Mar 31, 2015
1. We have audited the accompanying financial statements of SOVEREIGN
DIAMONDS LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2015, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. The management and Board of Directors of the Company are
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 Companies (Accounts) Rules, 2014. This
responsibility 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; design, implementation and maintenance of adequate internal
financial controls, that are operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error
Auditor's Responsibility
3. 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 thereunder. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. 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 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 accounting policies used and the reasonableness of
the accounting estimates made by the Company's management and Board of
Directors, as well as evaluating the overall presentation of the
financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at March 31,2015, its profit and its cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters Specified in paragraphs 3 and 4 of the Order.
8. As required by section 143(3) of the Act, we further report that:
a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
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 aforesaid financial statements comply with the
applicable Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules 2014
e) on the basis of written representations received from the directors
as on March 31,2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2015, from being
appointed as a director in terms of Section 164(2) of the Act
f) In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Note
26 to the financial statements..
ii. The Company did not have any long-term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise
iii. There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of delay in transferring such sums does
not arise
Annexure referred to in paragraph 7 Our Report of even date to the
members of SOVEREIGN DIAMONDS LIMITED on the accounts of the company
for the year ended March 31, 2015
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
I. a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, physical verification of the fixed assets was
conducted by management annually, which in our opinion, is reasonable
looking to the size of the Company and nature of it's business.
According to the information and explanation given to us no material
discrepancies were noticed on such verification.
II. a) Physical verification of inventory has been conducted at
reasonable intervals by the management.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
III. The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Act.
IV. In our opinion and according to the information and explanations
given to us, it appears that there are adequate internal control
procedures commensurate with the size of Company and the nature of its
business with regard to purchase of inventories, fixed assets, sale of
goods and services. During the course of our audit, we have not
observed any major weaknesses in internal control.
V. The Company has not accepted any deposits from the public.
VI. The maintenance of cost records has not been prescribed by the
Central Government under section 148 of the Companies Act 2013.
VII. a) The Company is regular in depositing undisputed statutory dues
including provident fund, income tax, wealth tax, sales tax, employees'
state insurance, custom duty and other statutory dues with appropriate
authorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, employees' state insurance, custom duty and other statutory
liabilities were in arrears as at the last day of the financial year
for a period exceeding six months from the date they became payable.
c) There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of reporting delay in transferring such
sums does not arise.
VIII. The Company has no accumulated losses at the end of the financial
year and has not incurred any cash losses during the year covered by
our audit and the immediately preceding financial year.
IX. In our opinion and according to information and explanations given
to us the Company has not defaulted in repayment of dues to financial
institutions or banks.
X. On the basis of information and explanation given to us the Company
has not given any guarantee for loans taken by others from banks or
financial institution.
XI. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
XII. 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 J.D. ZATAKIA & COMPANY
CHARTERED ACCOUNTANTS
FIRM REGN. NO. 111777W
Place : Mumbai. J. D. ZATAKIA - PROPRIETOR
Date : 30th May, 2015 MEMBERSHIP NO. 17669
Mar 31, 2014
We have audited the accompanying financial statements of SOVEREIGN
DIAMONDS LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, the Statement of profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information. Management''s
Responsibility for the 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 notifed under the Companies
Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013 and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
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 suffcient 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 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Statement of profit and Loss, of the profit of the
Company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227 (4A) 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, 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 Balance Sheet, the Statement of profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
notifed under the Act read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013.
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 Section 274 (1)(g) of the Companies
Act, 1956.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT REFERRED TO IN PARAGRAPH 3
OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF SOVEREIGN DIAMONDS LIMITED
1) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, physical verifcation of the fixed assets was
conducted by management annually, which in our opinion, is reasonable
looking to the size of the Company and nature of it''s business.
According to the information and explanation given to us no material
discrepancies were noticed on such verifcation.
c) The fixed assets disposed of during the year, in our opinion, do not
constitute a substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
2) a) Physical verifcation of inventory has been conducted at
reasonable intervals by the management.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verifcation of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verifcation of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
d) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties, covered in the register maintained
under section 301 of theCompanies Act, 1956. Accordingly, sub-clauses
3(b), 3(c), 3(d) are not applicable to the company.
e) The Company had taken loans 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. 2.42 Lacs and the yearend
balance of loans taken were Rs. 2.42 Lacs.
f) There is no stipulation as regards payment of interest and principal
amount.
4) In our opinion and according to the information and explanations
given to us, it appears that there are adequate internal control
procedures commensurate with the size of Company and the nature of its
business with regard to purchase of inventories, fixed assets, sale of
goods and services. During the course of our audit, we have not
observed any major weaknesses in internal control.
