We have audited the accompanying financial statements of M/s. Anugraha
Jewellers Limited (the Company), which comprise the Balance Sheet as
at March 31, 2014, Profit and Loss and the Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (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.
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
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 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; and
b) in the case of the Profit and Loss Account, of the Loss for the year
ended on that date;
c) 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, issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the said
2. We further 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
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
c) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
d) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement comply with the Accounting Standards notified
under the Act read with the General Cicrular 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 sub-section (2) of section 164 of
the Companies Act, 2013.
The Annexure referred to in paragraph 1 of Our Report of even date to
the members of ANUGRAHA
JEWELLERS LIMITED on the accounts of the company for the year ended
31st March, 2014.
a. The company has maintained proper records showing full particulars
Including quantitative details and situation of its fixed assets.
b. All the assets have not been physical verified by the management
during the year but there is regular programme of verification which,
in our opinion is regular programme of verification which, in our
opinion, is reasonable having regard to the size of the company and the
nature of its assets. No material discrepancies were noticed on such
c. During the year, the company has disposed of substantial part of
fixed asset comprising land, building, pant & Machinery, furniture &
fixture and office equipments. Based on the information and explanation
given by the management and on the basis of audit procedures performed
by us, we are of the opinion that the sale of the said assets has not
affected the going concern status of the Company
a. The inventories has been physically verified during the year by the
management. In our opinion the frequency of verification I reasonable.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c. The Company is maintaining proper records of its inventories. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
a. According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
b. According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (f) & (g) are not applicable to the company.
iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories & fixed assets and for
sale of goods and services. Further, on the basis of our examination of
books and records of the Company, we have neither come across nor have
been informed of any continuing failure to correct major weaknesses in
the aforesaid internal control procedure.
v) According to the information and explanation provided by the
management, there have been no contracts or arrangements during the
period that need to be entered into the register maintained under
Section 301 of the Companies Act, 1956. Therefore, the provisions of
clause (v)(a) and (b) of the Companies (Auditors'' Report) Order, 2003
are not applicable
vi) The Company has not accepted or renewed any deposits from the
public, the directives issued by the Reserve Bank of India and the
provisions of Section 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under are not
applicable. No order has been passed by the Company Law Board or
National Company Tribunal or Reserve Bank of India or any court or any
vii) The Company has no formal internal audit department as such.
However, its control procedures ensure reasonable internal checking of
its financial and other records.
viii) To the best of our knowledge and as explained, the Central
Government has not prescribed the maintenance of cost records under
clause (d) of sub-section (1) of section 209 of the Companies Act, 1956
for the products of the Company.
a. The Company is regular in depositing with appropriate authorities
undisputed statutory dues including fund, investor education protection
fund, employees'' state insurance, income-tax, sales-tax, wealth-tax,
customs duty, excise duty, cess and other material statutory dues
applicable to it.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth-tax,
sales-tax, customs duty, excise duty and cess were in arrears, as at
31st March, 2014 for the period of more than six months from the date
the become payable.
c. According to the information and explanation given to us, there are
no dues deposited on account of any dispute.
x) The net worth of the Company as on 31-3-2014 has completely eroded.
The company has incurred cash loss during the year and also In the
immediate preceding financial.
xi) No default towards repayment of dues to any financial institution
or bank exists on the balance sheet date for our examination of the
books of accounts and the information and explanations given to us. The
Company has not issued any debentures and hence any default for
repayment on this account does not arise.
xii) According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi /mutual
benefit fund/society. Therefore, the provision of the clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
xiv) The Company has maintained proper records of transactions and
contracts in respect of trading in shares, securities and other
investments and timely entries have been made therein. All shares and
other investments have been held by the company in its own name.
xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loan taken by
others from a bank or financial institution and hence we have no
comments to offer in respect of clause 4(xv) of the Companies (Audit
Report) order, 2003
xvi) There was no term loan raised or outstanding during the year.
xvii) According to the information and explanations given to us, and an
overall examination of the balance sheet of the company, we report that
no funds raised on short-term basis have been used for long-term
xviii) The Company had not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956 during the year.
xix) Since no debentures have been issued by the Company, the
requirements of para (xix) are not applicable.
xx) The Company has not raised any money by public issue during the
xxi) According to the information and explanations given to us, no
fraud on or by company has been noticed or reported during the course
of our audit.
For Pradeep Gupta
Mem No. 048979
PAN : AAAPG7628N
Mumbai. Dated 27th May, 2014