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Tara Jewels Ltd.

BSE: 534756 Sector: Consumer
NSE: TARAJEWELS ISIN Code: INE799L01016
BSE 00:00 | 16 Jul 5.68 -0.17
(-2.91%)
OPEN

5.61

HIGH

5.88

LOW

5.61

NSE 00:00 | 16 Jul 5.70 -0.15
(-2.56%)
OPEN

6.10

HIGH

6.10

LOW

5.65

OPEN 5.61
PREVIOUS CLOSE 5.85
VOLUME 1443
52-Week high 34.70
52-Week low 5.60
P/E
Mkt Cap.(Rs cr) 14
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.61
CLOSE 5.85
VOLUME 1443
52-Week high 34.70
52-Week low 5.60
P/E
Mkt Cap.(Rs cr) 14
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Tara Jewels Ltd. (TARAJEWELS) - Auditors Report

Company auditors report

To the Members of Tara Jewels Limited

REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS

We have audited the accompanying standalone Ind AS financial statements of Tara JewelsLimited ("the Company") which comprise the Balance Sheet as at March 31 2017the Statement of Profit and Loss (including other comprehensive income) the Statement ofCash Flow and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information (herein after referredto as "standalone Ind AS financial statements")

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 thepreparation and presentation of these standalone Ind AS financial statements that give atrue and fair view of the financial position financial performance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements 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 Ind AS financialstatements based 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 thereunder.

We conducted our audit of standalone Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement. An audit involves performing procedures to obtain auditevidence about the amounts and the disclosures in the standalone Ind AS financialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the standalone Ind AS financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thestandalone Ind AS financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the standalone Ind AS financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the standalone Ind AS financial statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thefinancial position of the Company as at March 31 2017 and its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear ended on that date.

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 section 143 (11) of the Act we givein the Annexure "I" a statement on the matters specified in paragraphs 3 and 4of the Order.

2. As required by section 143(3) of the Act we report that: a we have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b in our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books; c the Balance Sheet the Statement of Profit and Loss theCash Flow Statement and the Statement of Changes in Equity dealt with by this Report arein agreement with the books of account;

d in our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under Section 133 of the Act e on the basis ofwritten representations received from the directors as on March 31 2017 and taken onrecord by the Board of Directors none of the directors is disqualified as on March 312017 from being appointed as a director in terms of section 164 (2) of the Act. f Withrespect to the adequacy of the internal financial controls over financial reporting of theCompany and the operating effectiveness of such controls refer to our separate Report in"Annexure II".

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 has disclosed the impact of pending litigations on its financial position in itsstandalone Ind AS financial statements – Refer Note 35 to the standalone Ind ASfinancial statements; ii. the Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; iii. there wereno amounts which were required to be transferred to the Investor Education and ProtectionFund by the Company. iv. the Company has provided requisite disclosures in its standaloneInd AS financial statements as to holdings as well as dealings in Specified Bank Notesduring the period from November 8 2016 to December 30 2016 and these are in accordancewith the books of accounts maintained by the Company. Refer Note No.43 to the standaloneInd AS financial statements.

For C. B. Chhajed & Co.
Chartered Accountants
(Firm Regn. No : 101796W)
Place : Mumbai C. B. Chhajed
Dated : 29.05.2017 (Partner)
Membership No : 009447

ANNEXURE "I"

TO THE INDEPENDENT AUDITORS' REPORT

[Referred to in paragraph 1 of "Report on other legal and regulatoryrequirements" of our report of even date]

TO THE MEMBERS OF TARA JEWELS LIMITED (‘the Company')

1 a The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. b. The fixed assets of the Companyhave been physically verified by the management during the year and no materialdiscrepancies have been noticed on such verification. In our opinion the frequency ofverification is reasonable. c. According to the information and explanations given to usand on the basis of our examination of the records of the Company the title deeds ofimmovable properties are held in the name of the Company.

2 The inventory has been physically verified by the management during the year. In ouropinion the frequency of verification is reasonable. The discrepancies noticed onphysical verification of inventory as compared to book records were not material and thesame were properly dealt with in the books of accounts.

3 In our opinion and according to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms limitedliability partnerships or other parties covered in the register maintained under Section189 of the Act. Accordingly clauses (iii)(a) to (iii)(c) of paragraph 3 of the Order arenot applicable to the Company for the year.

4 In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 in respect of loansinvestments guarantees and securities wherever applicable.

5 According to the information and explanations given to us the Company has notaccepted any deposits from the public. Accordingly clause (v) of paragraph 3 of the orderis not applicable to the company.

6 The Central Government of India has not prescribed the maintenance of cost recordsunder sub-section (1) of Section 148 of the Act for any of the products of the Company.Accordingly clause (vi) of paragraph 3 of the Order is not applicable to the Company forthe year. 7 a) According to the information and explanations given to us and the recordsof the Company examined by us in our opinion undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax service tax duty ofcustom duty of excise value added tax cess have not been regularly deposited with theappropriate authorities and there have been delays in a large number of cases.

