Mar 31, 2023
INDEPENDENT AUDITORâS REPORT
TO THE MEMBERS OF SHEETAL DIAMONDS LIMITED
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanyingid ASfinancial statements Ofheetal Diamonds Limite(âthe
Companyâ), which comprise the Balance Sheet as at Mar3h 2023, the Statementof Profitand
Loss (including Ot her C ompr ehensivel ncome), the Statementof C hanges in E quityand the Statement
of Cash Flows for the year ended, and notes to the Ind AS financial statements includisujranary of
the significantaccountingpolicies and otherexplanatory information (hereinafter referred ao âInd
AS financial statementsâ).
In our opinion and to the best of our informationand according to the explanations given to us, the
aforesaidInd AS financial statementsgive the informationrequired by thdCompanies Act, 233
(âthe Actâ) in the manners o requiredand give a trueand fairview in conformitywith the Indian
Accounting Standardsprescribedunder section B3 of theAct read with the Companies (Indian
Account ing S tandar ds)Rules, 205, as amended, (âInd ASâ) and other accounting pr inciplesgener ally
accepted in India, of thestate of affairsof the Company as at March , 2023, its lossand total
comprehensiveincome, changes in equity and itscash flows forthe year endedon that date.
We conducted our auditof thefinancial statementsin accordance with the Standardson Auditing
specified undersection 43(0) of the Act (SAs). Our responsibilitiesunder thoseStandardsare
further describeih the Auditorâs Responsibilities for the Auditf Ind AS Financial Statements
section of our report.We areindependent of the Company in accordance with the Code ofEthics
issued by the Instituteof CharteredAccountantsof India (ICAI) togetherwth the independence
requirements; hat are" elevantto our auditof theInd ASfinancial statementsunder theprovisions of
the Act and the Rules made thereunder,and we have fulfilled our other ethicalresponsibilitiesi n
accordance with these requirementsand the ICAIâs Code of Ethics.We believe that the audit
evidence we have obtained is sufficientand appropriateto provide a basis for our auditopinion on the
Ind ASfinancial statements .
Key audit matters arthose matters thatin our professional judgment, were of most significance i n
our auditof the financial statementsof the currentperiod. These matters were addressed the
context of our auditof thefinancialstatements as -whole, and in formingour opinion thereon,and we
do not provide a separateopinion on these matters. Whave determinedthat there are ike y audit
mat ters tcommunicate in our r epor t
Information Other than the Financial Statements and Auditorâs Report Thereon
T heCompanyâ s B oar d of Dir ectorss r esponsiblef or the other infor mation T he other inf or mat ion
comprises theinformation includedin the Management Discussion and Analysis, Boardâs Report
including Annexuresto Boardâs Report, BusinessResponsibilityReport, Corporatedovernance and
Shareholderâs Information, but does not include the financial statements ancbur auditorâs report
thereon .
Our opinion on the financial statementsdoes not cover the other informationand we do not express
any formof assuranceconclusion thereon .
In connection withour auditof the Ind ASfinancia statementsour responsibility^ to readthe other
informationand, in doing so, consider whetherthe otherinformationis materiallyinconsistent withhe
Ind ASfinancial statementsor our knowledge obtained during the course of our auditor otherwise
appear s tobe mater iallymi sstated.
If, based on thework we have performed,we conclude that theres a materialmisstatementof this
other informations arerequiredto reportt hat fact. Whave nothingto reportin this regard,
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directorsis responsible for the matters stated, section B4(5) of theAct
with respectto the preparationof these Ind ASfinancialstatements thative a true and fair view
of the financial position, financialperfor mance, tot acompr ehensive income, changes in equity and
cash flows of the Company in accordance with the Ind AS andotheraccounting principlesgenerally
accepted in India, including Ind AS prescribed under section B3 the Act, read with he
Companies (Indian Accounting Standards) Rules, 205, as amded This responsibilityaiso
includes maintenance ofidequate accountingrecordsin accordance with the provisionsof the Act for
safeguarding the assets of the Company and for preventing and detecting frauds and other
irregularitiesselection and application of appropriate accountingpolicies; making judgments and
estimatesthat arer easonable and prudent; and design, implementation and maintenance ofadequate
internalfinancial controls hat wereperatingeffectively formsuringthe accuracy andcompleteness
of the accounting records, relevant to the preparation and presentationof theInd AS financial
statements thative a trueand fair view and are free fromaterial misstatement,whether due to
fraudor error .
