Mar 31, 2015
We have audited the accompanying standalone financial statements of
SHREE GANESH JEWELLERY HOUSE (I) LIMITED ("the Company"), which
comprise the 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 ("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 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.
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 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, 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 financial control relevant
to the Company's preparation of the 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 in place an adequate internal
financial control system over financial reporting 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 Director, 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 qualified audit opinion on the
standalone financial statements.
Basis for Qualified opinion
(i) Note No. 52 regarding fixed Deposits amounting to Rs. 3,031.08 Lacs
pledged as security with axis bank against cash credit sanctioned was
adjusted with cash credit balance in the company's book on maturity of
the fixed deposits. However as per cash credit account statement
furnished by the bank, fixed deposits figure was not adjusted with the
cash credit account balance. Thus, cash credit balance as per bank
statement showed excess by Rs. 3,031.08 lacs;
(ii) Note No. 53 regarding Cash credit balance of Dhanalaxmi bank was
Rs. 1,827.27 Lacs and Rs. 91.59 Lacs reflecting less balance in
Company's books. The Company had contested the excess amount claimed by
the bank in the High Court of Kolkata and had received a stay order on
the excess claim made by the bank;
(iii) Note No.7 regarding Cash Credit A/c (Account No: 911030049091869)
balance of Rs. 98,641.67 Lacs as on March 31, 2015 in which impact of
Rs. 18.20 Lacs debited by Bank on dated 31st January, 2014 and Rs.
290.27 Lacs credited by Bank on 28th August, 2014 in the CC account has
not been considered. These are subject to reconciliation and
consequential impact if any, presently not ascertainable;
(iv) Note No.7 includes Short-term borrowings of Rs. 44,655.46 Lacs
have not been confirmed as on March 31, 2015, hence we are unable to
comment the consequential impact on confirmation/ reconciliation of
such balances if any,
We further report that the overall impact of the matters reported by us
in the aforesaid paragraphs cannot be determined and commented.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of matter described in
the Basis for Qualified Opinion paragraph, 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 its Loss and its
cash flows for the year ended on that date.
Emphasis of Matters
We draw attention to the following notes :
a) Note No.33 Contingent Liability, which describes the uncertainty
related to the outcome of the demand raised against the Company by
Sales Tax authorities;
b) Note No. 51 and 54 in the financial statements regarding preparation
of these accounts on going concern basis and is facing financial crunch
with its inability to meet the financial obligations. The Company had
applied for Composite Corporate Debt Restructuring with the banks to
mitigate the above which was withdrawn by the banks in the consortium
meeting held on 22nd January, 2015. As stated the company had again
requested for reconsideration of restructuring proposal by all the
lenders. These facts have been disclosed in above referred notes by the
management, in view of which, the accounts have been continued to be
prepared under the going concern assumption.
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.
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
purpose of our audit, except as reported in clause (iii) & (iv) of the
Basis for Qualified Opinion Paragraph above;
b) Except the effects of matters referred in Basis for Qualified
Opinion Paragraph above, 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, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
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) The matters described in Basis for Qualified Opinion paragraph and
Emphasis of Matters paragraph above, in our opinion, may have an
adverse effect on the functioning of the Company.
f) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
except two directors, none of the other directors is disqualified as on
March 31, 2015 from being appointed as director under the sub-section
(2) of Section 164 of the Companies Act.
g) The qualification relating to the maintenance of accounts and other
matters connected therewith, are as stated in the Basis for Qualified
Opinion Paragraph and Emphasis of Matters paragraph above.
h) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
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 No.33(i)&
(ii)]
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to the Auditors' Report
(Referred to in Paragraph 1 of "Other Legal and Regulatory
requirements" of our Audit Report)
i) In respect of Fixed Assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
b) The Company has a regular program of physical verification of 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 regard to the size of the
company and the nature of its assets.
ii) In respect of Inventories:
a) The inventories have been physically verified by the management as
at year end. In our opinion, the frequency of such verification is
reasonable.
b) In our opinion, and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion, and according to the information and explanations
given to us, the Company is maintaining proper records of its
inventories and no material discrepancies noticed on such physical
verification.
iii) The Company has granted loans to its subsidiary companies covered
in register maintained under Section 189 of the Companies Act, 2013.The
maximum amount involved during the year and the year-end balance was
INR. 6,763.51 Lacs and INR. 6,763.51 Lacs respectively.
a) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which loans have been granted to its subsidiary companies and listed in
the register maintained under section 189 of the Companies Act, 2013
are not prima facie, prejudicial to the interest of the Company.
b) According to the information and explanation given to us, loans
granted and interest thereon are recoverable on demand. There are no
stipulations made for the recovery of the loan. Hence we cannot comment
on the regularity of receipt of principal amounts and interest thereon.
c) Based on the information and explanations, there is no overdue
amount outstanding at the end of the year in respect of the above said
loans.
iv) There is an adequate internal control system commensurate with the
size of the Company and the nature of its business with regard to
purchases of inventory, fixed assets and with regard to the sale of
goods and services. We have not observed any major weakness in internal
control system during the course of the audit.
v) According to the information and explanations given to us, the
Company has not accepted any deposits from the public within the
meaning of directives issued by the Reserve Bank of India and
provisions of Sections 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the rules framed there under.
vi) We have broadly reviewed the cost records maintained by the Company
pursuant to the Rule made by the Central Government for the maintenance
of cost records under Section 148(1) of the Companies Act, 2013 and we
are of the opinion that prima facie the prescribed accounts and records
have been made and maintained. However, we have not made a detailed
examination of the cost records with the view to determine whether they
are accurate or complete.
vii) a) According to the information and explanations given to us and
on the basis of our examination of the books of accounts,the Company is
generally been deposited regularly the undisputed statutory dues
including Provident Fund, Employee State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value
Added Tax, Cess and any other statutory dues with the appropriate
authorities except delay some cases and some of the amounts are still
not paid as detailed below:-
Service Tax -Rs. 2.20 Lacs and
Sales Tax -Rs. 94.68 Lacs
Except West Bengal Value Added Tax aggregating of' 41.34 Lacs, there
were no un-disputed statutory dues as at the end of the year concerned
outstanding 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
were no dues of Wealth Tax, Custom Duty, and Cess which have not been
deposited with the appropriate authorities on account of any dispute.
