Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of White Organic Agro Ltd (the "Company"), which comprise the Balance Sheet as at 31 March, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016, ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013 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 explanation given to us, we give in "Annexure 1", a statement on the matters specified in paragraphs 3 & 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 it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, the Cash Flow Statement and the statement of changes in equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant rules issued thereunder.
e) On the basis of the written representations received from the directors as on 31st March, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31st 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, we give our separate Report in "Annexure 2".
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been delay in transferring unpaid dividends amounting to Rs. 45,669/- to Investor Education and Protection Fund by the company, which fall due for transfer in FY 2002-03 but has not been transferred till 31st March, 2018. The management of the Company was changed during FY 2010-11 and new management is in the process of transferring the unpaid dividend to Investor Education & Protection Fund.
Annexure 1 to the Independent Auditors'' Report
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
(i) In respect of its fixed assets:
(a) The company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets. However no separate fixed asset register is maintained.
(b) The fixed assets are physically verified by the management according to a phased program designed to cover all the items over a period, which in our opinion is reasonable having regard to the size of the company and the nature of its assets. Pursuant to the program, a portion of the fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on such physical verification. However no written report is available.
(c) The title deeds of immovable properties recorded in the books of account of the Company are held in the name of the Company.
(ii) The inventory has been physically verified by management during the year. In our opinion, the frequency of verification is reasonable. As informed, no material discrepancies were noticed on physical verification carried out during the year.
(iii) As per the information and explanation given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Therefore provisions of sub clause (a), (b) and (c) of clause (iii) of paragraph 3 of the Order are not applicable to the Company.
(iv) As per the information and explanation given to us in respect of loans, investments, guarantees and securities, the Company has complied with the provisions of Section 185 and 186 of the Act.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the provisions of Sections 73 to 76 of the Act and the rules framed there under. Therefore, the provisions of clause (v) of paragraph 3 of the Order are not applicable to the Company.
(vi) As per the information and explanations given to us, in respect of the class of industry in which the Company falls, the maintenance of cost records has not been prescribed by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013. Therefore, the provisions of clause (vi) of paragraph 3 of the Order are not applicable to the Company.
(vii) In respect of statutory dues:
(a) The company is generally regular in depositing with appropriate authorities, undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues applicable to it with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of above dues were in arrears, as at 31st March, 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax or cess which have not been deposited on account of any dispute.
(viii) According to the information and explanation given to us, the company has not defaulted in repayment of dues to bank / financial institutions. The Company has not taken loan from government or has no dues to debenture holders.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instrument) or term loans hence reporting under clause (ix) of the Caro 2016 order is not applicable to company
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud by the Company or any fraud on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such instance by the management.
(xi) As per the information and explanations given to us, managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the companies Act, 2013.
(xii) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause (xii) of paragraph 3 of the Order are not applicable to the Company.
(xiii) As per the information and explanation given to us, all transactions entered into by the Company with the related parties are in compliance with Sections 177 and 188 of Act, where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Therefore, the provisions of clause (xiv) of paragraph 3 of the Order are not applicable to the Company
(xv) The Company has not entered into any non-cash transactions with directors or persons connected with him. Therefore, the provisions of clause (xv) of paragraph 3 of the Order are not applicable to the Company.
(xvi) As per the information and explanation given to us the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Annexure 2 to the Independent Auditors'' Report
(Referred to in paragraph 2 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of WHITE ORGANIC AGRO LTD ("the Company") as of 31st March, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining 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 ("ICAI"). 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 company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing specified under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both issued by the ICAI. 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 auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal 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.
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 31st 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 ICAI. Our opinion is not modified in respect of this matter.
FOR GUPTA RAJ & CO.
CHARTERED ACCOUNTANTS
FIRM NO. 001687N
CA NIKUL JALAN
PARTNER
PLACE: MUMBAI MEMBERSHIP NO. 0112353
DATED : MAY 30,2018
Mar 31, 2016
TO THE MEMBERS OF WHITE DIAMOND INDUSTRIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of WHITE DIAMOND INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the 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 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 provision 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.
Auditors'' 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 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 mis-statement.
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. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s 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.
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 31st March, 2016 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 (Auditor''s Report) Order, 2016, ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013 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 explanation given to us, we give in "Annexure 1", a statement on the matters specified in paragraphs 3 & 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 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 financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, we give our separate Report in "Annexure 2".
