Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying financial statements of Uday Jewellery Industries Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31,2018, the Statement of Profit and Loss, the cash flow statement for the year then ended on that date, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements to 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 the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, 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 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 of the 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 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 auditorsâjudgment, 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 Companyâs preparation of the financial statements that give true and fair view 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 Companyâs Directors, 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 on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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 and its cash flows for the year ended on that date.
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 term of sub-section (11) of section 143 of the Act, 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 the paragraphs 3 and 4 of the Order, to the extent applicable.
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 appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid 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 written representations received from the directors as on 31 March, 2018, taken on record by the Board of Directors, none of the directors are disqualified as on 31 March, 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 over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ.
g. With respect to the other matters to be included in the Auditorâs 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. There are no pending litigations for the company that will impact the financial position of the Company;
ii. There are no 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;
Annexure A to the Independent Auditorsâ Report
The Annexure A referred to in our Independent Auditorâs Report to the members of the Company on the financial statements for the year ended 31 March 2018, we report that:
(i) 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 fixed assets have been physically verified by the management at reasonable intervals. 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 Inventory has been physically verified by the management during the year.
b. In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.
c. According to the information and explanation given to us, the company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
(iii) The Company has granted Inter Corporate Deposit to companies covered in the register maintained under section 189 of the Companies Act, 2013.
a. In our opinion, the terms and conditions on which the Inter Corporate Deposit has been granted to the party listed in the register maintained under section 189 of the Act are not prejudicial to the interest of the Company.
b. The payment of principal and the interest, wherever applicable, are regular.
c. There are no overdue amounts in respect of the Inter Corporate Deposits granted to the party 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 section 185 and 186 of the Act, in respect of the grant of loans,makinginvestments, providing guarantees and securities, as applicable
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public and hence directives issued by the Reserve Bank of India and the provisions of Section 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
(vi) In our opinion and according to the information and explanations given to us, the Company is not required to maintain Cost Records under Central Government under sub-section (1) of section 148 of the Act.
(vii) In respect of statutory dues:
a. According to the information and explanations given to us and on the basis of examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess, Goods and Service Tax and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts are payable in respect of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax or cess, Goods and Service Tax and other material statutory dues which were in arrears as at March 31,2018, for a period of more than six months from the date they became payable
b. According to the information given to us and records of the Company examined by us, there are no dues of Income Tax, Sales Tax, Value added Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess or Goods and Services Tax outstanding on account of any disputes.
(viii) According to the information and explanations given to us and on the basis of examination of the records, the company has not defaulted in the repayment of loans along with interest to Banks.
(ix) In our opinion and according to the information and explanations given to us, the Company did not raise any money by way of public issue (including debt instruments). Accordingly, paragraph 3(ix) of the Order is not applicable.
(x) To the best of our knowledge and according to the information and explanations given to us, no material fraud on or by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year, that causes the financial statements to be materially misstated.
(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 in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company hasmade a preferential allotment of 1,03,31,300 Share Warrants at Rs.18.98 each during the year (out of which51,73,520 have been converted into equity shares of Rs. 10 each) and the requirements of Section 42 of the Companies Act, 2013, have been complied with and the amount raised was used for the purposes for which the funds were raised.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Annexure - B to the Auditorsâ Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Uday JewelleryIndustries Limited(âthe Companyâ) as of 31 March, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial 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 (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.
Auditorâs 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 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 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 procedures selected depend 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 system 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 financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements 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 financial 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.
The company needs to document its procedures and controls vis-a-vis Internal Controls over Financial Reporting.
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 financial 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 VENUGOPAL & CHENOY,
CHARTERED ACCOUNTANTS,
FRN: 004671S
Sd/-
(P.V. SRI HARI)
Partner
Membership No.021961
Hyderabad Date: 30.05.2018
Mar 31, 2015
We have audited the accompanying financial statements of Uday Jewellery
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2015, 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.
Management's Responsibility for the Standalone Financial Statements
The Company's management 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 and financial performance
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 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 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 afore said 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 March 31, 2015, and its profit and its
cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
a) 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
to this report a statement on the matters specified in the paragraph 3
and 4 of the Order, to the extent applicable.
b) As required by section 143 (5) of the Companies Act 2013, we give in
the Annexure B to this report, a statement on the directions issued by
Comptroller & Auditor General of India, to the extent applicable
c) As required by Section 143 (3) of the Act, we report that:
1. 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.