Based on the information and explanations available, the following
Sales Tax dues have not been deposited with the appropriate authorities
on account of Dispute:-
Sl. Name of the Status Nature of Dues
No.
1. West Bengal Sales Tax Act/ Claim of Export rejected by Appellate
Central Sales Tax Act Authority on ground of non accepting
Form 12A on quarterly basis but the
commercial taxes authority issued it
on quarterly basis.
2. West Bengal Sales Tax Act/ Export Sales and Input Tax Credit
Central Sales Tax Act disallowed and Gross Turnover
enhanced by 63%.
3. West Bengal Sales Tax Act/ Input tax disallowed due to Purchase
Central Sales Tax Act / Sale from the same party and
further,Purchase tax levied on fixed
assets purchased during the year.
4. West Bengal Sales Tax Act/ Tax on sales at branch outside the
Central Sales Tax Act State of West Bengal @ 12.5% and
CST sales taxed @ 1% thereon.
5. West Bengal Sales Tax Act/ Disallowance of export sale and
Central Sales Tax Act purchase tax on Unregistered
purchase.
6 West Bengal Sales Tax Act/ Disallowance of "Form F'
Central Sales Tax Act
Sl. Name of the Status Amount Period to which
No. ( Rs.In Lacs) the Amount
Relates
1. West Bengal Sales Tax Act/ 291.07 2006-07
Central Sales Tax Act
2. West Bengal Sales Tax Act/ 1,807.33 2007-08
Central Sales Tax Act
3. West Bengal Sales Tax Act/ 27.44 2008-09
Central Sales Tax Act
4. West Bengal Sales Tax Act/ 519.46 2009-10
Central Sales Tax Act
5. West Bengal Sales Tax Act/ 2,078.83 2010-11
Central Sales Tax Act
6 West Bengal Sales Tax Act/ 83.18 2011-12
Central Sales Tax Act
Sl. Name of the Status Forum Where the dispute is
No. Pending
1. West Bengal Sales Tax Act/ Revisional Board, Sales tax
Central Sales Tax Act Kolkata (South Circle)
2. West Bengal Sales Tax Act/ Appellate Authority, Sales
Central Sales Tax Act Tax Kolkata (South Circle)
3. West Bengal Sales Tax Act/ Appellate Authority, Sales
Central Sales Tax Act Tax Kolkata (South Circle)
4. West Bengal Sales Tax Act/ Appellate Authority, Sales
Central Sales Tax Act Tax Kolkata (South Circle)
5. West Bengal Sales Tax Act/ Senior Joint Commissioner
Central Sales Tax Act Kolkata (South Circle)
6 West Bengal Sales Tax Act/ Appellate Authority, Sales
Central Sales Tax Act Tax, Kolkata (South Circle)
c) According to the information and explanations given to us, there is
no amount required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act,1956 (1 of 1956) and rules made there under during the
year.
viii) The Company has no accumulated losses at the end of the financial
year and has incurred cash losses amounting to Rs. 76,037.33 Lacs
during current financial year. The Company had incurred cash losses in
the immediately preceding financial year also.
ix) In our opinion and according to the information and explanations
given to us, the Company has defaulted in repayment of dues to its
banker and debenture holders. The Company has applied for
reconsideration of Composite Corporate Debt Restructuring as stated by
the management in Note No.51 of the financial statements.
x) In our opinion and according to the information given to us, in
respect of the guarantee given by the Company for the loans taken by
others from a bank, the terms and conditions thereof are not, prima
facie, prejudicial to the interest of the company.
xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
xii) As represented to us by the management and based on our
examination of the books and records of the Company in accordance with
the generally accepted auditing practices in India, we have neither
come across any material fraud on or by the Company noticed or reported
during the year nor we have been informed of any such case by the
management that causes the financial statements to be materially
misstated.
For CHATURVEDI & PARTNERS
Chartered Accountants
Firm Registration No.307068E
Sd/-
Pratik Niyogi
Date: 30th May, 2015 Partner
Place: Kolkata Membership No.066514
Mar 31, 2014
1. We have audited the accompanying financial statements of Shree
Ganesh Jewellery House (I)Limited, which comprise the Balance Sheet as
at March 31st, 2014 and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
2. 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. 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.
3. 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. 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 qualified audit opinion.
4. Basis for Qualified Opinion
Mismatch of cash credit figure as per company''s books and bank
confirmation
(i) Fixed Deposit amounting of RS. 2,287.58 Lacs pledged as security
with Axis Bank against cash credit sanctioned was adjusted with the
cash credit balance in the company''s books on maturity of the Fixed
Deposits. However, as per cash credit account statement furnished by
the bank the Fixed Deposit figure was not adjusted with the cash credit
account balance. Thus, cash credit balance as per bank confirmation
showed excess by RS. 2,287.58 Lacs. Further, as per confirmation
received from the bank the matured amount was not adjusted in the cash
credit account but was transferred to a separate account of the bank
(ii) Cash credit balance of Dhanalaxmi Bank was shown less as per
company''s books by RS. 91.59 Lacs. Cash credit balance as per Company''s
books was RS. 1,485.55 Lacs and as per bank confirmation was RS.