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been delay in transferring unpaid dividends amounting to ? 45,669/- to Investor Education and Protection Fund by the company, which fall due for transfer in FY 2002-03 but has not been transferred till 31st March, 2016. The management of the Company was changed during FY 2010-11 and new management is in the process of transferring the unpaid dividend to Investor Education & Protection Fund.
Annexure 1 to the Independent Auditors'' Report
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
(i) In respect of its fixed assets:
(a) The company has maintained proper records showing full particulars, including quantitative details and situation of the 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 were noticed on such physical verification.
(c) The Company does not own any immovable property. Therefore provisions of sub clause (c) of clause
(i) of paragraph 3 of the Order are not applicable to the Company.
(ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. As informed, no material discrepancies were noticed on physical verification carried out during the year.
(iii) During the year the Company has granted loan to one party covered in the register maintained under Section 189 of the Companies Act, 2013.
(a) In our opinion and according to the information and explanations given to us, the terms and conditions of the grant of aforesaid loans are not prejudicial to the interest of the company.
(b) According to the information and explanations given to us, no schedule of repayment of principal has been stipulated in respect of the said loan as it has been given to company''s wholly owned subsidiary with a long term view and no interest has been charged in respect of such loan. Thus we are unable to comment whether the repayments or receipts are regular and report amounts overdue for more than ninety days, if any, as required under paragraph 3(iii)(c) of the Order.
(iv) As per the information and explanation given to us in respect of loans, investments, guarantees and securities, the Company has complied with the provisions of Section 185 and 186 of the Act.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the provisions of Sections 73 to 76 of the Act and the rules framed there under. Therefore, the provisions of clause (v) of paragraph 3 of the Order are not applicable to the Company.
(vi) As per the information and explanations given to us, in respect of the class of industry in which the Company falls, the maintenance of cost records has not been prescribed by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013. Therefore, the provisions of clause (vi) of paragraph 3 of the Order are not applicable to the Company.
(vii) In respect of statutory dues:
(a) The company is generally regular in depositing with appropriate authority undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues applicable to it with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of above dues were in arrears, except FBT of 0 2,416/- (excluding interest), as at 31st March, 2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of sales tax, custom duty, income tax, excise duty or cess, which have not been deposited on account of any dispute.
(viii) According to the information and explanation given to us, the Company has not taken loan from any financial institution, bank and government or has no dues to debenture holders. Therefore, the provisions of clause (viii) of paragraph 3 of the Order are not applicable to the Company.
(ix) The Company has neither raised money by way of public issue offer nor has obtained any term loans. Therefore, the provisions of clause (ix) of paragraph 3 of the Order are not applicable to the Company.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud by the Company or any fraud on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such instance by the management.
(xi) As per the information and explanations given to us, managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause (xii) of paragraph 3 of the Order are not applicable to the Company.
(xiii) As per the information and explanation given to us, all transactions entered into by the Company with the related parties are in compliance with Sections 177 and 188 of Act, where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards.
(xiv) The Company has not made preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Therefore, the provisions of clause (xiv) of paragraph 3 of the Order are not applicable to the Company.
(xv) The Company has not entered into any non-cash transactions with directors or persons connected with him. Therefore, the provisions of clause (xv) of paragraph 3 of the Order are not applicable to the Company.
(xvi) As per the information and explanation given to us the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Annexure 2 to the Independent Auditors'' Report
(Referred to in paragraph 2 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of WHITE DIAMOND INDUSTRIES LIMITED ("the Company") as of 31st March, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining 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 ("ICAI"). 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 company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing specified under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both issued by the ICAI. 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 auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal 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.
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 31st March, 2016, 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 ICAI.
FOR N.K. JALAN & CO.
CHARTERED ACCOUNTANTS
FIRM NO. 104019W
PLACE: MUMBAI _
DATED: 30/05/2016 (N.K. JALAN) PROPRIETOR
Membership No.0 11878
Mar 31, 2015
We have audited the accompanying financial statements of WHITE DIAMOND
INDUSTRIES LTD ("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 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 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
provision 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.
Auditors' 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 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 mis-statement.