5) According to the information and explanations given to us, there are
no transactions made in pursuance of contracts/arrangements, that need
to be entered into the Register maintained under section 301 of the
Companies Act, 1956.
6) The Company has not accepted any deposits from the public.
7) The Company has no formal internal audit department as such but its
control procedures ensure reasonable internal checking of its financial
and other records.
8) As informed to us, the company is maintaining cost records as
prescribed by the Central Government under section 209 (1) (d) of the
Companies Act, 1956. We have not, however made a detailed examination
of these records.
9) a) The Company is regular in depositing undisputed statutory dues
including provident fund, income tax, wealth tax, sales tax, employees''
state insurance, custom duty and other statutory dues with appropriate
authorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, employees'' state insurance, custom duty and other statutory
liabilities were in arrears as at the last day of the financial year for
a period exceeding six months from the date they became payable.
10) The Company has no accumulated losses at the end of the financial
year and has not incurred any cash losses during the year covered by
our audit and the immediately preceding financial year.
11) In our opinion and according to information and explanations given
to us the Company has not defaulted in repayment of dues to financial
institutions or banks.
12) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) The Company is not a chit fund, nidhi, mutual benefit or a society.
14) In our opinion, the Company has not dealt or traded in shares,
securities, debentures or other investments during the year.
15) On the basis of information and explanation given to us the Company
has not given any guarantee for loans taken by others from banks or
financial institution.
16) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
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 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 no debentures.
20) The Company has not raised any money by public issue during the
year.
21) 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 J.D. ZATAKIA & COMPANY
CHARTERED ACCOUNTANTS
FIRM REGN. NO. 111777W
sd/-
Place : Mumbai. J. D. ZATAKIA - PROPRIETOR
Date : 26th May, 2014 MEMBERSHIP NO. 17669
Mar 31, 2013
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of SOVEREIGN
DIAMONDS LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2013, the State- ment of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Com- pany 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 presen- tation 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 is closures 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 circum- stances. 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, 2013;
b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and 1c) in the case of the Cash Flow
Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") 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; except as
regards provisions for gratuity and leave encashment as required by AS
15 (revised) and as mentioned in Note No. 1:13.
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 THE AUDITORS'' REPORT REFERRED TO IN PARAGRAPH 3 OF OUR RE-
PORT OF EVEN DATE TO THE MEMBERS OF SOVEREIGN DIAMONDS LIMITED
1) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, physical verification of the fixed assets was
conducted by management annually, which in our opinion, is reasonable
looking to the size of the Company and nature of it''s business.
According to the information and explanation given to us no material
discrepancies were noticed on such verification.
c) The fixed assets disposed of during the year, in our opinion, do not
constitute a substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
2) a) Physical verification of inventory has been conducted at
reasonable intervals by the management.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
(3) a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties, covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, sub-clauses
3(b), 3(c), 3(d) are not applicable to the company.
b) The Company had taken loans 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. 12.57 Lacs and the yearend
balance of loans taken were Rs. 2.42 Lacs.
c) There is no stipulation as regards payment of interest and principal
amount.
4) In our opinion and according to the information and explanations
given to us, it appears that there are adequate internal control
procedures commensurate with the size of Company and the nature of its
business with regard to purchase of inventories, fixed assets, sale of
goods and services. During the course of our audit, we have not
observed any major weaknesses in internal control.
5) a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transac- tions that need to be entered into the
register maintained under Section 301 have
been so entered. b) In our opinion and according to the information
and explanations given to us, the transactions made in pursuance of
contracts/arrangements entered in the Register maintained under section
301 of the Companies Act, 1956 and exceeding the value of Rs. 5,00,000
in respect of each party during the year have been made at prices which
appear reasonable as per information available with the company.
6) The Company has not accepted any deposits from the public.
7) The Company has no formal internal audit department as such but its
control procedures ensure reasonable internal checking of its financial
and other records.
8) As informed to us, the company is maintaining cost records as
prescribed by the Central Government under section 209 (1) (d) of the
Companies Act, 1956. We have not, how- ever made a detailed examination
of these records.
9) a) The Company is regular in depositing undisputed statutory dues
including provident fund, income tax, wealth tax, sales tax, employees''
state insurance, custom duty and other statutory dues with appropriate
authorities. b) According to the information and explanations given to
us, no undisputed amounts payable in respect of income tax, wealth tax,
sales tax, employees'' state insurance, custom duty and other statutory
liabilities were in arrears as at the last day of the financial year
for a period exceeding six months from the date they became payable.