1,577.15 Lacs. As per documents furnished to us, the company had
contested the excess amount claimed by the Bank in the High Court of
Kolkata and had received a stay order on the excess claim made by the
bank. However, as per order passed by the court on 10th March 2014,
pendency of the writ petition shall not preclude the respondents
(bank)to proceed strictly in accordance with the Master Circular of
Reserve Bank of India on Wilful Defaulters.
5. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, 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 March 31st, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit/
loss for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
6. Emphasis of Matter
Attenfion is drawn to note 31 in the financial statements regarding
preparafion of these accounts ongoing concern basis, although company
has suffered significant operafing losses during the year and is facing
financial crunch with its inability to meet the financial obligations.
The Company has applied for Composite Corporate Debt Restructuring with
the banks to mitigate the above. These mitigating factors have fully
been disclosed in above referred note, in view of which, the accounts
have been continued to be prepared under the going concern assumption.
7. 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 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. Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph, in our opinion, the Balance Sheet,
Statement of Profit and Loss, and Cash Flow Statement comply with the
Accounting Standards referred to in subsection (3C) of Section 211 of
the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31st, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31st, 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 to the Independent AuditorÂs Report
(Referred to in Paragraph 4 of our report)
i. In respect of Fixed assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
b. The Company has a regular program of physical verification of 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 regard to the size of the
company and the nature of its assets.
c. No substantial part of the fixed assets of the company was disposed
off during the year.
ii. In respect of inventories:
a. The inventories have been physically verified by the management as
at year end. In our opinion, the frequency of such verification is
reasonable.
b. In our opinion, and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion, and according to the information and explanations
given to us, the Company is maintaining proper records of its
inventories and no material discrepancies noticed on such physical
verification.
iii. a. The Company has granted loans to its subsidiary companies
covered in register maintained under Section 301 of the Companies Act,
1956. The maximum amount involved during the year and the year-end
balance was RS. 6,269.60 Lacs and RS. 6,321.83 Lacs respectively.
b. In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which loans have been granted to its subsidiary companies and listed in
the register maintained under section 301 of the Companies Act, 1956
are not prima facie prejudicial to the interest of the Company.
c. According to the information and explanation given to us, loans
granted and interest thereon are recoverable on demand. There are no
stipulations made for the recovery of the loan. Hence we cannot comment
on the regularity of receipt of principal amounts and interest thereon.
d. There is no overdue amount outstanding at the end of the year in
respect of the above said loans.
e. The company has not taken any loan secured or unsecured from
companies, firms or other parties in the register maintained under
Section 301 of the Companies Act, 1956.
iv. There is an adequate internal control system commensurate with the
size of the Company and the nature of its business with regard to
purchases of inventory, fixed assets and with regard to the sale of
goods and services. We have not observed any major weakness in internal
control system during the course of the audit.
v. In our opinion and according to the information and explanations
given to us, there were no contracts or arrangements made with the
parties which required to be covered in the registers maintained under
Section 301 of the companies Act, 1956.
vi. In our opinion and according to information and explanations given
to us, the Company has not accepted any deposits from the public within
the meaning of section 58A, 58AA or any other relevant provision of the
Act and rules framed there under.
vii. In our opinion and according to information and explanations given
to us, the Company has adequate overall internal control system
commensurate with its size and nature of its business.
viii. We have broadly reviewed the cost records maintained by the
Company pursuant to the Rule made by the Central Government for the
maintenance of cost records under Section 209 (1)(d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we have
not made a detailed examination of the cost records with the view to
determine whether they are accurate or complete.
ix. In respect of Statutory dues:
a. According to the information and explanations given to us and on the
basis of our examination of records of the company, in our opinion, the
amounts deducted/accrued in the books of accounts in respect of
undisputed statutory dues including Provident fund, Employee State
Insurance, Income Tax, Sales Tax, Wealth Tax, Customs duty, Cess and
other material statutory dues have generally been deposited regularly
during the year by the Company with the appropriate authorities except
delay in some cases and some of the amounts are still not paid as
detailed below. :
Sales Tax - RS. 104.02 Lacs
Service Tax - RS. 3.36 Lacs
As explained to us, the Company did not have any dues on account of
Excise duty and Investor Education and Protection fund.
b. According to information and explanations given to us, no undisputed
amounts payable in respect of Employees Provident Fund, Employees''
State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom duty, Cess
and other Material statutory dues were in arrears as at 31st March 2014
for a period more than 6 months from the date they become payable.
c. According to the information and explanations given to us, there
were no dues of Wealth Tax, Custom Duty, and Cess which have not been
deposited with the appropriate authorities on account of any dispute.
Based on the information and explanations available, the following
Sales Tax dues have not been deposited with the appropriate authorities
on account of Dispute :-
Sl. Name of Nature of Dues
NO the Status
1. West Bengal Sales Tax Claim of Export rejected by
Act/Central Sales Tax Act Appellate Authority on ground of
non accepting Form 12A on quarterly
basis but the commercial taxes
authority issued it on quarterly
basis
2. West Bengal Sales Tax Export Sales and Input tax credit
Act/Central Sales Tax Act disallowed and Gross Turnover
enhanced by 63%.
