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Veerkrupa Jewellers Ltd.

BSE: 543545 Sector: Others
NSE: N.A. ISIN Code: INE0ID001016
BSE 00:00 | 12 Aug 63.25 3.00
(4.98%)
OPEN

63.05

HIGH

63.25

LOW

63.05

NSE 05:30 | 01 Jan Veerkrupa Jewellers Ltd
OPEN 63.05
PREVIOUS CLOSE 60.25
VOLUME 12000
52-Week high 63.25
52-Week low 24.40
P/E 6325.00
Mkt Cap.(Rs cr) 50
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 63.05
CLOSE 60.25
VOLUME 12000
52-Week high 63.25
52-Week low 24.40
P/E 6325.00
Mkt Cap.(Rs cr) 50
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Veerkrupa Jewellers Ltd. (VEERKRUPAJEWEL) - Auditors Report

Company auditors report

To

The Board of Directors

Veerkrupa Jewellers Limited

Shop -7 Vrundavan Residency

Nr Satyam SchoolNaroda

Ahmedabad-382330 Gujarat

Sub.: Public Issue of 3000000 equity shares of face value of Rs. 10.00 each for cashat a price of Rs. 27.00 (Including Share Premium of Rs. 17/- Per Equity Share) per EquityShare aggregating Rs. 810.00 Lakhs through the fixed price route

Dear Sirs

1) We have examined the attached Restated Summary Statements and Other FinancialInformation of Veerkrupa Jewellers Limited (hereinafter referred to as "theCompany") described below and annexed to this report for the period ending onDecember 31 2021 and financial year ended on March 31 2021 2020 and 2019 based on theaudited financial statements of the Company (collectively referred to as the"Restated Summary Statements" or "Restated Financial Statements")asduly approved by the Board of Directors of the Company.

2) The said Restated Financial Statements and other Financial Information have beenexamined and prepared for the purpose of inclusion in the Draft Prospectus /Prospectus(collectively hereinafter referred to as "Offer Document") inconnection with the proposed Initial Public Offering (IPO) on SME Platform of BSE Limited("BSESME Platform") of the company taking into consideration the followings andin accordance with the following requirements of:

• Section 26 of Part I of Chapter III to the Companies Act 2013("theAct") read with Companies (Prospectus and Allotment of Securities) Rules 2014 asamended from time to time;

• The Securities and Exchange Board of India (Issue of Capital and DisclosureRequirements Regulations) 2018 (the ‘SEBI ICDR Regulations') as amended from time totime in pursuance of Section 11 of the Securities and Exchange Board of India Act1992;

• The Guidance Note on Reports in Company Draft Prospectus / Prospectus(Revised)issued by the Institute of Chartered Accountants of India ("ICAI")("Guidance Note");

• The applicable regulation of SEBI (ICDR) Regulations 2018 as amended and asper Schedule VI (Part A) (11) (II) of the said Regulations; and

• The terms of reference to our engagement letter with the company dated April 112022 requesting us to carry out the assignment in connection with the proposed InitialPublic Offering of equity shares on SME Platform of BSE Limited ("BSESMEPlatform") ("IPO" or "SME IPO").

3) These Restated Standalone Financial Information (included in Annexure 1 to 33) havebeen extracted by the Management of the Company from:

The Restated Financial Statements and other Financial Statements have been extractedfrom Audited Financial Statements of the Company and erstwhile Proprietary Firm- M/sVeerkrupa Jewellers of Mr. Chirag Arvindbhai Shah (one of our Promoters). The Audit of thecompany for the period ending on December 31 2021 and financial Year ended on March 312021 and 2020 was conducted by M/s. Parth Shah & Associates Chartered Accountants.The Audit of the erstwhile Proprietary Firm- M/s Veerkrupa Jewellers for the financialyear ending on March 31 2019 was conducted by M/s. S K Dosaliya & Co. Henceaccordingly reliance has been placed on the financial information examined by them for thesaid years. Further our financial report included for the said years is based solely onthe audited financial report submitted by them.

