Mar 31, 2018
INDEPENDENT AUDITORâS REPORT TO THE MEMBERS OF Goldcrest Corporation Limited
Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Goldcrest Corporation Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018 the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements to give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the order issued under Section 143 (11) of the Act.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year
ended on that date.
Other Matter
The standalone financial statements of the Company for the year ended March 31, 2017, were audited by another firm of chartered accountants under the Companies Act, 2013 who, vide their report dated May 29th 2017, expressed an unmodified opinion on those financial statements. Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016, issued by the Central Government of India in terms of subsection (11) of section 143 of the Act (âthe Orderâ), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure A a statement on the matters 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 best of 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 the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure B.
g) With respect to the other matters to be included in the Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us.
i. The Company has disclosed the impact, if any, of pending litigations as at March 31, 2018 on its financial position in its standalone Ind AS financial statements.
ii. The Company did not have any material foreseeable losses on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018.
(Referred to in paragraph 1 under âReport on other legal and regulatory requirementsâ section of our report to the members of Goldcrest Corporation Limited of even date.)
(i) In respect to Fixed Assets:
a. The Company is maintaining proper records showing full particulars including quantitative details and the situation of fixed assets.
b. As explained to us, the Company has formulated a program of physical verification of all the fixed assets. The fixed assets have been physically verified by the management during the year, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.
c. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) In respect of Inventories :
a. The Company has maintained proper records showing full particulars including quantitative details and the situation of Inventories.
b. As explained to us, the Company has formulated a program of physical verification of all the Inventories. The Inventories have been physically verified by the management during the year, which in our opinion is reasonable, having regard to the size of the Company. No material discrepancies were noticed on such physical verification.
(iii) The Company has granted loans to a corporate covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ).
(a) In the absence of terms and conditions, we are unable to comment whether the terms and conditions are prejudicial to the interest of the Company.
(b) In the absence of terms and conditions, we are unable to comment on whether loans granted to the bodies corporate listed in the register maintained under section 189 of the Act, are regular in the payment of the principal and interest as stipulated.
(c) In the absence of terms and conditions, we are unable to comment on whether there are any overdue amounts in respect of the loan granted to a body corporate listed in the register maintained under section 189 of the Act.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of the section 185 and 186 of the Act, with respect to the loans and investments made. The Company has not given any guarantees and securities to any parties.
(v) As represented, the Company has not accepted any deposits from the public, within the meaning of Sections 73 to 76 of Companies Act 2013 and the rules framed there under.
(vi) The maintenance of cost records have not been specified by the central government under section 148 (1) of the Companies Act, 2013 for the business activities carried out by the company. Thus reporting under clause 3 (vi) of the order is not applicable to the company.
(vii) In respect to statutory dues :
a) According to the information and explanations given to us and records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income tax, sales-tax, Goods and Service Tax, service tax, custom duty, excise duty, cess and any other material statutory dues as applicable with the appropriate authorities.
b) According to the information and explanations given to us and the records of the Company examined by us, there are no undisputed amounts payable in respect of dues of Provident Fund, Income Tax, Sales Tax, Goods and Service Tax, Value added Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues in arrears as at March 31, 2018 for a period of more than six months from the date they become payable.
Details of dues of Income Tax, which has not been deposited on as at March 31, 2018 on account of dispute are given below.
Sr. No. |
Name of Dues |
Forum where dispute is pending |
Period to which amount relates |
Amount involved in ''. |
1 |
Income Tax |
CIT Appeals 4 |
A.Y. 2014-15 |
26,61,960/- |
2 |
Income Tax |
CIT Appeals 4 |
A.Y. 2013-14 |
4,59,450/- |
(viii) According to the information and explanations given to us and based on our verification of accounts, the company has not taken any loans from Debenture Holders or Government.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
(x) Based upon the audit procedures performed and information and explanations given by the management, we report that we have not come across any instances of fraud by the Company, and no material fraud on the company by its officers / employees has been noticed or reported during the year, nor have we been informed of such case by the management.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration during the year, which is in accordance with the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Chit Fund Company/or Nidhi/ Mutual benefit fund/Society and hence reporting under clause XII of the order is not applicable.
(xiii) According to information and explanation given to us and based on our verification of accounts, all transactions with related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements, as required by applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement of shares or partly convertible debentures during the year and hence para (xiv) is not applicable.