3. West Bengal Sales Tax Input tax disallowed due to
Act/Central Sales Tax Act Purchase/ Sale from the same party
and further, Purchase tax levied on
fixed assets purchased during the
year.
4. West Bengal Sales Tax Tax on sales at branch outside the
Act/Central Sales Tax Act state of West Bengal @ 12.5% and
CST sales taxed @1%thereon.
5. West Bengal Sales Tax Disallowance of export sale and
Act/Central Sales Tax Act purchase tax on Unregistered
purchase.
Sl. Name of Amount Period to Forum where the
No. the status (RS in which the Dispute
is Lacks) Amount Pending
Realates
1 West Bengal Sales Tax 291.07 2006-07 Revisional
Act/CentralSales Tax Board, Sales
Act tax Kolkata
(South Circle)
2 West Bengal Sales Tax 1,807.33 2007-08 Appellate
Act/Central Sales Tax Authority,
Act Sales tax
Kolkata
(South Circle)
3 West Bengal Sales Tax 27.44 2008-09 Appellate
Act/Central Sales Tax Authority,
Act Sales tax
Kolkata
(South Circle)
4 West Bengal Sales Tax 519.46 2009-10 Appellate
Act/Central Sales Tax Authority,
Act Sales tax
Kolkata
(South Circle)
5 West Bengal Sales Tax 2,078.83 2010-11 Senior Joint
Act/Central Sales Tax Commissioner
Act Kolkata
(South Circle)
x. The Company does not have accumulated losses at the end of the
financial year 31st March, 2014 and has incurred cash losses in the
current financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has defaulted in repayment of dues to its
banker and debenture holders. The Company has applied for Composite
Corporate Debt Restructuring.
xii. In our opinion, the Company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
xiii. According to the information and explanations given to us, the
Company is not a chit fund or a nidhi/ mutual benefit fund/ society.
xiv. In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments.
xv. In our opinion and according to the information given to us, in
respect of the guarantee given by the Company for the loans taken by
others from a bank, the terms and conditions thereof are not, prima
facie, prejudicial to the interest of the company.
xvi. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
xvii. 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 funds raised on short term basis have not been used
for long term investment.
xviii. The Company has made preferential allotment in the current
financial year and has allotted 1,280,000 Equity Shares of RS. 10 each
which includes Security Premium of RS. 115 each to
Companies/firms/parties covered in the register maintained under
Section 301 of the Companies Act, 1956 during the year.
xix. According to the information and explanations given to us and on
the basis of the records examined by us, the company has created
necessary charges for the debentures issued.
xx. The Company has not raised any money by public issues during the
year.
xxi. As represented to us by the management and based on our
examination of the books and records of the Company in accordance with
the generally accepted auditing practices in India, we have neither
come across any material fraud on or by the Company noticed or reported
during the year nor we have been informed of any such case by the
management that causes the financial statements to be materially
misstated.
For CHATURVEDI & PARTNERS
Chartered Accountants
Firm Registration No. 307068E
Pratik Niyogi
Partner
Place: Kolkata Membership No. 066514
Date: 30th May, 2014
Mar 31, 2013
1. Report on the Financial Statements
We have audited the accompanying financial statements of Shree Ganesh
Jewellery House (I) Limited, which comprise the Balance Sheet as at
March 31st, 2013 and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information
2. 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. 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
3. 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 whetherthe 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. 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
overal 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
4. 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date
5. 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 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 ;
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 subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956
In respect of Fixed assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
b. The Company has a regular program of physical verification of 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 ouropinion, this periodicity of
physical verification is reasonable having regard to the size of the
company and the nature of its assets.
c. No substantial part of the fixed assets of the company was disposed
off during the year.
i. In respect of inventories:
a. The inventories, except for stocks lying with third parties, have
been physically verified by the management as at year end. In
ouropinion, the frequency of such verification is reasonable. For
stock lying with third parties, confirmations have been obtained at
year end.
b. In ouropinion, andaccordingtothe information and explanations given
to us, the procedures of physical verification of inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
c. In ouropinion, andaccordingtothe information and explanations given
to us, the Company is maintaining proper records of its inventories and
no material discrepancies noticed on such physical verification.
iii. a. The Company hasgranted loansto its subsidiary companies covered
in register maintained under Section 301 of the companies Act, 1956.
The maximum amount involved duringthe year and the year-end balance
wasRs. 13,229.76 Lacs and Rs. 5,781.61 Lacs respectively.
b. In ouropinion and according to the information and explanations
given to us, the rate of nterest and other terms and conditions on
which loans have been granted to its subsidiary companies and listed in
the register maintained under section 301 of the Companies Act, 1956
are not prima facie prejudicial to the interest of the Company.
c. According to the information and explanation given to us, loans
granted and interest thereon are recoverable on demand. There are no
stipulations made for the recovery of the loan. Hence we cannot
comment on the regularity of receipt of principal amounts and interest
thereon.
d. There is no overdue amount outstanding at the end of the year in
respect of the above said loans.