In preparing thIeid ASfinancial statements, management is responsible for assessing the Companyâs
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concer rbasis of accounting unless management eithert ends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the IND AS Financial Statements
Ourobjectives are toobtain reasonable assuranceabout whetherthe Ind ASfinancialstatements as a
whole are freefrom materialmisstatementwhetherdue to fraudor error, and tissue an auditorâs
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guar ant ee that anudit conducted in accor dance with S Aswill always det ect amater ialmisstatement
when it exists. Misstatementsan arise from fraudor error and areconsidered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users takenon the basis oft his Ind ASfinancial statements .As part of an audit in
accordance with SAs, we exercise professiorjuldgment and maintain professional skepticism
throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of thhnd AS financial statements,
whetherdue to fraucOr errordesign and performaudit proceduresresponsiveto those risksand
obtain auditevidence thati s sufficientand appropriateto provide a basis for our opinion. The risk
of not detectinga materialmisstatemenlr esultingfrom frauds higherthan for one resultingrom
error, as fraudiay involve collusion, forgery, intentionalomissions, misrepresentations, or the
over r ideof inter nabontr ol .
⢠Obtain an under standingof inter nafinancialcontrolsr elevantto the audit in or der to design audit
proceduresthat areippropriatein the circumstances. Undesection 43(3)(i) of theAct, we are
also responsible for expressingour opinion on whether the Company has adequate internal
financialcontrolssystemin place and the operatingeffectivenessof such controls .
⢠Evaluate theippropriatenessof accounting policies used and the reasonablenessof accounting
estimatesand relateddisclosuresmade by management.
⢠Conclude on the appropriatenessof managementâs use of thegoing concern basis ofaccounting
and, based on theaudit evidence obtained, whether amaterialuncertainty existiselated to events
or conditions that may cast significant doubton the Companyâs ability to continue as a going
concern. If wexonclude that amaterialuncertaintyexists, we are requiredto draw attentionin
our auditorâs reportto the related disclosures in the Ind AS financial statementsor, if such
disclosuresare inadequate, to modify our opinion. Ourconclusions are basedon theaudit evidence
obtained up to the date of our auditorâs report.However, futureevents or conditions may cause
the Company to cease to continueas a going concern.
⢠Evaluate the overall presentatksfructure andxontent of theInd AS financial statements,
including the disclosures, and whether the financial statements representhe underlying
transactionand eventsin a mannerthatachieves fair presentation .
Materiality, s the magnitude of misstatementsn the financial statements thatipdividually or in
aggregate, makes it probable thatthe economic decisions of a reasonably knowledgeable user of the
financialstatementsmay be influenced.We consider quantitativematerialityand qualitative factor si n
(i) planning the scope of our auditwork andin evaluatingthe results ofur work; and
(ii) to evaluate thee ffectof any identifiedmisstatementsn the financialstatements .
We communicate withthose charged with governance regarding, among other matters,the planned
scope and timing of theaudit and significant audit findings, including any significantdeficiencies in
internal contrdthat weidentifyduring our audit.
We also provide those charged with governance with a statement that wave complied with relevant
ethical requirements regarding independence^ to communicate withthem all relationshipsand
other matters thatnay reasonably be thought to bear on our independence, and where applicable,
related safeguards .
From thematterscommunicated withthose charged with governance, we determine those matters
that wereof most significance in the audit of thefinancial statementsof thecurrentperiod and are
thereforet he key audit matters. Wdescribe these matter sn our auditorâs report unless law or
regulationprecludes public disclosureabout thematteror when, in extremely rare circumstances, we
determinethat a matteshould not be communicated in our reportbecause the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1 As required by theCompanies (Auditorâs Report) Order, 2020 (âthe Orderâ) issued by the
C ent r aGover nmentin t er msof S ect ion43 (1) of theAct, we give in â âAnnexure Aâ a statement
on thematterss pecified in paragraphs 3 and 4f theOrder .