2. 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;
3. 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;
4. 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;
5. On the basis of the written representations received from the
directors as on March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2015,
from being appointed as a director in terms of Section 164 (2) of the
Act; and
6. 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. There are no pending litigations for the company that will impact
the financial position of the company;
ii. There are no 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.
Annexure A to the Independent Auditors' Report
The Annexure A referred to in our Independent Auditor's Report to the
members of the Company on the standalone financial statements for the
year ended March 31, 2015, we report that:
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable having regard to the size of the Company and
nature of its assets. No material discrepancies have been noticed on
such physical verification.
ii) a) The inventories have been physically verified by the management
during the year. In our opinion, the frequency of such verification is
reasonable.
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 has maintained proper records of the said stocks. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
iii) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 189 of the Companied Act, 2013 ('the Act'). Consequently,
clauses 3 (iii) (a) and 3 (iii) (b) of the Order are not applicable to
the Company.
iv) In our opinion and according to the information and explanations
given to us, 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 inventories fixed assets and sale of goods and services.
We have not observed any major weakness in the internal control system
during the course of the audit.
v) The Company has not accepted any deposits from the public.
Consequently, the clause 3(v) of the order is not applicable to the
Company.
vi) The Central Government did not prescribe the maintenance of cost
records under sub-section (1) of Section 148 of the Companies Act,
2013, for any of the products of the company.
vii) a) According to the information and explanations given to us and
on the basis of examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including provident fund, employees' state insurance,
income-tax, sales-tax, wealth- tax, service tax, duty of customs, duty
of excise, value added tax, cess and other material statutory dues have
been regularly deposited during the year by the Company with the
appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts are payable in respect of income tax, sales tax,
wealth tax, service tax, duty of customs, duty of excise, value added
tax or cess and other material statutory dues which were in arrears as
at March 31, 2015, for a period of more than six months from the date
they became payable.
b) As at March 31,2015, there have been no disputed dues, which have
not been deposited with the respective authorities in respect of Income
tax, Wealth-tax, Service tax, duty of customs, duty of excise, value
added tax and Cess.
viii) The accumulated losses of the Company are less than 50% of its
net worth as on the date of the Balance Sheet and has not incurred cash
losses in the financial year covered by our audit and the immediately
preceding financial year.
ix) The Company has not taken any term loan from financial institutions
and banks. Consequently, the question of defaulting in payment of any
loan installment or interest thereon does not arise.
x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions. Consequently, the clause 3 (x) of the
order is not applicable to the Company.
xi) According to the information and explanations given to us, the
Company has not obtained any term loans. Consequently, the clause 3
(xi) of the Order is not applicable to Company.
xii) 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.
Place: Hyderabad For VENUGOPAL & CHENOY,
Date: 29.05.2015 Chartered Accountants,
FRN: 004671S
(P.V.SRI HARI )
Partner
Membership No.021961
Mar 31, 2014
We have audited the accompanying financial statements of Uday Jewellery
Industries Limited ("the Company"), which comprise the Balance Sheet as
at March 31,2014, the Statement of Profit and Loss for the year and
Cash Flow Statement for the year ended on that date 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 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.
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 Company's interna! 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, together with the
Accounting Policies and Notes to Accounts, 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, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) In so far as it relates to 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 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 and the Statement of Profit and Loss, 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
.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, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure to Auditors' Report
(Referred to in Paragraph 2 of our report of even date)
1. The Company during the previous year bought one item viz. Plant &
Machinery relating to fixed assets which is entered in the Fixed Assets
Register. The same is still in use. Hence, the question of physical
verification and disposal does not arise.
2. In respect of its inventories:
a. The inventories have been physically verified by the management at
reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of the said stocks
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 has maintained proper records of the said stocks. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3 The company did not take nor granted any loans, secured or unsecured,
from or to companies, firms or other parties listed in the Register
maintained under Section 301 of the Companies Act; 1956, during the
year. However, it had taken, temporary interest-free unsecured loans
from directors in the earlier years and repaid the entire amount during
the year. These were not prejudicial to the interests of the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assts and also for the sale, of goods.