e. The company has not taken any loan secured or unsecured from
companies, firms or other parties in the register maintained under
Section 301 of the Companies Act, 1956
iv There is an adequate internal control system commensurate with the
size of the Company and the nature of its business with regard to
purchases of inventory, fixed assets and with regard to the sale of
goods and services. We have not observed any major weakness in internal
control system duringthe course of the audit
v. In our opinion and according to the information and explanations
given to us, there were no contracts or arrangements made with the
parties which required to be covered in the registers maintained under
section 301 of the companies Act, 1956
vi. In our opinion and according to information and explanations given
to us, the Company has not accepted any deposits from the public within
the meaning of section 58A, 58AA or any other relevant provision of the
Act and rules framed there under
vii. In our opinion and according to information and explanations given
to us, the company has adequate overall internal control system
commensurate with its size and nature of its business
viii. We have broadly reviewed the cost records maintained by the
Company pursuant to the Rule made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained However, we have not
made a detailed examination of the cost records with the view to
determine whether they are accurate or complete
ix. In respect of Statutory dues:
a. According to the information and explanations given to us and on
the basis of our examination of records of the company, in our opinion,
the amounts deducted/accrued in the books of accounts in respect of
undisputed statutory dues including Provident fund, Employee State
Insurance, Income Tax, Sales Tax, Wealth Tax, Customs duty, Cess and
other material statutory dues have generally been deposited regularly
during the year by the Company with the appropriate authorities. As
explained to us, the company did not have any dues on account of Excise
duty, Service tax and Investor Education and Protection fund
b. According to information and explanations given to us, no
undisputed amounts payable in respect of Employees Provident Fund,
Employees'' State Insurance, Income tax, Sales tax, Wealth Tax, Custom
duty, Cess and other Material statutory dues were in arrears as at 31st
March 2013 for a period more than 6 months from the date they become
payable,
c. According to the information and explanations given to us, there
were no dues of Wealth tax, Custom duty, and Cess which have not been
deposited with the appropriate authorities on account of any dispute.
Based on the iformation and explanations available, the following Sales
Tax dues have not been deposited with the appropriate authorities on
account of Dispute
SI. Name of the Nature of dues Amount
1 West Bengal Claim of export rejected Rs. 291.07 Lacs
Sales Tax Act/ by Appellate Authority on
Central Sales ground of non accepting
Tax Act Form 12A on
quarterly basis but
the Commercial
taxes authority issued it on
quarterly basis
2 West Bengal Export Sales and Input Rs.1,807.33 Lacs
Sales Tax Act/ tax credit disallowed and
Central Sales Gross Turnover, enhanced
Tax Act by 63 %
3 West Bengal Input tax disallowed due Rs. 27.44 Lacs
Sales Tax Act/ to purchase / sale from the
Central Sales same party and further,
Tax Act purchase tax levied on
Fixed assets purchased
during the year.
4 West Bengal Tax on sales at branches Rs. 519.46 Lacs
Sales Tax Act/ outside the State of West
Central Sales Bengal @ 12.5% and CST Tax
Act sales taxed @ 1 % thereon
Name Period to Forum where
which the the dispute is
amount pending
relates
West Bengal 2006-07 Revisional Board, Sales Tax
Kolkata (South Circle)
West Bengal 2007-08 Appellate Authority, Sales
Tax Kolkata (South Circle)
West Bengal 2008-09 Appellate Authority, Sales Tax
Kolkata (South Circle)
West Bengal 2009-10 Appellate Authority, Sales Tax
Kolkata (South Circle)
x. The company does not have accumulated losses at the end of the
financial year 31st March, 2013 and has not incurred cash losses in the
current financial year and in the immediately preceding financial year
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
banker and debenture holders
xii. In our opinion, the Company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities
xiii. According to the information and explanations given to us, the
Company is not a chit fund or a nidhi/ mutual benefit fund/society
xiv In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments
xv In our opinion and according to the information given to us, in
respect of the guarantee given by the Company for the loans taken by
others from a bank, the terms and conditions thereof are not, prima
facie, prejudicial to the interest of the company
xvi. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised
xvii. 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 funds raised on short term basis have not been used
for long term investment
xviii. The Company has made preferential allotment of 41,44,000 shares
of Rs. 10 each at a premium of Rs.140 each, to Companies/firms/parties
covered in the register maintained under Section 301 of the Companies
Act, 1956 duringthe year
xix. According to the information and explanations given to us and on
the basis of the records examined by us, the company has created
necessary charges for the debentures issued
xx. The Company has not raised any money by public issues duringthe
year
xxi. As represented to us by the management and based on our
examination of the books and records of the Company in accordance with
the generally accepted auditing practices in India, we have neither
come across any material fraud on or by the Company noticed or reported
duringthe year nor we have been informed of any such case by the
management that causes the financial statements to be materially
misstated
For Chaturvedi & Partners
Chartered Accountants
Firm Registration No.: 307068E
Pratik Niyogi
Place: Kolkata Partner
Date: 27th May 2013 Membership No.: 066514
Mar 31, 2012
1. We have audited the attached Balance Sheet of Shree Ganesh
Jewellery House limited (formerly known as Shree Ganesh Jewellery House
Private Limited and hereinafter referred as "the company") as at 31st
March 2012, the statement of Profit and Loss and Cash Flow Statement of
the company 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.
2. 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 disclosures 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.