(xv) The Company has not entered into any non-cash transactions with any of its directors and hence Para (xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45IA of the Reserve Bank of India Act, 1934.
Referred to in paragraph (f) âReport on Other Legal and Regulatory Requirementsâ in our Independent Auditorâs Report to the members of the Goldcrest Corporation Limited on even date.
Report on the Internal Financial Controls of Standalone Financial Statements under Clause (i) of Sub-section 3 of the Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Goldcrest Corporation Limited(âthe companyâ) as of 31 March 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishment and maintaining internal financial controls based on the internal control over financial reporting criteria establishment by the Company considering the essential components of internal control stated in the Guidance Note on audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was establishment and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedure selected depends on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the companyâs internal financial controls systems over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs 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 controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatement due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March, 2018, based on the internal control over reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For PANKAJ P. SANGHAVI AND CO.
Firm Registration No. : 107356W
Chartered Accountants
Ankit P. Sanghavi
(Partner)
M.No.131353
Place: Mumbai
Date: May 29, 2018
Mar 31, 2016
INDEPENDENT AUDITORâS REPORT
TO THE MEMBERS OF Goldcrest Corporation Limited Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Goldcrest Corporation Limited (âthe Companyâ), which comprises of Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (hereinafter referred to as âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. While conducting the audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances . An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Board of Directors, as well as evaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, and their profit and their cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure âAâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report, to the extent applicable, that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid financial statements.
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid financial statements have been kept 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 Statement dealt with in this Report are in agreement with the books of account maintained.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards 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 of the Company as on 31st March, 2016 taken on record by the Board of Directors of the Company, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the Internal Financial Controls over financial reporting of the Company and the operating effectiveness of such controls referred to in our separate report in âAnnexure Bâ; and
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditor''s) Rules, 2014, in our opinion and 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 financial position in its financial statements - Refer Note 26(5) to the financial statements.
ii. The Company did not have any material foreseeable losses on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to Investor Education and Protection Fund by the company.
The Annexure referred to in Independent Auditor''s Report to the members of the Company on the standalone financial statements for the year ended 31 March 2016, we report that:
(i) In respect to fixed assets of the Company
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this program, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regards to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the company.
(ii) The physical verification of inventory has been conducted at reasonable intervals by the management and there is no material discrepancies found.
(iii) The Company has granted loans to a corporate covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Act'').
(a) In the absence of terms and condition, we are unable to comment whether terms and condition are prejudicial to the interest of the company.
(b) In the absence of terms and condition, we are unable to comment on whether loans granted to the bodies corporate listed in the register maintained under section 189 of the Act, are regular in the payment of the principal and interest as stipulated.
(c) In the absence of terms and conditions, we are unable to comment on whether there are any overdue amounts in respect of the loan granted to a body corporate listed in the register maintained under section 189 of the Act.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of the section 185 and 186 of the Act, with respect to the loans, investments, guarantees and securities made.
(v) In respect to statutory dues :
(a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, undisputed statutory dues including provident fund, employees'' state insurance income -tax, sales tax, value added tax, duty of customs, services tax cess and other material statutory dues have been regularly deposited during the year by the Company with appropriate authorities. No undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31 March 2016 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 material disputed dues of duty of customs , income tax, sales tax, duty of excise, service tax and value added tax.
(vi) According to the information and explanations given to us, no material fraud by the company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(vii) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(viii) According to the information and explanations give to us and based on our examination of the records of the Company, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013, where applicable, and the details have been disclosed in the financial statements etc as required by the applicable accounting standard.
(ix) Clause 3 (V) , (VI) , (VIII) , (IX ), (XII) , (XIV) , (XV) , (XVI) of CARO 2016 are not applicable to the company.
Annexure - B to the Auditorâs Report on the Internal Financial Controls of Standalone Financial Statements under Clause (i) of Subsection 3 of the Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Goldcrest Corporation Limited (âthe companyâ) as of 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based in the internal control over financial reporting criteria establishment by the Company considering the essential components of internal control stated in the Guidance Note on audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAI''). This responsibility includes the design, implementation and maintenance of adequate internal financial controls that are operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAL and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial control system over financial reporting and it''s operating effectiveness. Our audit of internal financial control over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedure selected depends on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the company''s internal financial controls systems over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''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 controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatement due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March, 2016, based on the internal control over reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Ramesh M. Sheth & Associates
Firm Registration No. : 111883W
Chartered Accountants
(Mehul R. Sheth)
(Partner)
(Membership No.101598)
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Goldcrest Corporation Limited ("the Company"), which comprises of
Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss,
the Cash Flow Statement for the year then ended, and a summary of the
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 Section 134(5) of the Companies Act, 2013 (hereinafter referred to
as "the Act") with respect to the preparation of these standalone
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the accounting principles generally accepted in India,
including the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding of the
assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. While conducting the audit, we
have taken into account the provisions of the Act, the accounting and
auditing standards and matters which are required to be included in the
audit report under the provisions of the Act and the Rules made there
under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the standalone financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the standalone financial statements.