21 As required by Sectioi43(3) of theAct, based on our auditwe reportthat:
a) We have sought and obtained all the informationand explanations which to the best of our
knowledge and belief were necessarforthe purposes obur audit.
b) In our opinion, proper books of account asrequired bylaw have been kept by the Company
so far asit appears fromour examinationof thosebooks.
c) The Balance Sheet, the Statementof Profitand Loss (including Other Comprehensive
Income), Statementof Changes in Equityand the Statementof Cash Flow dealt with by this
Reportare in agreement with he relevantbooks of account.
d) In our opinion, the aforesaidInd ASfinancial statementscomply with the Ind AS specified
under SectionB3 of the Act read with the Companies (Indian Accounting Standards)
Rules, 205, as amended;
e) On the basis of thwrittenrepresentationB eceived front he directoras on March3( 20 23
taken on recordby the Board of Directorspone of the directoris disqualified as on March
3,20 23 from being appointed as a directorin termsof Section64 (2) of theAct.
f) Withrespect tct he adequacy of the internalinancial controlsover financial reportingf the
Company and the operating effectiveness! such controls, refer toour separate Report in
âAnnexure Bâ. Our reporfexpresses anunmodified opinion on the adequacy and operating
effectiveness! theCompanyâs internalfinancialcontrolsover financialreporting.
g) Withrespect tot he othermatters t(be included in the Auditorâs Report in accordance with
the requirements of: ction 97(6) of theAct, as amended:
In our opinion and to the best of our informationand according to the explanations givento
us, the remuneratiopaid by the Company to its directorsduring the year is in accordance
with the provisions! section P7 of the Act.
h) Withrespect tot he othermatters t(be included in the Auditorâs Report in accordance with
Rule 1l of the Companies (Audit and Auditors)Rules, 204, as amended in our opinion and
to the best of our Informationand according to the explanations givento us:
i. The Company does not have anytending litigations which would impact itls nancial
position as at 31st March, 2023 in its financial statements
ii. the Company did not have any longerm contracts including derivative contracts for
which there were any material foreseeable losses
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection F und by the Company
iv. The management has represented that, to the best of its knowledge and belief, no
funds (which are material either individually or in aggregbtie) been advanced or
loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other persons or entities,
including foreign entities (âIntermediariesâ), with the understanding, whet her
recorded in writing or otherwiseat hhe Intermediary shall:
⢠directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the
Company or
⢠provide any guarantee, ecurity or the like to or on behaff the Ultimate
Beneficiaries
v. The management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in aggreghie) been received by
the Company from any epsons or entities, including foreign entities (âFunding
Partiesâ), with the understanding, whether recorded in writing or otherwise, that the
Company shall :
⢠directly or indirectly, lend or invest in other persons or entities identified in
any manner whastoever (âUltimate Beneficiariesâ) by or on behalf of the
F unding Party or
⢠provide any guarantee, security or the like from or on behalf of the Ultimate
Beneficiaries; ad
vi. Based on such audit procedures as considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under s-ubause (iv) and (v) above, contain any material mis
statement
3. No dividend has beendeclared or paid during the year by the companherefore no eporting is
required about compliance to Section 23 of the Act.
4 Proviso to Rule 3(1) of the Companies (Accounts) Rules, 204 for maintaining books of
account using accounting software which has a feature of recording audit trail (eflatilog)
is applicable to the Company with effect from April ] 2023, aiaccordingly reporting under
Rule 1(g) of Companies (Audit and Auditors) Rules, 204 is notapplicable for the financial
year ended March 31, 2023.
Chartered Accountants
FRN Number: 03 886W
Partner
M ember ship No. 33809
P lace: M umbai
Date: 27.05.202 3
UDIN:
Mar 31, 2014
We have audited the accompanying financial statements of Sheetal
Diamonds Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, and the Statement of Profit and Loss for the year
then ended, and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements:
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("the Act") read with the General Circular 15/2013
dated 13 September 2013 of the Ministry of Corporate Affairs in respect
of Section 133 of the companies Act, 2013. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility:
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion:
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
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 Profit and Loss Account, of the profit 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 Section
227(4A) of the Act since in our opinion and according to information
and explanation given to us, the said order is not applicable to
company.