3. As required by the Companies (Auditor's Report) Order, 2003 (CARO)
issued by the Central Government in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, 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 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, the 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 dealt with by this report are in compliance with
the accounting standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956;
e) On the basis of written representations received from the directors,
as on 31st March, 2012, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2012 from being appointed as a director in terms of Section 274(1)(g)
of section 274 of the Companies Act, 1956 and
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 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, 2012; and
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 Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
Annexure to auditors' Report
(Referred to in Paragraph 3 of our report)
i. In respect of Fixed assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
b. The Company has a regular program of physical verification of fixed
assets by which all assets are verified annually. In our opinion, the
period of verification is reasonable having regard to the size of the
company and the nature of its fixed assets. No significant
discrepancies were noticed on such verification.
c. No substantial part of the fixed assets of the company was disposed
off during the year.
ii. In respect of inventories:
a. The inventories, except for stocks lying with third parties, have
been physically verified by the management as at year end. In our
opinion, the frequency of such verification is reasonable. For stock
lying with third parties, confirmations have been obtained at year end.
b. In our opinion, and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion, and according to the information and explanations
given to us, the Company is maintaining proper records of its
inventories and no material discrepancies noticed on such physical
verification.
iii.
a. The Company has granted loans to its subsidiary companies covered
in register maintained under Section 301 of the companies Act, 1956.
The maximum amount involved during the year and the year-end balance
was Rs 7,999.44 Lacs and Rs 7,525.36 Lacs respectively.
b. In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which loans have been granted to its subsidiary companies and listed in
the register maintained under section 301 of the Companies Act, 1956
are not prima facie prejudicial to the interest of the Company.
c. According to the information and explanation given to us, loans
granted and interest thereon recoverable on demand. There are no
stipulations made for the recovery of the loan. Hence we cannot comment
on the regularity of receipt of principal amounts and interest thereon.
d. There is no overdue amount outstanding at the end of the year in
respect of the above said advance
e. The company has not taken any loan secured or unsecured, to or from
companies, firms or other parties in the register maintained under
Section 301 of the Companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchase of
certain items of inventories are for the Companies specialised
requirements and suitable sources are not available to obtain
comparative quotations , there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. We have not observed any
major weakness in internal control system during the course of the
audit
v. In our opinion and according to the information and explanations
given to us, there were no contracts or arrangements made with the
parties which required to be covered in the registers maintained under
section 301 of the companies Act, 1956.
vi. In our opinion and according to information and explanations given
to us, the Company has not accepted any deposits from the public within
the meaning of section 58A, 58AA or any other relevant provision of the
Act and rules framed there under.
vii. In our opinion and according to information and explanations given
to us, the company has adequate overall internal control system
commensurate with its size and nature of its business.
viii. The Central Government has not prescribed the maintenance of cost
records under Section 209(1) (d) of the Companies Act, 1956 for any of
the products manufactured/services rendered by the company. Therefore
this clause is not applicable.
ix. In respect of Statutory dues:
a. According to the information and explanations given to us and on the
basis of our examination of records of the company, in our opinion, the
amounts deducted/accrued in the books of accounts in respect of
undisputed statutory dues including Provident fund, Employee State
Insurance, Income Tax, Sales Tax, Wealth Tax, Customs duty, Cess and
other material statutory dues have generally been deposited regularly
during the year by the Company with the appropriate authorities. As
explained to us, the company did not have any dues on account of Excise
duty, Service tax and Investor Education and Protection fund.
b. According to information and explanations given to us, no
undisputed amounts payable in respect of Employees Provident Fund,
Employees' State Insurance, Income tax, Sales tax, Wealth Tax, Custom
duty, Cess and other Material statutory dues were in arrears as at 31st
March 2012 for a period more than 6 months from the date they become
payable,
c. According to the information and explanations given to us, there
were no dues of Wealth tax, Custom duty, and Cess which have not been
deposited with the appropriate authorities on account of any dispute.
Based on the information and explanations available, the following
Sales Tax dues have not been deposited with the appropriate authorities
on account of Dispute:
Sl. Name of the Nature of dues Amount Period to
which the Forum where
the
No. Statute (In Lacs) amount
relates dispute is
pending
1. West Bengal
Sales Claim of export Rs 318.50 2006-07/
2007-08 Revisional
Board/
Tax Act/
Central rejected by
Assessing Lacs Joint
Commissioner
Sales Tax
Act Authority
x. The company does not have accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
banker and debenture holders.
xii. In our opinion the Company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
xiii. According to the information and explanations given to us, the
Company is not a chit fund or a nidhi/ mutual benefit fund/society.
xiv. In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments.
xv. In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the Company.
xvi. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
xvii. 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 funds raised on short term basis have not been used
for long term investment.
xviii. The Company has not made any preferential allotment of shares to
Companies/firms/parties covered in the register maintained under
Section 301of the Companies Act, 1956
xix. According to the information and explanations given to us and on
the basis of the records examined by us, the company has created
necessary charges for the debentures issued.
xx. The Company has not raised any money by public issues during the
year.
xxi. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For Chaturvedi & Partners
Chartered Accountants
Firm Registration No.: 307068E
Pratik Niyogi
Place: Kolkata Partner
Date: 24th May 2012 Membership No.: 066514
Mar 31, 2011
1. We have audited the attached Balance Sheet of Shree Ganesh
Jewellery House Limited (formerly known as Shree Ganesh Jewellery House
Private Limited) as at 31 March 2011, the Profit and Loss Account and
Cash Flow Statement of the company 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.
2. 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 disclosures 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.
3. As required by the Companies (Auditor's Report)
Order, 2003 issued by the Central Government in terms of sub-section
(4A) of section 227 of the Companies Act, 1956, we enclose in the
Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order.,
4. Further to our comments in the Annexure referred to above, 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 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 and Profit and Loss Account dealt with by this
report are in agreement with the books of account; -
d) In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors,
as on 31 March, 2011, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31 March 2011
from being appointed as a director in terms of Section 274(1)(g) of
section 274 of the Companies Act, 1956 and
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act,
. 1956 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 31 March 2011; and
ii. in the case of Profit and Loss Account, of the Profit/Loss for
the year ended on that date; and
iii. in the case of Cash Flow Statement, of the cash flows of the
company for the year
ended on that date.