The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the standalone
financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal financial control
relevant to the Company's preparation of the standalone financial
statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on whether the Company has an adequate
internal financial controls system over financial reporting in place
and the operating effectiveness of such controls. An audit also
includes evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Company's Board of Directors, as well as evaluating the overall
presentation of the standalone financial statements.
We believe that the audit evidence obtained by us is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and their profit and their cash flows for the year
ended on that date.
Emphasis of Matter
We draw attention to Note 12 to the financial statements :
a) In respect to Note 12 : Change in Depreciation rates as per Schedule
II of the Companies Act, 2013 as compared to depreciation rates as
prescribed in Schedule XIV to the Companies Act, 1956. This change has
resulted in charging additional depreciation amount by Rs, 2,30,498/-
which has correspondingly reduced net profit by Rs, 2,30,948/-. Our
opinion is not modified in respect of this matter.
Other Matters
Not Applicable
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by Section 143(3) of the Act, we report, to the extent
applicable, that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit of the aforesaid financial statements.
(b) In our opinion, proper books of account as required by law relating
to preparation of the aforesaid financial statements have been kept 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 Statement dealt with by this Report are in agreement with the
books of account maintained.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards 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 of the Company as on 31st March, 2015 taken on record by the
Board of Directors of the Company, none of the directors is
disqualified as on 31st March, 2015 from being appointed as a director
in terms of Section 164 (2) of the Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and
Auditor's) Rules, 2014, in our opinion and 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
financial position in its financial statements  Refer Note 29(6) to
the financial statements.
ii. The Company did not have any material foreseeable losses on
long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to Investor Education and Protection Fund by the company.
The Annexure referred to in our report to the members of Goldcrest
Corporation Limited ('referred to as the Company') for the year ended
on 31.03.2015. We report that:
1. Fixed Assets
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained to us, the Company has formulated a program of
physical verification of all the fixed assets. The fixed assets have
been physically verified by the management during the year, which in
our opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
2. Inventories
a. The Company has shares of various companies in the electronic form
and as inventories and the same appears in the depository statement.
Stock of commodities is physically verified at reasonable intervals by
the management.
b. As explained to us, the company has formulated a program of
physical verification of all the inventories. Inventories have been
physically verified by the management wherever possible during the
year, which in our opinion is reasonable and adequate in relation to
the size of the company and nature of its business. No material
inadequacies were noticed on such physical verification.
c. As explained to us, the company maintains proper records of
inventory and there were no material discrepancies on physical
verification.
3. Loans & Advances
a. The Company had granted unsecured loans, to a party covered in the
register maintained under section 189 of the Companies Act in the
previous years that have been returned during the year.
b. We are informed that the Company received principal amount and
interest, thereon, regularly.
c. We are informed that there was no overdue amount for more than
Rupees one lakh during the year and hence this sub-para is not
applicable.
4. Internal Control System
a. The Company has adequate Internal Control Procedure commensurate
with the size of the Company and the nature of business, for the
purchase of fixed assets and for rendering of services.
5. Deposits
a. The Company has not accepted any deposits and hence provisions
related to directives issued by the Reserve Bank of India and the
provisions of sections 73 to 76 or any other relevant provisions of the
Companies Act and the rules framed there under are not applicable. No
orders are passed by Company Law Board or National Company Law Tribunal
or Reserve Bank of India or any court or any other tribunal in this
respect.
6. Cost Records
a. The Company is not covered under sub  section (1) of section 148 of
the Companies Act and hence this para is not applicable.