In accordance with the requirement of Section 26 of the Companies Act 2013 read withCompanies (Prospectus and Allotment of Securities) Rules 2014 the SEBI Regulations theGuidance Note as amended from time to time and in terms of our engagement agreed withyou we further report that:

(a) The Restated Statement of Assets and Liabilities for the period ending on December31 2021 and financial year ended on March 31 2021 and 2020 based on the auditedfinancial statements of the Company and for financial year ended on March 31 2019 basedon the audited financial statements of the erstwhile Proprietary Firm- M/s VeerkrupaJewellers of Mr. Chirag Arvindbhai Shah one of the Promoters of the company examined byus as set out in Annexure 1 to this report is prepared by the Company and approved bythe Board of Directors. These Restated Summary Statement of Assets and Liabilities havebeen arrived at after making such adjustments and regroupings to the individual financialstatements of the Company as in our opinion were appropriate and more fully described inSignificant Accounting Policies and Notes to Accounts as set out in Annexure 4 & 4.1to this Report.

(b) The Restated Statement of Profit and Loss for the period ending on December 312021 and financial year ended on March 31 2021 and 2020 based on the audited financialstatements of the Company and for financial year ended on March 312019 based on theaudited financial statements of the erstwhile Proprietary Firm- M/s Veerkrupa Jewellersone of the Promoters of the company examined by us as set out in Annexure 2 to thisreport is prepared by the Company and approved by the Board of Directors. These RestatedSummary Statement of Profit and Loss have been arrived at after making such adjustmentsand regroupings to the individual financial statements of the Company as in our opinionwere appropriate and more fully described in Significant Accounting Policies and Notes toAccounts as set out in Annexure 4 & 4.1 to this Report.

(c) The Restated Statement of Cash Flows for the period ending on December 31 2021 andfinancial year ended on March 31 2021 and 2020 based on the audited financial statementsof the Company and for financial year ended on March 31 2019 based on the auditedfinancial statements of the erstwhile Proprietary Firm- M/s Veerkrupa Jewellers one ofthe Promoters of the company examined by us as set out in Annexure 3 to this report isprepared by the Company and approved by the Board of Directors. These Restated SummaryStatement of Cash Flows have been arrived at after making such adjustments andregroupings to the individual financial statements of the Company as in our opinion wereappropriate and more fully described in Significant Accounting Policies and Notes toAccounts as set out in Annexure 4 & 4.1 to this Report.

As a result of these adjustments the amounts reporting in the above mentionedstatements are not necessarily the same as those appearing in the audited financialstatements of the Company for the relevant financial years.

4) Based on the above as per the reliance placed by us on the audited financialstatements of the Company and report thereon given by the Statutory Auditor of theCompanyfor the period ending on December 31 2021 and for the financial year ended March31 2021 2020 2019and to the best of our information and according to the explanationgiven to us we are of the opinion that Restated Financial Statement:

(a) have been made after incorporating adjustments for the changes in accountingpolicies retrospectively in respective financial years to reflect the same accountingtreatment as per the changed accounting policies for all the reporting periods based onthe significant accounting policies adopted by the Company as at December 31 2021.

(b) have been made after incorporating adjustments for prior period and other materialamounts if any in the respective financial years to which they relate to;

(c) do not contain any extra ordinary items that need to be disclosed separately otherthan those presented in the Restated Financial Statement and do not contain anyqualification requiring adjustments;

(d) There were no qualifications in the Audit Reports issued by the Statutory Auditorsfor the period ending on December 31 2021 and for the financial year ended March 312021 2020 2019 which would require adjustments in this Restated Financial Statements ofthe Company;

(e) Profits and losses have been arrived at after charging all expenses includingdepreciation and after making such adjustments/restatements and regroupings as in ouropinion are appropriate and are to be read in accordance with the Significant AccountingPolices and Notes to Accounts as set out in Annexure 4 to this report;

(f) Adjustments in Restated Summary Statements have been made in accordance with thecorrect accounting policies

(g) There was no change in accounting policies which needs to be adjusted in theRestated Summary Statements;

(h) There are no revaluation reserves which need to be disclosed separately in theRestated Financial Statements;

(i) The Company has not paid any dividend since its incorporation.