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 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 and Statement of Profit and Loss
comply with the Accounting Standards referred to in subsection (3C) of
section 211 of the Companies Act, 1956; read with the General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in
respect of Section 133 of the Companies Act, 2013. ; and
e) On the basis of written representations received from the directors
as on 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.
Annexure to Auditors'' Report
(Referred to in Paragraph 3 of our report of even date)
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, 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) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
a) The inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3. The company has not taken/granted unsecured loans, to/from
companies, firms or other parties listed in the registrar maintained
under section 301 of the Companies Act, 1956. Accordingly, provisions
of clause 4 (iii) (b) to (d) of the Order are not applicable.
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
purchases 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. According to information and explanations given to us, we are of
the opinion that there are no transactions that need to be entered in
the register maintained under Section 301 of the Companies Act, 1956.
Accordingly provisions of clause 4 (v) (b) of the Order are not
applicable.
6. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Section 58A & 58AA of the Companies Act, 1956 and Rules
framed there under are not applicable.
7. In our opinion, the Company does not have internal audit system
commensurate with the size and nature of its business, but as per
information and explanation given by the management there is an
adequate internal control system.
8. To the best of our knowledge and belief, the Central Government has
not prescribed maintenance of cost records under clause (d) of
sub-section (1) of Section 209 of the Act, in respect of the services
rendered by the Company. Accordingly, the provisions of clause 4(viii)
of the Order are not applicable.
9. According to the information and explanations given to us in
respect of statutory dues:
a) According to the information and explanations given to us, Company
is not having any employee on whom statutory liability including
Provident Fund, E.S.I.C. is applicable. Other undisputed statutory dues
in respect of custom duty, excise duty, sales tax, service tax,
withholding taxes, cess as applicable and any other statutory dues have
been regularly deposited with the appropriate authorities. There are no
arrears of Statutory Dues as on 31st March, 2014.
b) As per information given to us the Income Tax demand for A.Y.
1996-97, 1997-98 & 1998-99 along with the interest and penalty have
been fully deleted by the Honorable ITAT as per the order dated
23.03.2011 & 04.05.2011. The appeal for penalty of Rs. 13,69,656/- for
A.Y. 2001-01 is pending before CIT (A).
10. The clause of accumulated losses etc is not applicable to company.
11. Since no loan has been obtained from any bank by company this
clause is not applicable.
12. In our opinion and according to the explanations given to us and
based on the information available, 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 / nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. The Company is not in dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) is not applicable.
15. 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. Therefore, the provisions of paragraph
4 (xv) of the said Order are not applicable to the Company.
16. In our opinion and according to the information and explanations
given to us, the Company has not taken any Term loans.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long term investment.
18. 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 issue any Debenture during the year.
20. The Company has not raised any monies by way of public issues
during the year.
21. In our opinion and according to the information and explanations
given to us, no material fraud on or by the Company has been noticed or
reported during the year.
For Hardik H Shah & Associates
Chartered Accountants
(Firm Registration No. 131390W)
Sd/-
CA Hardik H Shah
Proprietor
Membership No. 137026
Place : Mumbai
Date : 27th May, 2014
Mar 31, 2013
We have audited the accompanying financial statements of Sheetal
Diamonds Limited ("the Company"), which comprise the Balance Sheet as
at March 31,2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
b) in the case of the Profit and Loss Account, of the loss for the year
ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31,2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to Auditors'' Report
(Referred to in Paragraph 3 of our report of even date)
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, 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) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
a) The inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3. The company has not taken/granted unsecured loans, to/from
companies, firms or other parties listed in the registrar maintained
under section 301 of the Companies Act, 1956. Accordingly, provisions
of clause 4 (iii) (b) to (d) of the Order are not applicable.