10) The Company has no accumulated losses at the end of the financial
year and has not incurred any cash losses during the year covered by
our audit and the immediately preceding financial year
11) In our opinion and according to information and explanations given
to us the Company has not defaulted in repayment of dues to financial
institutions or banks.
12) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) The Company is not a chit fund, nidhi, mutual benefit or a society.
14) In our opinion, the Company has not dealt or traded in shares,
securities, debentures or other investments during the year.
15) On the basis of information and explanation given to us the Company
has not given any guarantee for loans taken by others from banks or
financial institution.
16) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
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 any preferential allotment of shares to
parties and compa- nies covered in the Register maintained under
section 301 of the Companies Act, 1956.
19) The Company has no debentures.
20 The Company has not raised any money by public issue during the
year. 21) 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 J.D. ZATAKIA & COMPANY
CHARTERED ACCOUNTANTS
FIRM REGN. NO. 111777W
sd/-
Place: Mumbai. (J.D. ZATAKIA - PROPRIETOR)
Date: 25th May, 2013 MEMBERSHIP NO. 17669
Mar 31, 2012
1. West have audited the attached Balance Sheet of SOVEREIGN DIAMONDS
LIMITED, as at 31st March 2012, the Statement of Profit and Loss and
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our Audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) order 2003,
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of The Companies Act, 1956, and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we enclose hereto a statement on the matters specified in
paragraphs 4 and 5 of the said order to the extent applicable.
4. Further to our comments in the Annexure referred to in paragraph
(3) above :
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of account as required by Law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by the: report, are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
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, to the extent applicable, except as
regard provision for gratuity and leave encashment as required by AS 15
(revised) and as mentioned in Note No 1.13.
e) On the basis of written representations received from Directors as
on 31st March, 2012 and taker 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 Director in terms of Clause (g) of
sub-section (1) o: section 274 of the Companies Act, 1956.
In our opinion and to the best of our information and according to the
explanations given to us, the said financial statements together with
notes thereon, give the information required by the Companies Act,
1956, in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India.
i. in the case of Balance Sheet of the state of affairs of the Company
as at 31s March, 2012.
ii. in the case of the Statement of Profit and Loss, of the Profit of
the Company fo: the year ended on that date and
iii. in the case of the Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
1) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed assets.
b) As explained to us, physical verification of the fixed assets was
conducted by management annually, which in our opinion, is reasonable
looking to the siz of the Company and nature of it's business.
According to the information an explanation given to us no material
discrepancies were noticed on such verification.
c) The fixed assets disposed of during the year, in our opinion, do not
constitute a substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
2) a) Physical verification of inventory has been conducted at
reasonable intervals the management.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies notice on physical verification of inventory as compared
to the book records were no material and have been properly dealt with
in the books of account.
(3) a) The Company has not granted any loans, secured or unsecured to
companies, firms o other parties, covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, sub-clauses
3(b), 3(c), 3(d) are not applicable to the company.
b) The Company had taken loans from three parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 30.05 Lacs and the
yearend balance o loans taken were Rs. NIL.
c) There is no stipulation as regards payment of interest and principal
amount.
4) In our opinion and according to the information and explanations
given to us, it appears that there are adequate internal control
procedures commensurate with the size of Company and the nature of its
business with regard to purchase of inventories, fixed assets, sale of
goods and services. During the course of our audit, we have not
observed any major weaknesses in internal control.
5) a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under Section 301 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of
contracts/arrangements entered in the Register maintained under section
301 of the Companies Act, 1956 and exceeding the value oi Rs. 5,00,000
in respect of each party during the year have been made at prices which
appear reasonable as per information available with the company.
6) The Company has not accepted any deposits from the public.
7) The Company has no formal internal audit department as such but its
control procedures ensure reasonable internal checking of its financial
and other records.
8) We have been informed that the Central Government has not prescribed
maintenance of cost records under section 209 (1) (d) of The Companies
Act, 1956.
9) a) The Company is regular in depositing undisputed statutory dues
including provident fund, income tax, wealth tax, sales tax,
employees' state insurance, custom duty and other statutory dues with
appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of income tax, wealth tax, sales
tax, employees' state insurance, custom duty and other statutory
liabilities were in arrears as at the last day of the financial year
for a period exceeding six months from the date they became payable.
The Company has no accumulated losses at the end of the financial year
and has not incurred any cash losses during the year covered by our
audit and the immediate preceding financial year.
11) In our opinion and according to information and explanations given
to us the Company has not defaulted in repayment of dues to financial
institutions or banks
12) The Company has not granted loans and advances on the basis of
security by we; of pledge of shares, debentures and other securities.