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 controls 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 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 31st March, 2015 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 (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 Companies Act, 2013 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 explanation
given to us, we give in the Annexure a statement on the matters
specified in paragraphs 3 & 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 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 financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the
directors as on 31st March, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March,
2015, from being appointed as a director in terms of Section 164(2) of
the Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There has been delay in transferring unpaid dividends amounting to
Rs, 45,669/- to Investor Education and Protection Fund by the company,
which fall due for transfer in FY 2002-03 but has not been transferred
till 31st March, 2015. The management of the Company was changed during
FY 2010-11 and new management is in the process of transferring the
unpaid dividend to Investor Education & Protection Fund.
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
(i) In respect of its fixed assets:
(a) The company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
However no separate fixed asset register is maintained.
(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 were noticed on such
physical verification.
(ii) In respect of its inventories:
(a) The inventory has been physically verified by management during the
year. In our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to size of company and nature of business.
(c) On the basis of our examination of the inventory records, in our
opinion, 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) During the year the Company has granted loan to one party covered
in the register maintained under Section 189 of the Companies Act,
2013.
(a) The loan has been granted to company's wholly owned subsidiary with
a long term view. No interest has been charged in respect of said loan.
(b) In our opinion and according to the information and explanations
given to us, there is no overdue amount in respect of the said loan.
Therefore the provisions of sub clause (b) of clause (iii) of paragraph
3 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 for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
(v) The company has not accepted any deposits from the public of the
nature which attracts the provisions of sections 73 to 76 or any other
relevant provisions of the Companies Act, 2013 and the rules made there
under. Therefore, the provisions of clause (v) of paragraph 3 of the
Order are not applicable to the Company.
(vi) As per the information and explanations given to us, in respect of
the class of industry in which the Company falls, the maintenance of
cost records has not been prescribed by the Central Government under
sub-section (1) of section 148 of the Companies Act, 2013. Therefore,
the provisions of clause (vi) of paragraph 3 of the Order are not
applicable to the Company.
(vii) In respect of statutory dues:
(a) The company is regular in depositing with appropriate authority
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 any other statutory
dues applicable to it with the appropriate authorities except in
certain cases where there were delays in deduction and deposit of TDS.
According to the information and explanations given to us, no
undisputed amounts payable in respect of above dues were in arrears,
except FBT of Rs, 2,416/- (excluding interest), as at 31st March, 2015
for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of sales tax, custom duty, income tax, wealth tax, excise
duty or cess, which have not been deposited on account of any dispute.
(c) In our opinion and according to the information and explanations
given to us, there has been delay in transferring unpaid dividends
amounting to Rs, 45,669/- to Investor Education and Protection Fund by
the company, which fall due for transfer in FY 2002-03 but has not been
transferred till 31st March, 2015. The management of the Company was
changed during FY 2010-11 and new management is in the process of
transferring the unpaid dividend to Investor Education & Protection
Fund.
(viii) The company is registered for a period of more than 5 years and
there are no accumulated losses at the end of the financial year. The
company has not incurred cash losses during the financial year and in
the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to bank
/ financial institutions.
(x) In our opinion and according to the information and explanations
given to us, the company has not given any guarantees for loans taken
by others from banks or financial institutions. Therefore, the
provisions of clause (x) paragraph 3 of the Order are not applicable to
the Company.
(xi) The company has not availed any term loan during the year.
Therefore, the provisions of clause (xi) of paragraph 3 of the order
are not applicable to the Company.
(xii)To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the company has been
noticed or reported during the year.
FOR N.K.JALAN & CO.
CHARTERED ACCOUNTANTS
FIRMNO.104019W
PLACE:MUMBAI (N.K. JALAN) PROPRIETOR
DATED: 30/05/2015 Membership No.011878
Mar 31, 2014
We have audited the accompanying financial statements of WHITE DIAMOND
INDUSTRIES LIMITED (the "Company"), which comprise the Balance sheet as
at 31st March, 2014, the statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 of India ("the Act") and
in accordance with the accounting principles generally accepted in
India. These responsibilities includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of financial statements that give a true and fair view and
are free from material misstatements, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by 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 misstatements.
An audit involves performing procedures to obtain audit evidence, about
the amounts and disclosures in the financial statements. The procedure
selected depends on the auditors'' judgment, including the assessment of
the risk of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditors''
internal control relevant to the company''s preparation and fair
representation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting
estimate made by the Management, as well as evaluating the overall
presentation of the financial statements.
We believe that, audit evidence that we have obtained is sufficient and
appropriate to provide a basis for our opinion.