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
purchases 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. According to information and explanations given to us, we are of
the opinion that there are no transactions that need to be entered in
the register maintained under Section 301 of the Companies Act, 1956.
Accordingly provisions of clause 4 (v) (b) of the Order are not
applicable.
6. According to the infonnation and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Section 58A & 58AA of the Companies Act, 1956 and Rules
framed there under are not applicable.
7. In our opinion, the Company does not have internal audit system
commensurate with the size and nature of its business, but as per
information and explanation given by the management there is an
adequate internal control system.
8. To the best of our knowledge and belief, the Central Government has
not prescribed maintenance of cost records under clause (d) of
sub-section (1) of Section 209 of the Act, in respect of the services
rendered by the Company. Accordingly, the provisions of clause 4(viii)
of the Order are not applicable.
9. According to the information and explanations given to us in
respect of statutory dues:
a) According to the information and explanations given to us, Company
is not having any employee on whom statutory liability including
Provident Fund, E.S.I.C. is applicable. Other undisputed statutory dues
in respect of custom duty, excise duty, sales tax, service tax,
withholding taxes, cess as applicable and any other statutory dues have
been regularly deposited with the appropriate authorities. There are no
arrears of Statutory Dues as on 31st March, 2013.
b) As per information given to us the Income Tax demand for A.Y.
1996-97, 1997-98 & 1998-99 along with the interest and penalty have
been fully deleted by the Honorable ITAT as per the order dated
23.03.2011 & 04.05.2011. The appeal for penalty of Rs. 13,69,656/- for
A.Y. 2001-02 is pending before ITAT.
10. The clause of accumulated losses etc is not applicable to company.
11. Since no loan has been obtained from any bank by company this
clause is not applicable.
12. In our opinion and according to the explanations given to us and
based on the information available, 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 / nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. The Company is not in dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) is not applicable.
15. 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. Therefore, the provisions of paragraph
4 (xv) of the said Order are not applicable to the Company.
16. In our opinion and according to the information and explanations
given to us, the Company has not taken any Term loans.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long term investment.
18. 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 issue any Debenture during the year.
20. The Company has not raised any monies by way of public issues
during the year.
21. In our opinion and according to the information and explanations
given to us, no material fraud on or by the Company has been noticed or
reported during the year.
For Hardik H Shah & Associates
Chartered Accountants
(Firm Registration No. 131390W)
Sd/-
CA Hardik H Shah
Proprietor
Membership No. 137026
Place: Mumbai
Date : 30th May, 2013
Mar 31, 2010
We have audited the attached Balance Sheet of SHEETAL DIAMONDS LIMITED
as at 31st March, 2010 and also the Profit & 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.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating to the overall financial
statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) Order, (Amendment) 2004
issued by the Central Government of India in terms of section 227 (4A)
of the Companies Act, 1956, we enclose in the Annexure, a statement on
the matters specified in paragraph 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the company.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
e) On the basis of the 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;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with Other Notes
give a true and fair view in conformity with the accounting principles
generally accepted in India;
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010; and ii. In the case of the Profit and
Loss Account, of the profit of the Company for the year ended on that
date; iii. In the case of the Cash Flow Statement, of the cash flows
for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 1 of is our Report of even date of SHEETAL
DIAMONDS LIMITED as at 31st March, 2010.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details of Fixed Assets and
situation of fixed assets.
(b) The company has physically verified Fixed Assets at reasonable
intervals and no material discrepancies were noticed on such
verification.
(c) None of the Fixed Assets have been disposed off during the year.
2. (a) The Inventory has been physically verified by the management at
reasonable intervals during the year.
(b) The procedure of physical verification of Inventory followed by the
management is reasonable and adequate in relation to the size of the
company and nature of its business.
(c) The Company is maintaining proper records of inventory and the
discrepancies noticed on verification between the physical stock and
the book records were not material and the same have been properly
dealt with in the books of accounts.
3. The company has not taken / granted unsecured loans, to/ from
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, provisions
of clause 4 (iii) (b) to (d) of the Order are not applicable.