7. Statutory Dues
a. According to the records of the Company, the Company is generally
regular in depositing undisputed statutory dues to the extent
applicable like Provident Fund, Service Tax and Income Tax.
b. Pending dues of Income Tax on account of disputes are as follows:-
Name of the
Statute Nature of Dues Amount Period to which Forum where
(Rs, lakhs) it relates the dispute
is pending
Income Tax
Act, 1961 Income tax and
interest 4.99 Assessment Commissioner
year of Income-
2012-2013 tax
(Appeals)
c. The amount required to be transferred by the Company to Investor
education and protection fund has been transferred to Investor
education and protection fund within time, in accordance with the
relevant provisions of the Companies Act, 1956 (1 of 1956) and rules
made there under.
8. Accumulated Losses
a. There are no accumulated losses of the Company at the end of the
financial year concerned. The Company has not incurred any cash losses
during the financial year covered by our audit as also in the
immediately preceding financial year.
9. Interest
a. The Company has not obtained any loan from any financial
institutions. The Company has not defaulted in repayment of overdraft
facility obtained from banks.
10. Guarantee
a. The Company has not given any guarantees for loans taken by others
from banks or financial institutions and hence this para of the Order
is not applicable.
11. Utilization of loans
a. The Company has not applied for any term loans and hence this para
is not applicable.
12. Fraud
a. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year.
For RAMESH M. SHETH & ASSOCIATES
Firm Registration No. : 111883W
Chartered Accountants
Mehul R. Sheth
Place: Mumbai (Partner)
Date: 19th May, 2015 M.No.101598
Mar 31, 2014
We have audited the accompanying financial statements of Gold crest
Corporation Limited ("the Company) which comprise the balance sheet as
at 31 March 2014, the statement of profit and loss and the cash flow
statement for the year then ended and a summary of significant
accounting policies and other explanatory information. Management's
Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act. 1956 ("the Act") read with the General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in
respect of Section 133 of the Companies Act, 2013. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
in our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) In the case of the balance sheet, of the state of affairs of the
Company as at 31st March 2014;
(ii) In the case of the statement of profit and loss, of the profit for
the year ended on that date; and
(iii) In the case of the cash flow statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our 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 the Company so far as appears from our examination of those
books;
c. The balance sheet, statement of profit and loss and cash flow
statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the balance sheet, statement of profit and loss and
cash flow statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 read with
the General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
; and
e. On the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act,1956.
Annexure referred to in Paragraph 2 of our report of even date to the
members of Gold crest Corporation Limited (The Company)
1. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained to us, the Company has formulated a programme of
physical verification of all the fixed assets. The fixed assets have
been physically verified by the management during the year, which in
our opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
c. In our opinion, the Company has not disposed off substantial part
of fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
a. The Management has physically verified Inventories In our opinion,
the frequency of the verification is reasonable.
b. The procedures of physical verification of stocks followed by the
management are adequate in relation to the size of the Company and the
nature of its business.
c. The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stock and
book records are not material and have been properly dealt with in
books of account.
3. In respect of bans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a. The Company has granted unsecured loans, to one party covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount outstanding during the year was Rs. 22.28 crores and
year-end balance of such loan was Rs. 17.36 crores.
b. The rate of interest and terms and conditions hereto are not prima
facie prejudicial to the interest of the Company.
c. The interest is received regularly. The maturity of principal
amount is of future date and hence regularity of repayment is not
commented upon.
d. The Company has no overdue recovery amount of principal and
interest exceeding Rs. one lakh and hence clause d is not applicable.
e. The Company has taken loans from two parties covered in the
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount outstanding during the year was Rs, 5.47 crores and
year-end balance of such ban was Rs. 5.42 crores.
f. In absence of any terms and conditions, hereto we are unable to
comment whether the rate of interest and repayment of principal amount
is prima facie prejudicial to the interest of the Company.
g. In absence of any terms and conditions, we are unable to comment
whether the payment of principal amount and interest thereon is
regular.
4. The Company has adequate Internal Control Procedure commensurate
with the size of the Company and the nature of business, for purchase
of inventory, fixed assets and sale of goods.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanation
given to us the transactions made pursuance to the contract or
arrangement that needed to be entered into the register maintained
under Section 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information given to us the
contracts has been reasonably made at prices prevailing at that point
of time.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and the nature of its business.
8. The Company is not into production, processing, manufacturing or
mining business and hence para 4(viii) of the said Order is not
applicable.