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 true
and fair view in conformity with the accounting principles generally
accepted in India.
(a) In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 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 the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on other Legal and Regulatory Requirement
1. As required by ''the Companies (Auditor''s Report) Order, 2003, as
amended by the Companies (Auditor''s Report) (Amended) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956 (hereinafter referred as to
the "order"), and on the basis of such checks of the books and record
of the Company as we considered appropriate and according to the
information and explanation given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the order.
2. As required by the 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 Accounts as required by the 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 the Cash Flow
Statement dealt with by this report are in agreement with the Books of
Accounts.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Act.
(e) On the basis of written representations received from the
directors, as on 31st March, 2014 and taken on record by the Board of
Directors, we report that none of the director is disqualified as on
31st March 2014, from being appointed as a director in terms of clause
(g) of Sub-section (1) of section 274 of the Act.
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date).
1. In respect of its fixed assets
(a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of the fixed assets.
However no separate fixed asset register is maintained.
(b) The fixed assets are physically verified by the management
according to a phased program designed to cover all the items over a
period, which in our opinion is reasonable having regard to the size of
the company and the nature of its assets. Pursuant to the program, a
portion of the fixed assets have been physically verified by the
management during the year and no material discrepancies were noticed
on such physical verification. However no written report is available.
(c) The Company has not disposed off any fixed asset during the year.
2. In respect of its inventories.
(a) The inventory has been physical verified by management during the
year. In our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to size of company and nature of business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
(a) The company has granted loan to one party covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount outstanding at any time during the year was Rs. 123,454,850/-
and the year-end balance of loan given to such party was Rs.
114,664,850/-.
(b) The loan is granted to wholly owned subsidiary and is interest
free. In our opinion, the terms and conditions on which loans have been
granted are prima facie, not prejudicial to the interest of the
Company.
(c) There were receipts and payments transactions observed in the loan
account. However there is no repayment schedule decided for the loan
and hence provision of sub clause
(d) of Clause (iii) of paragraph 4 of the Order is not applicable to
the Company.
(e) The Company has taken loan from one party covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 370,000/- and the year-end
balance of loan taken from such party was Rs. 370,000/-.
(f) In our opinion, the rate of interest and other terms and conditions
of loans taken by the company are prima facie, not prejudicial to the
interest of the company.
(g) In our opinion, the company is regular in payment of principal
amount. The loan taken is interest free.
4. 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 for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. In our opinion and according to the information and explanations
given to us, no transactions have been made in pursuance to contracts
or arrangements to which Section 297 or Section 299 of the Companies
Act, 1956 applies. Therefore, provisions of sub clause (a) & (b) of
Clause (v) of paragraph 4 of the Order are not applicable to the
Company.
6. The company has not accepted any deposits from the public of the
nature which attracts the provisions of sections 58A and 58AA of the
Companies Act, 1956 and the rules made there under. Therefore, the
provisions of clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
7. There is no internal audit done by external auditor. However the
company is maintaining internal control system commensurate with its
size & nature of its business.
8. As per the information and explanations given to us, in respect of
the class of industry in which the Company falls, the maintenance of
cost records has not been prescribed by the Central Government under
section 209 (1) (d) of the Companies Act, 1956. Therefore, the
provisions of clause (viii) of paragraph 4 of the Order are not
applicable to the Company.
9. In respect of statutory dues
(a) The company is regular in depositing with appropriate authority
undisputed statutory dues including income tax, sales tax, service tax,
and other statutory dues applicable to it except i) in certain cases
where there were minor delays in payment of TDS. Further, since the
Central Government has till date not prescribed the amount of cess
payable under section 441A of the companies Act, 1956, we are not in a
position to comment upon the regularity or otherwise of the company in
depositing the same.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, service tax were in arrears as at 31st March 2014, for a period of
more than six months from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues of sales tax, custom duty, income tax, wealth tax, excise
duty or cess, which have not been deposited on account of any dispute
10. The company is registered for a period of more than 5 years and
there are no accumulated losses at the end of the financial year. The
company has not incurred cash losses during the financial year under
review and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
bank/ financial institutions.
12. The company has not granted any advances in the nature of loans on
the basis of Security by way of pledge of shares or other securities.
Therefore, the provisions of clause (xii) of paragraph 4 of the Order
are not applicable to the Company.