5. In our opinion and according to the information and explanations
given to us, the Company entered into the register the transactions in
pursuance of Section 301 of the Companies Act, 1956, aggregating during
the year to more than Rs. 5,00,000/- (Rupees Five Lakhs only) in
respect of three parties. These transactions have been made at the
prevailing market price at the relevant time.
6. The Company has not accepted any deposits from the public.
7. The Company is yet to introduce the system of Internal Audit.
8. The Central Government did not prescribe maintenance of Cost
Records under Section 209(1) (d) of the Companies Act, 1956(Act I of
1956) for any of the products of the Company.
9. During the year, there is no person to whom the provisions of P.F.
or E.S.I. are applicable. According to information and explanations
given to us, there are no other undisputed statutory payments
outstanding to be deposited for more than six months from the date they
became payable.
10. As per the accounts referred to in this Report, the net-worth of
the Company has been eroded beyond 50% as on March 31, 2014. The
Company did not incur cash losses during the financial year under
report and also in the preceding financial year.
11. The Company does not have any dues to a financial institution or
bank during the year.
12. In our opinion and according to the information and explanations
given to us, no loans and advances have been granted 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 not dealt in or traded in shares, securities,
debentures and other investments.
15. The Company has not given guarantees for loans taken by others
from banks or financial institutions.
16. The Company has not raised any new term loans during the year.
17. The Company during the year did not raise any short term loans and
hence the question of their usage, does not arise.
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 during the year.
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 Venugopal & Chenoy,
Chartered Accounts,
Firm Regn. No.004671S
Hyderabad (P.V.SRI HARI)
30.05.2014 Partner
Membership No.021961
Mar 31, 2013
We have audited the accompanying financial statements of Uday Jewellery
Industries Limited (Âthe CompanyÂ), which comprise the Balance
Sheet as at March 31,2013, the Statement of Profit and Loss for the
year and Cash Flow Statement for the year ended on that date and a
summary of significant accounting policies and other explanatory
information.
ManagementÂs 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 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.
AuditorÂs 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 auditorÂs 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 CompanyÂs
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 audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements, together with the
Accounting Policies and Notes to Accounts, 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 so far as it relates to 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 (AuditorÂs Report) Order, 2003
(Âthe OrderÂ) 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 and the Statement of Profit and Loss, 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
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.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure to Auditors Report
(Referred to in Paragraph 2 of our report of even date)
1. The Company during the previous year bought one item viz. Plant &
Machinery relating to fixed assets which is entered in the Fixed Assets
Register. The same is still in use. Hence, the question of physical
verification and disposal does not arise.
2. In respect of its inventories:
a. The inventories have been physically verified by the management at
reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of the said stocks
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 has maintained proper records of the said stocks. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. The company did not take nor granted any loans, secured or
unsecured, from or to companies, firms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956,
during the year. However, it had taken temporary interest-free
unsecured loans from directors in the earlier years and repaid the
entire amount during the year. These were not prejudicial to the
interests of the Company
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assts and also for the
sale of goods.
5. In our opinion and according to the information and explanations
given to us, the Company entered into the register the transactions in
pursuance of Section 301 of the Companies Act, 1956, aggregating during
the year to more than Rs.5,00,000/-(Rupees Five lakhs only) in respect
of three parties. These transactions have been made at the prevailing
market price at the relevant time.
6. The Company has not accepted any deposits from the public.
7. The Company is yet to introduce the system of Internal Audit.
8. The Central Government did not prescribe maintenance of Cost
Records under Section 209(1)(d) of the Companies Act, 1956(Act I of
1956) for any of the products of the Company.
9. During the year, there is no person to whom the provisions of P.F.
or E.S.I. are applicable. According to information and explanations
given to us, there are no other undisputed statutory payments
outstanding to be deposited for more than six months from the date they
became payable.
10. As per the accounts referred to in this Report, the net-worth of
the Company has been eroded beyond 50% as on March 31, 2013. The
Company did not incur cash losses during the financial year under
report and also in the preceding financial year.