4. In our opinion, and according to explanation given to us, there is
adequate internal control procedure Ocommensurate with the size of the
Company and the nature of its business with regard to the purchase of
inventories, fixed assets and for the sale of goods. There is no
continuing failure to correct weakness in internal control.
5. According to the information and explanations given to us, we are
of the opinion that there are no transactions that need be entered in
the register maintained under Section 301 of the Companies Act, 1956.
Accordingly provisions of clause 4(v) (b) of the Order are not
applicable.
6. According to the information and explanation given to us, during
the year under review, the company has not accepted any Deposits from
the public and hence provisions of section 58A and 58AA of the
Companies Act, 1956 and Rules framed there under are not applicable.
7. The Company has no internal audit system.
8. We have been informed that the maintenance of cost records has not
been prescribed by the Central Government under section 209(1) (d) of
the Companies Act, 1956 for any of the products of the company.
9. a) According to the information and explanations to us, the Company
is not having any employee on whom statutory liabilities including
Provident Fund, E.S.I.C. is applicable. Other statutory liabilities
i.e. VAT, wealth Tax, Service Tax, Customs Duty, Excise Duty, cess and
other applicable statutory dues wherever applicable are deposited with
appropriate authorities . There are no arrears of statutory dues as at
31st March, 2010 except Income Tax which are outstanding for a period
of more than six month from the date they became payable.
b)As per information given to us there is disputed demand pending for
payment in respect of Income Tax including present status for the same
before Appellate authority is as per table given here under
INCOME TAX - ASSESSEES POSITION AS ON 31st MARCH, 2010
ASSESSMENT YEAR TAX INTEREST PENALITY REMARK
1996-1997 10952070.00 18036750.00 9256921.00 ITAT
1997-1998 4374905.00 6262520.00 4384903.00 ITAT
1998-1999 2357929.00 282348200 7065684.00 ITAT
2001-2002 - - 1369656.00 CIT (A)
17684904.00 27122752.00 22077164.00
10. The Clause of accumulated losses etc is not applicable to the
company.
11. We have observed that the company has not defaulted in repayment
of Dues to Bank, since no loan has been obtained from any Bank by the
Company.
12. Company has not granted loans & Advances on the basis of security
etc. hence no discrepancies thereof arise.
13. The Provisions of Nidhi / Mutual benefit Fund/ Society etc. are
not applicable to the Company.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly the provisions of clause
4 (xiv) of the Order are not applicable to the company.
15. Company has not given any Guarantee for loans taken by others and
hence other provision are not applicable.
16. Company has not obtained any term loan during the year from Banks
/ F.I. and hence application of loan, for specific purpose clause is
not applicable.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the, we report that no
funds raised on short term basis have been used for long term
investment by the Company.
18. No preferential Allotment of shares etc. has been made by the
Company; hence other clauses are not applicable.
19. No Debentures are issued by the Company.
20. There was no raising of money by Public issue.
21. In accordance with the information and explanations given to us
and, on our examination of books and records, no frauds on or by the
company has been noticed or reported during the year.
For KAMLESHB. MEHTA & CO.
CHARTERED ACCOUNTANTS
Sd/-
Place : Mumbai Kamlesh B.Mehta
Date : 4th September, 2010 (Proprietor)
Member Ship No.36323
Mar 31, 2009
We have audited the attached Balance Sheet of SHEETAL DIAMONDS LIMITED
as at 31st March, 2009 and also the Profit & 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.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating to the
overall financial statements presentation. We believe that our audit
provides a reasonable basis for our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) Order, (Amendment) 2004
issued by the Central Government of India in terms of section 227 (4A)
of the Companies Act, 1956, we enclose in the Annexure, a statement on
the matters specified in paragraph 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the company.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3Q of Section 211 of the
Companies Act, 1956;
e) On the basis of the written representations received from the
Directors as on 31st March, 2009 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2009 from being appointed as a Director 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, the said accounts read with Other Notes
give a true and fair view in conformity with the accounting principles
generally accepted in India;
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31s1 March, 2009; and
ii. In the case of the Profit and Loss Account, of the Loss of the
Company for the year ended on that date;
iii. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 1 of is our Report of even date of SHEETAL
DIAMONDS LIMITED as at 31st March, 2009.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details of Fixed Assets and
situation of fixed assets.