The Statutory dues outstanding as on Balance Sheet date for a period of more than sixmonths from the date they became payable are listed below:

Name of the Statute Nature of Dues Amount Period to Due Date Date of
(Rs.) which Payment
the amount
relates
Income Tax Act 1961 Income tax 133607523 F.Y. 2014-15 15.03.2015 Not Paid
Income tax 76921826 F.Y. 2015-16 15.03.2016 Not Paid
Tax Deducted at 1102248 August 2016 07.09.2016 25.05.17
Source
The Employees'_Provident Provident fund 2609936 August 2016 15.09.2016 Not Paid
Fund_And Miscellaneous
Provisions_Act 1952

 

Name of the Statute Nature of Dues Amount Period to Due Date Date of
(Rs.) which Payment
the amount
relates
The Employees' State ESIC on Salaries and 529125 July 2016 21.08.2016 18.04.2017
Insurance Act 1948 Wages
476471 August 2016 21.09.2016 18.04.2017
ESIC on Contracts 1218 April 2016 21.05.2016 22.05.2017
881 June 2016 21.07.2016 22.05.2017
2470 July 2016 21.08.2016 22.05.2017
309 August 2016 21.09.2016 22.05.2017

b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of sales-tax wealth tax excise duty and cesswhich have not been deposited on account of any dispute. The income-tax customs duty andservice tax dues which have not been deposited on account of disputed matters pendingbefore appropriate authority are as under :

The Statutory dues outstanding as on Balance Sheet date for a period of more than sixmonths from the date they became payable are listed below:

Name of the Statute Nature of Dues Amount Period to which Forum where the
(`) the amount relates dispute is pending
Customs Act 1962 Custom Duty 1418430 1995-1996 Commissioner of Customs (Appeals) Mumbai
Customs Act 1962 Custom Duty 377133 1996-1997 Assistant Commissioner of Customs Mumbai
Customs Act 1962 Custom Duty 105000 2004-2005 Customs Excise and Gold (Control) Appellate Tribunal
Income Tax Act 1961 Income Tax 56500000 2001-2014 CIT Appeals IT Tribunal and High court
Finance Act 1994 Service Tax 6723389 2006-2008 Joint Commissioner of Service Tax

8. In our opinion and according to the information and explanation given to us theCompany has defaulted in repayment of loans or borrowings to a financial institution andbanks during the year. The Company does not have any loans or borrowings from Governmentor has not issued any debentures. The period and amount of defaults are as under :

Name of Lender Type of Facility Amount of Default Period of Default
1. Canara Bank Bills Discounted 95935829 Upto 90 Days
2. Central Bank of India Bills Discounted 20885179 Upto 90 Days
3. Corporation Bank Bills Discounted 48402395 30 - 45 Days
4. Punjab National Bank Bills Discounted 30669320 Upto 15 Days
5. State Bank of India Bills Discounted 117353000 Upto 90 Days
6. Union Bank of India Bills Discounted 72305033 Upto 60 Days
7. Vijaya Bank Bills Discounted 83625343 Upto 30 Days
8. Daimler Financial Services India Pvt Ltd Vehicle Loan 445237 Upto 60 Days

9 The Company has not raised money by way of initial public offer or further publicoffer or debt instruments during the year. In our opinion and according to theinformation and explanations given to us on an overall basis the term loans have beenapplied for the purposes for which they were obtained.

10 According to the 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

11 According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

12 In our opinion and according to the information and explanations given to us thecompany is not a nidhi company. Accordingly clause (xii) of paragraph 3 of the order isnot applicable to the company.

13 According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14 According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly clause (xiv) of paragraph 3 of the order is not applicable to theCompany.

15 According to the information and explanations given to us the Company has notentered into any non-cash transactions during the year with the directors or personsconnected with him. Accordingly clause (xv) of paragraph 3 of the order is not applicableto the company.

16 In our opinion and according to the information and explanations given to us theCompany is not required to register under section 45-IA of the Reserve Bank of India Act1934. Accordingly clause (xvi) of paragraph 3 of the order is not applicable to thecompany.

For C. B. Chhajed & Co.
Chartered Accountants
(Firm Regn. No : 101796W)
Place : Mumbai C. B. Chhajed
Dated : 29.05.2017 (Partner)
Membership No : 009447

ANNEXURE "II"

TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE IND AS FINANCIALSTATEMENTS OF TARA JEWELS 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 Tara JewelsLimited ("the Company") as of March 31 2017 in conjunction with our audit ofthe standalone Ind AS 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 Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 standalone Ind AS financial statements whether due to fraudor 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 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 controls 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 C. B. Chhajed & Co.
Chartered Accountants
(Firm Regn. No : 101796W)
Place : Mumbai C. B. Chhajed
Dated : 29.05.2017 (Partner)
Membership No : 009447