11. The Company does not have any dues to a financial institution or
bank during the year.
12. In our opinion and according to the information and explanations
given to us, no loans and advances have been granted 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 not dealt in or traded in shares, securities,
debentures and other investments.
15. The Company has not given guarantees for loans taken by others
from banks or financial institutions.
16. The Company has not raised any new term loans during the year.
17. The Company during the year did not raise any short term loans and
hence the question of their usage does not arise.
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 during the year.
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 VENUGOPAL & CHENOY,
CHARTERED ACCOUNTANTS,
Hyderabad ( P V. SRI HARI )
28.05.2013 Partner
Membership No.021961
Mar 31, 2012
We have audited the attached Balance Sheet of Uday Jewellery Industries
Ltd., Hyderabad, as at March 31, 2012, and the Profit & Loss Account
for the year ended on that date annexed thereto and Cash Flow Statement
for the year ended on date. 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.
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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
2. As required by the Companies (Auditor's 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
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
3. Further to our comments in the Annexure referred to in paragraph 2
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 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, Profit & 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 & Loss Account and Cash
Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred in sub-section(3C) of section 211 of the
Companies Act, 1956;
e) In our opinion, and based on information and explanations given to
us, none of the directors are disqualified as on March 31, 2012 , from
being appointed as directors in terms of clause(g) of sub- section(1)
of section 274 of the Companies Act, 1956;
f) In our Opinion and to the best of our information and according to
the explanations given to us, they said accounts read together with and
subject to the Significant Accounting Policies and Notes to Accounts
thereon give the information required by the Companies Act, 1956, in
the manner so required, and present a true and fair view, in conformity
with the accounting principles generally accepted in India:
(i) In so far as it relates to Balance Sheet, of the state of affairs
of the Company as at March 31, 2012;
(ii) In so far as it relates to the Profit & Loss Account, of the
Profit of the Company for the year ended on that date; and
(iii) In so far as it relates to the Cash Flow Statement, of the cash
flows of the Company for the year ended on that date.
(Referred to in Paragraph 2 of our report of even date)
1. The Company does not have any fixed assets..
2. In respect of its inventories:
a. The inventories have been physically verified by the management at
reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of the said stocks
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 has maintained proper records of the said stocks. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. The company did not take nor granted any loans, secured or
unsecured, from or to companies, firms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956,
during the year. However, it had taken temporary interest-free
unsecured loans from directors in the earlier years. These are not
prejudicial to the interests of the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods.
5. In our opinion and according to the information and explanations
given to us, the Company entered into the register the transactions in
pursuance of Section 301 of the Companies Act, 1956, aggregating during
the year to more than Rs.5,00,000/-(Rupees Five lakhs only) in respect
of three parties. These transactions have been made at the prevailing
market price at the relevant time.
6. The Company has not accepted any deposits from the public.
7. The Company is yet to introduce the system of Internal Audit.
8. The Central Government did not prescribe maintenance of Cost
Records under Section 209(1)(d) of the Companies Act, 1956(Act I of
1956) for any of the products of the Company.
9. During the year, there is no person to whom the provisions of P.F.
or E.S.I. are applicable. According to information and explanations
given to us, there are no other undisputed statutory payments
outstanding for more than six months from the date they became payable.
10. As per the accounts referred to in this Report, the net-worth of
the Company has been eroded beyond 50% as on March 31, 2012. The
Company did not incur cash losses during the financial year under
report and but also in the preceding financial year, after taking into
account the income accounted for in the financial year under report
pertaining to the preceding financial year.
11. The Company does not have any outstanding to a financial
institution or bank during the year.
12. In our opinion and according to the information and explanations
given to us, no loans and advances have been granted 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 not dealt in or traded in shares, securities,
debentures and other investments.
15. The Company has not given guarantees for loans taken by others
from banks or financial institutions.
16. The Company has not raised any new term loans during the year.
17. The Company during the year did not raise any short term loans and
hence the question of their usage does not arise.
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 during the year.
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 VENUGOPAL & CHENOY,
CHARTERED ACCOUNTANTS,
Place : Hyderabad P.V. SRI HARI
Date : 31.08.2012 Partner
Membership No.21961