9. In respect of statutory dues:
According to the records of the Company, the Company has deducted
Provident Fund and Profession tax and the same has normally paid in
time. The company has transferred the unclaimed dividend of Rs 52,566/-
pertaining to the year 2005-06 to the Investor Education and Protection
fund during the current year. There are no undisputed dues pending in
respect to Income-tax, Sales-tax, Wealth tax, Customs Duty,Excise Duty,
Cess and other statutory dues.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2014 for a period of more than six months
from the date of becoming payable.
10. The Company has not incurred any cash losses during the financial
year covered by our audit and also in the immediately preceding
financial year and there are no accumulated losses in the balance sheet
as on 31stMarch 2014.
11. The Company has obtained loans from banks and is regular in
repayment of dues.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted during the year by
the Company on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/ society. Therefore, clause 4(xiii) of the Companies
(Auditor's Report) Order 2003 is not applicable to the Company.
14. The Company has maintained proper records of transactions and
contracts in respect of trading in shares and securities and timely
entries have been made therein. All shares have been held by the
Company in its own name.
15. The Company has not given any guarantees for loans taken by others
from banks or financial institutions and hence para 4(xv) of the Order
is not applicable.
16. The Company has not raised any term loan during the year. The
Company has not defaulted in repayment of the term loan obtained in the
earlier years.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that the Company has not utilized any short term funds for
Song term and vice versa.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures and hence para 4(xix) of
the Order is not applicable.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year that causes the financial statements to be materially
misstated.
FOR RAMESH M.SHETH & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGISTRATION NO. : 111883W
Place: Mumbai
Date: 24th May, 2014 MEHUL R.SHETH
PARTNER
M.NO. 101598
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of GOLDCREST
CORPORATION LIMITED(The Company"), which comprise the Balance Sheet
as at 31st March, 2013, the Statement of Profit and Loss and the Cash
Flow Statement for the year ended and a summary of the significant
accounting pofcies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of Section 211 of the Companies Act, 1956 ("the Act"). This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement,
whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audi to obtain reasonable
assurance about whether the financial statements are free from material
misstatement An audit involves performing procedures to obtain audit
evidence about the amounts and the disclosures in the financial
statements. The procedures selected depend on the auditor''s judgment,
vtduding the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers the internal control relevant
to the Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate n
the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Management as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit
opinion.
Opinion
Attention is invited to note no. 27(8) to notes to accounts regarding
non provision and non ascertainment of liability for gratuity. Since
the amount of gratuity is not ascertained the overall impact of non
provision is not ascertainable.
Subject to the forgoing, in our opinion and to the best of our
information and acconfng to the explanations given to us, the financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31" March, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date. Report on Other Legal and
Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order! issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of Section 211 of Hie Act
(e) On the basis of the written representations received from the
directors as on 31** March, 2013 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31" March, 2013
from being appointed as a Director in terms of clause (g) of
sub-section (1) of Section 274 of the Act.
Annexure referred to in Paragraph 2 of our report of even date to the
members of Goldcrest Finance (India) Limited (The Company)
1. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained to us, the Company has formulated a programme of
physical verification of all the fixed assets. The fixed assets have
been physically verified by the management during the year, which in
our opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
c. In our opinion, the Company has not disposed off substantial part
of fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
a. Inventories have been physically verified by the management. In our
opinion, the frequency of the verification is reasonable.
b. /The procedures of physical verification of stocks followed by the
management are adequate in relation
to the size of the Company and the nature of its business.
c. The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stock and
book records are not material and have been properly dealt with in
books of account.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a. The Company has granted unsecured loans, to one party covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount outstanding during the year was Rs 0.61 crore and
year-end balance of such loan was Rs 0.61 crore.
b. The rate of interest and terms and conditions hereto are not prima
facie prejudicial to the interest of the Company.
c. The interest is received regularly. The maturity of principal
amount is of future date and hence regularity of repayment is not
commented upon.
d. The Company has no overdue recovery amount of principal and
interest exceeding Rs one lakh and hence clause (d) is not applicable.
e. The Company has taken leans from two parties covered in the
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount outstanding during the year was Rs 5.25 crores and
year-end balance of such loan was Rs 4.39 crores.
f. In absence of any terms and conditions hereto we are unable to
comment whether the rate of interest and repayment of principal amount
is prima facie prejudicial to the interest of the Company.
g. In absence of any terms and conditions we are unable to comment
whether the payment of principal amount and interest thereon is
regular.