13. The Company is not a chit fund or a nidhi mutual benefit
fund/society. Therefore, provisions of sub clause (a), (b), (c) and (d)
of clause (xiii) of paragraph 4 of the order are not applicable to the
Company.
14. According to the information and explanations given to us, the
company has not done dealing in shares, securities and other
investments during the year under review. Therefore provisions of
clause (xiv) of paragraph 4 of the order are not applicable to the
company.
15. In our opinion and according to the information and explanations
given to us, the company has not given any guarantees for loans taken
by others from banks or financial institutions. Therefore, the
provisions of clause (xv) paragraph 4 of the Order are not applicable
to the Company.
16. The company has not availed any term loan during the year.
Therefore, the provisions of clause (xvi) of paragraph 4 of the order
are not applicable to the Company.
17. According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment.
18. The company has not made preferential allotment of shares to
parties and companies covered in the registered maintained under
section 301 of the companies Act, 1956. Therefore, the provisions of
clause (xviii) of paragraph 4 of the order are not applicable to
Company.
19. The company has not issued any debentures during the year.
Therefore, the provisions of clause (xix) of paragraph 4 of the order
are not applicable to the Company.
20. The company has not raised any money through a public issue during
the year. Therefore, the provisions of clause (xx) of paragraph 4 of
the order are not applicable to the company.
21. To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the company has been
noticed or reported during the year.
FOR N.K. JALAN & CO.
CHARTERED ACCOUNTANTS
FIRM NO. 104019W
PLACE: MUMBAI
DATED: 30.05.2014 (N.K. JALAN)
PROPRIETOR
Membership No. 011878
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of WHITE
DIAMOND INDUSTRIES LIMITED (the ''Company''), which comprise the Balance
sheet as at 31st March, 2013. The statement of Profit and Loss and also
Cash Flow for the year then ended, and a summary of significant
accounting policies and other explanatory information, which we have
signed under reference to this report.
Management Responsibility for the Financial Statement''s
2. The Company''s Management is responsible for the preparation
of these financial statements that give a true and fair view of the
financial position, financial performance and cash flow of the Company
in accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 of India (the *Act*).
These responsibilities includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of financial statements that gives a true and fair view
and are free from material misstatements, whether due to fraud or
error.
Auditors'' Responsibility
3. 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 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 misstatements.
4. An audit involves performing procedures to obtain audit evidence,
about the amounts and disclosures in the financial statements. The
procedure selected depends on the auditors'' judgment, including
the assessment of the risk of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditors'' internal control relevant to the
company''s preparation and fair representation 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
accounting estimate made by the Management, as well as evaluating the
overall presentation of the financial statements.
5. We believe that, audit evidence that we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Opinion
6. In our opinion, and to the best of our information and according to
the explanations given to us, the accompanying financial statements
give the information required by the Act in the manner so required and
give true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 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 Statements, of the cash flow for the
year ended on that date.
Report on other Legal and Regulatory Requirement
7. As required by "Âthe Companies (Auditor''s Report) Order, 2003,
as amended by the Companies (Auditor''s Report) (Amended) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956 (hereinafter referred as to
the "order" ), and on the basis of such checks of the books
and record of the Company as we considered appropriate and according to
the information and explanation given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the order.
8. As required by the 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 Accounts as required by the 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 the Cash Flow
Statement dealt with by this report are in agreement with the Books of
Accounts;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Act;
(e) On the basis of written representations received from the
directors, as on 31st March, 2013 and taken on record by the Board of
Directors, we report that none of the director is disqualified as on
31st March 2013, from being appointed as a director in terms of clause
(g) of Sub-section (1) of section 274 of the Act;
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) All the assets have been physically verified by the management
during the year, and as informed by management there is a regular
program of verification. In our opinion the procedure followed for
physical verification are adequate in relation to size of company and
nature of its business. No material discrepancies were noticed during
the year.
(c) During the year, the company has not disposed off any fixed assets.
(ii) (a) The physical verification of inventory has been conducted at
reasonable intervals by the management.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to size of
company and nature of business.
(c) The company is maintaining proper records of inventory and as per
information and explanations given to us no material discrepancies were
noticed during physical verification done by management. We have not
conducted any physical verification of inventory during the year.
(iii) (a) During the year Company has granted a loan of Rs.
