2021 frombeing appointed asa director in terms of Section 164 (2) oftheAct.

f) With respect to the adequacy of the internal financial controls over financialreporting with reference to these standalone financial statements of the company and theoperating effectiveness of such controls refer to our separate Report in "AnnexureB". Our report expresses an unmodified opinion on the adequacy and operatingeffectiveness of the Company's internalfinancial controls over financialreporting;

(B) 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 tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements. Refer note 35 of Notes to the financial statements

ii. The Company did not have any long - term contracts including derivative contractsfor which there were any material foreseeable losses.

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

(C) With respect to the matter to be included in the Auditors' Report under Section197(16) of the Act:

In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.

For Banshi Jain and Associates
Chartered Accountants
(Firm's Registration
No.100990W)
Sd/-
R.B. Golecha
Place: MUMBAI Partner
Date: 23rd June2021 Membership No. 035348
UDIN:21035348AAAAFL7150

Annexure 'A' to The Independent Auditor's Report

(Referred to in paragraph 2 under the heading 'Report on Other Legal and RegulatoryRequirements' of our report to the members of Swarnsarita Gems Limited)

Based on the audit procedures performed for the purpose of reporting a true and fairview on the standalone financial statements of the Company and taking into considerationthe information and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

1. In respect of the Company's fixedassets:

(a) The Company has maintained proper records showing full particularsincludingquantitative details and situation of fixedassets.

(b) The company has a regular program of physical verification of its fixed assetsunder which the fixed assets are verified in a phased manner which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Inaccordance with this program certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deed of immovable property is held inthe name of the company.

2. In respect of its inventories:

a) As explained to us the inventory available in the hands of the company has beenphysically verified during the year by the Management. In our opinion the frequency ofverification is reasonable.

b) According to the information and explanations given to us in our opinion 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) According to the information and explanations given to us and on the basis of ourexamination of records of inventory in our opinion the Company has maintained properrecords inventory and there were no material discrepancies noticed on verification betweenthe physical inventory and the book records.

3. According to the information and explanation given to us the company has grantedunsecured loans to parties covered in the register maintained under section 189 of theCompanies Act. The balance Outstanding as at the end of the year was Rs. 101348333/- .In our opinion and according to the information and explanation given to us:-

a) The terms and conditions of the grant of aforesaid loans are not prejudicial to thecompany's interest.

b) In respect of the aforesaid loans the parties are repaying the principal amounts asstipulated and are also regular in payment of interest wherever applicable.

c) There are no amounts of loan granted to the company listed in the registermaintained under section 189 of the Act which were overdue for more than ninety days.

4. In our opinion and according to the information and explanations given to usprovisions of section 185 and 186 of the Companies Act 2013 in respect of loans todirectors including entities in which they are interested and in respect of loans andadvances given investments made guarantees and securities given have been complied bythe company.

5. In our opinion the Company has not accepted deposits within the meaning of Section73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of clause 3(v) of the Order are not applicable.

6. The central government has not prescribed the maintenance of cost records undersection 148(1) of the Act.

7. According to the information and explanation given to us in respect of statutorydues:

a) Undisputed statutory dues including provident fund employees' state insuranceincome tax duty of customs goods and service tax cess and other statutory dues havegenerally been regularly deposited with the appropriate authorities.

According to the information and explanation given to us no undisputed amounts payablein respect of provident fund employees' state insurance income tax duty of customsgoods and service tax and cess and other statutory dues were outstanding at the yearend for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us there are no materialdues including provident fund employees' state insurance income-tax service tax cessand any other statutory dues which have not been deposited with the appropriateauthorities on account of any dispute. However according to the information andexplanations given to us the particulars of dues of income tax and sales tax as at 31stMarch 2021 which have not been deposited on account of any dispute are as follows.

Name of the Statute Nature of Dues Amounts involved Rs. Period to which the amount relates Forum where dispute is pending
Income Tax Income Tax 44351370/- 2012-13 Commissioner of Income Tax (Appeals)
Income Tax Income Tax 376656/- 2017-18 Commissioner of Income Tax (Appeals)
WB VAT VAT 2190328/- 2018-19 Senior Joint Commissioner

8. According to the records of the company examined by us and the information andexplanations given to us the company has not defaulted in repayment of dues to anyfinancial institution or bank as at the balance sheet date. Further the Company has notissued any debentures as at the balance sheet date

9. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) during the year or term loans and hence reporting underclause 3 (ix) of the Order is not applicable to the Company.

10. No fraud by the Company or no material fraud on the Company by its officers oremployees has been noticed or reported during theyear.

11. Managerial remuneration has been paid by the company in accordance with therequisite approvals mandated by the provisions of Section 197 of the Act read withSchedule V to the Act.

12. In our opinion the Company is not a Nidhi Company. Accordingly provision ofclause 3 (xii) of the Order is not applicable to the Company.

13. In our opinion all transactions with the related parties are in compliance withSection 177 and 188 of the Act where applicable and the requisite details have beendisclosed in the notes to financial statements as required by the applicable accountingstandards.

14. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures. Accordingly reportingunder clause 3 (xiv) of the Order is not applicable to the Company.

15. In our opinion the Company has not entered into any non - cash transactions withdirectors or persons covered with them under section 192 of the Act.

16. The Companyis not required to be registered under section 45-IA of the Reserve Bankof India Act 1934.

For Banshi Jain and Associates
Chartered Accountants
(Firm's Registration No. 100990W)
Sd/-
R. B. Golecha
Place: MUMBAI Partner
Date: 23rd June 2021 Membership No. 035348
UDIN:21035348AAAAFL7150

Annexure -B to the Auditors' Report"

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

In conjunction with our audit of the standalone financial statements of SwarnsaritaGems Limited (the "Company") as at and for the year ended 31 March 2021 we haveaudited the internal financial controls over financial reporting of the Company as of thatdate.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting ("the Guidance Note") issued by the Institute of Chartered Accountantsof India ('ICAI').

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of Company's business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable 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 with reference to these financial statements based onour audit. We conducted our audit in accordance with the Guidance Note and the Standardson Auditing as specified 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 ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting were 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 auditor's judgment including the assessment of the risks ofmaterial misstatement 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 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 authorizations of management and directors of the company and;

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized 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 March 31 2021 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 ICAI.

For Banshi Jain and Associates
Chartered Accountants
(Firm'sRegistration No.100990W)
Sd/-
R.B. Golecha
Place: MUMBAI Partner
Date: 23rd June 2021 Membership No. 035348
UDIN: 21035348AAAAFL7150

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