5) We have also examined the following other Restated Financial Information as set outin the respective Annexure’s to this report and forming part of the RestatedFinancial Statement prepared by the management of the Company and approved by the Boardof Directors on April 22 2022 relating to the company for the period ending on December31 2021 and for the year ended March 31 2021 2020 2019 proposed to be included in theDraft Prospectus / Prospectus("Offer Document") for the proposed IPO:

1. Statement of Share Capital and Reserves & Surplus as restated in Annexure 05 tothis report.

2. Statement of Long Term Borrowings as restated in Annexure 06 to this report.

3. Statement of Long Term Provisions as restated in Annexure 07 to this report

4. Statement of Short Term Borrowings as restated in Annexure 08 to this report.

5. Statement of Trade Payables as restated in Annexure 09 to this report.

6. Statement of Other Current Liabilities as restated in Annexure 10 to this report.

7. Statement of Short Term Provisions as restated in Annexure 11to this report.

8. Statement of Fixed Assets as restated in Annexure 12 to this report.

9. Statement of Non-Current Investments as restated in Annexure 13 to this report.

10. Statement of Long Term Loans and Advances as restated in Annexure 14 to thisreport.

11. Statement of Deferred Tax Asset /(Liabilities) as restated in Annexure 15to thisreport.

12. Statement of Current Investment as restated in Annexure 16 to this report.

13. Statement of Inventory as restated in Annexure 17 to this report.

14. Statement of Trade Receivables as restated in Annexure 18 to this report.

15. Statement of Cash and Cash Equivalents as restated in Annexure 19 to this report.

16. Statement of Short term loans and advances as restated in Annexure 20 to thisreport.

17. Statement of Other Current Assets as restated in Annexure 21 to this report

18. Statement of Revenue from Operations as restated in Annexure 22 to this report.

19. Statement of Other Income as restated in Annexure 23 to this report.

20. Statement of Cost of purchases of services and materials as restated in Annexure 24to this report.

21. Statement of Employee Benefit Expenses as restated in Annexure 25 to this report.

22. Statement of Finance Costas restated in Annexure 26 to this report.

23. Statement of Other Expenses as restated in Annexure 27 to this report.

24. Statement of Dividend Declared as restated in Annexure 28to this report.

25. Statement of Capitalization as restated in Annexure 29 to this report.

26. Statement of Tax Shelters as restated in Annexure 30 to this report.

27. Statement of Contingent Liabilities as restated in Annexure 31to this report.

28. Statement of Related Party Transactions as restated in Annexure 32 to this report.

29. Other Financial Information as restated in Annexure 33 to this report.

6) We Bhagat & Co. Chartered Accountants have been subjected to the peer reviewprocess of the Institute of Chartered Accountants of India ("ICAI") and hold avalid peer review certificate Number 012958 dated April 09 2021 issued by the "PeerReview Board" of the ICAI.

7) The preparation and presentation of the Financial Statements referred to above arebased on the Audited financial statements of the Company and are in accordance with theprovisions of the Act and ICDR Regulations. The Financial Statements and informationreferred to above is the responsibility of the management of the Company.

8) This report should not in any way be construed as a re-issuance or re-dating of anyof the previous audit reports issued by us nor should this report be construed as anopinion on any of the Standalone Financial Information referred to herein.

9) We have no responsibility to update our report for events and circumstancesoccurring after the date of the report.

10) In our opinion the above Restated Financial Statements contained in Annexure 1 to33 to this report read along with the ‘Significant Accounting Policies and Notes tothe Restated Standalone Financial Statements’ appearing in Annexure 4 after makingadjustments and regrouping/reclassification as considered appropriate and have beenprepared in accordance with the provisions of Section 26 of the Companies Act 2013 readwith the Companies (Prospectus and Allotment of Securities) Rules 2014 to the extentapplicable the SEBI Regulations the Guidance Note issued in this regard by the ICAI asamended from time to time and in terms of our engagement agreed with you.

11) Our report is intended solely for use of the Management and for inclusion in theoffer documents in connection with the proposed SME IPO of equity shares of the Companyand is not to be used referred to distributed for any other purpose except with our priorwritten consent.

For Bhagat& Co

Chartered Accountants

Firm Registration No.: 127250W

Mr. Shankar Prasad Bhagat

Membership No. 052725

Partner

UDIN: 22052725AHXZED9684

Place: Ahmedabad

Date: April 22 2022

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