(b) The company has physically verified Fixed Assets at reasonable
intervals and no material discrepancies were noticed on such
verification.
(c) None of the Fixed Assets have been disposed off during the year.
2. (a) The Inventory has been physically verified by the management at
reasonable intervals during the year.
(b) The procedure of physical verification of Inventory followed by the
management is reasonable and adequate in relation to the size of the
company and nature of its business.
(c) The Company is maintaining proper records of inventory and the
discrepancies noticed on verification between the physical stock and
the book records were not material and the same have been properly
dealt with in the books of accounts.
3. The company has not taken / granted unsecured loans, to/ from
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, provisions
of clause 4 (iii) (b) to (d) of the Order are not applicable.
4. In our opinion, and according to explanation given to us, there is
adequate internal control procedure Ocommensurate with the size of the
Company and the nature of its business with regard to the purchase of
inventories, fixed assets and for the sale of goods. There is no
continuing failure to correct weakness in internal control.
5. According to the information and explanations given to us, we are
of the opinion that there are no transactions that need be entered in
the register maintained under Section 301 of the Companies Act, 1956.
Accordingly provisions of clause 4(v) (b) of the Order-are not
applicable.
6. According to the information and explanation given to us, during
the year under review, the company has not accepted any Deposits from
the public and hence provisions of section 58A and 58AA of the
Companies Act,. 1956 and Rules framed there under are not applicable.
7. The Company has no internal audit system.
8. We have been informed that the maintenance of cost records has not
been prescribed by the Central Government under section 209(1) (d) of
the Companies Act, 1956 for any of the products of the company.
9. a) According to the information and explanations to us, the Company
is not having any employee on whom statutory liabilities including
Provident Fund, E.S.I.C. is applicable. Other statutory liabilities
i.e. VAT, wealth Tax, Service Tax, Customs Duty, Excise Duty, cess and
other applicable statutory dues wherever applicable are deposited with
appropriate authorities . There are no arrears of statutory dues as at
31st March, 2008 except Income Tax which are outstanding for a period
of more than six month from the date they became payable.
b)As per information given to us there is disputed demand pending for
payment in respect of Income Tax including present status for the same
before Appellate authority is as per table given here under
INCOME TAX - ASSESSEES POSITION AS ON 31st MARCH, 2008
ASSESSMENT YEAR TAX INTEREST PENALITY REMARK
1996-1997 10952070.00 18036750.00 9256921.00 ITAT
1997-1998 4374905.00 6262520.00 4384903.00 ITAT
1998-1999 2357929.00 2823482.00 7065684.00 ITAT
2001-2002 - - 1369656.00 CIT(A)
17684904.00 27122752.00 22077164.00
10. The Clause of accumulated losses etc is not applicable to the
company.
11. We have observed that the company has not defaulted in repayment
of Dues to Bank, since no loan has been obtained from any Bank by the
Company.
12. Company has not granted loans & Advances on the basis of security
etc. hence no discrepancies thereof arise.
13. The Provisions of Nidhi/ Mutual benefit Fund/Society etc. are not
applicable to the Company.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly the provisions of clause
4 (xiv) of the Order are not applicable to the company.
15. Company has not given any Guarantee for loans taken by others and
hence other provision are not applicable.
16. Company has not obtained any term loan during the year from Banks
/ F.I." and hence application of loan, for specific purpose clause is
not applicable.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the, we report that no
funds raised on short term basis have been used for long term
investment by the Company.
18. No preferential Allotment of shares etc. has been made by the
Company; hence other clauses are not applicable.
19. No Debentures are issued by the Company.
20. There was no raising of money by Public issue.
21. In accordance with the information and explanations given to us
and, on our examination of books and records, no frauds on or by the
company has been noticed or reported during the year.
For KAMLESHB. MEHTA & CO.
CHARTERED ACCOUNTANTS
Sd/-
Place : Mumbai Kamlesh B.Mehta
Date : 10th August, 2009 (Proprietor)
Member Ship No.36323