- Annexure to Auditors'- Report
Referred to in Paragraph 3 of our report of even date
i. 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 fixed
assets by which all assets are verified annually. In our opinion, the
period of verification is reasonable having regard to the size of the
company and the nature of its assets. No significant discrepancies were
noticed on such verification.
c. :'During the year, no substantial part of the
fixed assets of the Company was disposed off and hence the assumption
of going concern is not affected.
ii. a. The inventories, except for stocks lying with third parties,
have been physically verified by the management as at year end. In our
opinion, the frequency of such verification is reasonable. For stock
lying with third parties, confirmations have been obtained at year end.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. The Company is maintaining proper records of inventories. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and have been properly dealt with in
the books of accounts.
iii. a. The company has granted loans to 4 companies and firms covered
in register maintained under Section 301 of the companies Act, 1956.
The maximum amount involved during the year end balance was Rs. 2206.24
lacs and the year end balance of such loans was Rs. 661.37 lacs.
b. In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to companies and firms listed in the
register maintained under section 301 of the Companies Act, 1956 are
not, prima facie, prejudicial to the interest of the Company.
c. According to the information and explanation given to us, loans and
interest thereon granted to companies and firms listed in the register
maintained under Section 301 of the Companies Act, 1956 are recoverable
in demand. There are no stipulations made for the recovery of the loan.
Accordingly, we cannot comment on the regularity of receipt of
principal amounts and interest thereon.
d. There is no overdue amount of more than Rupees one lac in respect
of loan granted to companies, firms or other parties listed in the
register maintained under section 301. -
e. The company has not taken any loan secured or unsecured, to or from
companies, firms or other parties in the register maintained under
Section 301 of the Companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchase of
certain items of inventories are for the Companies specialized
requirements and suitable sources are not available or obtain
comparative quotations, there is an adequate internal control system
commensurate with the size of the Company and the nature of itsn
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. We have not observed any
major weakness in internal control system during the course of the
audit.
v. a. In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that Section.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements referred to (a) above and exceeding value Rs. 5 lacs with
any party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant
time.However, the Company has made certain purchases of inventories
which are for the Companies specialised requirements and similarly has
made sale of certain goods for the specialised requirement of the
buyers ,for which suitable alternative source are not available to
obtain comparative quotations. However on the basis of information and
explanations provided, the same appears reasonable.
vi. The Company has not accepted any deposits from public during the
year.
vii. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
viii. The Central Government has not prescribed the maintenance of cost
records under Section 209(1)(d) of the Companies Act, 1956 for any of
the products manufactured/services rendered by the company.
ix.. a. According to the information and explanations given to us and
on the basis of our examination of records of the company, amounts
deducted/accrued in the books of accounts in respect of undisputed
statutory dues including Provident fund, Employee State
Insurance, Income Tax, Sales Tax, Wealth Tax, Customs duty, Cess and
other material statutory dues have generally been deposited regularly
during the year by the Company with the appropriate authorities. As
explained to us, the company did not have any dues on account of Excise
duty, Service tax and Investor Education and Protection fund.
There were no dues on account of cess under Section 441A of the Act,
since the date from which the aforesaid Section has come into force has
not yet been notified by the Central Government.
According to information and explanations given to us, no undisputed
amounts payable in respect of Employees Provident Fund, Employees'
State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom duty, Cess
and other
Material statutory dues were in arrears as at 31 March 2011 for a
period more than 6 months from the date they become payable,
b. According to the information and explanations given to us, there
were no dues of Wealth Tax, Custom duty, and Cess which have not been
deposited with the appropriate authorities on account of any dispute.
As explained to us, the company did not have any dues on account of
Service tax and Excise duty, and Investor Education and Protection
Fund.
According to information and explanation given to us, the following
Sales Tax dues have not been deposited with the appropriate authorities
on account of Dispute:
Nature of Nature of the dues Amount
involved Period to which Forum where
dispute
the statute (Rs. in
lacs) the amount
relates is pending
West Bengal
Sales Claim of esport
rejected Rs. 382.25
lacs 2003-04/ Revisional
Board/
Tax Act/
Central by Assessing
Authority 2006-07 Joint
Commissioner
Sales Tax
Act
x. The company does not have accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
banker and debenture holders.
xii. In our opinion the Company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
xiii. In our opinion and according to the information - and
explanations given to us the Company is not a chit fund or a nidhi/
mutual benefit fund/society.
xiv. In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments.
xv. In our opinion and according to the information - and explanations
given to us, the terms and conditions on which the Company has given
guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the Company.
xvi. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
xvii. 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 report that funds raised on short term
basis have not been used for long term investment.
xviii. The Company has not made any preferential allotment of shares to
Companies/firms/parties covered in the register maintained under
Section 301of the Companies Act, 1956
xix. According to the information and explanations given to us and on
the basis of the records examined by us, the company has created
necessary charges for the debentures issued.
xx. The Company had made an invitation to the public to subscribe to
the shares of the company with initial public offering in March 2010.
The allotment of shares has been completed in the year under audit.
(Refer to note no. 22 on schedule 21 to the Financial Statements).
xxi. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For Chaturvedi & Partners
Chartered Accountants
Registration No: 307068E
Surojit Banerji
Place : Kolkata Partner
Date: 26 May 2011 Membership No.: 050912
Mar 31, 2010
1. We have audited the attached Balance Sheet of Shree Ganesh
Jewellery House Limited (formerly known as Shree Ganesh Jewellery House
Private Limited) as at 31 March 2010, the Profit and Loss Account and
the Cash Flow Statement of the Company 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.