8,81,72,350/- to one of the party covered in the register maintained
under section 301 of the Companies Act, 1956. The above loan is
unsecured and interest free.
(a) In our opinion, the terms and conditions of loans given by the
company are prima facie, not prejudicial to the interest of the
company.
(b) During the year the Company has taken an unsecured loan of Rs.5,
00,000/- and Rs.86, 000/- from two parties covered in the register
maintained under section 301 of the Companies Act, 1956. The above
loan is interest free.
(c) During the year the company has made the payment of loan of Rs.5,
00,000.
(iv) According to the information and explanation given to us, there is
adequate internal control procedure commensurate with the size of
Company and nature of business, for the purchase of inventory and fixed
assets and for sale of goods and services.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year are reasonable having regards to
the prevailing market prices at the relevant time.
(vi) The Company has not accepted any public deposits. Hence Provision
of this clause is not applicable.
(vii) There is no internal audit done by external auditor. However the
company is maintaining internal control commensurate with its size &
nature of its business.
(viii) The Company is not required to maintain cost records u/s. 209(1)
(d) of the Companies Act, 1956.
Hence Provisions of this clause is not applicable.
(ix) (a) The company is regular in depositing with appropriate
authority undisputed statutory dues including provident fund,
employees'' state insurance, sales tax, wealth tax, custom duty,
excise duty and other statutory dues as applicable to it. According to
the information and explanations given to us, no undisputed amounts
payable in respect of, wealth tax, sales tax, customs duty, excise duty
were in arrears as at 31st March, 2013 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of sales tax, custom duty, income tax, wealth tax, excise
duty and cess, which have not been deposited on account of any dispute.
(x) The company has not accumulated losses as at 31st March,2013 and
has not incurred any cash losses in the current 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
bank.
(xii) The company has not granted any advances in the nature of loans
on the basis of security by way of pledge of shares or other
securities. Hence Provisions of this clause is not applicable.
(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Hence provisions of this clause is not
applicable.
(xiv) The company is not dealing in shares or any other securities.
Hence provisions of this clause are not applicable.
(xv) The company has not given any guarantees for loans taken by others
from banks or financial institutions. Hence, provisions of this clause
are not applicable.
(xvi) The Company has not raised any term loan and hence provision of
this clause is not applicable
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment.
(xviii) The Company has not made any preferential allotment of shares
during the year to parties covered in the register maintained under
section 301of the act.Hence, provision of this clause are not
applicable.
(xix) During the period covered by our audit, the company has not
issued any debentures. Hence, provisions of this clause are not
applicable.
(xx) The Company has not raised any money by public issue during the
period covered by our audit.
Hence provisions of this clause are not applicable.
(xxi) According to the information and explanation given to us, no
fraud on or by the company has been noticed during the course of our
audit.
FOR N. K. JALAN & CO.,
CHARTERED ACCOUNTANTS.
Firm No.104019W
PLACE : MUMBAI.
DATED: 27.05.2013 (N.K. JALAN) PROPRIETOR
Mem No. 11878.
Mar 31, 2012
We have audited the attached Balance Sheet of M/S. WHITE DIAMOND
INDUSTRIES LTD. for the year ended 31st March, 2012 and also the Profit
and Loss Account for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amount and
disclosures in the financial statements. An audit 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.
As required by the Companies (Auditors Report) order, 2003 issued by
the Central Government Of 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 & 5 of the said order.
We report that: -
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion, proper Books of Accounts as required by the law
have been kept by the Company so far as appears from our examination
of those books.
(iii) The Balance Sheet and the Profit & Loss Account dealt with by
this report are in agreement with the Books of Accounts;
(iv) 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 220 of the Companies Act, 1956; and
actuarial valuation of defined contribution plan in respect of gratuity
as per AS - 15 (Revised) is done on cash basis.
(v) 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
clause (g) of Sub-section (1) of section 274 of the Companies Act,
1956;
(vi) Subject to the above, 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;
(a) In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012 and
(b) In the case of the Profit & Loss Account of the Profit for the year
ended on that date.
(c) In the case of the cash flow statement, of the cash flow 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) All the assets have been physically verified by the management
during the year, and as informed by management there is a regular
program of verification. In our opinion the procedure followed for
physical verification are adequate in relation to size of company and
nature of its business. No material discrepancies were noticed during
the year.
(c) During the year, the company has not disposed off any fixed assets.