13) The Company is not a chit fund, nidhi, mutual benefit or a society.
14) In our opinion, the Company has not dealt or traded in shares,
securities, debenture or other investments during the year.
15) On the basis of information and explanation given to us the Company
has not given any guarantee for loans taken by others from banks or
financial institution.
16) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
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 raise on short-term basis 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 no debentures.
20 The Company has not raised any money by public issue during the
year.
21) 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 J.D. ZATAKIA & COMPANY
CHARTERED ACCOUNTANTS
FIRM REGN. NO. 111777W
Place : Mumbai
Date : 02nd August, 2012
J. D. ZATAKIA - PROPRIETOR MEMBERSHIP NO. 17669
Mar 31, 2011
1. We have audited the attached Balance Sheet of SOVEREIGN DIAMONDS
LIMITED, as at 31st March, 2011 and also the Profit and Loss Account
and the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
CompanyÃs management. Our responsibility is to express an opinion on
these financial statements based on our Audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (AuditorÃs Report) order 2003, issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of The Companies Act, 1956, and on the basis of such checks
of the books and records of the Company as we considered appropriate
and according to the information and explanations given to us, we
enclose hereto a statement on the matters specified in paragraphs 4 and
5 of the said order to the extent applicable.
4. Further to our comments in the Annexure referred to in paragraph
(3) above:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of account as required by Law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report, are in agreement with the books of account.
d) In our opinion, Balance Sheet, Profit and Loss Account and Cash Flow
statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956, to the
extent applicable, except as regard provision for gratuity and leave
encashment as required by AS 15 (revised) and as mentioned in Note No.
1 (g) and 7 and non-provisions for doubtful debts as mentioned in note
no. 18.
e) On the basis of written representations received from Directors as
on 31st March, 2011 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March,
2011 from being appointed as 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 accounts (together with notes there
on) give the information required by the Companies Act, 1956, in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
i. in the case of Balance Sheet of the state of affairs of the Company
as at 31st March, 2011
ii. in the case of Profit and Loss Account, of the Profit of the
Company for the year ended on that date and
iii. in the case of the Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
ANNEXURE TO THE AUDITORSÃ REPORT REFERRED TO IN PARAGRAPH 3 OF OUR
REPORT OF EVEN DATE TO THE MEMBERS OF M/S SOVEREIGN DIAMONDS LIMITED
1) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, physical verification of the fixed assets was
conducted by management annually, which in our opinion, is reasonable
looking to the size of the Company and nature of itÃs business.
According to the information and explanation given to us no material
discrepancies were noticed on such verification.
c) The fixed assets disposed of during the year, in our opinion, do not
constitute a substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
2) a) Physical verification of inventory has been conducted at
reasonable intervals by the management.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
3) a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties, covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, sub-clauses
3(b), 3(c), 3(d) are not applicable to the company.
e) The Company had taken loans from two parties covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 24.28 Lacs and the year end
balance of loans taken were Rs. 20.05 Lacs.
f) There is no stipulation as regards payment of interest and principal
amount.
4) In our opinion and according to the information and explanations
given to us, it appears that there are adequate internal control
procedures commensurate with the size of Company and the nature of its
business with regard to purchase of inventories, fixed assets, sale of
goods and services. During the course of our audit, we have not
observed any major weaknesses in internal control.
5) In our opinion, and according to the information and explanations
given to us, there are no transactions that need to be entered into a
register in pursuance of section 301 of the Companies Act, 1956.
6) The Company has not accepted any deposits from the public.
7) The Company has no formal internal audit department as such but its
control procedures ensure reasonable internal checking of its financial
and other records.
8) We have been informed that the Central Government has not prescribed
maintenance of cost records under section 209 (1) (d) of The Companies
Act, 1956.
9) a) The Company is regular in depositing undisputed statutory dues
including provident fund, income tax, wealth tax, sales tax, employeesÃ
state insurance, custom duty and other statutory dues with appropriate
authorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, employeesà state insurance, custom duty and other statutory
liabilities were in arrears as at the last day of the financial year
for a period exceeding six months from the date they became payable.
10) The Company has no accumulated losses at the end of the financial
year and has not incurred any cash losses during the year covered by
our audit and the immediately preceding financial year.
11) In our opinion and according to information and explanations given
to us the Company has not defaulted in repayment of dues to financial
institutions or banks.
12) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) The Company is not a chit fund, nidhi, mutual benefit or a society.
14) In our opinion, the Company has not dealt or traded in shares,
securities, debentures or other investments during the year.
15) On the basis of information and explanation given to us the Company
has not given any guarantee for loans taken by others from banks or
financial institution.
16) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
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 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 no debentures.
20 The Company has not raised any money by public issue during the
year.
21) 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 J.D. ZATAKIA & COMPANY
CHARTERED ACCOUNTANTS
FIRM REGN. NO. 111777W
J. D. ZATAKIA - PROPRIETOR
MEMBERSHIP NO. 17669
Place : Mumbai
Date : 30th August, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of SOVEREIGN DIAMONDS
LIMITED, as at 31st March, 2010 and also the Profit and Loss Account
and the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our Audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) order 2003, issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of The Companies Act, 1956, and on the basis of such checks
of the books and records of the Company as we considered appropriate
and according to the information and explanations given to us, we
enclose hereto a statement on the matters specified in paragraphs 4 and
5 of the said order to the extent applicable.
4. Further to our comments in the Annexure referred to in paragraph
(3) above :
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of account as required by Law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report, are in agreement with the books of account.
d) In our opinion, Balance Sheet, Profit and Loss Account and Cash Flow
statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956, to the
extent applicable.
e) On the basis of written representations received from 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 Director in terms of Clause (g) of
sub-section (1) of section 274 of the Companies Act,1956 except as
regard provision for gratuity and leave encashment as required by AS 15
(revised) and as mentioned in Note No. 1 (g) and 7, and non-provisions
for doubtful debts as mentioned in note no. 18.
f) In our opinion and to the best of our information and according to
the explanations given to us, the accounts (together with notes there
on) give the information required by the Companies Act, 1956, in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
i. in the case of Balance Sheet of the state of affairs of the Company
as at 31st March, 2010
ii. in the case of Profit and Loss Account, of the Profit of the
Company for the year ended on that date and
iii. in the case of the Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT REFERRED TO IN PARAGRAPH 3 OF OUR
REPORT OF EVEN DATE TO THE MEMBERS OF M/S SOVEREIGN DIAMONDS LIMITED
1) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, physical verification of the fixed assets was
conducted by management annually, which in our opinion, is reasonable
looking to the size of the Company and nature of its business.
According to the information and explanation given to us no material
discrepancies were noticed on such verification.
c) The fixed assets disposed of during the year, in our opinion, do not
constitute a substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
2) a) Physical verification of inventory has been conducted at
reasonable intervals by the management.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
(3) a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties, covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, sub-clauses
3(b), 3(c), 3(d) are not applicable to the company.
e) The Company had taken loans from two parties covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 32.82 Lacs and the year end
balance of loans taken were Rs. 20.78 Lacs.
f) There is no stipulation as regards payment of interest and principal
amount.
4) In our opinion and according to the information and explanations
given to us, it appears that there are adequate internal control
procedures commensurate with the size of Company and the nature of its
business with regard to purchase of inventories, fixed assets, sale of
goods and services. During the course of our audit, we have not
observed any major weaknesses in internal control.
5) In our opinion, and according to the information and explanations
given to us, there are no transactions that need to be entered into a
register in pursuance of section 301 of the Companies Act, 1956.
6) The Company has not accepted any deposits from the public.
7) The Company has no formal internal audit department as such but its
control procedures ensure reasonable internal checking of its financial
and other records.
8) We have been informed that the Central Government has not prescribed
maintenance of cost records under section 209 (1) (d) of The Companies
Act, 1956.
9) a) The Company is regular in depositing undisputed statutory dues
including provident fund, income tax,
wealth tax, sales tax, employees state insurance, custom duty and
other statutory dues with appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, employees state insurance, custom duty and other statutory
liabilities were in arrears as at the last day of the financial year
for a period exceeding six months from the date they became payable.
10) The Company has no accumulated losses at the end of the financial
year and has not incurred any cash losses during the year covered by
our audit and the immediately preceding financial year.
11) In our opinion and according to information and explanations given
to us the Company has not defaulted in repayment of dues to financial
institutions or banks.
12) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) The Company is not a chit fund, nidhi, mutual benefit or a society.
14) In our opinion, the Company has not dealt or traded in shares,
securities, debentures or other investments during the year.
15) On the basis of information and explanation given to us the Company
has not given any guarantee for loans taken by others from banks or
financial institution.
16) According to information and explanation given to us the Company
has not obtained term loan during the year.
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 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 no debentures.
20) The Company has not raised any money by public issue during the
year.
21) 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 J.D. ZATAKIA & COMPANY
CHARTERED ACCOUNTANTS
Place : Mumbai.
Date : 29.07.2010 (J.D. ZATAKIA - PROPRIETOR)
MEMBERSHIP NO. 17669