4. The Company has adequate Internal Control Procedure commensurate
with the size of the Company and the nature of business, for the
purchase of inventory, fixed assets and for the sale of goods.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanation
given to us the transactions made pursuance to the contract or
arrangement that needed to be entered into the register maintained
under Section 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanation
given to us the transactions made pursuance to the contract or
arrangement entered in the register maintained under Section 301 of the
Companies Act, 1956 and exceeding Rs 5 lacs in respect of any party
during the year have been made at the prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public.
7. There is no internal audit system commensurate with the size and
nature of its business.
8. The Company is not into production, processing, manufacturing or
mining business and hence para 4(viii) of the said Order is not
applicable.
9. In respect of statutory dues:
According to the records of the Company, the Company has deducted
Provident Fund and Profession tax and the same has normally paid in
time. Other statutory dues like Investor Education and Protection Fund
and Employees'' State Insurance are not applicable. There are no
undisputed dues pending in respect to Income- tax, Sales-tax, Wealth
tax. Customs Duty, Excise Duty, Cess and other statutory dues.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31* March, 2013 for a period of more than six months
from the date of becoming payable.
10. The Company has not incurred any cash losses during the financial
year covered by our audit and also in the immediately preceding
financial year and there are no accumulated losses in the Balance Sheet
as on 31" March 2013.
11. The Company has obtained loans from banks and is regular in
repayment of dues.
12. In our opinion and according to the information and explanation
given to us, loans and advances have been granted during the year by
the Company on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/ society. Therefore, clause 4(xiii) of the Companies
(Auditor''s Report) Order, 2003 is not applicable to the Company.
14. The Company has maintained proper records of transactions and
contracts in respect of trading in shares and securities and timely
entries have been made therein. All shares have been held by the
Company in its own narrfe.
15. The Company hasnot given any guarantees for loans taken by others
from banks or financial institutions and hence para 4(xv)''1!ff Âthe
Order is not applicable.
16. The Company .has not raised any term loan during the year. The
Company has not defaulted in repayment of the term loan obtained in the
earlier years.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that the Company has not utilized any short term funds for
long term and vice versa.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures and hence para 4(xix) of
the Order is not applicable.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year that causes the financial statements to be materially
misstated.
For Ramesh M. Sheth & Associates
Chartered Accountants
FRN111883W
Place: Mumbai
Date:- 25th May, 2013 Mehul R Sheth
Partner
M. No. 101598
Mar 31, 2012
We have audited the attached Balance Sheet of GOLDCREST FINANCE (INDIA)
LIMITED as at 31st March 2012, Profit and Loss Account and Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosure in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditor's Report) Order 2003 issued
by the Central Government of India in terms of Sub-section (4A) to
Section 227 of the Companies Act, 1956, we enclose in the Annexure
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
2. On the basis of audit conducted by us we report as under :
i) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
ii) In our opinion, proper books of account, as required by law, have
been kept by the company, so far as appears from our examination of
those books.
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
iv) In our opinion, the Balance Sheet, Profit and Loss account and Cash
Flow Statement dealt by this report comply with the mandatory
Accounting Standards referred in sub-section (3C) of Section 211 of the
Companies Act, 1956, to the extent applicable.
v) In our opinion, and based on information and explanations given to
us, none of the directors are disqualified as on 31st March, 2012, from
being appointed as directors in terms of Clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
Attention is invited to note no.27 (8) to notes to accounts regarding
non provision and non ascertainment of liability for gratuity. Since
the amount of gratuity is not ascertained the overall impact of non -
provision is not ascertainable.
vi) Subject to forgoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts read together with Significant Accounting Policies and other
notes thereon give the information required by the Companies Act, 1956
in the manner so required and present true and fair view, in conformity
with the accounting principles generally accepted in India:
(a) In so far it relates to Balance Sheet of the state of affairs of
the company as at 31st March, 2012;
(b) In so far as it relates to Profit and Loss Account of the profit of
the Company for the year ended on that date, and
(c) In so far as it relates to Cash Flow Statement of the cash flows of
the Company for the year ended on that date.