(ii) (a) The physical verification of inventory has been conducted at
reasonable intervals by the management.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to size of
company and nature of business.
(c) The company is maintaining proper records of inventory and as per
information and explanations given no material discrepancies were
noticed during physical verification done by management. We have not
conducted any physical verification during the year.
(iii) (a) During the year Company has granted a loan of Rs. 7,40,00,000
to Sapna Infraventure Pvt. Ltd. the party covered in the register
maintained under section 301 of the Companies Act, 1956.
(b) In our opinion, the terms and conditions of loans given by the
company are prima facie, not prejudicial to the interest of the
company.
(c) During the year the Company has not taken any loan from party
covered in the register maintained under section 301 of the Companies
Act, 1956.
(iv) According to the information and explanation given to us, there is
adequate internal control procedure commensurate with the size of
Company and nature of business, for the purchase of inventory and
fixed assets and for sale of goods and services.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs
in respect of any party during the year are reasonable having regards
to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any public deposits. Hence Provision
of this clause is not applicable.
(vii) There is no internal audit done by external auditor. However the
company is maintaining internal control commensurate with its size &
nature of its business.
(viii) The Company is not required to maintain cost records u/s. 209(1)
(d) of the Companies Act, 1956. Hence Provisions of this clause is not
applicable.
(ix) (a) The company is regular in depositing with appropriate
authority undisputed statutory dues including provident fund,
employees' state insurance, sales tax, wealth tax, custom duty, excise
duty and other statutory as applicable to it. According to the
information and explanations given to us, no undisputed amounts
payable in respect of, wealth tax, sales tax, customs duty, excise
duty were in arrears as at 31st March, 2012 for a period of more than
six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of sales tax, custom duty, income tax, wealth tax, excise
duty and cess, which have not been deposited on account of any
dispute.
(x) The company has not accumulated losses as at 31st March, 2012 and
has not incurred any cash losses in the current 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
bank.
(xii) The company has not granted any advances in the nature of loans
on the basis of security by way of pledge of shares or other
securities. Hence Provisions of this clause is not applicable.
(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Hence provisions of this clause is not applicable.
(xiv) The company is not dealing in shares or any other securities.
Hence provisions of this clause are not applicable.
(xv) The company has not given any guarantees for loans taken by others
from banks or financial institutions. Hence, provisions of this clause
are not applicable.
(xvi) The Company has not raised any term loan and hence provision of
this clause is not applicable.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment.
(xviii) The Company has made preferential allotment of 7,00,000 equity
shares of Rs. 10 each during the year to parties covered in the
register maintained under section 301 of the act. The price at which
these shares have been issued is prima facie not prejudicial to the
interests of the company.
(xix) During the period covered by our audit, the company has not
issued any debentures. Hence, provisions of this clause are not
applicable.
(xx) The Company has not raised any money by public issue during the
period covered by our audit. Hence provisions of this clause are not
applicable.
(xxi) Accordingly to the information and explanations given to us, no
fraud on or by the company has been noticed during the course of our
audit.
FOR N. K. JALAN & CO.,
CHARTERED ACCOUNTANTS.
Firm: No. 104019W
(N.K. JALAN) PROPRIETOR
Mem. No 11878.
PLACE: MUMBAI.
DATED: 30.07.2012
Mar 31, 2010
We have audited the attached Balance Sheet of M/S. WHITE DIAMOND
INDUSTRIES LTD. for the year ended 31st March, 2010 and also the Profit
and Loss Account 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.
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 amount and
disclosures in the financial statements. An audit 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.
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 & 5 of the said order.
We report that: -
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion, proper Books of Accounts as required by the law
have been kept by the Company so far as appears from our examination of
those books.
(iii) The Balance Sheet and the Profit & Loss Account dealt with by
this report are in agreement with the Books of Accounts;
(iv) 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 220 of the Companies Act, 1956; and
actuarial valuation of defined contribution plan in respect of gratuity
& reorganization of profit & loss as per AS Ã 15 (Revised).
(v) On the basis of written representations received from the
directors, as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2010, from being appointed as a director in terms of clause
(g) of Sub-section (1) of section 274 of the Companies Act, 1956;
(vi) We have relied on valuation certificate given by Mr. Kiran k.
Gandhi (Approved valuer by Government of India), appointed by the
company for valuation of closing stock of diamonds.