2. 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 disclosures 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.
3. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, 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 account as required by law have been
kept by the Company so far as it appears from our examination of the
books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub- section (3C) of Section 211 of the
Companies Act, 1956;
e) On the basis of written representations received from directors as
on 31 March 2010, and taken on record by the Board of Directors, we
report that, none of the directors is disqualified as on 31 March
2010from being appointed as a Director in terms of Section 274(1)(g) of
the Companies Act, 1956, and
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, 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 the affairs of the
Company as at 31 March 2010; and
ii) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Annexure to the Auditors Report (Referred to in paragraph 3 of our
report of even date)
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The Company has a regular programme of physical verification of
fixed assets by which all assets are verified annually. In our opinion,
the periodicity of physical verification is reasonable having regard to
the size of the Company and the nature of its assets. No material
discrepancies were identified on such verification.
c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
ii) a) The inventory, except for stocks lying with third parties, has
been physically verified by the management as at the year end. In our
opinion, the frequency of such verification is reasonable. For stocks
lying with third parties, written confirmations have been obtained at
the year end.
b) The procedures for physical verification of inventories followed by
the management are reasonable and 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 stocks and
the book records were not material and have been properly dealt with in
the books of accounts.
iii) a) The Company has granted loans to 4 companies and firms covered
in the register maintained under Section 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs. 1,734.01 lacs
and the year end balance of such loans was Rs. 563.02 lacs.
b) In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to companies and firms listed in the
register maintained under Section 301 of the Companies Act, 1956 are
not, prima facie, prejudicial to the interest of the Company.
c) According to the information and explanations given to us, loans and
interest thereon granted to companies and firms listed in the register
maintained under Section 301 of the Companies Act, 1956 are recoverable
on demand. There are no stipulations made for the recovery of the loan.
Accordingly, we cannot comment on the regularity of receipt of
principal amounts and interest thereon.
d) There is no overdue amount of more than Rupees one lakh in respect
of loans granted to any of the companies, firms or other parties listed
in the register maintained under Section 301.
e) The Company has not taken any loans, secured or unsecured, to or
from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchase of
certain items of inventories are for the Companys specialised
requirements and suitable alternative sources are not available to
obtain comparative quotations, there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business with regard to purchase of fixed assets and with regard to the
sale of goods and services. We have not observed any major weakness in
the internal control system during the course of the audit.
v) a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that Section.
b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs. 5
lakh with any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time except for purchases of certain items of inventories
which are for the Companys specialised requirements and similarly for
sale of certain goods for the specialised requirements of the buyers
and for which suitable alternative sources are not available to obtain
comparable quotations. However, on the basis of information and
explanations provided, the same appears reasonable.
vi) The Company has not accepted any deposits from the public.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of the business.
viii) The Central Government has not prescribed the maintenance of cost
records under Section 209(1)(d) of the Companies Act, 1956 for any of
the products manufactured/ services rendered by the Company.
ix) a) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Employee State Insurance,
Income Tax, Sales tax, Wealth tax, Customs duty, Cess and other
material statutory dues have generally been deposited regularly during
the year by the Company with the appropriate authorities. As explained
to us, the Company did not have any dues on account of Excise duty,
Service tax and Investor Education and Protection Fund.
There were no dues on account of cess under Section 441A of the Act,
since the date from which the aforesaid Section has come into force has
not yet been notified by the Central Government.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Employees Provident Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth tax, Customs
duty, Cess and other material statutory dues were in arrears as at 31
March 2010 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
were no dues of Wealth tax, Customs duty, and Cess which have not been
deposited with the appropriate authorities on account of any dispute.
As explained to us, the Company did not have any dues on account of
Service Tax and Excise Duty and Investor Education and Protection Fund.
According to the information and explanation given to us, the following
Sales Tax and Income Tax dues have not been deposited with the
appropriate authorities on account of dispute:
Name of the Nature of Amount Period to Forum where
statute the dues Involved the amount dispute is
(Rs. in lacs) relates pending
West Bengal Claim of export Rs. 383.25 lacs 2003-04/ Revisional
Sales Tax sales rejected 2006-07 Board/
Act/Central by Joint
Commissioner
Sales Tax Assessing
Act Authority
Indian Various matters Rs. 23.65 lacs 2005-06/ Commissioner
Income tax of
Act, 1961 arising on income 2006-07 Income Tax
tax proceedings (Appeals)
x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers and debenture holders.
xii) In our opinion, the Company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
xiii) In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi/ mutual benefit
fund/ society.
xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
xv) In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the Company.
xvi) In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied for
the purpose for which they were raised.
xvii) 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 funds raised on short-term basis have not been
used for long-term investment.
xviii)The Company has not made any preferential allotment of shares to
companies/firms/parties covered in the register maintained under
Section 301 of the Companies Act, 1956.
xix) The Company had unsecured debentures outstanding during the year
on which no security or charge was required to be created. There are
no outstanding debentures as at the year end.
xx) The Company has made an invitation to the public to subscribe to
shares of the Company with initial public offering as at the end of the
year. As explained to us, the allotment of shares were completed post
the year end. (Also Refer to Note no. 22 on Schedule 21 to the
Financial Statements).
xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For B S R & Associates
Chartered Accountants
Registration No: 116231W
Vikram Advani
Place: Gurgaon Partner
Date: 20 May 2010 Membership No: 091765