Annexure referred to in Paragraph 2 of our report of even date to the
members of Goldcrest Finance (India) Limited (The Company)
1. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained to us, the Company has formulated a programme of
physical verification of all the fixed assets. The fixed assets have
been physically verified by the management during the year, which in
our opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
c. In our opinion, the Company has not disposed off substantial part
of fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
a. Inventories have been physically verified by the management. In our
opinion, the frequency of the verification is reasonable.
b. The procedures of physical verification of stocks followed by the
management are adequate in relation to the size of the Company and the
nature of its business.
c. The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stock and
book records are not material and have been properly dealt with in
books of account.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a. The Company has granted unsecured loans, to one party covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount outstanding during the year was Rs. 0.50 crores and
year-end balance of such loan was Rs. 0.52 crores.
b. The rate of interest and terms of conditions hereto are not prima
facie prejudicial to the interest of the Company.
c. The interest is received regularly. The maturity of principal
amount is of future date and hence regularity of repayment is not
commented upon.
d. The Company has no overdue recovery amount of principal and
interest exceeding Rs. one lakh and hence clause d is not applicable.
e. The Company has taken loans from three parties covered in the
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount outstanding during the year was Rs. 14.94 crores and
year-end balance of such loan was Rs. 4.25 crores.
f. In absence of any terms and conditions hereto we are unable to
comment whether the rate of interest and repayment of principal amount
is prima facie prejudicial to the interest of the Company.
g. In absence of any terms and conditions we are unable to comment
whether the payment of principal amount and interest thereon is
regular.
4. The Company has adequate Internal Control Procedure commensurate
with the size of the Company and the nature of business, for the
purchase of inventory, fixed assets and for the sale of goods.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanation
given to us the transactions made pursuance to the contract or
arrangement that needed to be entered into the register maintained
under Section 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanation
given to us the transactions made pursuance to the contract or
arrangement entered in the register maintained under Section 301 of the
Companies Act, 1956 and exceeding Rs. 5 lacs in respect of any party
during the year have been made at the prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public.
7. There is no internal audit system commensurate with the size and
nature of its business.
8. The Company is not into production, processing, manufacturing or
mining business and hence para 4(viii) of the said Order is not
applicable.
9. In respect of statutory dues:
According to the records of the Company, the Company has deducted
Provident Fund and Profession tax and the same has normally paid in
time. Other statutory dues likp Investor Education and Protection Fund
and Employees' State Insurance are not applicable. There are no
undisputed dues pending in respect to Income-tax, Sales-tax, Wealth
tax, Customs Duty, Excise Duty, Cess and other statutory dues.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2012 for a period of more than six months
from the date of becoming payable.
10. The Company has not incurred any cash losses during the financial
year covered by our audit and also in the immediately preceding
financial year and there are no accumulated losses in the balance sheet
as on 31st March 2012.
11. The Company has obtained loans from banks and is regular in
repayment of dues.
12. In our opinion and according to the information and explanation
given to us, loans and advances have been granted during the year by
the Company on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/ society. Therefore, clause 4(xiii) of the Companies
(Auditor's Report) Order 2003 is not applicable to the Company.
14. The Company has maintained proper records of transactions and
contracts in respect of trading in shares and securities and timely
entries have been made therein. All shares have been held by the
Company in its own name.
15. The Company has not given any guarantees for loans taken by others
from banks or financial institutions and hence para 4(xv) of the Order
is not applicable.
16. The Company has not raised any term loan during the year. The
Company has not defaulted in repayment of the term loan obtained in the
earlier years.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that the Company has not utilized any short term funds for
long term and vice versa.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures and hence para 4(xix) of
the Order is not applicable.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year that causes the financial statements to be materially
misstated.
For Ramesh M. Sheth & Associates
FRN.H1883W
Chartered Accountants
Mumbai M. R. Sheth
13th August, 2012 (Partner)
M. No. 101598
Mar 31, 2010
We have audited the attached Balance Sheet of GOLDCREST FINANCE (INDIA)
LIMITED as at 31st March 2010, Profit and Loss Account and Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosure in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditors Report) Order 2003 issued
by the Central Government of India in terms of Sub-section (4A) of the
Companies Act, 1956, we enclose in the Annexure hereto a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
3. On the basis of audit conducted by us we report as under:
i) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
ii) In our opinion, proper books of account, as required by law, have
been kept by the company, so far as appears from our examination of
those books.
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
iv) In our opinion, the Balance Sheet, Profit and Loss account and Cash
Flow Statement dealt by this report comply with the mandatory
accounting standards referred in sub-section (3C) of Section 211 of the
Companies Act, 1956, to the extent applicable.
v) In our opinion, and based on information and explanations given to
us, none of the directors are disqualified as on 31st March, 2010, from
being appointed as directors in terms of Clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
Attention is invited to note no. 12 to notes to accounts in schedule XV
regarding non provision and non ascertainment of liability for
gratuity. Since the amount of gratuity is not ascertained the overall
impact of non - provision is not ascertainable.