(vii) Subject to the above, 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;
(a) In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010 and
(a) In the case of the Profit & Loss Account of the Profit for the year
ended on that date.
(c) In the case of the cash flow statement, of the cash flow 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) All the assets have been physically verified by the management
during the year, and as informed by management there is a regular
program of verification. In our opinion the procedure followed for
physical verification are adequate in relation to size of company and
nature of its business. No material discrepancies were noticed during
the year. A valuation report is obtained from Haresh K. Shah (Regd.
Valuer) for ascertaining any major diminution in Valuation of Plant &
Machinery.
(c) During the year, the company has disposed off substantial part of
plant and machinery but as per the views of the management it has not
affected the going concern.
(ii) (a) The physical verification of inventory has been conducted at
reasonable intervals by the management.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to size of
company and nature of business.
(c) The company is maintaining proper records of inventory and as per
information and explanations given no material discrepancies were
noticed during physical verification done by management. We have not
conducted any physical verification during the year. The stock being of
specialized industry we have relied on valuation & quantification given
by Mr. Kiran K. Gandhi. (Registered Govt. approved valuer) as an expert
opinion.
(iii) (a) During the year Company has not granted any loan to the
parties covered in the register maintained under section 301 of the
Companies Act, 1956. The Opening balance of Rs.53, 820/- has been
recovered.
(b) In our opinion, the terms and conditions of loans given by the
company are prima facie, not prejudicial to the interest of the
company.
(c) In our opinion, the company is regular in receipt of principal
amount and no interest has been collected thereon.
(d) In our opinion, reasonable steps have been taken by the company for
recovery of principal amount but not for the interest.
(e) During the year the Company has not taken any loan from party
covered in the register maintained under section 301 of the Companies
Act, 1956.
(f) In our opinion, the rate of interest and other terms and conditions
of loans taken by the company are not, prima facie, prejudicial to the
interest of the company.
(g) In our opinion, company is regular in payment of principal amount
and interest thereon.
(iv) According to the information and explanation given to us, there is
adequate internal control procedure commensurate with the size of
Company and nature of business, for the purchase of inventory and fixed
assets and for sale of goods and services.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year are reasonable having regards to
the prevailing market prices at the relevant time.
(vi) The Company has not accepted any public deposits. Hence Provision
of this clause is not applicable.
(vii) There is no internal audit done by external auditor. However the
company is maintaining internal control commensurate with its size &
nature of its business.
(viii) The Company is not required to maintain cost records u/s. 209(1)
(d) of the Companies Act, 1956. Hence Provisions of this clause is not
applicable.
(ix) (a) The company is regular in depositing with appropriate
authority undisputed statutory dues including provident fund,
employeesà state insurance, sales tax, wealth tax, custom duty, excise
duty and other statutory dues except Income Tax as applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of, wealth tax, sales tax,
customs duty, excise duty were in arrears except income tax of AY
2009-10 of Rs.4,93,841/- as at 31st 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
are no dues of sales tax, custom duty, income tax wealth tax, excise
duty and cess, which have not been deposited on account of any dispute.
(x) The company has not accumulated losses as at 31st March,2010 and
has not incurred any cash losses in the current 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
bank.
(xii) The company has not granted any advances in the nature of loans
on the basis of security by way of pledge of shares or other
securities. Hence Provisions of this clause is not applicable.
(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Hence provisions of this clause is not
applicable.
(xiv) The company is not dealing in shares or any other securities.
Hence provisions of this clause are not applicable.
(xv) The company has not given any guarantees for loans taken by others
from banks or financial institutions. Hence, provisions of this clause
are not applicable.
(xvi) The Company has not raised any term loan and hence provision of
this clause is not applicable
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment.
(xviii) The Company has not made any preferential allotment of shares
during the year. Hence provisions of this clause are not applicable.
(xix) During the period covered by our audit, the company has not
issued any debentures. Hence, provisions of this clause are not
applicable.
(xx) The Company has not raised any money by public issue during the
period covered by our audit. Hence provisions of this clause are not
applicable.
(xxi) Accordingly to the information and explanations given to us, no
fraud on or by the company has been noticed during the course of our
audit.
FOR N. K. JALAN & CO.,
CHARTERED ACCOUNTANTS.
PLACE : MUMBAI.
DATED: 05.08.2010 (N.K. JALAN) PROPRIETOR
Mem No. 11878.
Firm No.104019W