Attention is also invited to note no. 10 to notes to accounts in
schedule XV regarding non provision and non ascertainment of liability
for additional stamp duty payable on Property purchased at Salt Lake
City, Kolkatta. Since the amount of additional Stamp Duty is not
ascertained the overall impact of non - provision is not ascertainable.
vi) Subject to forgoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts read together with Significant Accounting Policies and other
notes thereon give the information required by the Companies Act, 1956
in the manner so required and present true and fair view, in conformity
with the accounting principles generally accepted in India:
(a) In so far it relates to Balance Sheet of the state of affairs of
the company as at 31st March, 2010;
(b) In so far as it relates to Profit and Loss Account of the profit of
the Company for the year ended on that date.
(c) In so far as it relates to Cash Flow Statement of the cash flows of
the Company for the year ended on that date.
Annexure referred to in Paragraph 2 of our report of even date to the
members of Goldcrest Finance (India) Limited (The Company)
1. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained to us, the Company has program of verification of
fixed assets. The fixed assets have been physically verified by the
management during the year, which in our opinion is reasonable, having
regard to the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
c. In our opinion, the Company has not disposed off substantial part
of fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
a. Inventories have been physically verified by the management. In our
opinion, the frequency of the verification is reasonable.
b. The procedures of physical verification of stocks followed by the
management are adequate in relation to the size of the Company and the
nature of its business.
c. The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stock and
book records are not material and have been properly dealt with in
books of account.
3. In respect of unsecured loans, granted or taken by the Company
to/from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956:
a. The Company has received loan from two parties amounting to Rs.
397.75 Lacs and has not granted loan to any parties outstanding at the
end of the year.
b. In absence of any terms and conditions we are unable to state
whether rate of interest and other terms and conditions are prima facie
prejudicial to the interest of the Company.
c. The Company has not taken or granted any secured loans from or to
the Companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
4. The Company has adequate Internal Control Procedure commensurate
with the size of the Company and the nature of business, for the
purchase of inventory, fixed assets and for the sale of goods.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanation
given to us the transactions made pursuance to the contract or
arrangement that needed to be entered into the register maintained
under Section 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanation
given to us the transactions made pursuance to the contract or
arrangement entered in the register maintained under Section 301 of the
Companies Act, 1956 and exceeding Rs. 5,00,000/- in respect of any
party during the year have been made at the prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public.
7. There is no internal audit system commensurate with the size and
nature of its business.
8. The Company is not into production, processing, manufacturing or
mining business and hence para 4(viii) of the Order is not applicable.
9. In respect of statutory dues:
According to the records of the Company, the Company has deducted
Provident Fund and Profession tax and the same has normally paid in
time. Other statutory dues like Investor Education and Protection Fund
and Employees State Insurance are not applicable. There are no
undisputed dues pending in respect to Income-tax, Sales-tax, Wealth
tax, Customs Duty, Excise Duty, Cess and other statutory dues.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31* March, 2010 for a period of more than six months
from the date of becoming payable.
10. The Company has not incurred any cash losses during the financial
year covered by our audit and also in the immediately preceding
financial year and there are no accumulated losses in the balance sheet
as on 31s1 March 2010.
11. The Company has obtained loans from banks and is regular in
repayment of dues. The Company has not accepted any loans from
financial Institutions or debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted during the year by
the Company on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/ society. Therefore, clause 4(xiii) of the Companies
(Auditors Report) Order 2003 is not applicable to the Company.
14. The Company has maintained proper records of transactions and
contracts in respect of trading in shares and securities and timely
entries have been made therein. All shares have been held by the
Company in its own name.
15. The Company has not given any guarantees for loans taken by others
from banks or financial institutions and hence para 4(xv) of the Order
is not applicable.
16. The Company has not raised any term loan during the year. The
Company has not defaulted in repayment of the term loan obtained in the
earlier years.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that the Company has not utilised any short term funds for
long term and vice versa.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures and hence para 4(xix) of
the Order is not applicable.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year that causes the financial statements to be materially
misstated.
For Ramesh M. Sheth & Associates
Chartered Accountants
Mumbai M. R. Sheth
31st July, 2010 (Partner)
M. No. 10 15 9 8
Firm Reg. No. 111883W